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Music Publishing 101 – What It Is and How to Start Your Own Company

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Music Publishing 101 – What It Is and How to Start Your Own Company MUSIC PUBLISHING 101 – WHAT IT IS AND HOW TO START YOUR OWN COMPANY “Music publishing is the owning and exploiting of songs in the form of musical copyrights.” – Randall Wixen, The Plain and Simple Guide to Music Publishing For free access to this presentation visit my website: www.mckaytebbs.com TABLE OF CONTENTS • Music Publishing • Performance Rights Organizations (PRO’s) • Starting Your Own Publishing Company • Case Study: The Beatles Music Catalog WHAT IS MUSIC PUBLISHING? • Music publishers are companies that derive income from promoting and managing copyright protected musical works or songs. • Music publisher responsibilities include: • Acquiring Songs • Marketing Songs • Managing Copyrights • Issuing Licenses • Promoting and Placing Songs • A songwriter can be his/her own publisher or hire an outside company to manage the publishing. PUBLISHING PROCESS • Every time a song is written……….. • It’s income potential is split into two halves. • The Writers Share • The Publishers Share • Copyright ownership is automatic (but you should still register it). • A song is published when it is made publicly available. LICENSES • Publishers issue licenses to generate income from songs in their catalog. • License – Permission to use a song • Types of licenses: • Mechanical • Performance • Synchronization • Print • Foreign WHO PAYS A MUSIC PUBLISHER? • Music publishers generate money from placing songs in movies, TV, advertising, video games, sheet music, radio and recordings. • Performing Rights Organizations (PRO’s) like ASCAP, BMI and SESAC collect money for public performance. • Harry Fox Agency collects mechanical fees for recordings. • Publishers also collect their own fees for issuing other licenses themselves. WHO DISTRIBUTES THE MONEY? SELF PUBLISHING • Songwriters can create their own publishing company • Benefits include: • More creative control • 100% ownership of copyrights • 100% ownership of both shares • Drawbacks include: • Must provide marketing, promotion and administration • The success of a song depends directly on your efforts. • Self Publishing is ideal for artists who are directly responsible for the success of their songs. PERFORMING RIGHTS ORGANIZATIONS COPYRIGHT BUNDLE OF RIGHTS • The 6 exclusive rights of a copyright include: • 1. To reproduce the copyrighted work in copies or phonorecords (physical or digital format); • 2. To prepare derivative works based upon the copyrighted work; • 3. To distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending; • 4. In the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly; • 5. In the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; • 6. In the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission. ROYALTIES AND PERFORMANCE RIGHTS • The copyright law states that a copyright holder has the right to perform the copyrighted work publicly. • This means that a songwriter has the right to be paid when their song is publicly performed. • Performance rights income is generated from the ssssssssssssssssssssss performance, broadcasting or streaming of ddddddddddd music compositions. • Copyright holders are paid anytime their song is played….. • radio, television, movie, bars and clubs, concerts, or streamed online, HOW DID PERFORMANCE RIGHTS ORGANIZATIONS START? • ASCAP (American Society of Composers, Authors, and Publishers) founded in 1914 to represent performance right of Tin Pan Alley composers. • In the 1920’s radio brought a new source of income for ASCAP to license. • 1931 – 1939 ASCAP increased royalty rates by over 400%. • Radio Broadcasters boycotted in 1940 and started BMI (Broadcast Music Incorporated). • 1941 US department of Justice issues consent decrees to standardize rates. • SESAC (Society of Stage Authors and Composers) Founded 1930 in Nashville • Invitation Only • SoundExchange was created by US Congress in 2000 to manage digital royalties. WHAT DOES A PERFORMANCE RIGHTS ORGANIZATION DO? • PRO’s collect fees from broadcasters and music venues, and distribute those fees to writers and publishers. • They Calculate royalty payments based on how much a song is performed. • They distribute the royalty 50/50 to the writer and publisher of a work. WHO PAYS FOR PERFORMANCE RIGHTS ROYALTIES? • License fees are paid by music venues, music broadcasters and streaming services. The more listeners, the higher the fee. • Venues like Hollywood Bowl or Staple Center • Bars, Clubs and Restaurants • Radio Stations • Pandora or Spotify REGISTERING MUSICAL WORKS • A writer must register with a PRO in order to receive income. • A writer can only register with one organization at a time. • Each song must be registered into that PRO’s database. • If a song has multiple writers, the writers may register together. • Ownership is divided into percentages. REGISTERING AS WRITER AND PUBLISHER • Unaffiliated writers act as their own publisher. • They must create two accounts with a PRO, as a writer and publisher. • Writers who don’t register a publisher forfeit the publishers share of the royalty. • When a PRO does not see a publisher listed for a song, the publishers share is never distributed. SHOULD I REGISTER WITH ASCAP, BMI OR SESAC? • Any of these three PRO’s are a great option. Benefits may vary, but costs are about the same. • ASCAP – Non Profit • Membership is $50 for songwriters and $50 for publishers. • BMI – Non Profit • Membership is free for songwriters and $150 - $250 for publishers • SESAC – For Profit • Membership by invitation only HOW TO START YOUR OWN MUSIC PUBLISHING COMPANY OVERVIEW – 5 STEPS 1. Affiliate your company with ASCAP or BMI. 2. Create a business entity of file a fictitious name statement. 3. Register your songs with the Copyright Office. 4. Register your songs with the Performing Rights Society. 5. Congratulations, you have a publishing company. AFFILIATE YOUR COMPANY WITH ASCAP OR BMI • Performance Rights Organizations (PRO)– A performance rights organization collects performance royalty revenue for songwriters and publishers. • These royalties are paid by radio stations, venues and TV networks. • PRO’s do not collect on: mechanical royalties and synch fees. • ASCAP – American Society of Composers, Authors, and Publishers • www.ascap.com • BMI – Broadcast Music Inc. • www.bmi.com AFFILIATE YOUR COMPANY WITH ASCAP OR BMI • Clear your name • PRO’s will not let you use the same or similar name as another publishing company. • Complete an application and provide 3 potential names • Affiliation • You can join as a songwriter, publisher or both. • Songwriters should affiliate with just one PRO – their publishing company should be affiliated with the same PRO. • If you will be publishing other peoples songs as well, you may need to join both PRO’s as a publisher. CREATE A BUSINESS ENTITY • You may want to create a corporation or LLC to act as your publishing company. • You can also create a fictitious business-name statement. • This informs others that you are doing business under a name that is not your own. • You may need this to open a bank account and cash checks made out to that name. REGISTER SONGS WITH COPYRIGHT OFFICE • Register the songs with the Copyright Office in the name of your publishing company. • If the songs have already been copyrighted in your name, you will need to file an assignment transferring them to the publisher’s name. • www.copyright.gov REGISTER SONGS WITH THE PERFORMING RIGHTS SOCIETY • Register the songs with your PRO • You only need to register the songs as a writer or publisher, not both! 1. If you’re a publisher who is publishing other people’s music, register the songs as a publisher. 2. If you’re a songwriter, register the music as a songwriter. 3. If you’re an artist directly responsible for the success of Your music, register as a songwriter and publisher. CONGRATULATIONS, YOU HAVE A PUBLISHING COMPAY! • Now you may earn income by: • Issuing mechanical licenses, sync licenses and collecting performance royalties. • Make foreign subpublishing agreements. • Issue print licenses for sheet music. • PS - - Don’t forget SoundExchange • Sound exchange is a PRO responsible for collecting royalties on the digital transfer of your music. (satellite radio, internet radio, streaming services like Pandora and Spotify). • www.soundexchange.com A HISTORY OF THE BEATLES CATALOG: NORTHERN SONGS TIMELINE OF SONY/ATV BEATLES CATALOG • 1963 – Please Please Me Released • Manager Brian Epstein formed publishing company “Northern Songs.” • Company owned by Brian Epstein, Dick James, Paul McCartney, and John Lennon. Lennon and McCartney owned 20% apiece. Brian Epstein Dick James TIMELINE OF SONY/ATV BEATLES CATALOG • 1965 – Northern songs became a public company • Lennon and McCartney each owned 15%. Ringo Starr and George Harrison split a small percentage. • “Only a Northern Song” written by George Harrison to express his dissatisfaction with the deal. Only A Northern Song If you're listening to this song It doesn't really matter what clothes I wear You may think the chords are going wrong Or how I fair But they're not Or if my hair is brown We just wrote them like that 'Cause it's only a Northern song If you're listening late at night If you think the harmony You may think the band are not quite right Is a little dark and out of key But they are You're correct The just play it like that there's nobody there And it doesn't really matter what chords I play And I told you there’s no one there What words I say Or time of day it is As it's only a Northern song TIMELINE OF SONY/ATV BEATLES CATALOG • 1969 – Beatles breakup • Relationship with Dick James deteriorates and he sells his share to ATV music. • Despite Lennon and McCartney’s attempt to counter bid, ATV gained control of catalog.
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