1. Music Publishing
Marketing & Administrating the Rights to
songwriter’s compositions
Print Publishing is a small part of that
business
Mechanical Royalties from Recording
Performance Royalties from Broadcast &
Live
2. Publishing History
1698, 1st book published in America The
Bay Psalm Book
1770, William Billings, 1st Published
American Composer
1790, 1st Copyright Law
3. Publishing History cont.
1850-1900 Minstrel Shows music popular,
Publishers fill market
1890s, Player piano, 1st “recorded” music
Performances in Theaters and Vaudeville
drive market for print music
4. Publishing History cont.
1900, Popular Music Big Business, 100
songs million sellers
1909 Copyright Law gives Mechanical
Royalties
1914, ASCAP forms to collect
Performance royalties
1920, 1st Radio Broadcast, later uses
music
5. Publishing History cont.
1927, Sound Motion Picture (Talkies)
Negotiate Synchronization Royalties
Harry Fox Agency Established
Radio becomes Major Source of
Performance Royalties
1939, 85% homes Had Radio
6. Publishing History cont.
1939 BMI begins, Licensed Music/Writers
the ASCAP Ignored
1948, 33 1/3 RPM LP(10 mechanicals)
and 45 RPM
1950s, Television Kills Live Music on
Radio
7. Publishing History cont.
1950s, Radio DJs become hit-makers
1970s, Radio Shortens Playlist Below Top
40
1980s MTV Begins,
Invention of CD, old copyrights earn new
mechanicals. Sound digitized
1990s, Internet and new music delivery
issues. Compression of digital sound files
8. Publishing History cont.
2000 Apple iTunes, iPod create new
industry
File sharing reduces mechanicals
Video games, DVD, TV, Film,
Commercials help Sync Income
2000 Sound Exchange formed to collect
digital transmission royalties
9. Types of Publishers
Major, Independent, the Administered &
Administering, Print Licenses,
Manager-Publishers, Lawyer-Publishers,
Multinational Media Conglomerates, and
Subpublishers
10. Types of Publishers
Major Publisher- Beginnings Tin Pan
Alley, Broadway, & Hollywood
“Full Line” i.e., printing, sheet music, song
plugging, long-term writer relationships.
(see corporate structure p. 61)
11. Types of Publishers cont.
Record Company Affiliates -
Publishing/Recording Package.
Possible Conflict of Interest, Pressure to
Sign, Cross Collateralization Potential
12. Types of Publishers
Independent Publishers - some one-
person, some large
Some Only Administer i.e.,register
copyrights with LOC and PROs, collect &
track royalties, accounting, no exploitation
13. Types of Publishers
Artist-Owned & Writer-Owned Publishers
- Established writers earn more, can farm
out administration.
Unknown artists & writers need the
exploitation provided by a publisher
14. Types of Publishers
Educational Publishers - These are the
Publishers you have known during your
yrs of schooling. Lesson books, band,
choir, marching band, piano, etc.
15. Types of Publishers
Specialty Publishers - Specialize in one
type, country, Christian, Banjo, etc.
Concert Music - “Classical” Music
Print Licensees -farming our the print
publishing for approx. 20%
16. Subpublishing
Foreign affiliates or independent
licensees exploit copyright: cover
records, print editions. They collect
Mechnical & Performance Royalties.
The split is 75-80% to 20-25% licensee.
Collection Deal - collect for 10-15%
Subpublishing - more active exploitation
17. At-Source Deals
At-Source Deal - royalties based on
income earned in foreign country, before
deductions by subpublisher
Receipts-Based Deal - royalties based on
money received by the publisher, after
deductions
18. Administration Departments
Royalty Dept.
Copyright Dept. - copyright search (who
really owns), register copyrights,
recording transfers, liaison with Harry
Fox, records of expirations etc.
20. Administration Departments
Creative or A&R (Artists & Repertoire) -
Sign new writers, work with writers already
under contract, plug songs to artists &
labels, seek other uses (commercials,
merchandising), TV, Cable, Films
Catalog Acquisition - catalog valued by
annual earnings (3-5 yr period) X 5-10
21. Contracts: Publisher’s
Perspective
Appointment - engages writer, exclusive
services, not “work made for hire”
Term - Length of contract, usually 1 yr.
Options. Pay is “advance” on royalties.
Option should be tied to increased
advance or recording of songs.
*Songwriter should not be able to deny
option
22. Contracts cont.
Term - songs could “revert” after
exiration, no recordings, or recoupment of
advances
23. Contracts cont.
Assignment - writer assigns copyright of
(old) Songs and agree to deliver # new
songs Rights “throughout the world”.
Songs on “First Refusal’ basis
*If writer is getting advance $ publisher
would not allow another publisher
involvement
24. Contracts cont
Warranty - the songs belong to the writer.
“Indemnifies” the publisher against “loss”
& “attorneys fees” for “breach” of
warranty. Meaning “infringement” of pre-
existing copyrights.
*would want to spell out the procedures
used when there is an infringement claim
25. Contracts cont
Advances & Royalties -
1) Monthly Salary “nonreturnable”
advances on royalties
2) 50% of net receipts (gross) mechanical
& performance (unless publishing is
“split”)
26. Contracts cont
3) Mechanical should not be at a lower that
statutory rate (publisher affiliation?)
*all recording contracts want 75% mechanical rate
4) 10% on printed editions
No Cross-collateralization with record company.
5) writer has approval of co-writers & arrangers
27. Contracts cont
Who pays arranger, orchestrator, editor,
copyist. Recoupable?
Foreign Rights - “arms length”. Publisher
paid no less then 75% of income earned
at the source.
28. Contracts cont
Promotion Expenses - who pays for audio
& visual demos?
What amount is recoupable? 50%
Do demos “revert” to the writer?
29. Contracts cont
Right To Audit -
No time limit for audit set (with
reasonable notification)
Writer pays, except if more than x% of
sum of royalty statement.
30. Contracts cont
Creative Rights - Publisher has right to
make minimal changes, but
With “consent of writer.”
to 1) hire lyricist, 2) make substantive
changes, 3) grant synchronization license
to sexual explicit films, 4) License for
commercials, 5) grant “Dramatic Rights”
31. Contracts cont
Right of Assignment - can assign if sale of
“substantial portion of publisher assets.”
AND assignee assumes responsibilities of
1st publisher.
32. Contracts cont
Reversion - If recording goal not reached.
Extension could be granted for X months.
Maybe another advance payment? Do
advances need to be recouped?
33. Contracts cont
Default, Cure - Either party asserts that
the other is in “Default of Breach” shall
notify by certified mail. Allowed 30days to
cure the breach.
Arbitration - agree to submit disputes to
American Arbitration Association.
34. Split Publishing
Standard split is writer 50%, publisher
50%.
A writer with record deal, or other clout
might also split the publisher share
Writer 50%
Publisher/Writer 50% (25% each)
35. Split Publishing “Cut In”
Someone with a financial interest, or the
recording artist may be “Cut In” (get a
portion of royalties)
OK, but should have limitations: length of
time, for a single recording or income
derived from it.
36. Sampling
Technical definition: 44.1
Use of anothers SR copyright (“New
Use”)
Licensed use: flat fee or royalty points.
Depends on the type of New Use.
37. Income Sources
TV, Radio, Cable, Live, In-Flight, Dance
Studios=Performance Royalties (PROs)
Mechanicals from Record Distribution -
from Record Label & Harry Fox
Sheet Music Sales - from Publisher
License
38. Income Sources
Movies, Videos, Games= Synchronization
Royalties- Publisher License
Jukeboxes - Performance Royalties from
PROs
Foreign _ from Subpublishers & Regional
PROs
39. Harry Fox Agency
Issues Mechanical Licenses
Collects Mechanical Royalties for
Publishers
Distributes Mechanical & Sync fees, prior
to 2002
Conducts Royalty Examinations
Pursues Piracy Claims