Publishing Exam Review

Question 1

What was important about each stage of the development of the publishing industry?

Answer 1

Sheet music, Tin Pan Alley, Brill Building Era, Rock in the 60s, Today, & Nashville

Question 2

What are the three types of songwriters and who is very coveted today?

Answer 2

Plain ol’ songwriters, artist songwriters, and producer songwriters; Artist Songwriters

Question 3

What are the three organizations supporting songwriters and publishers?

Answer 3

SGA, NSAI, & NMPA

Question 4

Why is publishing so valuable with so much opportunity?

Answer 4

It’s low risk/high reward especially compared to other income streams, new media and global opportunities, & evergreen songs

Question 5

What are the four major functions of a publisher?

Answer 5

Acquire, Develop, Exploit, & Administer

Question 6

What types of publishers are there?

Answer 6

Majors, Independents, Record Company Affiliates, & Artist Owned (aka Desk Drawer/Vest Pocket)

Question 7

Who are the Big 3 publishers? Who are some independents? Who are some executives we have spoken about?

Answer 7

Universal Music Publishing Group, Sony Music, & Warner Chappel; Kobalt & BMG; Micheal Knox, Falcon

Question 8

What are the two big divisions within a publishing company?

Answer 8

Creative & Administrative

Question 9

What three (4?) major skills should the head of a publishing company have?

Answer 9

Ears, Legal Knowledge, Financial Acumen, & Be a “good hang”

Question 10

What are the titles officially used for publishing employees who find writers and uses for songs?

Answer 10

Creative Director/Manager, A&R, or “song plugger”

Question 11

What qualities should you look for in a publisher?

Answer 11

Track record, relationships, roster, reputation, stability, personal interest and attention throughout the company, & international capabilities

Question 12

What are the two major types of publishing deals by subject matter?

Answer 12

Single Song Agreement or Exclusive Songwriter Agreement

Question 13

What are three characteristics of advances?

Answer 13

Non Returnable, Recoupable, & may be subject to cross-collateralization

Question 14

How are ownership, control and income handled in a Full Publishing deal vs. a
Copublishing deal vs. an Administration deal?

Answer 14

Full Publishing Deal
-Ownership - Publisher has 100% of copyright for life except for termination rights and reversion
-Control - Publisher has sole control
-Income - 50/50 Publisher share/Writer share
Co Publishing Deal
-Ownership - Shared equally between publisher and songwriter’s publishing company
-Control - Usually just the publisher
-Income - 1) Writer gets full 50% share
2)Publishers share other 50% -usually equally
–Publisher = 25%
–Co Publisher = 25%
–Writer = 50%
Administration Deal
-Ownership - Publisher retains - just licenses rights to another publisher (“Administrator”) for a short period of time (3-7 years)
-Control - Limited rights granted to Administrator for routine licenses-mechanical, performance etc. Anything more elaborate, such as synch license, may require publisher approval
-Income - Administrator takes 10-25% of income collected and distributes the rest to the publisher

Question 15

Who is likely to enter into each type of deal?

Answer 15

Full Publishing Deal - Someone with little to no bargaining power, newer artist/songwriter/producer
Co Publishing Deal - Someone with some bargaining power
Administration Deal - Someone with a lot of bargaining power

Question 16

What are the ranges for the standard amounts for the duration, delivery obligation and advances under a standard Exclusive Songwriter Deal for a new songwriter? To what extent are personal advances vs. demo costs recoupable? How is performance income handled differently?

Answer 16

1+2 to 4 years or may be album options,10-20 wholly written songs, $20k - $35k per year (more or less); Personal advances are 100% recoupable, Demo costs are 50% recoupable; idk

Question 17

What are the ranges for the standard duration and administration fee under anAdministration deal?

Answer 17

Duration is 3-7 years & administration fee is 10-25% of income collected

Question 18

Know the five variables (Licensor, Licensee, Rights, Fees and third party involved) for each of the three major types of licenses-mechanical, performance and
synchronization.

Answer 18

Licensor is publishing company for all current examples
Mechanical
-Licensee - Record Company
-Rights - To duplicate and distribute composition in audio format
-Fee - Statutory rate $.12 or $.0231 per minute whichever is larger (or negotiated reduction)
-Third party involved - The Harry Fox Agency (started by National Music Publisher Association (NMPA) now owned by SESAC)–Issues mechanical licenses for publishers and collects royalties from the record company for a fee (11.5%)
Performance
-Licensees - Anyone performing music, live or recorded
–Venues - Name all the places where you hear music in public
–Media - Name all the media where you can hear music
-Rights - rights to perform songs publicly
–One time or per use license - For a show, a festival, a convention, etc
–Blanket License - For regular users of music (bars, restaurants, radio, and TV, etc) You can play all songs in a PRO’s repertoire any number of times during license period
-Fees - depends on use, income, size
-Third Parties - PRO’s Non Exclusive right to license and collect for publishers and writers. ASCAP and BMI currently operate under a consent decree which means they have agreed that their practices, including license fees, are reviewable by a court if someone complains about them.
Synchronization
-Licensees - TV, Film,video, commercials, video games, etc
-Rights to put song in visual production - Other rights might be needed as well:
–Domestic Theatrical Performance License
–Master Use License (get from record label)
Fees
–Television - $8k-$20k
–Film - $20k-$60k
–Commercials - $250k-$500k
-Third Party
–Clearing Houses
–Music Supervisors

Question 19

What are the ranges for TV, Movie and commercial sync licenses?

Answer 19

Television - $8k-$20k
Film - $20k-$60k
Commercials - $250k-$500k

Question 20

Who are some sheet music publishers?

Answer 20

Hal Leonard, Cherry Lane, & Warner Chappell

Question 21

What is the statutory rate for ringtones?

Answer 21

$0.24

Question 22

What is the statutory rate for streaming services

Answer 22

15.1% of the income

Question 23

How is newly created music for audiovisual productions handled?

Answer 23

work made for hire basis

Question 24

Evergreen

Answer 24

generates income over a long period of time

Question 25

Controlled composition clause

Answer 25

Label wants to pay artist a max amount and can sometimes end in the artist paying the label

Question 26

Vest pocket/desk drawer

Answer 26

Other names for artist owned publishing companies

Question 27

Different names for song pluggers

Answer 27

A&R

Question 28

Reversion

Answer 28

A right contractually bargained for. If the publisher fails to achieve success with song after some period of time, rights revert or go back to writer. Difficult for new writer to get.

Question 29

Coadministration, Joint Administration, or Joint Publishing

Answer 29

Another name for Co Publishing deals

Question 30

Subpublisher

Answer 30

Publishers that represent you overseas

Question 31

Harry Fox Agency and fee

Answer 31

Third party for mechanical licensing of physical/digital units, rate is 11.5%

Question 32

Blanket license

Answer 32

For regular users of music (bars, restaurants, radio, and TV, etc) You can play all songs in a PRO’s repertoire any number of times during license period

Question 33

Small vs. Grand rights

Answer 33

PROs only handle small rights

Question 34

Domestic Theatrical Performance License

Answer 34

If movie is to be shown in US movie theater because theaters are not required to have licenses from the PRO’s (in Europe they must be licensed by theater

Question 35

Master Use License

Answer 35

From the record company, if original recording of song is used

Question 36

Music Supervisor

Answer 36

Individuals (or companies) that help to select and clear music for a production.

Question 37

How do the three major types of mechanical licenses differ in terms of rate and
accounting period?

Answer 37

Compulsory - $.12 per unit and monthly accounting, Negotiated - Usually $.12 (rarely do ¾ rate = $.9) and quarterly accounting, Controlled Composition Clause - Historically ¾ or $0.09 (10 times the rate) and semiannual accounting