Part 2: Songwriting, Publishing, Copyright, and Licensing

Chapter 5

Start Thinking Once song is written, what’s the next step? How does it get from the writer to the customer?

Chapter Goals Acquire an understanding of how music publishing companies are structured and how they function today. Learn how a publisher selects, then promotes, new material. Gain an understanding of the essential elements of a songwriter publishing contract. Identify a publisher’s potential income sources.

Music Publishing Heart of music publishing industry no longer “print” business now marketing and administration of rights key to success is how well publishers exploit music and generate royalties “Keep your publishing!”

Types of Publishers Major Companies Wide range of musical styles in catalogs Origins in Hollywood Broadway Tin Pan Alley Offer full line of services

Types of Publishers Major Companies [Insert Figure 5.1]

Types of Publishers Recording Company Affiliates Full line publishers Often operate independently of record label Acquire extensive catalogs Publishing/recording deals can be good for new artists

Types of Publishers Independent Publishers Not associated with multinational publisher or label Many are members of AIMP Some independents administrative duties only (for a fee) little or no exploitation Other independents old-style publishing and songplugging

Types of Publishers Independent Publishers [Insert Figure 5.2]

Types of Publishers Independent Publishers Artist-owned companies keep all publishing income generally publish only their compositions not involved in print publishing negotiate subpublishing deals abroad Writer-owned companies control copyrights and get songs published control promotion

Types of Publishers Educational Publishing Limit catalog to music intended for students and schools choirs, marching bands, concert bands Biggest sellers = piano + guitar Bench packs

Types of Publishers Specialty Publishers Limited to one genre of music, e.g., Christian Country music = largest independent publishers Most specialty publishers are small Prosper from sales + print business

Types of Publishers Concert Music Classical music: opera, symphony, ballet, recital, choral, religious music Special editions for school orchestras and choirs Income = rental + licensing of scores, instrumental, & vocal parts Maintain catalogs of older European music Publish works of 20th century serious composers

Types of Publishers Print Licensees Few music publishers print; they license to print companies Print firm bears full cost pays licensor royalty on sales (often 20% of wholesale) = selling agent Major publishers may bear full cost print firm receives distribution fee (20% of sales)

Subpublishing Subpublishing Agreements Major publishers have branch offices in foreign countries exploit American catalogs acquire compositions in foreign territories Independents seek subpublishers foreign independents affiliates of multinational companies The Harry Fox Agency

Subpublishing Subpublishing Agreements Royalty splits 80/20 or 90/10 advances paid based on projected success 3-year deals local PROs collect royalties

Subpublishing At-Source Deals vs. Receipts-Based Deals Multinational companies (ONLY) offer at-source deals At-source deal shares calculated on income earned in territory BEFORE deductions by subpublisher Receipts-based deal shares calculated on income earned in territory AFTER deductions by subpublisher Agreements for multiple territories

Administration Royalty Department Managed by accountant or finance person Handles receipts disbursements fields inquiries

Administration Copyright Department 1. Conducts title searches 2. Registers claims of copyright 3. Records transfers of copyright ownership 4. Forms a liaison with The Harry Fox Agency to issue and administer mechanical licenses 5. Keeps records of subsisting copyrights and their pending expiration and termination dates

Administration Legal and Business Affairs Lawyers must be expert in: copyright law music publishing tax law artist management recording industry

Administration Print Publishing Operations Editing for print publications correct errors in notation rewrite portions to make musical sense notation software changed print publications [Insert Photo 4.2]

Administration Print Publishing Operations The print production line 1. piece of music accepted for publication 2. title of ownership confirmed 3. claim to copyright registered 4. arranger scores piano-voice version 5. printer prints the music 6. printer ships and/or drop ships copies of music 7. promotion/advertising department generate sales 8. publisher pays author royalties based on sales volume

Administration Distribution Most publishers sublicense and merely receive royalties Print trail: publisher  print publisher  rack jobber  retailer  customer Online sales online aggregators music retailers’ websites publisher’s website

Administration Creative Department 1. Discover and sign new writers 2. Maintain good working relationships with writers under contract 3. Persuade artists and producers to record the writer’s music 4. Secure synch licenses for film, TV, and commercials; negotiate favorable rates when licensing uses of the copyrights 5. Search out ancillary uses of those copyrights

Administration Creative Department Sources for new material: writers currently or recently hot on the charts recommendations from the field writer already under contract Catalog acquisitions

Contracts With Writers Refer to pages of the text for a sample contract.

Split Publishing, Copublishing Sharing of publishing income, not responsibilities Administration can be difficult PROs split performance royalties HFA splits mechanical royalties and synchronization fees Contract needed for sharing synchronization fees A single song may have multiple authors and multiple publishers Cut ins

Copyright Protection: Sampling Sampling: 1. the process by which the amplitude and frequency of some sound waves are measured and reproduced 2. digital copying of portions of existing recordings for use in other recordings Permission for sampling must be obtained Sampling = lucrative subsector of music industry

Promotion, Advertising Popular Music Main concern of publisher = getting music recorded and broadcast Song casting Cover records Digital promotion Synchronization promotion

Promotion, Advertising Educational Field Promotion of music intended for student and school use: 1. direct mail campaigns 2. ads in music education journals 3. reading clinics 4. Internet

Promotion, Advertising Classical Field Remind customers of great music of the past Rentals of scores and parts for performance and recording Performance fees for dramatic musical works Ads placed in music journals Overlap with educational field

Income Sources Type of Music UseWho Pays the Publisher Broadcast performancePublisher’s PRO (from broadcasters) Nonbroadcast performancesPublisher’s PRO (from venues) Mechanical royaltiesRecording company Sheet music salesPublisher’s print music licensee Synchronization of musicMovie, video or game producers Special permissions licensesPublisher’s licensee JukeboxesPublisher’s PRO Dramatic (or grand rights)Producer of the dramatic performance Foreign rightsSubpublishers; reciprocating PROs Table 5.2 Publisher’s Potential Income Sources

Income Sources [Insert Figure 5.3] Source: Warner Music Group Corp Annual Report, New York, Note: Not all publishers classify revenue sources the same way.

Trade Associations National Music Publishers’ Association Performs services through The Harry Fox Agency Provides leadership for the music publishing/songwriting community Helps to formulate policy regarding protection of copyrights in an age of advancing technology payment of royalties for electronic delivery of music throughout the world

Trade Associations The Harry Fox Agency, Inc. Established in 1927 as an information source, clearinghouse, and monitoring service for licensing musical copyrights 1. mechanical licensing 2. royalty collection and distribution 3. royalty compliance

Trade Associations Association of Independent Music Publishers Formed in 1977 to educate and inform local music publishers about industry trends and practices Members includes publishers affiliated with record labels, motion picture and TV companies individuals from entertainment community

For Further Thought... If the heart of the music industry is no longer about the print business, but about exploiting rights, what avenues for income are available to publishers? What are the different types of publishers, and how do they differ in focus? What are the implications of the shift in publishing revenues away from mechanical royalties in favor of performance fees and synch licenses?