Understanding Music Publishing Contracts
A music publishing contract is one of several agreements that an artist in today’s music business can encounter in their career. Although a music publishing deal refers to copyright in musical compositions which are written by songwriters, in today’s music industry a recording artist can also encounter these deals because of their songwriting activities. This article will cover the different publishing deals that an artist/songwriter may have to deal with in their career as well as the rights involved in each one.
A music publishing contract is an agreement between an owner of musical compositions and a music publisher. The contract grants the publisher certain rights to the compositions, such as the right to license them for use in films, TV shows, commercials, and other media. In exchange, the publishing company may give the songwriter an advance against royalties earned from the compositions. Also, the publisher and songwriter will each have a share of the royalties depending on the type of deal. Musical compositions generate mechanical royalties, public performance royalties and synchronization fees, all of which are contemplated in music publishing contracts. Additionally, music publishers can provide other services such as A&R services to connect their roster of writers, producers or artist and create music.
There are three main types of music publishing contracts:
Exclusive Publishing Agreement: In an exclusive publishing agreement, the songwriter grants its exclusive songwriting services to the publisher and the right to administer and exploit the compositions to the publishing company. Additionally, in this type of deal the songwriter transfers all of its copyright interest in the musical compositions to the Publisher and it is required to deliver certain amounts of compositions to publisher.
Co-Publishing Agreement: In a co-publishing agreement, the songwriter retains fifty percent of the copyright interest in the compositions and grants the publishing company a share of those rights in exchange for the services provided by a publisher of administration, collecting royalties, licensing and exploitation of musical compositions. The publisher and the songwriter split the royalties earned from the compositions which typically are in favor of the songwriter.
Administration Agreement: An administration agreement is a type of music publishing contract in which the songwriter retains full ownership of the compositions. Instead, the publisher is responsible for administering the compositions, such as collecting royalties, negotiating licenses, and providing accounting services in addition to A&R services in exceptional cases. The publisher and songwriter also share royalties generated from the compositions which favors the songwriter as they retain full ownership.
All three types of agreements can include a variety of terms, such as the duration of the agreement, rights of publisher to exploit the compositions, delivery obligations of songwriter, royalty splits and other obligations of both parties. It's important for songwriters to carefully review and negotiate the terms of a music publishing contract before signing, as it can have significant long-term effects on their career, rights and revenue stream as a songwriter.
Working with an experienced music attorney can help ensure that the contract is fair and in the songwriter's best interest. By understanding the different types of music publishing contracts and their terms, songwriters and publishers can protect their rights and maximize their income from their musical compositions.