1. Part 2: Songwriting, Publishing, Copyright, and Licensing

2. Chapter 5

3. Start Thinking... 1. Once a song is written, what’s the next step? How does it get from the writer to the customer?

4. 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.

5. Music Publishing Heart of music publishing industry no longer “print” business now marketing and administration of rights “Keep your publishing!”

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

7. Types of Publishers Major Companies

8. 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

9. Types of Publishers Independent Publishers Not associated with multinational publisher or label Many members of AIMP Some independents administrative duties only little or no exploitation Other independents old-style publishing and songplugging

10. Types of Publishers Independent Publishers

11. 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

12. 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

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

14. 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 Some publishers are subsidized

15. Types of Publishers Print Licensees Few music publishers print; they license to print company 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)

16. 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

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

18. Subpublishing At-Source Deals Versus Receipts-Based Deals Multinational companies 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

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

20. 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

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

22. Administration Print Publishing Operations Editing for print publications correct errors in notation rewrite portions to make musical sense notation software changed print publications

23. 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 drop ships copies of music 7. promotion/advertising department generate sales 8. publisher pays author royalties based on sales volume

24. Administration Distribution Most publishers sublicense and merely receive royalties Print trail: publisher  print publisher  rack jobber  retailer  customer Online sales online aggregators music retailers’ Web sites publisher’s Web site

25. 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

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

27. Contracts With Writers Refer to pages 72 - 76 of the text for a sample contract.

28. Split Publishing, Copublishing Sharing of publishing income (but not necessarily administration duties) Administration is best left to those with experience and resources Example: If publishing is split between label affiliated publisher and songwriter’s publishing company, label affiliated publisher should handle administration (usually for a 10% fee) Harry Fox can be engaged to handle some of the administration (mechanical and synch royalties)

29. Copyright Protection: Sampling Sampling can refer to the process of recording digital audio, or: Sampling can refer to digitally copying a portion of an existing recording for use in another recording Permission in the form of a license must be obtained from both the copyright owner of the song and the copyright owner of the recording (usually the record label that released it) If permission is not obtained and a record containing a sample is released, that is copyright infringement

30. Promotion, Advertising Popular Music: Publisher’s main goal is getting their music recorded and broadcast to the public. This is usually done through direct personal contacts Song Casting = matching songs with performers – formerly the job of staff producers or A&R staff – some record producers trust the “song casting” ability of publishers enough to send requests for material for a particular artist or project Cover Records (see notes – page 9)

31. Promotion, Advertising Digital Promotion = new paradigm for publishing and record business – can also be done by DIY artists Synchronization Promotion – “synch” fee for film, TV and commercials have doubled in the last few years Some publishers have “synch experts” who pitch material to music supervisors (film & TV) and ad agencies

32. Promotion, Advertising Educational Field Promotion of music for student and school use Direct Mail Ads in music ed journals Reading clinics Internet – Email marketing (links to publishers web site) Classical Field Rentals of scores and parts Ads in music journals Overlap with educational field

33. 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 4.2 Publisher’s Potential Income Sources

34. Income Sources

35. 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 copyright infringement protection of copyrights in an age of advancing technology payment of royalties for electronic delivery of music throughout the world

36. 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. digital licensing 3. royalty compliance 4. royalty collection and distribution

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

38. 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?