Sometimes I hear songwriters talk about wanting a "publishing deal" without even really understanding what that means. Depending on the circumstances of each writer and the terms of the particular contract, sometimes no publishing deal is better than the wrong publishing deal.
The term "publishing", most simply, means the business of song copyrights. Under US copyright law, a songwriter owns 100% of his song copyright and all the related publishing rights until the songwriter signs those rights away. Under the law, a copyright (literally, the right to make and sell copies) automatically vests in the author or creator of a work the moment the expression of an idea is "fixed in a tangible medium." (i.e., the moment it is written down or recorded on tape.) With respect to recorded music, there are really two copyrights: the copyright in the musical composition owned by the songwriter and the copyright in the sound of the recording owned by the recording artist (but usually transferred to the record company when a record deal is signed).
The term "publishing", most simply, means the business of song copyrights. Under US copyright law, a songwriter owns 100% of his song copyright and all the related publishing rights until the songwriter signs those rights away. Under the law, a copyright (literally, the right to make and sell copies) automatically vests in the author or creator of a work the moment the expression of an idea is "fixed in a tangible medium." (i.e., the moment it is written down or recorded on tape.) With respect to recorded music, there are really two copyrights: the copyright in the musical composition owned by the songwriter and the copyright in the sound of the recording owned by the recording artist (but usually transferred to the record company when a record deal is signed).
A writer owns the
copyright in his or her work the moment he or she writes it down or records it, and by law can only
transfer those rights by signing a written agreement to transfer them.
Therefore, a songwriter must be wary of any agreement he or she is asked to
sign. Although it is not necessary, it is advisable to place a notice of
copyright on all copies of the work. This consists of the symbol "c"
or the word "copyright", the author's name, and the year in which the
work was created, for example: "(c) John Doe 2020."
The filing of a
copyright registration form in Washington D.C. provides additional protection in
so far as it establishes a record of the existence of such copyright and gives
the creator the presumption of validity in the event of a lawsuit. Registration also allows for lawsuits to be
commenced in Federal court and, under Federal law, allows an award of attorneys
fees to the prevailing party. To order forms and for additional information on
copyright registration go to www.loc.gov\copyrights. These days, a songwriter can register for a copyright on line.
As defined by the
copyright law, the word "publish" most simply means
"distribution of copies of a work to the public by sale or other transfer
of ownership, or by rental lease, or lending". As a practical matter, the music publishing business consists primarily of all administrative duties, exploitation
of copyrights, and collection of monies generated from the exploitation of
those copyrights. If a writer makes a publishing deal and a publisher takes on
these responsibilities then that publisher "administers" the compositions. Administrative duties range from filing all
the necessary registrations (i.e., copyright forms) to answering inquiries
regarding the musical compositions.
One important function of a music publisher is exploitation of a composition or
"plugging" a song. Exploitation simply means seeking out different
uses for musical compositions. Sometimes a music publisher will have professional quality demos
prepared and send them to artists and producers to try to secure recordings of the songs.
They may also use these tapes to secure usage in the television, film and
advertising industries (known as a "synchronization" use).
Equally important
as exploitation is the collection of monies earned by these musical usages. Particularly in in the digital age, when transactions amount to billions and payments to fractions of pennies, the administration of song copyrights and the collection of revenues can be a complicated and massive undertaking. There are two primary sources of income for a music publisher: earnings that
come from record sales (i.e., mechanical royalties from both physical and digital copies) and revenues that come from
broadcast performances (i.e., performance royalties). Mechanical royalties are collected directly
from the record companies and paid to the publisher. Performance royalties are
collected by performing rights organizations (e.g., ASCAP, BMI, and SESAC in the United States and different entities in each other country) and then
distributed proportionately to the publisher and to the songwriter. In addition
to plugging and administrative functions, it is also important to know that
there is a creative side to music publishing. Since producing hit songs is in
the best interest of both the writer and the publisher, good music publishers
have whole departments devoted to helping writers grow and develop. The
creative staff finds and signs new writers, works with them to improve their
songs, pairs them up creatively with co-writers and hopes the outcome will be
hit records.
A publishing deal concerns rights and revenues. If a writer
decides to do a publishing deal then the main issue for negotiation is going to
be the language pertaining to the calculation and division of the rights in the copyright and division of the monies earned. In
the old days, most deals were 100% copyright to the publisher and 50/50 share of the revenues because there was a concept that the
"writer's share" was 50% and the "publisher's share" was
50%. This, of course, was an invention of the publishers. Legally, these terms
have no such inherent meaning but their calculation is defined in each
individual agreement. Most modern publishing deals, however, are referred to as
"co-publishing" deals where the copyrights are co-owned 50/50 and the monies are usually calculated at around
75/25 meaning the writer gets 100% of the 50% writer's share and 50% of the
publisher's 50% share for a total of 75%. It is best for the writer to insist
that all calculations be made "at source" so that there are not too
many charges and fees deducted off-the-top before the 75% calculation is made. Keep in mind, however, that the advance paid to the writer by
the publisher is later recouped by the publisher out of the writer's share of
income from the song. So, the net business effect is that the publisher pays
the writer with the writer's own money to buy a share of the copyright (and the
right to future income) from the writer.
Although a writer
can be his own publisher and retain 100% of the money, the larger publishers in
the music business usually pay substantial advance payments to writers in order
to induce them to sign a portion of their publishing rights to the publisher -
and this can be a good thing for the writer. Although a deal for a single song
may be done with little or no advance payment (provided there is a reversion of
the song to the writer if no recording is released within a year or two), there
should be a substantial advance paid ($5,000-$100,000+) to a writer for any
publishing deal with a longer term (e.g., 3-5 years or more). Moreover, sometimes the length of an agreement is more than just a function of time, it might also be determined based on the number of songs delivered by the writer or, even more difficult to calculate, based on the number of songs that get recorded and released on a major label (something neither the writer nor the publisher may have any control over).
Publishing deals
have to do with more than just the money though. Since every music publisher is
different, it is important for the songwriter to assess both the business and
the creative sides of a music publisher before signing any deal. Ultimately, the songwriter is trading a share of something the writer already owns 100% of (the song copyright) so it is important to be mindful of what it is exchanged for by way of services and money.
Wallace Collins is an entertainment and intellectual property lawyer. He was a recording artist for Epic Records before receiving his law degree from Fordham Law School. Tel: (212) 661-3656; www.wallacecollins.com
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