Songwriter Contracts

Nashville Songwriters Association International and Tennessee Volunteer Lawyers for the Arts Kenneth J. Sanney, Esq.

Overview
The Standard Contract Rights and Royalties Songwriter Agreements

The Standard Contract

Thereisnostandardcontract. Songwritingagreementvarygreatlyfrom publishertopublisherandfromwritertowriter. Everythingisnegotiable. Successinnegotiatingisbasedon(1)knowledge, (2)bargingpower,and(3)goodnegotiating skills.

Rights and Royalties

MechanicalRights:giventoarecordlabelinorderto reproducethesongintheformofaphonorecord(cd, tape,digitaldownloads). Therecordlabelisresponsibleforpayingmechanical royaltiestotheownerofthesong. 2. PerformanceRights:grantedinorderforthesongtobe sungorplayed(recordedorlive)inapublicplaceoron radioandtelevision. PerformanceRightsOrganizationsareresponsiblefor payingperformanceroyaltiestotheownerofthe songshouldbeadirectpayment,notrouted throughpublisher.
1.

Songwriter Agreements
ThephraseSongwritersagreementrefersbroadly toagreements(i.e.,contracts)betweenasongwriter andamusicpublisher. Thephrasecanspecificallyrefertoanyoneoffour typesofagreements. 1. SingleSongAgreements 2. ExclusiveSongwriterAgreements 3. CoPublishingAgreements 4. AdministrationAgreements

Songwriter Agreements
Single Song Agreements Exclusive Songwriter Agreements Co-Publishing Agreements Administration Agreements

Types of Songwriter Agreements:

Songwriteragreementscannotonlybeclassifiedby their4types:
1. SingleSongAgreements 2. ExclusiveSongwritingAgreements 3. CoPublishingAgreements 4. AdministrationAgreements

Theycanalsobeclassifiedaseither:
1. Exclusiveor 2. Nonexclusive.

Single Song Agreements

UnderaSingleSongAgreement,thesongwriter transferscopyrightownershipofspecificallyidentified song(s) tothepublisher. Thesearenonexclusive agreements Thereisnoterm becausesuchagreementsaresimply aonetimesale,wherethecopyrightistransferred fromtheSongwritertothePublisher.

Single Song Agreements

Caution:thephrasesemploymentforhire, workforhireandexclusivewriteragreement shouldneverbepresentinsinglesong agreements. Caution:Thereshouldbenooptionsforfuture songs.

Exclusive Songwriter Agreements

ESAscontainmanyofthesameprovisionsofa singlesongagreement. Themaindifferenceisthat:
Thesongwriteristransferringcopyright

ownershipofallsongswrittenduringtheterm ofthecontracttothepublisherand

Songwritersusuallyreceivesadvances,which

arerecoupable fromtheWritersroyalties.

Co-Publishing Agreements
Underacopublishingagreement,twoormore partiesshareownershipofsongs(orare"co publishers"ofthesongs). Songwritertransferspartialcopyrightownershipto thepublisherandretainspartownership.

Co-Publishing Agreements (cont.)

Undersuchanarrangement,thesongwriterand thepublisherarecopublisherssincetheycoown songswrittenbythesongwriter. Copublishingagreementsoftenhavesomesimilar provisionstothosefoundinexclusivesongwriting agreementsandalsorecordingartistcontracts. Themaindifferenceisthatthesongwriterwill receiveboththesongwritersshareandacutof thepublisherssharethetotalroyaltyincome.

Administration Agreements
AnAdministrationAgreementissimplyaservice contractbetweenthewriter(orwriterspublishing company)andapublisheroradministrator. Writerentersintoanagreementunderwhicha largerpublisheroran"administratorissues licensesfortheuseofthewriter'ssongsand collectstheincomegeneratedfromthoseuses.

Administration Agreements (cont.)

Inreturnfortheservicesitprovides,the administratorkeepsapercentageoftheincomeit collects,usuallyfrom10%upto25%,depending ontheextentofservicesprovided. Thewriterdoesnot,however,transferany copyrightownershiptothepublisher.

Royalties
Rates Deductions Controlled Composition Clauses Recording Artists and Co-Writing Royalty Statements and Audit Provisions

Rates
Currentstatutoryrate: 9.1centspercomposition sold. LongSongRate: Ifacutismorethanfive minutesinlength,itwillbepaidanincreased royaltyof1.75centsperminute.(i.e.10.5cents fora6minutesong,etc.).

Rates
Songwritersshouldreceivefiftypercent(50%)of allpublishersincomeonalllicensesissued. Ifthepublisherprintsandsellshisownsheet musicandfolios,theSongwritersroyaltyshould betenpercent(10%)ofthewholesaleselling price. Theroyaltyshouldalwaysbestatedasa percentageandneverasaflatrate.

Deductions
Demosandallotherexpensesofpublication shouldbepaidinfullbythepublisher. Theonlyfeegenerallychargedtothesongwriter isonehalfoftheHarryFoxAgencycollectionfee.

Controlled Composition Clauses

Manyrecordingartistcontractscontainclauses thatlimitroyaltiestherecordlabelisresponsible topaytothesongwriterto75%ofstatutoryrate. Artististhenresponsiblefortheother25%outof theirroyalties. Someartistswillrefusetocutasongifthe songwriterisnotwillingtoaccept75%ofthe statutoryrate.

Recording Artists and Co-Writing

Manyrecordingartistsarenowaskingforaco writingcreditinordertocutthesongontheir album. Thiswillreducesthesongwritersroyaltybysome percentage(usually50%)whichnowgoestoyour coauthor(therecordingartist)

Royalty Statement and Audit Provisions

RoyaltyStatements:Onceyoursongisusedinany waythatwouldgeneratearoyaltyyouareentitled toreceiveroyaltystatementsatleastonceevery sixmonths. Auditprovision:allowsyoutoaudittherecords.
Caution: suchprovisionwilloftencontainatime

restrictionthatcutsoffyourabilitytoauditthe booksTrytonegotiateoutofsuchrestrictions.

Other Important Provisions

Revision Clauses Approval Rights Future Uses Writers Credit Performing Rights Organizations (PROs) Conflict Resolution

Reversion Clause
Allsongwriteragreementshouldincludea provisionstatingthatthesongwritermay terminatehisorheragreementifthepublisher doesnotsecureareleaseofacommercialsound recordingwithinaspecifiedtime.

Approval Rights
Youshouldnegotiatesuchrightsintoevery contract,especiallyifthecontractincludesa provisionstatingthatthepublishercanchangethe title,lyrics,ormusic. Approvalrightsclausesrequirethesongwriters consentbeforesuchchangescanbemade. Trynottosettleforconsultationrights.

Future Uses
Anyusenotspecificallyaddressedbythecontract shouldberetainedbythesongwritertobe negotiatedasitbecomesrelevant.

Writers Credit
Anysongwriteragreementshouldhaveaclause assuringthatthesongwriteriscreditedonany salesofhisorhersongwhetheritbeina phonorecordorinprint.

PROs
Becarefulthatyouincludeaclausethataddresses yourperformingrightsaffiliation: IfyouareaffiliatedwitheitherASCAP,BMIor SESAC(usuallybecauseyouhavesigneda previousagreementthatcreatedthisaffiliation) yournewagreementmustaddressthis affiliation.

Conflict Resolution
Arbitration: Inordertoavoidlargelegalfees involvedwithanydisputetheagreementshould includeanarbitrationclause. JurisdictionandVenue: Bothshouldbein Nashville,Tennessee.Thisavoidsincurringthe expenseofoutofstatelitigationinaplacelike NewYorkorLosAngles.

Resources
NashvilleSongwritersAssociationInternational 615.256.0034 TennesseeVolunteerLawyersfortheArts 615.312.7224 KennethJ.Sanney,Esq. 615.456.6502