1. Music Publishing
 Marketing & Administrating the Rights to
songwriter’s compositions
 Print Publishing is a small part of that
business
 Mechanical Royalties from Recording
 Performance Royalties from Broadcast &
Live

2. Publishing History
 1698, 1st book published in America The
Bay Psalm Book
 1770, William Billings, 1st Published
American Composer
 1790, 1st Copyright Law

3. Publishing History cont.
 1850-1900 Minstrel Shows music popular,
Publishers fill market
 1890s, Player piano, 1st “recorded” music
 Performances in Theaters and Vaudeville
drive market for print music

4. Publishing History cont.
 1900, Popular Music Big Business, 100
songs million sellers
 1909 Copyright Law gives Mechanical
Royalties
 1914, ASCAP forms to collect
Performance royalties
 1920, 1st Radio Broadcast, later uses
music

5. Publishing History cont.
 1927, Sound Motion Picture (Talkies)
Negotiate Synchronization Royalties
 Harry Fox Agency Established
 Radio becomes Major Source of
Performance Royalties
 1939, 85% homes Had Radio

6. Publishing History cont.
 1939 BMI begins, Licensed Music/Writers
the ASCAP Ignored
 1948, 33 1/3 RPM LP(10 mechanicals)
and 45 RPM
 1950s, Television Kills Live Music on
Radio

7. Publishing History cont.
 1950s, Radio DJs become hit-makers
 1970s, Radio Shortens Playlist Below Top
40
 1980s MTV Begins,
 Invention of CD, old copyrights earn new
mechanicals. Sound digitized
 1990s, Internet and new music delivery
issues. Compression of digital sound files

8. Publishing History cont.
 2000 Apple iTunes, iPod create new
industry
 File sharing reduces mechanicals
 Video games, DVD, TV, Film,
Commercials help Sync Income
 2000 Sound Exchange formed to collect
digital transmission royalties

9. Types of Publishers
Major, Independent, the Administered &
Administering, Print Licenses,
Manager-Publishers, Lawyer-Publishers,
Multinational Media Conglomerates, and
Subpublishers

10. Types of Publishers
 Major Publisher- Beginnings Tin Pan
Alley, Broadway, & Hollywood
“Full Line” i.e., printing, sheet music, song
plugging, long-term writer relationships.
(see corporate structure p. 61)

11. Types of Publishers cont.
 Record Company Affiliates -
Publishing/Recording Package.
 Possible Conflict of Interest, Pressure to
Sign, Cross Collateralization Potential

12. Types of Publishers
 Independent Publishers - some one-
person, some large
 Some Only Administer i.e.,register
copyrights with LOC and PROs, collect &
track royalties, accounting, no exploitation

13. Types of Publishers
 Artist-Owned & Writer-Owned Publishers
- Established writers earn more, can farm
out administration.
 Unknown artists & writers need the
exploitation provided by a publisher

14. Types of Publishers
 Educational Publishers - These are the
Publishers you have known during your
yrs of schooling. Lesson books, band,
choir, marching band, piano, etc.

15. Types of Publishers
 Specialty Publishers - Specialize in one
type, country, Christian, Banjo, etc.
 Concert Music - “Classical” Music
 Print Licensees -farming our the print
publishing for approx. 20%

16. Subpublishing
 Foreign affiliates or independent
licensees exploit copyright: cover
records, print editions. They collect
Mechnical & Performance Royalties.
 The split is 75-80% to 20-25% licensee.
 Collection Deal - collect for 10-15%
 Subpublishing - more active exploitation

17. At-Source Deals
 At-Source Deal - royalties based on
income earned in foreign country, before
deductions by subpublisher
 Receipts-Based Deal - royalties based on
money received by the publisher, after
deductions

18. Administration Departments
 Royalty Dept.
 Copyright Dept. - copyright search (who
really owns), register copyrights,
recording transfers, liaison with Harry
Fox, records of expirations etc.

19. Administration Departments
 Legal - copyrights, songwriter contracts,
licensing contracts, tax laws, recording
industry
 Print - editing, printing, warehousing,
distribution, electronic distribution

20. Administration Departments
 Creative or A&R (Artists & Repertoire) -
Sign new writers, work with writers already
under contract, plug songs to artists &
labels, seek other uses (commercials,
merchandising), TV, Cable, Films
Catalog Acquisition - catalog valued by
annual earnings (3-5 yr period) X 5-10

21. Contracts: Publisher’s
Perspective
 Appointment - engages writer, exclusive
services, not “work made for hire”
 Term - Length of contract, usually 1 yr.
Options. Pay is “advance” on royalties.
Option should be tied to increased
advance or recording of songs.
*Songwriter should not be able to deny
option

22. Contracts cont.
 Term - songs could “revert” after
exiration, no recordings, or recoupment of
advances

23. Contracts cont.
 Assignment - writer assigns copyright of
(old) Songs and agree to deliver # new
songs Rights “throughout the world”.
 Songs on “First Refusal’ basis
*If writer is getting advance $ publisher
would not allow another publisher
involvement

24. Contracts cont
 Warranty - the songs belong to the writer.
“Indemnifies” the publisher against “loss”
& “attorneys fees” for “breach” of
warranty. Meaning “infringement” of pre-
existing copyrights.
*would want to spell out the procedures
used when there is an infringement claim

25. Contracts cont
 Advances & Royalties -
 1) Monthly Salary “nonreturnable”
advances on royalties
 2) 50% of net receipts (gross) mechanical
& performance (unless publishing is
“split”)

26. Contracts cont
 3) Mechanical should not be at a lower that
statutory rate (publisher affiliation?)
*all recording contracts want 75% mechanical rate
 4) 10% on printed editions
 No Cross-collateralization with record company.
 5) writer has approval of co-writers & arrangers

27. Contracts cont
 Who pays arranger, orchestrator, editor,
copyist. Recoupable?
 Foreign Rights - “arms length”. Publisher
paid no less then 75% of income earned
at the source.

28. Contracts cont
 Promotion Expenses - who pays for audio
& visual demos?
 What amount is recoupable? 50%
 Do demos “revert” to the writer?

29. Contracts cont
 Right To Audit -
 No time limit for audit set (with
reasonable notification)
 Writer pays, except if more than x% of
sum of royalty statement.

30. Contracts cont
 Creative Rights - Publisher has right to
make minimal changes, but
 With “consent of writer.”
to 1) hire lyricist, 2) make substantive
changes, 3) grant synchronization license
to sexual explicit films, 4) License for
commercials, 5) grant “Dramatic Rights”

31. Contracts cont
 Right of Assignment - can assign if sale of
“substantial portion of publisher assets.”
AND assignee assumes responsibilities of
1st publisher.

32. Contracts cont
 Reversion - If recording goal not reached.
Extension could be granted for X months.
Maybe another advance payment? Do
advances need to be recouped?

33. Contracts cont
 Default, Cure - Either party asserts that
the other is in “Default of Breach” shall
notify by certified mail. Allowed 30days to
cure the breach.
 Arbitration - agree to submit disputes to
American Arbitration Association.

34. Split Publishing
 Standard split is writer 50%, publisher
50%.
 A writer with record deal, or other clout
might also split the publisher share
Writer 50%
Publisher/Writer 50% (25% each)

35. Split Publishing “Cut In”
 Someone with a financial interest, or the
recording artist may be “Cut In” (get a
portion of royalties)
 OK, but should have limitations: length of
time, for a single recording or income
derived from it.

36. Sampling
 Technical definition: 44.1
 Use of anothers SR copyright (“New
Use”)
 Licensed use: flat fee or royalty points.
Depends on the type of New Use.

37. Income Sources
 TV, Radio, Cable, Live, In-Flight, Dance
Studios=Performance Royalties (PROs)
 Mechanicals from Record Distribution -
from Record Label & Harry Fox
 Sheet Music Sales - from Publisher
License

38. Income Sources
 Movies, Videos, Games= Synchronization
Royalties- Publisher License
 Jukeboxes - Performance Royalties from
PROs
 Foreign _ from Subpublishers & Regional
PROs

39. Harry Fox Agency
 Issues Mechanical Licenses
 Collects Mechanical Royalties for
Publishers
 Distributes Mechanical & Sync fees, prior
to 2002
 Conducts Royalty Examinations
Pursues Piracy Claims