Music Licensing Deal vs Music Library Deal?

[brianleewheat]

Just found out that a Taxi Forward resulted in a 6 song Music Licensing Deal. While I am excited, I am also confused. The Music Licensing Company is asking me if I have a publishing company set up at ASCAP and if the six songs are currently registered.

Up to this point, I have only worked with Music Libraries and in those deals, the Music Library has usually offered to submit the songs to my PRO, listing me as writer/composer and themselves as the Publisher.

Does anybody know what the difference is between a Music Licensing Deal and a Music Library Deal?

Thanks for helping a newbie!!

Brian

[kclements]

Congrats on the deal!

My understanding is the music licensing deal would be for a limited time for certain tracks. So in your case, those 6 songs would be licensed for a film, tv show, game, whatever (or maybe all those things) for a certain time period, like maybe a year or so. It all depends on the contract. The contract would also specify exclusivity and reversion time, ability to re-license, amount being paid for the license....

They are asking for your publishing end because they are not acting as a publisher, so you get to keep 100% of the money. So you would need t set up a publisher account with either ASCAP or BMI.

Where as a library deal is more like representation. The library takes your tracks and "sells" them to tv and film productions. The way they get paid is to take the publishing side of the music. So essentially, you get paid half ( again, this is spelled out in the contract) of the amount paid for the track. They usually represent your tracks for a longer time, like 3 years with another automatic 3 years if the track gets placed... Again this is all spelled out in the contract.

Some libraries pay up front fees, some pay sync fees ( although those are becoming rare), some will give you some of the publishing, some will take part of the writers.... There are a lot of flavors.

There are some really good books out there that explain this is a lot more detail. Look for Donald Passman's book and check out the Taxi recommended reading book list elsewhere on the Taxi website.

Cheers
kc

[brianleewheat]

Very helpful. Thanks KC!

When I asked the company to explain their agreement, their response was:

"In our agreement, being that we are acting as the administrator of your publishing (not actually claiming ownership), it's easier if you have an existing publishing company set up to register the songs to (we can register them on your behalf). Then we alert ASCAP that we will be collecting those royalties. However, if you're not currently signed up or aren't looking to, we can register the songs under our publishing company if you'd like. It won't make much difference as far as payments to you, it will just mean we revert publishing back to you at the end of our agreement"

The initial term is two years with renewal clause. I am not looking for legal advice, just some reassurance that others have done deals like this.

Anybody out there signed a deal like this?

Brian

[VanderBoegh]

I've never had a deal like that, Brian. But I'm pretty much just a cue-writer, and this sounds like something quite different. Is this for an artist-pitch type of deal, where the company will pitch the songs to artists, record labels, and managers?

~~Matt

[brianleewheat]

Thanks Matt. I think they do both. The company describes themselves as "a unique music services company that offers the combined expertise of nationally-recognized attorneys, together with the proven track record of a highly-experienced artist development, music publishing/administration, and clearance & licensing team". They also have a music library which they will be adding my music to.

This was the result of a Taxi forward and in the listing it says they have placed lots of music from Taxi members. They speak at the Road Rally as well so I assume they are legit.

I just created a Publishing company with ASCAP, so I will have them submit the songs on my behalf as they suggest. I will update this thread as things develop.

Brian

[pboss]

Congrats, Brian - it sounds promising. Do you know what their business model is, as far as how they make their money? You're not paying them a free, correct? I'm guessing that this licensing company is making money on the sync fees. It's curious to me, though, because giving you publishing and writer's shares, seems like a polar opposite trend to the "payola" practice happening in the industry where the show producers are taking some of the publisher's share.

This licensing deal you're being offered sounds great to me, unless you have to pay a fee or percentage for their representation of your work. Even then, it could be good, depending on the potential fee.

[LittleRedChurch]

Whatever it is, it sounds great!

Congrats!!

LRC