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Ok, let’s just start off by saying that for the longest time now, Rap, Hip Hop and R&B music is
the “Pop” or popular music of today. And I don’t really think that there’s anyone
out there who can reasonably debate this. Just look at whatever songs are listed in the top of the Music charts. The concern though, is not so much with most of the Superstar or Major Label talent that are co-writing most of the
songs they are performing. At that level of success, you’re suppose to have enough sense to have a great team
of professionals around you to help guide you along - to get you paid for your creations. But the non-payout to artists/songwriters
that occur at the new to mid size level artist/songwriter, or especially the ones signed to a regional independent
label or Production Company is sometimes a little alarming. It’s
crazy to me when new songwriter-artists repeatedly, over and over…and over again – keep signing into
agreements; Song split sheets and/or songwriting/publishing contracts that take away so much. And what’s even
worse, many of these companies are not even paying these kids on what they are
due…legally. I have personally watched talent just sit and either not know
what to do or either too scared to do anything or to “make waves” that might cause a problem with their
so-called “hook-up” with the industry or company. And most of this sad reality is mainly due to a lack
of knowledge & understanding on some of the most fundamental music business practices; hiring your own attorney…not
the company you are signing with. And also getting a little educated about this whole “business”
of songwriting and publishing. See, one of the biggest incomes for you if you’re an artist -songwriter
is through the publishing of your songs ...especially with Mechanical royalties.
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Have you or your
crew sold 50,000 units or more through an Independent Label that you don't own?
If the answer is yes. How much money did you get in mechanicals? If you
wrote all of the songs, I hope you got at least $40,000 or more. It actually can be a whole lot more!
But hold up, let's
just say you only "co-wrote" all of the songs on your 15-song CD, and you just hit the 20,000 units sold status. Did you know
that you as "your own publisher" could be due over $12,000 in mechanicals. Do I have your attention
now ?
Check this. A few years ago, I had
the incredible opportunity to work with one of the most prolific Singer / Songwriters of Modern R&B music. I don't like to disclose names, but after the 3rd day in the Studio, in the middle of re-working a song
that R&B singer / songwriter Joe had written for him, I asked him to
just try something like what was written for one of his earlier hits. And then this un-named artist told me, "You
know I've never received a royalty on that". (huh?...what!) So I
asked, "What do you mean?" He then politely told me again... and this time, with
looks of support from his wife... "I have never received a royalty check in my life!"
Wow, I was totally blown away! If I disclosed all of the many Mega-hits
that he had co-written, you would be messed up like I was. And just so you know, we are probably talking about at least
$700,000 in mechanical royalties. And for all you know-it-alls, No, he had not gotten some big publishing
advance that left his royalties-due in recoupment. But somebody was, and definitely
still is, getting Big Bank $. So who's getting' his money? The Publisher. And
this particular publisher probably had him sign over all of the rights to the songs he wrote, and tied it in his Recording
Artist Contract. This sometimes happens when dealing through Production Companies
(and Labels too). Is it wrong? I don't know, is it? ...Actually, it's not illegal.
Is it unethical? Probably. Could it have been avoided? YES!
illegal. Is it unethical? Probably. Could it have
been avoided? YES!
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The first thing a new artist that writes their own material will need to do is set up his or her own music publishing company, and then get a grip on the basics (at least) of Mechanicals. There are of course many other concerns like Performance
rights, but if you're an Underground act, "What is BMI or ASCAP gonna do for you until you get some type of radio,
Movie or TV play? Digital Licenses and Sampling issues are important too... but for now, let's just talk
about Mechanicals. Mechanicals are a real touchable income, once you get set up. Mechanical
Royalties 101 A Mechanical License is an authorization that is issued by a Publisher (or an Agent of the Publisher like Harry
Fox) to a Record Label. This license will give the Record Company the right to record and make public a specific
composition at an agreed-upon fee for each record that is made and sold. The agreed-upon fee does not have a ceiling price
and can vary. But By Law - If the song has been copyrighted and ready for distribution - the writer is at least entitled to what is called a Compulsory Statutory Mechanical Royalty
Rate. For example, the statutory mechanical royalty rate (at the time this was written), on
a Platinum (one million in sales) selling CD/Album – you would be entitled to $91,000 per song on the
release. And If you wrote all the songs on a 15-song CD (with
no controlled composition clause)
- This would mean the total take would be about $ 1,365,000.00 in just Mechanical Royalties alone.
That’s a lot of Money! Now, imagine if you had a single release along with this. You could be
paid "per side" as it appears on the singles! Songwriters and Publishers must take in mind that many
songs are sometimes re-released or reissued. And since the Statutory Mechanical rate changes, to compensate for cost
of living & survival you should always ...click here for more
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