yod wrote:
Oh yea, the publishing is often the main concern for a label who is interested in signing you. That's why it might not be a good idea for an indie to form a publishing company because it might give the impression you don't own the publishing.
The publishing rights are often the very thing you are negotiating with a label if you are successfully writing your own music. This is why many labels only sign the songwriters of a band/group. Even if they sign an artist who doesn't write their own material, they will almost always choose music for that artist from a publishing catalogue they own.
To own the publishing rights means that NO ONE, not even the artist and songwriter, can use the music without paying a royalty to the publisher, who is often the copyright administrator (in charge of dividing percentage for all owners involved) though there are many who use a third-party administrator like Bug Music.
The artist doesn't really pay anything while they are with the label but if they ever leave and want to re-record that song, they will pay for it like anyone else.
yod wrote:Now that is a good reason to get everything spelled out. I didn't realize you were talking about multiple owners of songs, or a band situation.
I use BMI because they have all tools online. They tend to pay the big stars better, while ASCAP seems to be more accurate with their reporting system. SESAC is geared more towards classical music and film scoring.
But as a member of a licensing society like BMI/ASCAP, the songwriter can state legally through their forms the percentages of ownership for a song. If they ever sign with a publishing/record company, they will be asked to forward the publishing rights to the new administrator.
Songs are divided as a 200% pie.
100% is publishing ownership and another 100% is songwriting ownership. Giving away 100% of publishing doesn't mean you won't own anything (assuming you are the songwriter) but it does mean that they own the right to give you permission to use the song now.
Why does that matter? Imagine you are signed to (insert major label here) and have a hit album, but new A&R comes in and you are let go. You can't press any songs on that album and sell them at gigs now. You have to buy your own music from your former label if you want to sell that music any more. They alone have the rights to press a CD or sell your songs if they are the publishing copyright holder.
Though I'm not a major artist, I was on a label distributed by Sony/BMG for almost 9 years before buying out my contract, and this scenario has been my dilemna. I recently recorded and released a new CD that I push at live gigs, but I still play the older songs that my fans know me for, and still have to buy those CDs from the former label. I make 10 times more profit on the new CD they don't own, but the older stuff is what gets me in the door.
Right... so... It is a band situation, with 3 different songwriters.
Should we form an LLC?
I went to the BMI site and printed off their "INSTRUCTIONS FOR COMPLETING THE PUBLISHER APPLICATION FORM".
Under 'PUBLISHER' through BMI you can list an Entity under which multiple people can sign on to.
So... I think that is what we want; 'Closer to Yod music', or some such umbrella name, where we can list who's to blame and what percentage of songs they own... and all that.
Of course there is a one time Fee for this, depending on LLC, Partnership, Sole Owner, etc.
I clicked on the 'Songwriter' button, and that's totally free, but from the looks of it I would only be able to sign myself up.
Everyone would have to do it individually going that route. (From what I "see")
yod wrote:It is prudent and very "non" pompous to be legally protected and set up as a business. Internet broadcasts are changing licensing laws every day and who knows where it will go in the future? For example, YouTube is now paying licensing too. If your music is legally licensed, you should receive a royalty for every time someone else plays it in a YouTube video.
I think it's prudent also. I think it is time to do it.
Now I know some of you fine people may not be feeling too well - maybe swooning a bit and feeling unsettled at the revelation that, in fact, I do NOT know everything.
It will all be ok though.



