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SOME FREQUENTLY
ASKED QUESTIONS
ABOUT MUSIC PUBLISHING AND MUSIC ADMINISTRATION
by Todd A.
Myers
Attorney at Law
Vargo Myers Janson, P.C.
6464 West 14th Avenue
Lakewood, CO 80214
303.238.8832
tmyers@vmjlaw.com
What or who is a music
publisher?
A person or business who has a
publishing contract with a musician for the collection of all money royalties
in regard to the commercial exploitation (marketing) of a song or songs. The
musician usually transfers his copyright interest in the song(s) to the
publisher for a limited time period and in exchange the publisher
collects the music royalties and remits a portion to the musician and keeps
a portion as a fee (usually a percentage). The publisher
does many things to exploit and market the music. The publisher
may also manage the musician.
What is the difference
between music publishing and music administration?
In an administration agreement, the
musician keeps the music copyrights for himself; and the administrator
primarily collects the royalty income and distributes it. The administrator
usually does not market the song(s); but assures that all due royalties
are collected. The administrator usually does not get involved in
managing the career of the musician and usually does not pay an advance
to the musician. The administration agreement is usually shorter
than a publishing agreement, say one year, and then either party can cancel
it upon reasonable notice. Sometimes this administration agreement is called
a licensing agreement.
What does the music
publisher or administrator do to exploit or market the musician's songs?
The publisher/administrator collects
the (1) performance royalties (ASCAP/BMI), (2) mechanical royalties
(from the sale of cds, records, tapes), (3) print income (from the sale
of sheet music), and (4) synchronization fees (from selling the songs to
television, video, film and for commercials where the songs (or portions
of songs) are set to the visual images). The publisher/administrator
may also negotiate with record companies for the release of a song(s) and
may negotiate the release of the song(s) overseas in foreign distribution
agreements and/or subpublishing agreements.
How does the music
publisher or administrator interact with a record label on behalf of
the musician?
The publisher may work with the
musician to negotiate with the record label for the release of a single
song or an album. The publisher may first negotiate with a smaller
independent record label with the idea that a major record label may later
pick up the musician if the record is a commercial success.
Can a musician be
his or her own music publisher or administrator?
Certainly, it is common for the
musician to self-publish or self-administrate his or her songs.
Can a publisher or
administrator also be the musician's record label?
Yes, this too is rather common;
but sometimes musicians want separate publishers/administrators and record
labels so to have a way to cross-check proper accounting of royalties.
Can a publisher also
be the musician's manager?
Yes, the manager manages the career
of the artist and also tries to exploit and market the songs of the musician. A
manager collects a percentage fee from the live performances of the musician
and may assist (like a booking agent) in attempting to get live performances
for the musician. Usually, a publisher does not share in a musician's live
performance income. The manager also tries to get the musician
a record deal(s) and promotes the musician. The publisher, however,
works to market the songs of the musician and also collects and distributes
the performance, mechanical and synchronization royalties.
What is a typical
fee percentage for music publishing and administration?
50% is traditional for publishing; but
it may be as low as 10% to 25% to the publisher especially if the artist
is good at self-promotion. For administration, the fee is usually less
than publishing because it does not involve marketing so much as just the
collection of royalty income.
How long is a typical
copyright transfer for music publishing?
Hard to say. The transfer
or assignment may be as short as several years or as long as the life of
the music copyright which is 75 years (for songs written after 1978) past
the death of the musician or the death of the last musician in the case
of a co-written song (Copyright Act of 1976). With extensions filed,
the copyright protection can last 95 years past the death of the musician.
How does a musician
tell if a publisher or administrator is a professional?
Ask for a list of the artists
already signed with the publisher. Determine how long the publisher
has been involved in the music business and whether the publisher has other
experience in the music business like writing, performing, managing, producing,
etc. Also determine if the publisher has a good reputation regarding
accurate accounting and timely remitting of payments.
The publisher has to know many players in the music business to appropriately
publish the musician's songs.
What is the typical
contract period?
12 months is typical with several
option periods which may extend the contract to 3 or 4 years or longer.
What is the musician's
commitment?
Typically, the terms of a publishing
agreement are to deliver a certain number of professionally recorded songs
per year to the publisher and/or record label and for the musician to be
exclusively bound to a single publisher/administrator for the length of
the contract.
How frequently do
publishers or administrators account to the musician?
Usually on a semi-annual or annual
basis because quarterly accounting is too time consuming for the
publisher or administrator.
Does the musician
have a right to look at the accounting of the publisher or administrator?
Yes. Most probably the right
to audit the publisher's accounting would be spelled out in detail
in the publishing or administration contract. Usually accounting
is allowed no more than once per year at the offices of the publisher. The musician
should hire an accountant to look over the books if they are at all complicated. A
publishing account audit is usually less complicated than a record label audit;
but in any regard it should be periodically done--even if only to catch
small or unintentional errors. Sometimes the agreement will
stipulate that the accounting is accepted after a certain number of years
unless checked by the musician within that time period.
Revised 5/15/07
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