BMI/publisher question

[Sir_Matthew]

So I'm looking over BMI's site, and it's telling me that the money gets split between the publisher and the writer.

Well, what if there is no publisher? Just me, the writer. Do I get the whole thing?

I can't seem to find an answer on their site. Anyone with an idea?

[Brad]

Yes, you would get the publisher royalty share as well.

Let's say you did create your own publishing company (e.g. Sir Matthew Music) when you register your songs with BMI, you would tell them that you would collect 50% of the performance royalties as the writer, and Sir Matthew Music would get 50% as the publisher - they both go to you but as separate checks.

If you have not set up your own publisher, and you are not published by anyone else, when you register your works with BMI, you indicate that it is self-published (though you don't have your own publisher set up) and you will get 100% of the performance royalties (50% writer share - 50% publisher share).

If taxes aren't an issue or there is some other reason you don't want to set up your own publisher, that is fine. Your royalty checks come in one envelope instead of two.

Brad

[Sir_Matthew]

So what's the benefit of setting up my own publisher, other than just having it look cool on the album art?

Would I then have to sign up separately with BMI as a publisher? There's apparently a charge for that:

Although many performing rights organizations impose an annual charge or collect annual dues, BMI does not follow that practice; instead, there is an initial charge of $150 for solely-owned publishing companies and $250 for partnerships, corporations (including sole stockholder corporations) and limited liability companies, which partially defray administrative costs. This charge is made only at the time of affiliation and is neither refundable nor deductible from earnings. Once affiliation is completed, payment of a $75 administration fee is required if you wish to change the name of your publishing company or if there has been a change in ownership.

Seems like it's more economically sound to self-publish, particularly for the seldom-played artist.

[Brad]

Well, besides it looking cool and giving the appearance that you've got your shit together, there are tax benefits to having your own publisher - it's like having a small business.


I am no tax lawyer, but I believe if your publishing company is making money, you basically can write off any purchases that you make to keep your company going (read: gear).


If you ever collaborate with someone who has their own publisher set up - makes life easier.


Impress the chicks because you own a business?

But seriously, here is a good reason: Let's say Warner Chappell comes along and wants you to sign a publishing deal with them. You don't have your own publisher. They are going to convince you (because you have stars in your eyes when Warner Chappell comes knocking) that they will take all 50% of the publishing of your songs. Sounds good? Well, if you have your own publisher, you can negotiate to hold on to a chunk of the publishing. That is really what it is good for. Though the tax write off thing is pretty sweet, too.

But if you get little airplay and you don't think it would go beyond that, you are probably right.


Brad

[Shakuan]

Sir Matthew Music sounds cool. You should go for that!

[Sir_Matthew]

Interesting. I'll have to ponder it.

And you're right, Sir Matthew Music does sound cool.

[Shakuan]

Hey I'm trying to understand how all this stuff works cause I'm building a small studio and I guess I could start recording small bands...

BMI's site is for registering songs so you can win in court if someone steals your song, right?

Now there's a section for songwritters, composers and publishers... if I start my own personal publishing company, do I have to register the songs I compose in the composer section AND in the publisher section cause I'm plublishing my work?

[Brad]

Originally posted by Shakuan

BMI's site is for registering songs so you can win in court if someone steals your song, right?

No, that's not it. What you are talking about is the Library of Congress and registering your copyright - entirely different.


BMI is a performing rights society. They collect and distribute performance royalties based on cue sheet submission and survey.
Which is to say, if you are a BMI member and you write a song and register it with BMI, and then the song is performed in public (e.g. TV, radio, etc) and the song usage is properly reported, you get paid a royalty.

As touched on earlier, you must think of a song as pie - the song writer owns half of the pie (draw it, it's fun) and the publisher of the song owns the other half of the pie. That is cut and dried - it is that way for all songs that are published - 50% owned by writer(s) and 50% is owned by publisher(s). Now, within each of those 50%'s - it can be broken down further. 2 writers can split that 50% how they see fit and same goes for publishing. Does that make sense? So, let's see... as an example.

Me and Joesph Q. Blow write a song together. Joe wrote music & lyrics and I just wrote some of the music for the bridge and chorus. Joe and I discuss it and decide that he deserves more writing credit than me, and that is fair with me. We both own our own publishing companies, so we do the same thing with the publishing. There are no set numbers (except that total writing credit equals 50% and total publisher shares equal 50%) but the actual breakdown can be decided by the people involved.

So, here is the breakdown afte Joe Blow and I discuss it. Let's say:

Writers

Brad (BMI) - 20%

Joe Blow (BMI) - 30%


Publishers

Brad Music (BMI) - 20%

JB Music (BMI) - 30%



Now, the song gets performed in Podunk, Mississippi on a radio station that broadcasts to a population of 17.

The radio station submits a cue sheet that states our song gets played.

BMI decides, based on scales and shit I know nothing about (it has to do with market shares and demographics and surveys and statical probability and blah blah blah) that my one play in Podunk is worth $1 (Yeah right! More like 1 penny, if that - but a dollar breaks down nice for purposes of example)

So BMI now makes sure that Brad the writer gets 20 cents and Joe the writer gets 30 cents. And they make sure that Brad Music gets 20 cents and JB Music gets 30 cents.

We own our own publishing, so we get the whole shebang. I get 40 cents, Joe get 60. That fucker! Oh, wait - this is make believe.

Anyway, that is what ASCAP & BMI do for the most part.


Holy god, why did I just type all that? What was the question? Where am I?

Who are you people?

[Shakuan]

lol alright ty it was very detailed

I gotta look up what's the publisher's job and what's the producer's job. Might sound very stupid for most of you but I still don't know what everyone does.

[gec]

real good post Brad

[sjoko2]

Perhaps it would be worthwhile to point out that there is no point in joining / registering with a performing rights organisation like BMI or ASCAP unless your product has been subject to a commercial release?

[Sir_Matthew]

Yes, good point. I myself am preparing a disc for release, but otherwise it would be rather futile.

Actually, I'm joining by citing an EP my old band put out, so that way I'm already a member by the time my own disc comes out. A bit basackwards, but it works.

[Brad]

I wouldn't narrow it to just a commercial release though. How about: It's not worthwhile unless you have something being performed in an ASCAP/BMI licensed performance venue/medium?

I have never had a commercial release, but I have had stuff played on radio and TV. I am not making any decent money from ASCAP royalties, but there are people who make tons o' money without ever commercially releasing an album (e.g. successful library composers)

[Sennheiser]

That was a good post. And a good refresher too. I haven't read up on that stuff in years.

I have hopes, but I doubt I'll be needing any of the info in the near future.

[sjoko2]

Originally posted by Brad
I wouldn't narrow it to just a commercial release though. How about: It's not worthwhile unless you have something being performed in an ASCAP/BMI licensed performance venue/medium?

I have never had a commercial release, but I have had stuff played on radio and TV. I am not making any decent money from ASCAP royalties, but there are people who make tons o' money without ever commercially releasing an album (e.g. successful library composers)

You emphasized my point Brad - people like library composers. naturally you receive a one-off payment if you sell work for use in a library or such, you won't be entitled to royalties.