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The
Benefits of Getting A Publishing Deal
One
of the many benefits of getting a publishing deal is that
every time you complete a song and turn it in to your publisher,
they will immediately get the song copyrighted and start working
to protect your ownership percentage in that particular song.
Publishing companies are beneficial to songwriters in many
ways. In addition to protecting your ownership rights, they
will exploit the song to the public so that the song can be
heard. If the song is heard, that means the songwriter is
getting paid a royalty from their publishing company by way
of a performance royalty or mechanical royalty.
The
performance royalties are tracked by a performance rights
organization that the songwriter chooses. There are three
performance rights organizations available in the United States
(ASCAP, BMI and SESAC) and each songwriter should research
each company and determine which one is best for them. The
copyright department at the publishing company tracks the
mechanical royalties. The publishing company will receive
all the money that is to be collected for the composition,
and pay it out to the songwriter in their royalty payments,
which is typically once every nine months. In essence, the
publishing company is assisting in the placement of the composition
to a national recording artist and then exploiting it to other
outlets (i.e. movies, soundtracks, cell phone ring tones,
commercials, television shows, etc.).
Trust
me, a publishing company is out to help you make as much money
as possible. The more money a songwriter makes, the more money
the publishing company is making. It’s a win-win situation
for everyone involved. When a songwriter signs a publishing
deal, the advance is simply an investment in the songwriter.
The publishing company plans on not only making that money back,
but also compensating everyone involved. It is difficult and
time consuming for a creative songwriter to write the song,
exploit the song, and track all of the money being made on the
song. This takes away from the creative aspect of songwriting,
and will ultimately start affecting the songs being written.
The
type of publishing deal usually given out is a worldwide co-publishing
deal, where the money is split 75/25 amongst the songwriter
and publisher, however the ownership of the composition is
split 50/50 between the two parties. This money gets paid
out AFTER the publishing company has recouped any monies that
they have advanced and spent on the songwriter. In addition
to the advance that a songwriter receives from their publisher,
there may also be a clause in the contract where the songwriter
can travel and the publishing company covers these costs.
This money spent will be recouped before payments will begin
for each composition.
Publishing companies may also pay for a songwriter’s
studio time, and that money is 100% recoupable against the
songwriter’s account. There are several things that
a publishing company will agree to pay for in advance, and
each writer’s deal should outline what will be covered,
as well as how it will be paid back. The finer points of the
deal must be understood by the songwriter, however an attorney,
preferably an entertainment attorney who understands what
should be asked for and received in the deal, must negotiate
them for the songwriter. The better the deal, the more money
you will receive as a songwriter.
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