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Music publishing agreement: when does it make sense to work with a music publisher?

For musicians with professional ambitions, it is important to market their own works as well as possible and to develop multiple sources of income. At the beginning of a musical career, most people don't think about this too much, but it's still an advantage to start early and lay the foundation. In addition to streaming revenue, there are other relevant sources of income (royalties) for you as a musician, especially if you are involved in songwriting (music and/or lyrics). This is where a music publisher comes into play for music publishing and can be an important partner for you.

Published on
October 22, 2024
Author
Michael Schütz
Marketing Lead

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Note: This article may be in English, but it refers to the German music rights and royalties landscape.

What is a music publisher and what does it do?

A music publisher is a “rights exploiter” that earns its money by acquiring and exploiting rights to musical works (composition and lyrics). A music publisher exploits compositions, for example, by printing sheet music, granting licences directly and through collecting societies (such as GEMA). The resulting income (royalties) are shared between the publisher and the “authors”, i.e. songwriters, composers, lyricists, etc., in accordance with the contractual agreement (publishing agreement).

The main tasks of a music publisher:

  • Rights management: The publisher acquires the rights to use the artist's musical works and manages them. This primarily involves the correct registration of the works with collecting societies in order to receive royalties when the music and/or lyrics are used, as well as checking and, if necessary, complaining about the statements.
  • Marketing: Ideally, music publishers try to market their authors' works as broadly as possible. This can be done, for example, by placing music in films, selling sheet music, or encouraging and facilitating a reinterpretation (recording a cover version by other musicians). You can find more about the marketing opportunities in the section on sources of income for music publishers.
  • Consultancy & support: Music publishers often also offer their authors comprehensive advice. This ranges from specific legal issues to career planning. Many music publishers also support their authors by networking them with other songwriters, suitable labels, etc. and by organising ‘songwriting camps’. Financial support in the form of advances is usually also part of this.
Important notice: not all publishers are the same! Some publishers offer more services and are more active, others less so. Music publishers often also specialise in certain areas/genres. This is something you should take into account and find out if you are considering working with a publisher.

As a rule, a publisher is entitled to a share of the income/royalties associated with the agreed works and related rights. It is therefore in the publisher's interest to generate as much income/royalties as possible.

Sources of income for music publishers and their authors:

  • Licensing of performing rights = the rights to perform a composition (e.g. as a concert, on the radio, TV, in cinemas or clubs)
  • Licensing of author and publishing rights in the context of making the composition available to the public (e.g. for download or streaming)
  • Licensing of mechanical rights = the right to reproduce compositions (e.g. on sound carriers)
  • The licensing of synchronisation rights (also known as sync licences or simply ‘syncs’) = the right to link a composition with visual images (e.g. in films, series or TV commercials)
  • The production and licensing of the graphical rights = the right to produce and sell sheet music (this area only accounts for a comparatively small part nowadays, as this source of income has become significantly smaller due to digitalisation)

As already mentioned, music publishers work together with collecting societies for licensing, which monitor the use of musical works and collect the corresponding fees (royalties). These are then distributed to the rights holders at regular intervals. GEMA, for example, differentiates between five distribution categories for royalty distributions:

  1. Live and playback (use of musical works in cafés, clubs, at concerts, festivals, etc.)
  2. TV, radio and film (use of musical works in films, series, commercials, etc.)
  3. Audio and visual recordings (CDs, vinyl, cassettes or DVDs)
  4. Online (video and audio streaming, social media)
  5. International (use of musical works abroad)

You can find more information about royalty payments via GEMA here. If you would like to learn more about the music rights landscape, please read our article Music Rights and Royalties: Caring & Sharing.

When does it make sense for you as a musician to work with a music publisher?

To answer this question, let's first look at what the requirements are for a music publisher to make a deal with you.

Requirements for a publishing agreement:

  1. You regularly compose/write original music/lyrics - for yourself or for other artists
  2. You can already demonstrate certain successes or greater potential and thus spark a publisher's interest in working with you

If the requirements are met, working with a music publisher can make sense for you if:

  • You don't have the time or energy to take care of registering and managing your rights yourself
  • You believe that a publisher can get more income for you from your musical works, e.g. because they can demonstrate successful placements of music in films, series or commercials, or because the team is convincing
  • You believe that a publisher can promote and develop you as a songwriter (through networking, songwriting camps, etc.)
  • You need financial support in the form of advances (please note: an advance is not a gift but basically a loan that you usually have to pay back through your earnings)
  • You believe that the publisher is a good fit for you as an artist because, for example, they already work with other artists in your genre

At the end of the day, you basically have two options for registering and exploiting your copyrights:

  1. You can do it yourself
  2. You can hire a music publisher to do it for you and sign a publishing agreement (more on this in a moment)
Important notice: In both cases, you should definitely be a member of a collecting society (such as GEMA), because without a collecting society, monitoring, tracking and collecting royalties for the use of your works is virtually impossible. Even if you commission a publisher, you should become a member, otherwise you may lose some of the royalties to which you are entitled as the author. As a member of a collecting society, you are also part of a larger community that offers you access to various networks, information and benefits.

The following image shows in a simplified way how traditional value creation works in the music industry and where the publisher fits into this cosmos:

taken from Tschmuck, 2020. The economy of the music industry

On the website of the German Music Council, you can find a list of over 100 German music publishers in the pop music sector (out of a total of almost 400). There, you can also expand or narrow down your search, for example, to filter by city, music genre or federal state.

Publishing agreement

A publishing contract is concluded between all authors of a musical work and a music publisher. The subject of the contract is the exploitation rights of one or more musical works. By signing a publishing contract, you transfer the rights of use and thus the exploitation of your copyrights to a publisher. As already described in the article, the publisher then takes care of the marketing of your works (music & text) and, in the best case, offers you further support.

Type of agreement

The most common songwriter-publisher agreements are:

  1. Individual song agreement
  2. Exclusive songwriter’s agreement (many to all songs/works)

Depending on how comprehensive the contract is - i.e. how many works/rights of use are transferred - the conditions vary. You should only sign an exclusive agreement if you are really sure that you are in good hands with the publisher.

Terms and conditions

The terms of a publishing contract depend on a variety of factors and can vary greatly depending on these. The most important factors include:

  • Experience of the artist: more established artists can often negotiate better terms than newcomers
  • Size and influence of the publisher: larger and more influential publishers can often negotiate better terms for themselves
  • Type of contract: is it a individual song agreement or an exclusive agreement?
  • Type of rights: Whether it is the sale of sound carriers, streaming, public performances, synchronisations or other types of use
  • Genre: In some genres, the distribution ratios are different than in others. High demand for a particular genre can strengthen the artist's negotiating position

The most important points in a publishing agreement are:

  • Publishing services: The more comprehensive the services and support provided by the publisher, the better – although the publisher will generally demand a larger share of the income for more services.
  • Publisher's share: The publisher's share is negotiated individually and can therefore vary greatly from contract to contract (see influencing factors). In Germany, the publisher's share is typically a fixed percentage (e.g. 40%) of the GEMA income, whereby the distribution and thus the publisher's share varies depending on the type of use (more on this here). There are also tiered models in which the publisher's share decreases as revenue increases, so that the artists receive a higher share when they are very successful. In addition to royalties, further remuneration can be agreed, for example for certain marketing activities or the exploitation of subsidiary rights.
  • Duration: as a rule, the longer the duration of the contract, the smaller the publisher's share of the income. There is often a small but very important clause in the contract duration, in which the publisher is granted the rights of use for the ‘duration of the statutory protection period’. This may sound harmless at first, but in practice it means that your works are transferred ‘until 70 years after the death of the author’ - this is the statutory protection period in the copyright act. Usually, this clause can be negotiated out and, depending on the negotiating position, a term of 3 to 10 years is agreed.

Here are the most important questions that can help you evaluate a publishing agreement:

  • How many and which rights are you transferring to the publisher?
  • How long is the contract period?
  • What marketing measures are guaranteed for your works?
  • What other services are guaranteed?
  • How high are the advance payments and ongoing royalties?
  • What are the reasons for termination and notice periods?
Important notice: always try to make sure that all the terms of the contract are clearly and understandably formulated for you and that you receive all the information relevant to the contract. It's best to get an expert who specialises in music copyright and ideally already has experience with publishing contracts.

Conclusion

When does it make sense to work with a music publisher and sign a publishing agreement? The answer is: it depends. A publisher can be one of your most important partners as a songwriter, ideally helping you to earn more money, promoting you as an artist and advancing your career. The following points are ultimately crucial when evaluating this question:

  • How much of the rights registration and exploitation process can/do you want to take into your own hands?
  • What services and support can the publisher offer you? Do you think that, ultimately, they can get more income for you (!) from your works and promote you as an artist?
  • How well does the publisher suit you and your music?
  • What are the terms of the contract?

Whether you are self-publishing or with the help of a publisher: good luck with composing, writing lyrics and marketing your music!

Sources:

https://www.dmv-online.de/der-dmv/was-macht-eigentlich-ein-musikverlag/

https://www.gema.de/

https://de.wikipedia.org/wiki/Musikverlag

https://link.springer.com/book/10.1007/978-3-658-29295-9

https://www.ascap.com/help/music-business-101/200809

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