VIPSTAND & Wallace Collins Ask PRO's "What is The Exact Royalty Formula?"

Today I was just randomly googling search terms and I saw this link pop up for a site I haven’t had a chance to visit called vipstand. I ended up opening a video on its site called “ You Are Watching: Publishing Deals and Performance Rights Organizations” (PRO’s) and decided to watch this video uploaded from one of my fav sites, artistshousemusic.org, with entertainment attorney Wallace Collins speaking because he appeared to be relaxed and ready to give us viewers some good insight into his point of view on publishing. 

I liked how he explained owning the copyright in a publishing deal and how much is typically divided in splits. He briefly went over how one may co-own the copyright and get 50 percent as the writer while the rest goes to the publisher and writer, an example of an average co-publishing deal. I didn’t realize how administration deals worked. They get commission for just collecting your money but it is straightforward calculation regardless of how much percent they get.

Collins says the X factor on the publishing side is the PRO’s (i.e ASCAP, BMI, SESAC) and how its not always clear how much they are taking from the money you may make on your songs. He said he has never been told a formula and how much percentage they get for calculating song royalties but he was not trying to indict any of them. I thought the system was doing a good job on tracking these numbers but apparently not! I have heard stories of people signed to separate PROS’s as songwriters and received different monies even when they worked and co-wrote the same record and had the same contract splits. I believe ASCAP is the way to go as far as the signed writer advantages I feel they have over the other two, but more details about them in a later post. That topic can go on for weeks!

 We will have better tracking systems in the future so you know you are getting your exact money the first time around and worldwide changes need to occur so the whole planet is in sync in royalty tracking because business is international. And you shouldn’t have to wait to see what your co-writer received on a record in a check to know you may have been cheated and for them (the PRO’s) to give you the difference. I will be checking out future videos on this site and even some old ones already uploaded about music publishing, indie labels, and copyrights (fun and informative videos alike) and so should you!

http://www.vipstand.me/en/online-videos/play/Us-beRRxYdk/Publishing-Deals-and-Performance-Rights-Organizations.html 

Financing...Major Publisher...Good Venture Move

I recently went back to visit one of my favorite company sites, ascap.com, and saw a brief article about getting financing for your music publishing company and I happen to know a few entrepreneurs with young companies in the music industry who themselves are trying to decide on whether or not to sign a deal with a major publisher in order to guarantee success.  Most of these companies are new record companies, including my own that I am in the process of developing. Some people I have spoken with are up and coming producers/songwriters like myself who are unsure of starting their own small publishing company or not let alone where to get financing for one.  The title of this article is called “ Getting Financing For Your Music Publishing Company”, a fitting and simple title that helps searchers in their quest for knowledge on the topic.

            I am a fan of making joint alliances with other companies, my company itself will be a partnership and joint venture, so I am in support of signing co-ventures, as long as things remain fair and equal! The article talked about the advantages that major music publishers gain from adding on a record company and that includes their “creative expertise” that they would have otherwise lost out on if they didn’t sign with them. This may help them tap into undiscovered talent and boost their own revenues. It is also an advantage for the small record company, producer or songwriter because this venture will help decrease their financial and administrative worries while allowing them to focus on their creative side and business goals. That is a big burden lifted! Later on the article brings up the topic of song financing and ownership and how signing with a major publisher usually means they [major publisher] will pay a certain amount of financing on an annual basis which in turn will be used to sign songwriters that is selected by the new partner. Both companies will then own the copyrights to songs written by their signed writers, and I see this as a very beneficial move for a company without the financial backing or industry connects at first and for its roster of writers, producers, etc.

            I also learned from reading that sometimes both partners will co-pay the advance although its usually the major publisher who funds all the advance money that is due to the writers. I love advance money and I wish there were more ways to obtaining advances, but as a fresh artist or songwriter or producer, one needs to know advanced money is on the brink of distinction and is not handed out like it used to be to a newly signed artist or writer or whoever. In terms of sharing income for these songs, net income could be split in an equal amount between both companies but can be shared solely based on how much each party pitched in to the advances to their signed writers in their co-venture. I really liked what I “heard” from this article and this isn’t a bad direction to head in as a new indie record label by any means…great way to get yourself and your clients ahead in this tough game from a music publishing POV. 

http://www.ascap.com/music-career/articles-advice/ascapcorner/corner5.aspx