Turning melodies into royalties: the real avenue in the music business is in the ownership rights to the hits. Here's how to publish and not perish - an overview of music publishing: includes tips on contracts and self-publishing - The Business of Entertainment - Cover Story - Industry Overview

Black Enterprise, Dec, 1997 by Shawn E. Rhea

IF YOU ARE EVEN REMOTELY FAMILIAR WITH popular music these days, you've probably heard of Missy "Misdemeanor" Elliott. Her face and body are the ones moving around inside that hydraulic space-walker suit in the video for her hit single, "The Rain." Earlier this year, Elliott released her long-awaited debut album, Supa Dupa Fly (Elektra Records)--on which she wrote every tune--and it immediately shot to the top of the charts. She has appeared in videos, sung and guest-rapped on hit records for artists such as MC Lyte, Jodeci, New Edition and others. Despite her recent in-your-face success is as a songwriter.

Over the past four years, Elliott has penned chart-topping tunes for such platinum and gold-selling artists as Aaliyah ("4 Page Letter," "One In A Million"), 702 ("Steelo"), SWV ("Can We"), Ginuwine ("It's A G Thing," I'm Sorry"), Jodeci ("Sweaty," "Want Some More") and LeVert ("Keys to My House"). It was, in fact, Elliott's success as a songwriter that prompted friends and colleagues to push her to record her album. "I wanted to stay behind the scenes," says Elliott. "I didn't really want to [record an album]." The truth is, she admits, there is more than enough money to be made in song writing and if you're good, there's always consistent work.

Early on, Elliott discovered a fact that most key players in the music business know, but seldom speak of: song writing and music publishing are the secret cash-cows of the industry. In 1995 (the most recent year available), music publishing generated $6.2 billion in sales, and many of those hit songs continue to produce substantial earnings. While most people only think of a song's earning potential in relations to its current radio popularity and record sales, successful songwriters and publishing companies know that the income a song generates can stretch well past the life of its author. If handled properly, music publishing can mean not only life-long income for songwriters, but income for their children, too. Motown founder Berry Gordy recently sold 50% of his publishing arm, Jobette Music Co., for $132 million to EMI Music Publishing (see "Soul for Sale," Newspoints, October 1997).

Being a successful songwriter, however, takes a lot more than creativity. It also takes a willingness to learn the details of a very complex business. If you are a songwriter looking to break into the music publishing game, and want to maximize and protect your earnings, there is a lot you need to know.

HOW DOES MUSIC PUBLISHING WORK?

As a songwriter, when you pen and obtain a copyright for your original tune, it becomes your personal property. Any record company whose artist performs and records your song, and any person and/or organization that broadcasts, samples or prints copies of your lyrics and music must pay you to do so. In addition, you will continue to receive payment for almost any new and repeated use of your song during the copyright term (which spans the life of the author or last surviving author, plus 50 years). These earnings are called royalties, and sources for royalty income are vast and are continuously growing with the advent of new technology.

Years ago, songwriters looked to earn most of their money through performances and recordings of their songs, lyric sheet sales and radio broadcasts. Today's songwriters can add television, film, elevators, online Web sites, phone lines, restaurants, videos, clubs, stores, office reception areas and other forms of usage to their list of royalty sources. "It really is an extended notion of private property ownership," says attorney Lita Rosario, who through her Washington, D.C.-based company, WYZ Girl Entertainment, administers songwriters' catalogs for a number of the major, mid size and small music publishers.

According to Rosario, royalty sources can be broken down into four general categories: performance (which includes radio, venue and music video broadcasts, as well as concert and live television performances); mechanical (which is the standard $6.95 per song, per copy sold that a record company and/or artist pays to a songwriter for sampling or recording his tune); synchronization (which covers the linkage of a song to a visual image, such as motion picture scores, background music in a television show or commercial); and print (lyric sheet, hymnal and music book sales). As a professional songwriter, you have two primary goals: to get your songs published through as many royalty sources as possible (so that you earn the maximum amount of money possible); and second, to retain ownership of as large a percentage of your song's copyright as possible (to ensure that you will be the one receiving those earnings).

Reaching out to all of your royalty sources and getting a commitment from them to use your songs is time consuming. Music publishing companies are set up to help you exploit your song catalog and get your songs used by as many royalty sources as possible through arrangements known as co-publishing deals. While a publishing deal is supposed to help maximize your earnings, it also requires that you actually give up a percentage of ownership of your song's copyrights.