Urgent Contract Question

[larrymagee]

I'm scratching my head. Are they really only offering me 25% of upfront fees?

Contract paragraph - "1. After deduction of any fees from copyright, any collection or other fees charged by the yyy Agency, Inc., or any other such collection agent which may be used by xxx (i.e.: sub-publishers), xxx shall pay to the Assignor twenty-five percent (25%) of all fees NET (excluding performance royalties) received or credited from the exploitation of the “Work” on a fee per use or other basis, including individual needle drops or track fees, synchronization fees and mechanical fees and fees from all media including other media whether known now or hereafter devised"

The Taxi Listing said "They offer an EXCLUSIVE deal. Upfront sync fees will be negotiated on a Song-By-Song basis directly with Music Library. They’ll get 100% of the Publisher’s share, and you’ll keep 100% of the Writer’s share. "

This is my first contract and it's very likely I just don't understand something. Can anyone explain? The Taxi listing does say "Upfront sync fees will be negotiated on a Song-By-Song basis"

[daveydad]

Hmm, no idea. I'm awaiting the answer, too.

[larrymagee]

Wow - I just read and replied to two other people who were offered the same 25% deal today. I just sent the Library a copy of the Taxi Listing email that said 50/50 and asked if they would honor it. I'll let you all know. Hopefully, they just made a mistake. If not, I think we have every right to ask Michael to go to bat for us.

[billhullett]

I'll be curios of that answer Larry , Because I raised the same question in a thread with Paulie tonight.... Because (I hate to be a suspisious soul but I'm gonna put it out there) If I were the publisher I could own two publishing comp. (not uncommon ....one ASCAP one BMI sign your song .....then sub lease it to my second publishing company and create a stream where I (your publisher) get 75% of the $$$ ......I could be dead wrong and actually hope I am!

Bill Hullett

[andygabrys]

uh........it may not be the "best deal" out there but IMO the TAXI listing is consistent with the contract offered.

The Taxi Listing said "They offer an EXCLUSIVE deal. Upfront sync fees will be negotiated on a Song-By-Song basis directly with Music Library. They’ll get 100% of the Publisher’s share, and you’ll keep 100% of the Writer’s share. "

so you get 50% of total royalties (back end) paid to your directly by your PRO.

Upfront sync fees will be negotiated on a Song-By-Song basis directly with Music Library

meaning that they likely have different percentages they offer for instrumental music, and vocal music, and maybe live large ensemble stuff. Who knows.

In this day and age, getting 50% of up front fees is pretty reasonable and normal.

Depending on the library - getting 25% of up front could still keep earning your money, or it might be 25% of zero anyways.

I have done that percentage with two different libraries. One was pretty much a dud. The other one I get money every quarter.

Its up to you whether you sign on this one but IMO there is no question that they are offering 50/50% total royalty split, and you get 25% of up front fees (and it doesn't explicitly state blanket or direct "performance - free" licensing deals as would be done bypassing the PRO on some channels so I would want to know about those situations)

[VanderBoegh]

Andy has the right answer here for you guys. The Taxi listing IS correct... you get 50/50 of back-end royalties (you keep 100% of writer's share, they take 100% of publisher's share). The listing specifically states that synch fees will be negotiated on a track-by-track basis. In your case, they've offered 25%.

I'm hoping - and not to sound like I'm getting on to you guys here - but I'm hoping you haven't ruffled their tail feathers by trying to "correct them" on their "oversight", when clearly they offered the exact type of deal that Taxi said they would. Some libraries will take this type of "correction" as an affront, and unless you've got a stellar background chock full of a ton of high-profile placements, they'll decide not to work with you. I've seen it happen. Many times, we've seen it play out right here on the forums, as people will write similar stories which result in the library saying "nevermind" as a result.

Anyway, it's up to you on whether you want to sign for 25% (like Andy, I'm also in the library he mentioned that does a 25% synch payout to the writer, and like him I also get money every quarter from blanket licenses). You've got to be the best judge and do what you're comfortable with.

Hope everything works out for you guys. And, oh yeah, congrats on the offers! That's a huge step, regardless of what happens from here.

~~Matt

[andygabrys]

............but I'm hoping you haven't ruffled their tail feathers by trying to "correct them" on their "oversight", when clearly they offered the exact type of deal that Taxi said they would. Some libraries will take this type of "correction" as an affront, and unless you've got a stellar background chock full of a ton of high-profile placements, they'll decide not to work with you. I've seen it happen. Many times, we've seen it play out right here on the forums, as people will write similar stories which result in the library saying "nevermind" as a result.

Pretty important what Matt wrote here.

These publishers are busy people who have spent a lot of time building their contacts and businesses. They are looking for professional composers, who interact with them in a seamless manner, understand the terms under which the relationship is built, and provide what is asked in a timely fashion.

On the other hand, many people here are starting on the "ground floor" - not necessarily as composers / players, but as people in business for themselves. And there is a learning curve. Everybody is going to make mistakes (as I know I have on many occasions) and you have to live with the consequences of those mistakes. Sometimes you get by on good grace. Sometimes you just burn that bridge. And you have to move on.

In this case - it seems like the primary issue is a lack of understanding about the basic terms of the agreement.

I refer you to this (extremely verbose post) that TAXI considered complete enough to publish on their website. I have covered a lot of pertinent things which relate well to this situation:

http://www.taxi.com/transmitter/1504/kn ... lingo.html


Remember that you can always ask a question on the forum before firing off an email to a publisher, or if its a TAXI forward, call directly to TAXI and ask for some clarification. You will receive some advice on how to proceed and keep the publisher relationship alive.

[larrymagee]

Thanks so much guys. My email to them was very courteous but this morning I sent another saying to disregard the previous and including my countersigned agreement. Hope all is still good. I really appreciate your help.

[Gypsygal]

Well congratulations all you successful taxi peeps, what a nice problem to have!

I'm sure it will all work out well.

cheers, diane

[larrymagee]

Yes, it worked out. I'm signed and countersigned and learned another important piece of the puzzle.