Publishing Contracts for Songwriters and Composers
Songwriters and composers supply one of the most fundamental products necessary for entertainment, and as entertainment continues to expand its reach through the development of new platforms and technology, the need for well-crafted songs and musical compositions grows. More television series are being produced every year (more than 500 in the U.S. in 2019) and more people are paying for music streaming services than ever before (60.4 million in 2019). Amidst all of the large corporations making money off of entertainment stand the songwriters and composers seeking to make a living from writing music full-time.
For handling the numerous revenue streams that music is capable of generating, songwriters and composers turn to music publishers. Signing an agreement with a music publisher is often one of the most important steps in the career of a songwriter or composer, however, it is more important to understand the types of protections and guarantees your publishing contract should include prior to signing it. In this blog, we will discuss the two most common types of songwriter-publisher agreements: the single song agreement and the exclusive songwriter agreement.
Single Song Agreement
In a single song agreement, the songwriter transfers the copyright of at least one song to the publisher and, in return, receives a portion of the income earned from uses of that song. Most publishers pay the songwriter a small fee to accomplish the sale or transfer of a song’s copyright. For royalties, the songwriter and publisher generally split the income earned from a songwriter’s catalogue 50-50, but that split can vary depending on whether the songwriter has enough bargaining power to negotiate a co-publishing or participation agreement.
Because single song agreements apply to one song (or a limited number of songs), a songwriter or composer has the flexibility to take other songs in their catalogue to different publishers. This allows the songwriter and publisher to sign contracts covering only those songs that have commercial potential or that they are really interested in promoting. Importantly, when a songwriter signs a single song agreement the songwriter always keeps the option to place their other material with other publishers.
Exclusive Songwriter Agreement
In an exclusive songwriter agreement, a songwriter transfers the copyright to all songs written during a specified time period (generally a 1 year term) and, in return, receives a portion of the income earned from uses of their songs. In addition, a songwriter signing an exclusive agreement typically receives weekly or monthly payments. Think of these payments like the regular wages any normal employee would receive; however, it is important to note that these weekly or monthly payments to the songwriter are treated as advances and will be recouped by the publisher from the songwriter’s future royalties. For example, if the songwriter is paid $1,200 every two weeks in advances, the songwriter will have been advanced $31,200 in the first year of the contract. This money will be deducted from any royalties owed to the songwriter from streams, sales, commercials, television, movies, video games, etc.
The term of an exclusive songwriter agreement can range from one to seven years (possibly longer), but it typically starts with a one-year term and provides the option to renew every year. During the term of an exclusive songwriter agreement, the publisher has the right to publish and own all compositions written by the songwriter. No matter whether the exclusive songwriter agreement lasts for one year or ten, the songwriter is usually given the right to use the publisher’s recording studio facilities for making demos and writing songs with other songwriters. This is something that can prove extremely valuable for a songwriter trying to craft songs that have commercial value.
One of the main benefits of an exclusive songwriter agreement is that the songwriter or composer receives a steady income, like a normal salary, to meet day-to-day financial needs and living expenses. Because royalties commonly take six months to more than a year to reach the songwriter, the regular income provided by an exclusive songwriter agreement goes a long way in lending financial (and emotional) support to the songwriter or composer.
Summing it up
Choosing a music publisher and signing a contract with them is one of the most important decisions made in the career of a songwriter or composer. The music business is complex and highly competitive, so having the right publisher on your side can increase your chance of success immeasurably. Choosing the wrong publisher or signing the wrong contract, however, can be incredibly difficult to come back from both financially and creatively. Publishing contracts are long-term relationships, so it is important to account for the present AND the future when negotiating terms with the publisher. Most important of all, make sure your publisher has the ability to promote a songwriter’s catalogue effectively and that you retain an attorney in order to understand what is a good, fair, or just plain bad publishing contract.
Contact us today with any questions you have concerning publishing contracts and your career in the music industry!
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*The material and information in this blog is for general informational purposes only. In no way is this information to be construed as legal advice for a particular situation.*