Please explain buyout fee terms

[robroper]

I have seen many Taxi listings that will include something like the following:

"...will pay an initial buyout fee of $250 for 100% of the Composition and Master rights. On top of the per track fee, you will also get 100% of the Writer’s share of the publishing and make applicable performance income."

This doesn't make sense to me. I understand songwriting royalties and publishing royalties. But this seems to confuse the terms. Could somebody explain?

Thanks,
Rob

[Cruciform]

A buyout fee is an amount paid to purchase the copyright and master recording of the track from you. Typically, a buyout will exclude you from any share in sync fees and other income streams. But you will still be paid the writer's share of broadcast royalties via your PRO.

[robroper]

But if they buy the copyright, that means that I am no longer considered the composer or songwriter, legally, right? They are saying that they are the composer/songwriter, right? Anotherwords, everytime I want to sing my own song, I'd have to pay the "writer" songwriting royalties?

[robroper]

Or let me ask the question another way: if I sell my composition rights, then I can't register the song in ASCAP as the writer and collect songwriting royalties, right?

[Cruciform]

No. You remain the songwriter and are entitled to the writer's share of royalties. But they own the composition and the master. You can't do anything else with that track. The contract will spell out exactly what rights you are signing away, but typically you aren't able to sign that track to any other library/publisher (standard for an exclusive contract anyway), you aren't allowed to directly license it yourself to music users (such as sending it to music supe you might know), and you generally wouldn't be able to release it publicly as a single or on an album.

You remain the songwriter and are entitled to those royalties. What you are doing is relinquishing all control of the track.

----------------

Ps. To your new question: " if I sell my composition rights, then I can't register the song in ASCAP as the writer and collect songwriting royalties, right?"

Not exactly. The publisher will register the title with themselves as publisher and you as writer. You will collect the writer's share of royalties. You will not collect the publisher's share of royalties. That goes to them.

[Len911]

This might explain it a little better
http://www.billboard.com/biz/articles/n ... me-changer

http://www.billboard.com/biz/articles/n ... -scares-us

[daveydad]

If you really love your track and are emotionally attached to it... don't do it! lol

[robroper]

Thanks to everyone who replied. I think Cruciform explained it best in his second reply. I think I understand it now. I can't imagine ever doing this unless I'm writing a song for a very specifc show or movie and have no intention of ever recording it on an album or playing it live.