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

Publishing History 1698, 1st book published in America The Bay Psalm Book

1770, William Billings, 1st Published American Composer

1790, 1st Copyright Law

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

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

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

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

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

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

Types of Publishers

Major, Independent, the Administered & Administering, Print Licenses, Manager-Publishers, Lawyer-Publishers, Multinational Media Conglomerates, and Subpublishers

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)

Types of Publishers cont. Record Company Affiliates - Publishing/Recording Package.

Possible Conflict of Interest, Pressure to Sign, Cross Collateralization Potential

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

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

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.

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%

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

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

Administration Departments Royalty Dept. Copyright Dept. - copyright search (who really owns), register copyrights, recording transfers, liaison with Harry Fox, records of expirations etc.

Administration Departments Legal - copyrights, songwriter contracts, licensing contracts, tax laws, recording industry

Print - editing, printing, warehousing, distribution, electronic distribution

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

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

Contracts cont. Term - songs could “revert” after exiration, no recordings, or recoupment of advances

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

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

Contracts cont Advances & Royalties - 1) Monthly Salary “nonreturnable” advances on royalties

2) 50% of net receipts (gross) mechanical & performance (unless publishing is “split”)

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

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.

Contracts cont Promotion Expenses - who pays for audio & visual demos?

What amount is recoupable? 50% Do demos “revert” to the writer?

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.

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”

Contracts cont Right of Assignment - can assign if sale of “substantial portion of publisher assets.” AND assignee assumes responsibilities of 1st publisher.

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?

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.

Split Publishing Standard split is writer 50%, publisher 50%.

A writer with record deal, or other clout might also split the publisher shareWriter 50%Publisher/Writer 50% (25% each)

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.

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.

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

Income Sources Movies, Videos, Games= Synchronization Royalties- Publisher License

Jukeboxes - Performance Royalties from PROs

Foreign _ from Subpublishers & Regional PROs

Harry Fox Agency Issues Mechanical Licenses Collects Mechanical Royalties for Publishers

Distributes Mechanical & Sync fees, prior to 2002

Conducts Royalty ExaminationsPursues Piracy Claims