|
by Jeffrey & Todd Brabec
Compositions Covered by the Agreement
The
agreement will normally cover all future compositions created
by the writer during the term of the co-publishing agreement
as well as, in some cases, all past songs written which are
not controlled by another publisher.
Transfer of Copyright and Other Rights
The
writer's publishing company will usually transfer 50% of the
copyright ownership of all compositions to the major publisher.
In addition, the writer's company will also normally give
the major publisher all administration rights, including the
right to license the use of the musical compositions throughout
the world and the right to collect any monies that may be
earned by the compositions. As with some songwriter agreements,
the co-publishing agreement may also contain certain restrictions
(e.g., no advertising commercial uses without consent) and
reversions.
Term of Agreement
The
initial duration of the agreement can vary, but the usual
arrangement is for an initial contract term of 1 or 2 years,
with a number of successive options on the part of the major
publisher to extend the agreement for additional 1-year periods.
The first period of the term may be for 1 year with three
successive 1-year options; 2 years with two 1-year option
periods; 4 years with no option periods; or any other variation
that may be negotiated. Other agreements may be tied to the
release of a minimum product commitment (e.g., for 2 years
or the release in the United States of 12 songs on a major
record label, whichever is later) or the recoupment of all
advances paid under the agreement.
Signing Advances.
Depending,
of course, on the reputation of the writer, the existence
of any recording artist commitments, the quantity and quality
of the songs controlled by the agreement, and the inclusion
of any pre-existing hit songs, the major publisher will pay
certain monies to the writer or the writer's publishing company
at the time the co-publishing agreement is signed. These monies
are treated as advances recoupable from any future royalties
that may become due to either the writer or the writer's publishing
company.
To put it simply, all royalties that become payable to the
writer or his or her publishing company under the agreement
will be used to reimburse the financing publisher for the
monies advanced at the time the contract is signed. For example,
if $50,000 is given to the writer at the signing of the contract,
then the first $50,000 in royalties due the writer or the
writer's publishing company will be used to recoup the advance
given. Until that happens, the writer and the writer's company
will not receive any royalties.
Option Year Advances.
In
addition to advances given upon signing, the major publisher
will pay an additional advance whenever it exercises an option
to extend the duration of the agreement. Such advances can
be paid either in a single lump sum at the start of an option
period or in several monthly payments during each option year
of the contract. For example, there might be a payment of
$60,000 upon commencement of each option period, or the same
$60,000 could be paid out in twelve equal monthly installments
of $5,000. This type of monthly payment method can also be
used in the initial period of the Agreement. Many times, option
year advances are based on a percentage of the prior year's
earnings with minimums and maximums provided so advances won't
go below or above certain set amounts.
Advances Based on the Release of
Commercial Recordings.
If
the writer is a recording artist or producer, the co-publishing
agreement will usually guarantee a specified advance if an
album containing songs written and recorded by the writer
is released during each year of the agreement. The amount
of this type of advance varies, dependent on the writer/artist's
commercial success and appeal, the number of songs by the
writer that are contained on the album, the reputation of
the label releasing the CD, where the release occurs, how
high it gets on the trade paper charts, sales activity and
whether or not past advances have been either totally or substantially
recouped.
© 2002 Jeff Brabec
Todd Brabec This article is based on information contained
in the new, revised paperback edition of the book "Music,
Money, And Success: The Insider's Guide To Making Money In
The Music Industry" written by Jeffrey Brabec and Todd Brabec
(Published by Schirmer Trade Books/Music Sales/435 pages).
Click
Here to buy this book.
|
