Copyrights & Writer/Publ

Copyrights

Making Money in Today’s World of Music

In today's world, there are a variety of ways songwriters and artists make money in the music business. These include, but are not limited to: video games, on-line streaming, traditional radio play, downloads, songs in films, TV shows and commercials, webisodes, ringtones, e-greeting cards, lyrics on t-shirts and jeans, merch bundling and more

Some of these channels generate a lot of money, others very little and some are good for promotional benefit only.

Each subset of the music business has its own set of rules, contracts, licenses, considerations and royalties and differ depending on whether you are a songwriter, an artist, or both.

Here are basics of what you need to know about how to make money as a songwriter and artist in today's world of music.

Record Sales

Every time a song is downloaded or sold in a physical form (CD, vinyl, etc.), the songwriter and music publisher are paid a combined 9.1¢ from the record company. For example, if the song has 100,000 individual track downloads from iTunes and is on a 500,000 unit selling album, the total “mechanical” royalties would be $54,600 ($9,100 + $45,500). In addition to these “song” royalties, the artist would also receive recording artist royalties for each sale based upon the royalty provisions of his or her recording contract.

Radio

If the song becomes a major radio hit, the total songwriter and music publisher “performance” royalties could easily exceed $700,000. These royalties come from the fees that are negotiated by the performing right organizations (ASCAP, BMI and SESAC) with the many users of music (radio and television stations being the largest) and which are split 50/50 between the songwriter and music publishers involved with the song. Writers and publishers have to join one of these organizations to receive these royalties.

The royalties in this area can vary greatly depending on which organization you join as well as how many times the song is performed and the type of station it is performed on (a performance on a large station will be worth more money than a small station, etc.). Also, ASCAP, BMI and SESAC give extra bonus monies to songs which generate a great many radio performances in a 3 month period; sometimes tripling the amount of money for a hit song (e.g. $200,000 in royalties becomes $600,000).

Streams

The song also receives many thousands of streams on the Internet (web radio) resulting in additional song royalties to the writer and music publisher. The recording artist, on the other hand, receives even more money for these very same streams of the record from SoundExchange (the entity that collects for artists, labels and background musicians and vocalists). An artist has to join SoundExchange to receive these record “performance” royalties. There is also no fee to join SoundExchange.

Movies

The song is put into a major motion picture resulting in a $40,000 songwriter and music publisher “synchronization” fee. If the film were an independent feature film, a documentary, a student film or a film being shown only in film festivals, the fees could be as low as $500 or “gratis” depending on the budget of the film. In many cases, the writer and publisher will negotiate “step deals” where they receive additional “synch” monies if the film achieves certain box office numbers. In addition, every time the movie is shown on broadcast television or cable, the writer and publisher will earn monies from ASCAP, BMI or SESAC. Once again, this shows the importance of registering with a performance rights organization. If you are not associated with ASCAP, BMI or SESAC, you will not get your song royalties for performances of the movie.

If the original master recording is used in the film, the fee will normally be the same as negotiated for the song and is shared 50/50 by the record label and the artist.

Video Games

Based on the song's success, a video game developer wants to use it in a Guitar Hero / Rock Band type game. As opposed to most video games that pay only a one time “synchronization buyout” songwriter / music publisher fee to put the song into a game, many music intensive games pay a song either on a per unit sold basis (e.g. 1¢ per game sold) or on the game reaching certain sales plateau numbers (e.g. $4,000 to put the song into a game with an additional $4,000 for each 250,000 units sold). Additional monies are also earned when a song is downloaded into a game. As many of these types of games sell millions of units, the monies can be substantial for the songwriter and music publisher. If the original master recording is also used, the record label and recording artist will receive the same amount since they usually license on the same basis.

With Rock Band, you can make your song available for gamers to buy and play. Each time your song is bought, you are paid a fee that you must split with the publisher (after all, the song was “reproduced” when it was bought and downloaded).

Television

Anytime a song is placed into a television program, the television producer will negotiate a fee with the music publisher of the song who then shares the monies with the songwriter. The amount of the fee will depend on many factors including the show's music budget, the stature of the song, the length of the license, the distribution media (over-the-air television, cable, the Internet, downloads to mobile phones, etc.) and how the song is used in the program (sung by an actor, played in the background, used as the theme, etc.), how long it is used for (10 seconds, 2 minutes, full use), among other factors.

Some television series ask for an “all television” license which will allow them to broadcast the program on all types of television media including Internet distribution. Virtually all television licenses have an option for the TV show producer to distribute the program to home video. Some include home video in the original license without making it an option and pay more upfront. Other series license for all media which gives them the right to distribute the series over all distribution platforms. And there are many variations in between. For example, CSI will ask for one type of license and American Idol a totally different type of license.

Fees range from $9,000 to $30,000 for the use of a known song in an episode of a successful series depending on the type of license and the media requested. The fees for lesser known or new songs are less than the above.

If a TV show wants to use your song as a theme, the producers will also many times license the master recording of the song. For example, The Sopranos TV series not only used A3’s song “Woke Up This Morning” (through a license with their publisher) but also licensed the original master record from the group’s record company under a separate negotiation. If the song is specifically written for the TV show, however, the production company will virtually always own the publishing rights and master recordings.

Broadway Show

The song is placed in a “catalogue musical” similar to the Journey songs used in the show “Rock of Ages” and the Green Day songs in the Broadway show “American Idiot”. The deal that the music publisher agrees to is one that pays all of the songs in the show a percentage of the gross weekly box office receipts. The show becomes a big hit grossing 1 million dollars a week in New York with the writer and publisher earning $200,000 in theatre royalties for the 1st year of performances.

Conclusion

These are just some of the ways that music makes money in today's world. Granted, you have to have the right song or record as well as be knowledgeable enough to take advantage of opportunities when they are presented to you. That said, opportunities to make money from your music are greater than ever before. Recognize them, take advantage of them, and enjoy your career in music.

© 2010 Jeff Brabec, Todd Brabec
Information contained in this article is from the Jeff and Todd Brabec book "Music, Money, And Success: The Insider's Guide To Making Money In The Music Business" (Schirmer Trade Books/Music Sales/505 pages/6th Edition). See also the Brabecs' website: www.MusicAndMoney.com

Claims to copyright in either published or unpublished musical works may be registered in the Copyright Office.

Published collections of musical works and all the copyrightable elements of a unit of publication can be submitted for registration online with one application and a single fee if all the compositions are owned by the same copyright claimant. For details on deposit requirements for published works, see Circular 50, Copyright Registration for Musical Compositions.

Unpublished collections of two or more musical works can be submitted for registration online with one application and a single fee and a deposit of one complete copy or phonorecord only if all the conditions are met as specified under the topic heading “Collections of Music” in Circular 50. Registration of an unpublished collection of compositions extends to each copyrightable selection in the collection, but only the collection title appears in the Copyright Office catalogs and indexes. A separate registration for each musical work results in a separate record of the individual title of work in the catalogs and indexes of the Copyright Office. A separate registration also may simplify identification of the work for purposes of licensing, transfer, permission, and distribution of royalties.

See Circular 50 for additional information on the deposit requirements. For further information on registration, see SL-35, Registering a Copyright with the U.S. Copyright Office. For further information on copyright, deposit requirements, and registration procedures, see Circular 1, Copyright Basics.

FL-105, Revised September 2010

Home | Contact Us | Legal Notices | Freedom of Information Act (FOIA) | Library of Congress

U.S. Copyright Office
101 Independence Avenue SE
Washington, DC 20559-6000
(202) 707-3000

Shown below are fees for copyright registration, recordation, and other services. Note that there is now a lower filing fee for online registration of basic claims through the electronic Copyright Office.

Effective August 1, 2009, some fees changed based on regulations to be issued by the Copyright Office. (Read Fee Study Report.)

Registration, Recordation, and Other Services	Effective Aug 1
Online registration of a basic claim in an original work of authorship (electronic filing)	$35
Registration of a basic claim in an original work of authorship on Form CO (paper filing with 2-D barcode-generated form)	$50
Registration of a basic claim in an original work of authorship on Forms PA, SR, TX, VA, SE (paper filing)	$65
Registration of a claim in a group of contributions to periodicals (Form GR/CP), or database updates (paper filing)	$65
Registration of a group of published photographs (Form GR/PPh/CON) (paper filing)	$65
Registration of renewal claim (Form RE) without addendum (paper filing) Addendum to Form RE (paper filing)	$115 $220
Registration of a claim in a group of serial issues (Form SE/Group, per issue, minimum 2 issues) (paper filing)	$25
Registration of a claim in a group of daily newspapers or newsletters (Form G/DN) (paper filing)	$80
Registration of a claim in a restored copyright (Form GATT) (paper filing)	$65
Supplementary registration to amend a completed registration (Form CA) (paper filing)	$100
Registration of a claim in a vessel hull (Form D/VH) (paper filing)	$220
Registration of a correction or amplification to a vessel hull design registration (Form DC)	$100
Preregistration of certain unpublished works	$115
Additional certificate of registration	$35
Certification of Copyright Office records	$165
Search report prepared from official records (per hour) (minimum: 2 hours) Estimate of search fee	$165 $115
Location and retrieval of nonelectronic Copyright Office materials or records (per hour) Locating or retrieving electronic records (per quarter hr [with 1/2 hr minimum]) (e.g., $82.50 up to 1/2 hr, plus $41.25 for each subsequent 1/4 hr)	$165 $41.25
Recordation of a document (single title) Additional titles (per group of 10 or fewer titles)	$105 $30
Issuance of a receipt for a sec 407 deposit	$30
Online service provider designation (Recordation of an Interim Designation of Agent to Receive Notification of Claimed Infringement under sec 512(c)(2)) Alternative names, including websites (per group of 10 or fewer)	$105 $30
Registration of a claim in a mask work (Form MW) (paper filing)	$105
Registration of a claim in a vessel hull (Form D/VH) (paper filing)	$220

Special Services
Special handling for registration of qualified copyright claims Fee to expedite processing of qualified claims Special handling fee (per claim) Additional fee for each (non-special-handling) claim using the same deposit	$760 $50
Special handling fee for recordation of a document	$480
Expedited search report (per hour) (minimum 2 hours)	$445
Expedited certification and copying services (surcharge, per hour)	$265
Requests for reconsideration: For claims previously refused registration First request Additional claim in related group (each) Second request Additional claim in related group (each)	$250 $25 $500 $25
Secure test processing charge (per hour)	$165
Copying of Copyright Office Records by staff: Photocopy (b&w, 8 1/2"x11") (per page, minimum $12) Photocopy (b&w, 11"x17") (per page, minimum $12) Photocopy (color, 8 1/2"x11") (per page, minimum $12) Photocopy (color, 11"x17") (per page, minimum $12) Photograph (Polaroid) Photograph (digital) Slide Audiocassette (first 30 minutes) Additional 15-minute increments Videocassette (first 30 minutes) Additional 15-minute increments CD or DVD Zip or floppy disk	$0.50 $1 $2 $4 $15 $45 $3 $75 $20 $75 $25 $100 $ 100
Full-term retention of a published deposit	$470
Notice to libraries and archives Each additional title	$50 $20
FedEx Service	$40
Delivery of documents by facsimile (per page, 7 page maximum)	$1
Service charge for deposit account overdraft	$165
Service charge for dishonored deposit account replenishment check	$85
Service charge for an uncollectible or non-negotiable check	$25

Licensing Division Services
Recordation of a Notice of Intention to obtain a compulsory license under 17 USC 115b (to make and distribute phonorecords) (17 USC 115) Additional titles (per group of 10)	$60 $20
*Filing fee for recordation of a license agreement (17 USC* 118)**	$140
Recordation of certain contracts by cable television systems located outside the 48 contiguous states	$50
Notice of use of sound recordings under statutory license (17 USC 112 and 114) Amended 17 USC 112 and 114 notice	$25 $25
*Statement of account amendment (cable television systems and satellite carriers [17 USC* 111, 119], and digital audio recording devices or media [17 USC 1003])**	$100
Photocopy made by staff (b&w) (per page, minimum $12)	$0.50
Search report, per hour	$165
Certification of search report (per hour)	$165
For further information on current fees, call the Copyright Public Information Office at (202) 707-3000, 8:30 a.m. to 5:00 p.m. eastern time, Monday through Friday, except federal holidays. See also Circular 4, Copyright Office Fees. Or, you may write for information to: Library of Congress Copyright Office 101 Independence Avenue, S.E. Washington, D.C. 20559-6000

Home | Contact Us | Legal Notices | Freedom of Information Act (FOIA) | Library of Congress

U.S. Copyright Office
101 Independence Avenue SE
Washington, DC 20559-6000
(202) 707-3000 or 1-877-476-0778 (toll free)

Revised: 24-Sep-2010

Licensing Division Services
Recordation of a Notice of Intention to obtain a compulsory license under 17 USC 115b (to make and distribute phonorecords) (17 USC 115) Additional titles (per group of 10)	$60 $20
*Filing fee for recordation of a license agreement (17 USC* 118)**	$140
Recordation of certain contracts by cable television systems located outside the 48 contiguous states	$50
Notice of use of sound recordings under statutory license (17 USC 112 and 114) Amended 17 USC 112 and 114 notice	$25 $25
*Statement of account amendment (cable television systems and satellite carriers [17 USC* 111, 119], and digital audio recording devices or media [17 USC 1003])**	$100
Photocopy made by staff (b&w) (per page, minimum $12)	$0.50
Search report, per hour	$165
Certification of search report (per hour)	$165
For further information on current fees, call the Copyright Public Information Office at (202) 707-3000, 8:30 a.m. to 5:00 p.m. eastern time, Monday through Friday, except federal holidays. See also Circular 4, Copyright Office Fees. Or, you may write for information to: Library of Congress Copyright Office 101 Independence Avenue, S.E. Washington, D.C. 20559-6000

Home | Contact Us | Legal Notices | Freedom of Information Act (FOIA) | Library of Congress

U.S. Copyright Office
101 Independence Avenue SE
Washington, DC 20559-6000
(202) 707-3000 or 1-877-476-0778 (toll free)

Revised: 24-Sep-2010

LET'S LEARN TO BE GREEN AND PRESERVE OUR WORLD

WEBSITE DESIGNED BY JAY MCGEE

God's Gospel City