Biz side for dummies!

[daveydad]

OK, I know somewhere on here there's info on this... but maybe someone can enlighten me on the way payments work with a music library since I just signed my first song with one. If they pitch my song and get x amount of $$ for it, do I get a percentage or is it only thru my PRO account? Their contract states I will receive 100% of writer's share, they get 100% publisher's share. Is this fairly common? What are some of the other options? And how does money eventually make it's way into my PRO account? Thanks!

[Cruciform]

I'd suggest picking up Emmett Cooke's e-book. It covers the basics. http://www.thebusinessofmusiclicensing.com/

I'll add some responses to your questions in a sec.

[daveydad]

excellent! thanks!!

[Cruciform]

OK, I know somewhere on here there's info on this... but maybe someone can enlighten me on the way payments work with a music library since I just signed my first song with one. If they pitch my song and get x amount of $$ for it, do I get a percentage or is it only thru my PRO account? Their contract states I will receive 100% of writer's share, they get 100% publisher's share. Is this fairly common? What are some of the other options? And how does money eventually make it's way into my PRO account? Thanks!

The simplified version:

A library/publisher will buyout your song/track or offer you a split of fees. If they buyout, you'll get paid $150-1000 upfront and won't be entitled to share sync fees. Otherwise, you'll be offered a split of upfront fees they collect, most usually 50/50.

The library works with their clients to place music in various productions. That could be a tv show, ad, tradeshow presentation, corporate video, DVD, movie etc. In many cases, the client pays the required usage fees to the library. The library then splits that with you if your piece was used, and if you are on a fee split agreement. TV clients and high volume users will often pay a blanket license to the library which entitles them to use as much of their catalogue as they like as often as they like. Very few libraries share blanket fees with composers. But all up-front revenue will be paid to you by the library according to the payment schedule in your contract with them. Typically twice or four times a year, usually based on calendar quarters or half-years.

If a production is broadcast in a way that attracts performance royalties then the broadcaster pays a PRO for the usage of that music. Theoretically, every broadcast production has a cue sheet. That lists the title, writer(s), publisher(s), PRO affiliations, show info and usage info. That cue sheet determines how you get paid (in theory, because there are practices that mean sometimes you won't get paid royalties). That amount is set by the various PROs and their agreements with broadcasters. There are two parts to a royalty. The publisher's share and the writer's share. If you are self-publishing then of course you're entitled to both. But in this case there is a library involved so they will be paid the pub share and you will be paid the writer's share. If there are sub-publishers or co-writers involved then either of those shares will be divided and paid out according to the agreement. In the case of broadcast royalties, the broadcaster pays the PRO, the PRO pays you and your publisher. Your IPI/CAE number with your PRO is the all important detail. It attaches to all the monies that flow around the system and should ensure that a given payment gets to the right person.

Some publishers will offer you a share of the publishing income. Some will set a different percentage on up front fee splits, often in their favour.

That's about as simple as I can make it. Someone else may be able to do better.

There are many variants of deals that one can have with a publisher but I'll leave them alone so as not to muddy the waters.

[Casey H]

OK, I know somewhere on here there's info on this... but maybe someone can enlighten me on the way payments work with a music library since I just signed my first song with one. If they pitch my song and get x amount of $$ for it, do I get a percentage or is it only thru my PRO account? Their contract states I will receive 100% of writer's share, they get 100% publisher's share. Is this fairly common? What are some of the other options? And how does money eventually make it's way into my PRO account? Thanks!

Are you coming to the rally? I'll be doing a Music Biz Basics class that covers a lot of this. Of course, Emmet's book is also terrific.

Casey

[daveydad]

Wish I could... but I'm under-employed a the moment and a trip to CA is a little too much. One of these days I will!!