| Article Title: | | | | * Mechanical Royalties |
| | | | |
| ============== | | | | The cut you get when another artist records |
| | | | or covers your songto release on their CD. |
| Who Else Wants to Receive A BIG FAT Royalty | | | | You receive a royalty for the sales ofthat CD |
| Check for Their Music? | | | | as the author and copy right owner of the |
| | | | song. Thistype of royalty applies whether |
| Who Else Wants to Receive A BIG FAT Royalty | | | | you write a song that the artistreleases |
| Check for Their Music? Copyright © 2005 Ty | | | | initially or if the artist is covering a song |
| Cohen Music Business Phone Book | | | | you havealready released. |
| | | | |
| Some Help with Figuring Out the Sometimes | | | | * Synchronization Royalties |
| Confusing Ways | | | | |
| | | | You receive these payments when your song is |
| That Artists Are Paid For Their Work In The | | | | used in a movie, a |
| Music Industry. | | | | |
| | | | TV show or a video. These are negotiated on |
| The thing we like most about the music | | | | a royalty-by-royaltybasis so make sure your |
| industry is also the thingthat is most | | | | agent is experienced in this kind ofcontract. |
| confusing and frustrating. It just doesn't | | | | If your song becomes the theme some for a |
| worklike every other job in the country. | | | | popular |
| When you make a living as aprofessional | | | | |
| songwriter, producer, musician, rapper or | | | | Sitcom, it could be a huge windfall for you |
| singer,you don't work 9-5, you don't have a | | | | if thesynchronization royalties are |
| boss and a desk and all ofthose "normal job" | | | | negotiated correctly. |
| things. That's what we like about it. | | | | |
| | | | * Print Royalties |
| But the music industry is a business and a | | | | |
| lot of money flowsthrough the companies that | | | | As the title implies, print royalties are |
| promote, produce and market the musicyou | | | | what you receive whensheet music of your song |
| make. The process of getting the money you | | | | is sold. Print royalties can run in the |
| deserve worksmuch differently in the music | | | | |
| industry than it does in corporate | | | | 10-15% range so they are worth securing and |
| | | | protecting. |
| America. | | | | |
| | | | * Performance Royalties |
| To be considered full time at your art and | | | | |
| craft of being asongwriter, producer, | | | | Royalties are due to you every time your song |
| musician, rapper or singer, you have to | | | | is played on theradio or performed. |
| getpaid. Being an artist doesn't exempt you | | | | Performance royalties, as you might expectare |
| from the rules we alllive by. You have to | | | | very complicated to track and collect so you |
| eat, live somewhere and pay the rent asthey | | | | will come torely on a type of service |
| say. And you don't want to just "get by". | | | | organization known as a PRO. |
| Ideally yourmusic will become recognized and | | | | |
| well liked and you will becomeone of those | | | | A PRO is not a Terrorist Organization. |
| "filthy rich rock, pop or rap stars" you see | | | | |
| on VH1, | | | | PRO stands for Performing Rights |
| | | | Organizations and they are thegood guys |
| MTV or BET. But to do that you have to | | | | because they help you get paid the |
| master one basic idea. | | | | performanceroyalties you deserve for your |
| | | | material. These organizationswork on behalf |
| You have to figure out how to get paid. | | | | of song authors and publishes to |
| | | | collectperformance royalties on any possible |
| This article will give you the basics. We | | | | venue including: |
| will go over some ofthe unique terminology | | | | |
| that pertains to how money is collectedand | | | | * Radio |
| paid out to artists in the music business as | | | | |
| well as discusssome of the organizational | | | | * Television |
| systems that you must understand to beable to | | | | |
| "make a buck" in this business. | | | | * Movies and even |
| | | | |
| Strange New World | | | | * The Internet |
| | | | |
| The terminology or the words we use to refer | | | | Now you may think every time you hear your |
| to the paymentssystems in the music industry | | | | song on the radio, youimmediately earned a |
| are much different from in a normaljob. You | | | | small royalty but it doesn't work exactlythat |
| don't just report to payroll for your regular | | | | way. Instead, radio or other broadcast media |
| paycheckevery other week. So our first order | | | | includinginternet pay services pay a single |
| of business is to defineand understand a | | | | flat license fee to broadcastfrom a catalog |
| couple of terms and the systems they | | | | of songs represented by the PRO. The PRO |
| represent. | | | | thenestablishes a song frequency percentage |
| | | | based on samplings of airplay to determine |
| The two terms you should get to know the best | | | | how much your "cut" of each radio |
| are "recoupment"and "royalties". | | | | stationlicense fee might be and from that |
| | | | they pay your performanceroyalties. |
| You Mean It's Not a Gift? | | | | |
| | | | To learn more about the major Performance |
| Recoupment may seem like a sweet deal up | | | | Rights Organizations,here are the big three |
| front. Recoupment isessentially a loan from | | | | and how to research or contact them... |
| the record company to fund the expensesof | | | | |
| your recording work. The record company has | | | | 1. BMI |
| signed you andnow the work of producing the | | | | |
| CD is ahead of you. In order toallow you to | | | | 20 W. 57TH ST., |
| focus all of your energies and time on making | | | | |
| therecord for them, the record company will | | | | NEW YORK, NY 10019 USA |
| "advance" you a lump sumof money to handle | | | | |
| both your living expenses and the expenses | | | | Tel 212-586-2000 |
| ofthe recording. This is to go for: | | | | |
| | | | 2. SESAC |
| * The gear and equipment you will need to | | | | |
| produce the recording. | | | | SESAC (headquarters) |
| | | | |
| * Living expenses and incidentals during the | | | | 55 Music Square East |
| recording process | | | | |
| | | | Nashville, TN 37203 |
| * Touring expenses | | | | |
| | | | 615-320-0055 |
| If you receive recoupment money for recording | | | | |
| your CD,immediately discuss with your band | | | | Fax 615-329-9627 |
| or other key people in yourcamp two important | | | | |
| concepts and enforce them religiously. | | | | 3. ASCAP |
| | | | |
| 1. Keep track of what you spend and use the | | | | One Lincoln Plaza |
| money wisely. Youcould blow through your | | | | |
| recoupment money very easily and | | | | New York, NY 10023 |
| suddenlyrealize you have no more expense | | | | |
| money and the recording ortouring is not | | | | Tel: (212) 621-6000 |
| done. You don't want to face that. Pick the | | | | |
| mosttrustworthy, numbers aware person in your | | | | Fax: (212) 724-9064 |
| band or entourage andmake him the budget | | | | |
| wizard for the entire process and obey | | | | Conclusion |
| himlike he was your master. You will be | | | | |
| happy you did. | | | | There is a lot to learn about how you will be |
| | | | paid for yourartistic work in the music |
| 2. It isn't your money! Remember, recoupment | | | | industry. But it's a worthwhileinvestment to |
| money is a loan. | | | | understand the system as much as possible |
| | | | becausein doing so, you increase the amount |
| It is an advance against the profit the | | | | of money you will see cometo you for your |
| record company will makefrom your work. The | | | | songs and performances. |
| record company must recoup the funds | | | | |
| fromsales and if they do not, they loose | | | | In this article, we have given you an |
| money and you could bedropped. | | | | overview, some definitionsand introduced you |
| | | | to a few organizations that are central |
| So be careful in how you negotiate and use | | | | tomaking the music industry payment system |
| your recoupment funds. | | | | fair and workable, tofind even more as well |
| | | | as thousands of other essential musicbusiness |
| Recoupment is a wonderful system to give you | | | | contacts visit |
| the freedom toproduce a quality recording. | | | | |
| But beware that there are hiddencosts and | | | | Don't stop with this introduction though. |
| demands that come with a recoupment. Don't | | | | Work with yourmanagement and become "industry |
| let themtake you by surprise. | | | | savvy" about royalties,contracts, recoupment |
| | | | and all the inner workings of the moneyside |
| A Royalty That Does Not Refer To Princess Di. | | | | of the music business. Your homework will |
| | | | pay off and leadto a long and prosperous |
| The term "royalty" when it pertains to the | | | | career as a performer in the excitingworld of |
| music business issomewhat more familiar. The | | | | the music industry. |
| simplest definition is that aroyalty is a | | | | |
| percentage of the sale of a song or CD that | | | | Thank you for taking the time to read this |
| is paidto the artist, the composer and other | | | | article and I wishyou Much Success! |
| participants in theprocess. Royalties are | | | | |
| used in many creative industriesincluding | | | | This article was written by Ty Cohen,the |
| publishing, television and movies as well so | | | | music industry's most recognizable voice! |
| mostpeople are aware of the idea. | | | | |
| | | | Ty is the C.E.O of Platinum Millennium |
| But you might wonder who handles the | | | | Publishing and |
| collection and distributionof royalties? As | | | | |
| a rule, the publishing company takes on | | | | Platinum Millennium Records as well as owner |
| thisjob. They have the accounting | | | | of: and |
| departments and the organizationto handle | | | | |
| this on-going duty. That helps you out a | | | | To find out more about Ty Cohen, his |
| lot. Oh,they take their cut too but for the | | | | services, products and howhe may be able to |
| most part, if they treat youhonestly, it is | | | | help you succeed in the music industry go to: |
| worth letting them participate for the | | | | and sign up for his freelimited edition music |
| hasslethey save you in managing these | | | | industry success 10-part "Mini-Course",it |
| details. There are four kinds ofroyalties to | | | | will work wonders for you and best of all, |
| discuss before we are done with this topic | | | | it's FREE, but |
| and thoseare... | | | | |
| | | | EXTREMELY VALUABLE! |