Publishing

The key aspect of music publishing is copyright, which is the protection of an artist’s work and the reason they can make money from it. In order for an artist to copyright their work it must be both original and in a solid format, which, in the music industry, means it must either be notated or recorded. Once a piece of work has been copyrighted no one can legally sample, record, publish as sheet music, distribute, add to a film track, play on TV or radio, or perform it in public without the copyright owner’s permission. This is where publishing companies come in, for it is one of their jobs to grant licences to people wishing to use an artist’s music. The first licence applies to the areas mentioned above and it is called an exclusive licence, which means the artist has the right to choose where their material can and cannot be used. The second licence applies to cable TV, jukeboxes and digital distribution and is called a compulsory licence. This licence means the user doesn’t have to request permission from the artist, they do still have to pay royalties however. Though the artists do still get paid, I do not think the compulsory licence is fair as an artist’s music may be used in places they don’t wish it to be. I think while an artist still retains the copyright for their music they should be able to choose where it is played and distributed.

In relation to music the copyright laws allow an artist to continue to gain royalties 70 years after their death, at which point it is of course paid to the estates. At the end of the 70-year period the song enters the public domain and can be used by anyone, copyright free. This law, however, only applies to the performing rights of the song, such as it being played on the radio. Songs’ mechanical rights, which are to do with CDs, vinyl etc., only last for 50 years after the end of the year during which the work was released. I think the mechanical rights should be extended to the entire life of the person who created the work, as it does not seem fair that people could use their work for free while they are still alive.

There are three core sections to any publishing company, which are administration, plugging and Scouting/A&R. The administrator takes care of the copyrighting, issuing of licences, collecting the money and paying the artists. The plugger is there to promote the music and, if necessary, record the music. Finally the scout, or A&R man, is responsible for finding bands and songwriters to sign up.

When publishers sign bands and songwriters they take the copyright from them. It is then the publisher’s job to promote the music made by their artists. They do this by getting the music into films, printing it and putting it onto records. Often record companies go to publishing companies to get songs for a band or performer who does not write their own music. The revenue gained from an artist’s music being used in those formats is then collected from the users of the music by collection societies. Once the collection society has collected the revenue they then pass the money onto the publisher, who takes a 50% cut before passing the rest onto the artist. The 50% cut the publisher gets seems to me to be an extortionate amount, when they have done little more than pass your work onto someone else. However, top producer Michael Jay, who has worked with Eminem, Celine Dion and Kylie Minogue, says, “Working with a publisher can grant you access to some high-level projects and the ability to form relationships with top A&Rs”. In other words a publisher has the connections to get an artists work used in places the artist wouldn’t have been able to have alone. It could also help an unsigned artist get a record deal or, like in the case of Michael Jay, help a songwriter/producer get his songs used by a record label.

There are two main types of collection society. The first are Performance Rights Societies, whose job it is to collect the revenue from live performances, radio play, jukeboxes, background music in shops and DJs using copyrighted music. The second main type of collection society is the Mechanical Rights Societies. These collect the revenue from CD sales, vinyl sales and from music used in film. Once they have collected the money they then pass it onto the publishers. In the UK the PRS pay the writers directly and also ensure that the writer gets at least 50% by refusing to pay publishing companies any more than half the royalties. They are all non-profit societies and only take a small amount of money to cover their costs.

There are several different collection societies in the UK, they are the MCPS (Mechanical Copyright Protection Society) and the PRS (Performance Rights Society). In the USA there is the HFA (Harry Fox Agency), which is a mechanical rights society and the ASCAP (American Society of Composers, Authors and Publishers), BMI (Broadcast Music Inc.) and SESAC, which are all performing rights societies.

The MCPS works using two contracts for collecting royalties from record labels, the AP.1 contract for majors and the AP.2 for independents. Under these contracts the major labels only have to pay out twice a year while the independent labels have to pay every time a record is pressed. This system seems incredibly unfair to independent labels, as they have to pay out royalties before having sold the records. This biased system makes it harder for independent labels to grow and easier for the majors to stay ahead of them. I also think it discourages new music to be released, as the financial implications imposed on indie labels by the contract makes it harder for them to release records.

© musicindustryguide.blogspot.com

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