Category >> Royalties

Jun 16
2008

The DIY Musician New Release Checklist by David Rose

Posted by David Rose in RoyaltiesPublishingManagementDistributionDavid RoseBusiness View

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Artists no longer have to wait for a record label deal to get their music recorded or distributed. Self releasing one’s own material is now a very viable option. However, if you are self releasing there are a few business items that will need to be tended to before making the music available for streaming or purchase. Please note that this information is for USA based releases.

Determine Songwriter Ownership Percentages

Anyone who contributes lyrics or melodies is technically entitled to an ownership percentage of the song. It’s always best to work out the ownership percentages in each song before making any of the work commercially available. The best way to avoid any misunderstandings or disagreements is to fill out a simple Collaboration Agreement that spells out the authors and ownership percentage of each song in writing. See a sample Collaboration Agreement here: DOC or PDF

Register Your Work with the Copyright Office

The only real way to protect your work is to register it with the US Copyright Office. Artists have been telling each other for years all that’s required to copyright a song is to mail a copy to yourself and keep the date stamp on the envelope as proof of the date the song was written. If you don’t want anyone else to exploit or misuse your work fill out the required paperwork and pay the fees. It’s well worth the effort to protect your songs. To register Musical Compositions fill out Form PA and for Sound Recordings fill out Form SR. There is a lot of helpful information on how to fill out these forms online and even several YouTube videos on the topic. To learn more about music copyright check out our wiki on music publishing.

Obtain a Mechanical License for any Cover Songs

Any cover songs that have been recorded and will be included in the new release must be licensed. A mechanical license can usually be obtained from the Harry Fox Agency . If you plan to manufacture and distribute less than 2,500 copies, HFA now offers an online licensing option called Songfile which can simplify the licensing process. Any reputable CD manufacturer, distributor or online music retailer will require you to have these licenses before they duplicate your recording or offer it for sale.

Order a UPC Code for any CD’s or Vinyl that will be pressed

A UPC Code , commonly referred to as a bar code, uniquely identifies the manufacturer, label, artist, catalog number and format of a particular release. A UPC code must be obtained and attached to the packaging if the release will ever be sold through retailers. UPC codes can be obtained directly from the Uniform Code Council but it can be much easier to just obtain them through the manufacturer or distributor.

Have an ISRC Code Created for Each Track

ISRC or International Standard Recording Codes are unique identifiers or digital footprints for each track on a release and are used by digital retailers to track and report digital sales. ISRC codes are typically either encoded into the recording during the mastering process or on the physical products during manufacturing and can also be provided by distributors. Digital retailers will require that each track has an associated ISRC before they make the track available for purchase or streaming.

Submit the Metadata

Metadata is all the collective information associated with a particular track, release or band, summarized and available in a digital format. Metadata typically includes track titles, track lengths, ISRC codes, album art, genre, band bio’s and publishing information. Digital retailers, MP3 players, computer based media players, radio (online, satellite & terrestrial) and mobile phones all use metadata to provide their users with information about the songs and artists that are playing. It’s very important that the metadata information for any new release be readily available. Not having the track titles of your CD show up when it’s being ripped to a computer certainly gives an amateurish impression. Be sure to register the metadata information with the three primary companies that manage metadata databases for the industry: Gracenote, All Music Guide and Muze. All three companies have different procedures for accepting metadata from directly from artists. Check out each of their websites for details.

Register with SoundExchange

SoundExchange collects and distributes digital performance royalties from satellite, cable and online radio stations on behalf of recording artists and sound recording copyright holders in the United States (the artist typically controls the sound recording copyright when they are self releasing so they will need to register for both ownership parts). Each time a song is played on stations from XM, Sirius, Pandora, Last.fm and the like SoundExchange collects royalties and pays out directly to the recording artists and sound recording copyright holder. Satellite, cable and internet radio continue to grow at a rapid pace and these royalties are an important way artists can actually get paid for their work.

Sign up with a Performing Rights Organization

Performing Rights Organizations collect royalties from terrestrial radio stations, restaurants, bars, TV / cable networks, retailers, online services or any other establishment that plays / streams licensed music heard by the general public. These PRO Royalties are collected by the major performing rights companies ASCAP, BMI or SESAC and paid out to the songwriter or their publishing company. If you are a songwriter be sure to sign up with one of these three organizations. Please note that PRO royalties are paid out on “estimates” instead of actual plays and it’s fairly common for artists without regular airplay to not receive PRO royalties.

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May 01
2008

Project Unfound Artist Helping Musicians Get Paid by David Rose

Posted by David Rose in RoyaltiesDigital SolutionsDavid Rose

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SoundExchange collects royalties from satellite, cable and online radio stations on behalf or recording artists and record labels in the United States. Each time a song is played on stations from XM, Sirius, Pandora, Last.fm and the like Soundexchange collects royalties that are supposed to be paid out directly to recording artists and their record label (regardless of an artist’s “recoupment” balance with their label).

Unlike  PRO Royalties collected from terrestrial radio and paid out based on "estimates" royalties collect by SoundExchange are collected and paid on actual plays. Satellite, cable and internet radio continue to grow at a rapid pace and these royalties are an important way artists can actually get paid for their work.

However, if a recording artist fails to register with SoundExchange they forfeit the royalties due them after three years. According to estimates there are currently over 7,000 artists owed royalties who have not yet registered at SoundExchange and are at risk of forfeiting monies owned them.

P2PNet and Nashville entertainment attorney Fred Willhelms have formed  "Project Unfound Artist" to help find artists that are due royalties but not registered at SoundExchange. This project utilizes a crowd sourcing approach to identifying and notifying artists on the SoundExchange unregistered artist list. Check out Project Unfound Artist to learn how you can help get an artist paid.

If you are an artist please register at SoundExchange today!


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Feb 05
2008

What Would John Doe Do - Drummer Dilemma

Posted by John Doe in wwjddRoyaltiesPublishingArtist View

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John Doe is the founder of the seminal Los Angeles punk group X, a solo artist and actor. John answers questions from our community members in the WWJDD? blog. Photo by Autumn de Wilde.

A Question from Scott in Maine

Hi John, First off I'm a huge fan of X, and your solo albums/CD's.
'Forever Hasn't Happened Yet' is a favorite.
Now, I'm a drummer and have only been included in songwriting
percentages on 2 or 3 occasions by generous and realistic, non
egocentric individuals. The rest of the time I'm told to forget it,
you're just the drummer. I feel the drums add a vital and even
essential part to most songs you hear on the radio, and beyond. Why
has the system been set up to not include drum parts ?
Realistically, the drums are almost always 'Written' by the drummer
with his past experiences that led him to a particular session/gig or
whatever. I have been playing most of my life, gigging and recording
for 25+ years. Now, again, I'm in a dilemma. I was verbally told I
would be cut in on publishing/songwriting for a debut CD, then after
recording is over, I'm out. We mutually parted but no mention of
previous verbal agreement. (with two members). They want to pay me a
small fee for the recording, and that's it. Any suggestions?

 

Sincerely,

Scott Mills

WWJDD?

Hey Scott,

Hmmmm . . . this is somewhat of a moral dilemma.
First, I would suggest that you write words, music & melodies; that way you would be assured your writing & publishing percentage. That's sort of the legal bottom line.
Many bands, early on, split writing & publishing money to keep all the band members afloat. When they're more established, the non-writing members forego their cut because the gig money, recording fund, whatever, is paying their bills. IF, you were told your contribution was important enough that you deserved a credit, then they should keep their word & you have every right to speak up & demand your share.
I'm quite certain that, legally, even if an instrument has the "hook" to a song; they are not considered a writer and do not share that credit or publishing. Unless the writer gives them a share. We all play our instruments & develop the song the best we can. That's why people get paid for recording sessions and if they're great players, the pay reflects that ability or creativity. But if there was no structure (melody, words & music) then there would be no song to contribute your part to. For instance, would Greg Leisz be considered a writer for playing his amazing pedal steel parts on kd lang records? There were X songs that I wrote entirely but included Exene as writer because she either edited or inspired the song. On the other hand if it's a "jam" that turns into a song, I would say that everyone playing that jam deserves a writers' credit & therefore publishing.

Hope this helps. thanks for writing & as always,

best of luck,
JD

 

If you have questions for John Doe about music, the music business or life feel free to email them to wwjdd@knowthemusicbiz.com.

For more information on John Doe check out theejohndoe.com or YepRoc.com .

 
 


 

 

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Jan 20
2008

Music Publishing Terminology by Garry Velletri

Posted by Garry Velletri in RoyaltiesPublishingBusiness View

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Garry Velletri is Senior Vice President of Bug Music. He has been with Bug since 1985 and is based in New York.

Music Publishing Terminology

The ownership and management of exploited music copyrights by licensing and registering certain

rong>rights and the collection of the resulting royalties and fees including mechanical royalties, performance royalties and synch fees.

 

Huh?

The world of music publishing is littered with obscure, misleading, and archaic terms; some of which have more than one meaning depending on the context. No wonder it all sounds confusing if not downright intimidating. Understanding the meaning of these terms and phrases will provide a useful base for understanding music publishing in general.

Copyright

Is it copyright or “copywrite”? Yes you wrote a song; but a copyright is never, ever referred to as a copywrite. There are two general rights covered in a music copyright: the authorship of a song and the ownership of a song. According to Copyright Law, you are the natural owner of every song you write until you assign the ownership to someone else. Every song is made up of two equal parts; not the lyrics and the melody but the writer share and the publisher share.

The writer share is semi-sacred. It represents the authorship of the song. While a copyright can change hands many times; the writer share remains the property of the author.

The other fifty percent, the publisher share, is the equitable share. It is what you can sell or buy. In this context it is known as the “copyright”. When a publisher acquires a copyright, it is acquiring the publisher share.

Control

The Publisher controls the writers share. The publisher licenses mechanical , print and synch rights on behalf of itself and the writer. These royalties and fees are collected by the publisher (the owner of the copyright) for both the publisher share and the writer share. It is the publisher’s responsibility to pay the writer. Performance royalties are the only royalty type where the writer can collect his writer royalties directly from the performing rights organization. Control means the publisher has the right to negotiate and execute all licenses.

Royalties

Ongoing earnings of licensed songs from each sale or broadcast.

Exploitation

In music publishing, exploitation is a good term. You want your songs to be exploited. Landing a song in a film or television show is an exploitation; somebody recording your song is an exploitation; releasing a record is an exploitation. When one of those songs from your record becomes part of a greatest hits package down the line - that's an exploitation. An exploited song that is licensed and registered opens revenue streams.

Royalties don’t just magically show up in your mailbox; It is the result of the publisher executing licenses and filing the proper registrations.

Registration

You or your music publisher registers your songs with a performing rights organization (ASCAP, BMI or SESAC) to get the song details in their database so the correct percentages of performance royalties can be attributed and paid to the correct party.

Your music publisher registers your songs with a ‘local’ publisher in a foreign territory so they can, in turn, register the songs with their local mechanical and performing rights societies (society being a fancy term for foreign mechanical and performing rights organizations) so the correct percentages of foreign mechanical royalties and the publishers side of performance royalties are attributed and paid to the correct party.

Licensing

The music publisher doesn’t sell songs to another artist to record or to be used on a TV show or film- they license it. There are four primary rights to license:

Mechanical rights — Back in the early twentieth century, there were two methods of distributing music: sheet music and player piano rolls. To differentiate between the two, early copyright law defined the royalties generated by the sale of these player-piano rolls a “mechanical” royalty for which you needed a mechanical license; after all, piano rolls were a mechanical contraption. The definition of Mechanicals through time went on to include Edison rolls, 78 rpm vinyl records,45 rpm records, 33 1/3 rpm long play records, cassettes, 8track tapes, cds and now digital downloads. It’s like calling your iPod a Victrola but the term stuck. A good way to think of it is mechanical royalties are for the sale of music.

Performing rights — Think broadcast. There are three performing rights organizations in the United States: BMI, ASCAP and SESAC. They are not music publishers or administrators. These “PRO”s have blanket licenses with radio stations, television stations, clubs, restaurants, stores, digital streaming services like Napster and so on. You should belong to one if you have any exploited songs. For the price of these blanket licenses (which vary depending on the size of the broadcaster) the broadcaster can play all the BMI, ASCAP or SESAC songs ‘til their heart’s content for a measured period of time. These ‘plays’ are tracked and the pool of blanket license money is divvied up proportionate to the number of plays and the value of plays. In other words, for example, a play on a major radio station is worth more than a play on a college radio station. Another example: a featured play on a television program is worth more than a background play on the same program. Performance royalties are generated from the broadcast of music.

Synch rights — short for synchronization this is the licensed right for a film or other audiovisual medium to use your song, to synchronize your music to recorded visuals, in an audio-visual product. It can be a commercial, a videogame, a film, a TV show or a website. A synch license usually produces a negotiated fee for certain rights depending on the usage. Yes, we are talking about rights within rights. For example, say it’s your lucky day and Mitsubishi wants to use your song in their new car commercial. With your approval your music publisher negotiates a synch fee with the music supervisor for the Mitsubishi spot which will allow them to use your song for, say, one year for national television plays for one flat fee. If they still want to use it after the one year or if they want to run it internationally or stream it on their website or put it on a promotional DVD for give-away, all of these uses are rights within the basic right and should most likely carry additional fees. (Since the Mitsubishi spot is broadcast it also produces a performance royalty)

Print rights — Sheet music, song folios: it’s pretty self-explanatory — but be careful-the term ‘publish’ has a few different meanings depending on how it’s used. Once a song is released or exploited in some way it is considered ‘published.' Once a song is filed with the Library of Congress for copyright it is considered published, it does not necessarily mean the song‘s notation and lyrics are published in print form. However, if the song’s written notation and lyrics are published in print or digital form for purchase, it will earn print royalties from the print license your publisher negotiated.

Functions of a Music Publisher

So now that you are armed with a basic understanding of these terms, you will see that a Music Publisher performs the following:

Administration

Secures copyrights, controls copyrights, executes a variety of licenses, causes songs to be registered with a variety of organizations and societies world-wide, collects royalties, disburses royalties, and more.

Creative Services

The Creative exploitation of copyrights or causing songs to be exploited by pitching songs to other artists and securing placements in Film, TV and commercials; networking and promoting its writers (further explanation invites a whole blog topic in itself)

Publishers are often able to provide critical funding in the form of advances against your future royalties and by covering the costs of recording demos of your songs.

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Jan 07
2008

What Would John Doe Do - Sharing Songwriter Royalties

Posted by John Doe in wwjddRoyaltiesPublishingArtist View

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John Doe is the founder of the seminal Los Angeles punk group X, a solo artist and actor. John answers questions from our community members in the WWJDD? blog. Photo by Autumn de Wilde

Question from Kathy in South Carolina

Hi JD,

I am a songwriter in an emerging band and we are about to complete and release our debut cd. What is your take on sharing songwriter royalties with others in the band? Also, how does one decide which performing rights organization to join these days? Do you have any practical tips and insights on choosing between ASCAP, BMI, SESAC, etc? I have read that you can contact each of them and decide based on options and relationships you develop, but I have not approached a particular one yet.

Thanks for your guidance!

Kathy Osborne

From the band South85

www.south85.com

www.myspace.com/south85band

WWJDD?

Hey Kathy,

You share the songwriting credit any way you see fit. Either work done, like melody, chords or lyrics contributed or situation inspired, being there & essential to the process. It doesn't have to be 50/50. Always do what your intuition tells you is right. You will probably do the right thing & won't have regrets. You could say all your songs were written by Jesus or your mommy if you wanted but then they would collect the royalties.

I used to be w/BMI, mostly run by broadcasters i.e. radio & the like. They were competent but sort of hands off, didn't really hear from them personally. I switched to ASCAP because it's run by songwriters & composers. Also someone I've known for a long time works @ ASCAP & I get a bit more attention that way. That only applies to an established writer but anyone can have a champion in any company. By which I mean if you meet someone at either society who really gets what you write then work w/ them. It appears that ASCAP collects a bit more money than BMI but I'm sure someone else might say the opposite. Both are non-profit & do a good job. I don't know any writers who use SESAC so I can't really comment on them but they definitely are the lesser of the three.

best of luck,
Jd

If you have questions for John Doe about music, the music business or life feel free to email them to wwjdd@knowthemusicbiz.com.

For more information on John Doe check out theejohndoe.com or YepRoc.com

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