Key Of Grey

Photo courtesy of tape

November 7th, 2008 – Besides marketing yourself as a brand and getting commercial endorsements, probably the most important way an artist can make money is through publishing. I touched a little on the subject in my post a couple days ago regarding Grooveshark, but I thought I’d explain it a little more.

Music publishing is defined as “The commercial exploitation of songs through the issuance of mechanical licenses, synchronization licenses, performing rights licenses, print licenses as well as other licenses authorizing various uses of the songs”. That sounds like a lot of licenses. Let’s break down what these licenses are. The mechanical license refers to money a songwriter receives for songs that are sold on a per unit basis. In the modern age, this refers to CD sales, record sales, digital sales (although record companies don’t like to pay this money out), and a few other formats. The synchronization license refers to money a songwriter receives from having songs synched to TV and movies. Performing rights licenses encompass whenever a song is played, whether on stage or on the radio (or TV when concerts or music videos are shown). In Canada, bars and restaurants that play music must buy a performing rights license, with proceeds going to SOCAN and split among its members. Print licenses refer to money received from songbooks.

You can see that there are a lot of ways that a songwriter can make money from a song. A lot of artists have gotten swindled by record company executives who have convinced them to give up their publishing rights. If you are an artist and a songwriter, you must also be careful of something called a “tied deal”. Essentially, a record company will sign you to both a record contract and a publishing contract in one deal. These deals are almost always bad for the artist because the combined revenue from both contracts is less than if the contracts were with separate companies. In some cases, an artist may even be signing contracts that pay out royalties that are illegally low, without even knowing it. If you are in the position to sign a record contract and they also want to sign you for publishing, pay for a very good lawyer to negotiate for you. It may cost a lot upfront, but it will always gain you much more money in the end. In fact, you should always pay for the best lawyer you can afford whenever dealing with any music contracts. If possible, never do a tied deal; make sure your publishing and record labels are separate because they are less likely to defraud each other than you.

Today, more artists than ever are releasing their music independently. This keeps more of the money in their own hands where it belongs. So why consider getting a publishing contract when you can pretty much promote yourself on the internet easily and on the cheap? Well, there are a couple reasons. Let’s take me as an example. I write music for myself, but I also want to write for other artists. To be a professional songwriter, you need to be able to pitch your music with a reasonable chance at success. Basically, you want to get your songs recorded by as big an artist as possible. Unfortunately, Christina Aguilera is not going accept an unsolicited demo song from me, she will only listen to stuff pitched to her by serious companies with a track record.

Publishing companies have the contacts to get your music out there. They are your business partner and only make money when your music makes money. They will push your music to as many resources as possible. Unless you are very lucky, your music isn’t likely going to be heard by the big producers or artists you are sending your demo CD’s to. Another reason to think about signing with a publishing company is that they are most often international. This means that they have reach where you wouldn’t even think of sending your music.

Publishing contracts can be quite beneficial to songwriters but, as with all large companies, you need to be extremely vigilant in your contact and contracts with them. There are great companies out there that will nurture and help you, and there are definitely unscrupulous ones. As I stated earlier, if you can avoid it, do not sign a tied deal. And get a lawyer…PLEASE GET A DAMN LAWYER.

A great article on Music Publishing by music lawyer Alan Korn