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The Music Biz

The Music Biz

Tuesday, February 18, 2014 • BeatsBySwiss.com

There are two general rights covered in a music copyright: the authorship of a song and the ownership of a song. According to Copyright Law, the writer is the natural owner of every song they write until ownership is assigned to someone else. Every song is made up of two equal parts; not the lyrics and the melody but the writer share and the publisher share.

Copyrights

Often the process of registering a copyright is what comes to mind when people hear the term copyright. However, songs are automatically copyrighted as soon as they are in tangible form, even recorded at home or simply written down. Copyrighted songs have to be original (not copies of another piece) and significant enough to constitute a work. Copyrighting work (getting it in tangible form) not only protects it from being copied or used by unauthorized parties but also is the first step to publishing material and ultimately being paid for it.

Once a work is copyrighted the owner has the exclusive rights to:

1. Reproduce the work
2. Distribute copies of the work
3. Perform the work publicly
4. Make a derivative work.

It also means no one else can do these things without express consent.

It's a fairly common practice among independent artists to mail their work to themselves then keep the unopened letter with its dated postmark as proof of the date the copyright became effective.

Songs registered with the Copyright Office at The Library of Congress will have the maximum protection under copyright law should a dispute arise. Songs should be registered prior to being available to the general public (posting them on Myspace for example) or commercialization of the work.
 
Once an artist is signed by a label the sound recordings are often times copyrighted by the record company and the song copyrights are often held by the music publishers.

Publishing Companies

There are two general rights covered in a music copyright: the authorship of a song and the ownership of a song. According to Copyright Law, the writer is the natural owner of every song they write until ownership is assigned to someone else. Every song is made up of two equal parts; not the lyrics and the melody but the writer share and the publisher share.
 
The writer share is semi-sacred. It represents the authorship of the song. While a copyright can change hands many times; the writer share remains the property of the author.
The other fifty percent, the publisher share, is the equitable share. It is what you can sell or buy. In this context it is known as the "copyright". When a publisher acquires a copyright, it is acquiring the publisher share.

Control

The Publisher controls the writers share. The publisher licenses mechanical , print and synch rights on behalf of itself and the writer. These royalties and fees are collected by the publisher (the owner of the copyright) for both the publisher share and the writer share. It is the publisher's responsibility to pay the writer. Performance royalties are the only royalty type where the writer can collect his writer royalties directly from the performing rights organization. Control means the publisher has the right to negotiate and execute all licenses.

Exploitation

In music publishing, exploitation is a good  term. Writers want their songs exploited. Landing a song in a film or television show is an exploitation; somebody recording your song is an exploitation; releasing a record is an exploitation. When a writer's song becomes part of a greatest hits package down the line - that's an exploitation. An exploited song that is licensed and registered opens revenue streams.
 
Royalties don't just magically show up in your mailbox; It is the result of the publisher executing licenses and filing the proper registrations.

Registration

The writer or their music publisher registers their songs with a performing rights organization (ASCAP, BMI or SESAC) to get the song details in their database so the correct percentages of performance royalties can be attributed and paid to the correct party.
 
The music publisher registers their writer's songs with a "local" publisher in a foreign territory so they can, in turn, register the songs with their local mechanical and performing rights societies (society being a fancy term for foreign mechanical and performing rights organizations) so the correct percentages of foreign mechanical royalties and the publishers side of performance royalties are attributed and paid to the correct party.

Licensing

The music publisher doesn't sell songs to another artist to record or to be used on a TV show or film- they license it. There are four primary licenses: Mechanical Licenses, Public Performance Licenses, Synchronization Licenses, and Print Licenses (Read Previous articles for more info on Licenses).

Functions of a Music Publisher

Administration

Secures copyrights, controls copyrights, executes a variety of licenses, causes songs to be registered with a variety of organizations and societies world-wide, collects royalties, disburses royalties, and more.

Creative Services

The Creative exploitation of copyrights or causing songs to be exploited by pitching songs to other artists and securing placements in Film, TV and commercials; networking and promoting its writers (further explanation invites a whole blog topic in itself)
 
Publishers are often able to provide critical funding in the form of advances against your future royalties and by covering the costs of recording demos of your songs.

Self Publishing

Some songwriters elect to keep their publishing rights and royalties by setting up their own publishing company. It is possible for an artist to keep their publishing rights and simply hire a third party to handle the publishing related administration. If an artist decides to set up their own publishing company they will need to register their affiliation with ASCAP , BMI or SESAC.
 
Swiss Boy

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Tuesday, January 11, 2011 • BeatsBySwiss.com

Distributors are responsible for selling, positioning and marketing a record label's or artist's music with any outlet where music fans buy music including traditional retailers, online download services, online subscription based services, ringtone providers and mobile downloads.

 
Distributors are responsible for selling, positioning and marketing a record label's or artist's music with any outlet where music fans buy music including traditional retailers, online download services, online subscription based services, ringtone providers and mobile downloads. Most major music outlets, traditional and online, won't deal directly with record labels or artists and order exclusively through distributors. Distributors range in size from those owned by the big 4 record labels to independents to those that only distribute to online outlets. They typically charge the labels they distribute a percentage of price the retailers pay, 20% for example.
 
Inventory and billing management are keys to a distributor's success since retailers can return unsold inventory they purchase at any time. It is not uncommon for a retailer to return an order to the distributor prior to their invoice coming due then turnaround and place the same order they just returned. Since the distributor must accept any and all returns from retailers they typically require exclusive distribution agreements with the record labels they distribute. Retailers also typically want to deal with only one distributor on a CD release so they know who to order from and where send returns to as needed. Distributors must manage their inventory levels to make sure they can fulfill orders from retailers but not have too much inventory in stock that's not selling. They must coordinate shipments to and from both record labels and retailers. Many times distributors will also coordinate the manufacturing of the CD's for their labels since they can often times get better pricing due to the volume of CD's they can produce.

Retail Sales & Marketing

Distributors have sales people who call buyers at the retailers and get them to order inventory of their labels CD's and stock them in their stores. Retailers will often tie the amount of inventory they order to the amount of money the distributor is willing to pay in marketing programs and advertising with them. These marketing programs include special product placement within the retailer's stores, listening posts, giveaways and promotions, and often include print and online advertising. Distributors have a staff to coordinate the retail marketing programs with their labels, agree to marketing budgets, get ad artwork and send retailers the artist one sheet summaries of the release and promotional CD's to the buyers at the retailers. The costs of these marketing programs are charged back to the record labels and usually become a recoupable expense against the artist's royalties from sales .

Digital Distribution

Distributors must keep up with the constantly growing options for digital music and make sure their content is appropriately licensed and distributed by the wide array of digital music outlets available to music fans. Distributors who sell music through digital retailers and mobile providers must build and maintain an accurate database of each track and its related metadata (artist, album, track name, art, publisher and related information.) and create an ISRC code for each track in their catalog. The tracks and metadata must then be formatted to meet the format standards for each digital retailer and mobile provider before transmitting a file to them since there is not an industry standard that has been developed. Many distributors have developed web-based tools that allow each record label they distribute to upload their catalog and new releases directly to the distributor's database.
 
Today there are a growing number of companies who have bypassed the traditional retailers and focus all their efforts on digital distribution like the IODA Alliance.
 
CONTENT PROVIDED BY SWISS BOY @ BEATSBYSWISS.COM
 
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