CO-PUBLISHING, ADMINISTRATION AND JOINT VENTURES

CO-PUBLISHING, ADMINISTRATION AND JOINT VENTURES

THE CO-PUB AGREEMENT

UNLIKE AN EXCLUSIVE SW-PUBLISHER AGREEMENT WITH A 50/50 SPLIT COPYRIGHT SHARE, A SONGWRITER WITH A CO-PUBLISHING AGREEMENT BECOMES A COPYRIGHT OWNER AND THE CO-PUBLISHER. THE SONGWRITER’S CO-PUB SHARE WILL BE TAKEN FROM THE PUBLISHER’S COPYRIGHT SHARE.

THERE ARE 5 CIRCUMSTANCES THAT JUSTIFY A CO-PUBLISHING AGREEMENT (VERY RELEVANT TO SW’S IN CLASS)

1. A SW SIGNED ORIGINALLY TO A PUBLISHING COMPANY HAS AN EXCLUSIVE SW/PUBLISHER AGREEMENT THAT’S ABOUT TO END. HE/SHE HAS HAD A NUMBER OF HITS DURING THE TERM, AND THE PUBLISHER WANTS TO RE-SIGN THEM TO A NEW AGREEMENT. THE SONGWRITER’S SUCCESS WILL GIVE HIM/HER LEVERAGE TO EARN A CO-PUB AGREEMENT WITH YOUR PUB CO. GOING FORWARD.
2. AN UNSIGNED SW WITH PRIOR SUCCESS WHO OWNS HIS/HER SONGS.
3. A SONGWRITER WITH A RECORDING CONTRACT: (PRIORITY OF CREATIVE DEPT.). THE SONGWRITER- ARTIST HAS LEVERAGE BECAUSE OF THE POTENTIAL EARNINGS FROM MULTIPLE SONGS ON THEIR ALBUMS. THIS WOULD APPLY TO NEW OR ESTABLISHED SW-ARTISTS.

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1. AN UNSIGNED SW SIGNS A SINGLE SONG AGREEMENT WITH A PUBLISHER AND THE SONG BECOMES A HIT, AND AFTERWARDS THE PUBLISHER WANTS TO SIGN THIS SW TO A PUB AGREEMENT. BECAUSE OF THE SUCCESS-ROYALTIES EARNED OF THAT ONE SONG, THE SW HAS LEVERAGE TO ASK FOR A CO-PUB AGREEMENT.
2. THE PUBLISHER, FINDS A NEW SW/ARTIST OR BAND THEY FEEL STRONGLY HAS A GREAT OF POTENTIAL TO BE SIGNED BY A MAJOR LABEL. BECAUSE OF THE COMPETITION OF THE MANY PUBS TO SIGN THEM, THIS WILL CREATE LEVERAGE FOR THE ARTIST TO JUSTIFY A CO-PUB AGREEMENT.

SOME DIFFERENT PROVISIONS OF A CO-PUBLISHING AGREEMENT 1. COMPENSATION PROVISION: SPELLS OUT A GREATER % THAN THE EXCLUSIVE AGREEMENT (50%). THE SW SHARE PLUS CO-PUB SHARE WILL EQUAL 75%.(SHOW PIE CHART) 2. THE SW WILL PAY AN ADMINISTRATIVE FEE ON HIS/HER CO-PUBLISHING SHARE EARNINGS. (DISCUSSED LATER)

1. THE ADVANCE PROVISON: a. IT WILL BE A HIGHER AMOUNT FOR THE SW OR SW-ARTIST BECAUSE OF THE PAST AND/OR POTENTIAL OF GREATER EARNINGS PAGE 2

b. ADVANCES WILL BE RECOUPED FROM ALL STREAMS OF INCOME WITH THE EXCEPTION OF THE WRITER’S SHARE OF PERFORMANCE ROYALTIES AS USUAL, BUT: WITH A CO-PUB AGREEMENT THE PUB WILL ALSO RECOUP ADVANCES FROM THE CO-PUBLISHER SHARE OF PERFORMANCE ROYALTIES. (SHOW CO-PUB % SHARES AGAIN).

4. IF THE SW WANTS TO EVENTUALLY SELL THEIR CATALOG OF SONGS WITH THEIR CO-PUBLISHERING SHARE, THE PUBLISHING CO. HAS THE RIGHT OF FIRST REFUSAL AND MATCHING RIGHTS I.E.—IF FINANCIAL AGREEMENT IS NOT NEGOTIATED TO THE SATISFACTION OF BOTH THE PUB CO. AND SW CO-PUBLISHER, THE SONGWRITER CO-PUBLISHER CAN BARGAIN WITH OTHER PUBLISHERS. BUT BEFORE THE SALE IS FINALIZED, THE CO-PUBLISHER HAS TO GIVE THEIR PUBLISHER THE RIGHT TO MATCH THE AMOUNT OF THE OTHER PUB’S OFFER. THE CONTROL COMPOSITION CLAUSE: SEE SEPARATE DOC IN LECTURE OUTLINE.

COPYRIGHT ADMINISTRATION

A COPYRIGHT OWNER, SUCH AS A MUSIC PUBLISHER OR SONGWRITER, (JIM WEATHERLY), CAN OUTSOURCE ADMINISTRATIVE/CREATIVE TASKS, SUCH AS LICENSING, ROYALTIES, COPYRIGHT REGISTRATION AND PITCHING SONGS TO A COMPANY THAT SPECIALIZE IN DOING THEM. THEY ARE KNOWN AS THE ADMINISTRATION COMPANY, OR ADMINISTRATOR. PAGE 3

1.THE ADMINISTRATION CO. IS A STAND ALONE CO. THAT EXISTS FOR COPYRIGHT ADMINISTRATION ONLY. 2.A MAJOR MUSIC PUBLISHER CAN BE AN ADMINISTRATOR. (BMG..BEE GEES).

WHO MIGHT NEED AN ADMINISTRATION AGREEMENT?

1. A SMALL MUSIC PUBLISHER: 1. TO KEEP FROM HIRING IN-HOUSE PERSONNEL (SAVING SALARY EXPENSES).

2. THEY JUST DON’T WANT TO DO THE EXTENSIVE WORK NEEDED THAT AN ADMINISTRATOR/ADMIN WILL DO.

1. A MAJOR SONGWRITER-ARTIST WHO OWNS THEIR COPYRIGHTS: (JAMES TAYLOR, BILLY JOEL, ED SHEERON, LADY GAGA/BILLIE EILISH). -- MAJOR PUB/KOBALT/PRIMARY WAVE
2. A SONGWRITER WITH A CO-PUBLISHING AGREEMENT.
3. A JOINT VENTURE AGREEMENT.

THE ADMINISTRATION AGREEMENT

1. THE COPYRIGHT OWNER ASSIGNS CONTROL OF THE COPYRIGHT TO THE ADMINISTRATOR. (PWR/ATTORNEY)
2. THE ADMIN. FEE: PAGE 4 THE ADMIN. CO./ADMINISTRATOR MAKES MONEY BY CHARGING/DEDUCTING A % OF ROYALTIES EARNED BY THE SONGS. THE ADMIN FEE CAN RANGE FROM 10-20% OF INCOME EARNED. (USUAL RATE— NASHVILLE-10%) 1. THERE MUST BE A SIGNIFICANT AMOUNT OF MONEY EARNED BY THE OWNER OF THE COPYRIGHTS TO JUSTIFY THE AGREEMENT. (ADMIN CAN’T WORK FOR FREE). 2. THE SONGWRITER’ SHARE OF PERFORMANCE ROYALTIES WILL BE PAID DIRECTLY BUT NOT THEIR CO-PUB SHARE/TO ADMIN.
3. TERM OF THE AGREEMENT: NORMALLY 3-5 YEARS
4. ADVANCES: ADMIN CO. MAY ADVANCE MONEY TO THE COPYRIGHT OWNER—TO BE RECOUPED FROM FUTURE ROYALTIES:

THE JOINT VENTURE AGREEMENT

AN AGREEMENT BETWEEN A MUSIC PUBLISHING CO. AND AN INDIVIDUAL (J.V. PARTNER), OR GROUP OF INDIVIDUALS (VENTURE PARTNERS) TO CREATE A SONG CATALOG THAT WILL BE JOINTLY OWNED.

THE VENTURE PARTNERS HAVE SONGS, SONGWRITERS SONGWRITER-ARTISTS OR WILL EVENTUALLY FIND AND SIGN TO THE PARTNERSHIP. THE PUBLISHER’S COPYRIGHT SHARE OF THE SONGS CREATED DURING THE TERM WILL USUALLY BE SPLIT EQUALLY BETWEEN THE PUBLISHER AND VENTURE PARTNERS. (SHOW ON BOARD

1. WHO MIGHT BE A VENTURE PARTNER: AN EXPERIENCED MUSIC PUBLISHING OR INDUSTRY EXECUTIVE WHO HAS GREAT AMOUNT OF LEVERAGE BECAUSE OF THEIR ACCESS TO MANY POWERFUL PEOPLE.

1. USUALLY THE AGREEMENT WITH MULTINATIONAL PUBS WILL INCLUDE A SIZEABLE ADVANCE AMOUNT. PAGE 5
2. THE PUBLISHER IS RESPONSIBLE FOR PAYING ALL ADVANCES TO ALL PARTNERS, SONGWRITERS AND SONGWRITER-ARTISTS.
3. THE PUBLISHER MAY EVEN PAY SOME OF VENTURE PARTNER’S BUSINESS EXPENSES: OFFICE SPACE, STUDIO, OFFICE EQUIPMENT, EMPLOYEES.
4. THE JOINT VENTURE WILL PAY AN ADMINISTRATION FEE TO THE PUB COMPANY.