2. Songwriter Royalties
• Songwriter signs a contract
transferring ownership of a copyright
in a musical composition to a
publisher
• Publisher then agrees to handle the
business and pay royalties to the
writer
• 50% publisher share; 50% writer
3. The Standard Contract
• “Standard” contracts vary widely. They
do have some common elements and
typical percentages and royalty
amounts.
4. The Standard Contract
• Contracts typically limit writer’s share to a
specific list of sources
• Hard to include all monies that publisher will
split with writer; can’t possibly list all sources –
especially in emerging technologies
• A catch-all says that the “writer will get 50% of
all other monies not referred to in the
agreement”
5. Standard Contracts
• Share of Advances – a writer should get a share
in any advance paid to the publisher if the
advance is specifically for that writer’s
compositions.
• Example – publisher issues a license at less than
statutory rate and gets an advance or guaranteed
payment for one particular song. Writer should get
their share when publisher receives their advance.
• Writer’s agreement should state that the writer
shares in any advances given to the publisher
specifically for their compositions.
6. Standard Contracts
• When publishing company is affiliated with a record
company (ala Warner/Chappell), writer wants the
agreement to state that the publisher can’t issue
“sweetheart” deals to the label
• Should state that they can’t issue a license to their own
label at less than customary rates
• Publishing company could do this and make up more
than the publishing loss on the records; writer wouldn’t
• 360 deals where record companies “encourage” the
artist to sign with their affiliated publisher makes this
point even more important
7. Standard Contracts
• Performance Monies
• ASCAP, BMI, and SESAC pay the writers directly
• Because of this, agreements say that writers don’t
share in any performance monies received by the
publisher
• Agreement should prohibit the publisher from
cross-collateralizing advances with performance
monies
8. Charges Against Royalties
• No songwriting agreement should charge the
writer for anything other than:
1. Demos (recording costs)
2. Collection costs (Harry Fox fees, lawsuits, etc.)
3. Subpublishing Fees
• All other costs (administration, copyrighting,
advertising, etc) are part of the publisher’s cost
of doing business and why they get 50%. Writer
should never be charged with those expenses.
9. Accountings
• Publishers typically pay writers within 60 to 90
days after the end of each semiannual period
(June 30 and December 31.
• Most agreements limit the amount of time that
writer can contest their accounting statements
• Typically have one year to object or lose the right
to do so. Can sometimes be extended to two or
three years.
10. DART, Webcasting, and Interactive
Streaming Monies
• DART monies are paid directly to writers and
publishers by performance rights societies, so
publisher doesn’t get the money first then split it
with the writer.
• Mechanicals for interactive streaming and
downloads are paid to publisher who pays the
writer 50%
11. Term Agreements
• Term songwriter agreement – writer agrees to give the
publisher all songs written during the term.
• Analogous to a record deal, but instead of making records,
it’s writing songs.
• Usually tied to the delivery of a minimum number of
songs (MDC or Minimum Delivery Commitment) as well
as a number of years.
• Typical term is three years; one firm year plus two options.
• Typical delivery is at least twelve songs per year
• Note – that’s 12 100% songs; 24 songs if co-written with one
other writer; 33 if three-way, etc.
12. Term Agreements
• Term songwriter agreements (particularly in Nashville)
typically pay an advance (called a “draw”) against
future royalties.
• Draw can be anywhere from a few hundred dollars to
$2,500 per month for established writers.
• Trend now is for lower monthly draws and more toward
advances only on songs that are recorded and
released
• Same as record deals; advances are recouped from
royalties. Writer doesn’t receive writer’s share until
publisher recoups all advance money
13. Delivery Requirements
• Minimum Delivery – the number of songs needed to
move the term forward or to qualify for the next
advance.
• Ex – if 12 songs are the agreed minimum, that’s 12
songs that the publisher owns 100% of the publishing.
• If the writer writes a song by themselves, then the
publisher gets 100% of the publishing and it counts as
one song against the minimum delivery requirements.
• If written with a co-writer, the publisher only owns 50%
of the publishing and it only counts as ½ of a song
against the minimum delivery. Get the picture?
14. Delivery Requirements
• How many co-written songs would it take to satisfy a
12-song minimum delivery?
• Two writers (most common split) @ ½ song = 24
songs
• Three writers @ 1/3 song = 36 songs
• Question: a writer with a 12-song minimum per year
writes one song by himself, 18 songs with one other
writer, and 2 three-way songs. Has this writer satisfied
their delivery requirement?
15. Delivery Requirements
• Solo-written song: 1 song
• 18 songs at ½ song: 9 songs
• 2 songs at 1/3 song 0.66 song
10.66 songs
No! Number of titles doesn’t equal number of songs
to a publisher. 21 titles; only 10.66 songs!
16. Delivery Requirements
• What happens? Writer has to write more songs.
• Note – songs have to be accepted by the publisher;
can’t just be something the writer threw down to get
out of the requirements.
• Deal term goes on until all minimum song delivery
requirements are met.
• Writer must continue writing with no advance until
requirements are met.
17. Prior Songs
• Many songwriting agreements have language that gives the
publisher all of the songs the writer wrote before the term of
the deal (that is - all that aren’t published by someone else).
• Writer should get and advance for handing over any prior
songs to the publisher, or use this to increase an existing
advance offer.
• Often the only way to get a deal is to come with a bunch of
songs already written to assign to the publisher.
• With clout, writer can keep rights but allow publisher to
administer the prior songs during the term, and get the rights
to the songs back at the end of the term if the publisher
didn’t get them cut.
18. Collaboration
• Collaboration is the writing of songs by two or
more people
• Publisher wants 100% of the copyright of any
song their writer composes; impossible to get,
particularly if the other writer is signed to another
publisher who wants the same thing
• Typical compromise solution is that the publishers
split copyright and administration costs and rights.
19. Song Divisions
• Historically, 50% of the song went to the writer of
the music, 50% to the lyricist (25% if two lyricists,
etc).
• Now, especially in rap/hip hop, creators of the
track get a piece of the song as well.
• If samples (parts of other songs) are included,
then the writer(s) of the sampled song get a piece
of the publishing, too.
20. Creative Control
• United States doesn’t accept moral rights obligations
like many foreign countries, so writers’ agreements
must spell out what a publisher can’t do with their
songs without the writer’s approval.
• Need to include language that says publisher can’t:
• Change lyrics (except very minor style changes)
• Change title
• Grant synch licenses to films or commercial for products
that the writer finds objectionable (X or NC-17 films, racy
scenes in R films, commercials for alcohol, tobacco,
politics, personal hygiene, etc.)
21. Reversion of Copyright
• Reversion is a negotiated contractual provision
that means that the publisher must give the
copyrights back to the writer at some point in the
future.
• Typical requirements to trigger a reversion are that the
songs didn’t get recorded and released during the term
or for a specified time period after the term ends –
typically two years after the term for a writer with clout;
four to five years for a beginning writer.
• Typically can’t get a reversion if the writer is
unrecouped. Writer can pay the balance of advances
to get copyrights back. Make sure repayment of
advance is an option only.
