Music
publishing assets are intellectual properties that can
create cash flows in the following ways:
I
Mechanical
Royalties:
Mechanical
royalties are those funds derived from the actual reproduction
of musical works in paper, vinyl, electronic media,
and whatever way somebody will come up with next that
embodies another persons idea, that allows them to duplicate
it, and sell it. In some instances the amount of royalties
paid are controlled by statute, as is the case with
commercially released sound only recordings. These so
called 'statutory mechanical rates' vary from country
to country and are often a negotiable item in a recording
contract (it's a standard practice by many U.S. record
companies to pay 75% of the statutory rate to their
own artists ) The mechanical royalties paid on other
media, (print for example) are negotiable and are subject
to the whims of the market and the individuals involved.
Synchronization
Fees:
These
are funds earned when music or lyrics are synchronized
to a film, video, game, toy, etc. The fees are 100%
negotiable and are very idiosyncratic.
Performance
and Broadcast Royalties:
These
are royalties earned from the performances of music
on the radio, television, theaters, nightclubs, juke
boxes, restaurants and I hope someday arcades. The primary
function of ASCAP, BMI and SESAC is the collection of
performance royalties and the distribution of most performance
funds to their members. This is one reason it's important
for a writer to be affiliated with one of these organizations.
How performances are surveyed and collected is rather
complex and changes from country to country.
Grand
Rights:
This
refers to the idea or story that a work may embody.
The classic examples of this is "The Ode To Billy
Joe" or "The Gambler," where the story
of the song was turned into a film, full length television
program, books, etc. The composer as the originator
of the idea controls the rights to the story, provided
his work was copyrighted in such a way as to protect
them.
II
New
Media:
Music
publishing is one of the oldest international businesses
and has always been forced to contend with new technologies.
In the last few years new venues of exploitation have
forced music publishers to license a whole new array
of users of music. Karaoke, direct broadcasts, on-line
radio, on line record sales and delivery, MP3, etc.
have presented publishers with new sources of revenues.
In many what are already well established sub-sets of
the music industry there still is no 'custom of the
trade.' Publishers and those that are using the music
are still making up the rules of the game.
It
is not always in a writers best interest to be his own
publisher. An existing publisher may be able to exploit
your work more fully than you can as an individual.
Should you be fortunate enough to have one of your songs
covered by another artist, your publisher can see to
it that royalties will be collected in markets and territories
where you don't have the time, effort or expertise to
look after your business. What kind of arrangement you
make with either your publisher or record company is
negotiable. There is no "standard contract."
Certain customs of the trade predominate among publishers,
record labels and artists and you are times obliged
to accept them. As you become more successful you have
more options.
Please
recognize that music publishing copyrights are different
from the copyrights involved in the recordings you make.
These "masters" have their own copyrights
separate from the songs themselves and are licensed
and administered as separate entities. That's usually
the job of the record company.
As
an artist who creates both the songs and recordings
you can share in the incomes from both. You will get
synchronization fees, mechanical and performance royalties
from the reproduction and sales of your songs. Sales
royalties that accrue from the sales of your records
and related items are another matter. What arrangements
you make for your services and payment will vary depending
on the project and the people involved.
As
a songwriter it is extremely important that you make
the effort to file copyright forms for the works you
are creating, especially those that are part of commercially
available products. It is the best way to show your
clear title to them and gives you certain privileges
under law. You can get the forms from the Office Of
Copyright at the Library Of Congress. Go out and buy
two books. "This Business of Music" by Shemel
& Krasilovsky, and "Music Publishing, A Songwriter's
Guide" by Randy Poe. They have many answers to
questions people commonly ask and are two of the best
source books available.
