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FROM THE DESK OF... SHELLY HARRIS |
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by: Shelly Harris / Entertainment Attorney
Although last month I
again detailed the timing, nuances, and the importance of registering both
as a songwriter and as publisher with the performance right organization
of your choice, I know from experience that many of you may still be
mystified about how potential royalties may be distributed to you by such
organizations.
First off, remember
that the BMI or ASCAP “publishing royalties” you may receive as a
songwriter and/or publisher (or assignee) are not the royalties that
artists contract for (per disc pressed or sold) with their record company. (Nowadays, a record contract may or should also include
provisions for royalties for internet downloads as well.)
The royalties you may potentially receive from the performance
rights organizations are for the public playing of a song you have written
or co-written (or have the ownership rights to).
Public playing
includes radio playing such a song, as well as spins on jukeboxes, DJs in
night clubs, karaoke shows, and nearly any other type of airplay or venue
play of a song. Although you may not receive huge sums of money, nor any monies at all immediately, it is a fact that if an original song is written or co-written by you, there is always a chance you will be entitled to some royalties, somewhere down the line, even from sources you do not anticipate, such as small radio stations, clubs, DJs, or the like, which have, without your knowing it, latched onto and played cuts off your CD or tape. In addition, some bands, through their band
partnership agreement, might choose to give all non-writing members a
share of the publishing royalties (if not the songwriting royalties) via
one publishing company formed for all the members of the band jointly.
However, if you do not want or have that type of arrangement, and
if there are various changing combinations of songwriters within a band,
then it would be advisable for each songwriter to form his or her own
publishing company to make sure that each individual writer gets the full
publishing share they are entitled to for a particular song via their
publishing company.
I like to use the
standard “John, Paul, George and
Ringo” example to illustrate this concept, as follows: John and Paul
could have one publishing company for the songs they write together, but
they may also want individual publishing companies for those songs they
write alone. If George writes
songs too, but doesn’t collaborate, he will need his own publishing
company as well. But let’s
say John and Paul collaborate on a song.
Then they each will receive a 50/50 share of the writer’s share
of the royalties, while their joint publishing company will receive 100%
of the publisher’s royalties. Usually,
that publisher’s share will be deposited in an account set up for the
company. On the other hand, if
John and Paul have separate publishing companies, and if each has
contributed 50/50 to the composition of a song, then they will again
receive 50/50 of the songwriter’s half of the royalties, but their
individual publishing companies will also split the 50/50 of the
publisher’s share. In reality, John and Paul each will wind up with 50%
of the royalties, but half of that is funneled to them via their
publishing companies.
Again, the steps for
creating your own publishing company begin with contacting ASCAP or BMI,
just as you would for your songwriter’s share. You will need to complete
an application for music publisher, a contract, and clearance forms for
EACH song. Also keep in mind that you should belong to the same
performance rights organization as both songwriter and publisher.
It is also advisable that ALL writing band members and all
publishing companies they may form belong to the same performance rights
organization. NEXT MONTH More answers to BEAT readers’ questions. Submit your queries to: shellyharrislaw@aol.com.
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