Editorial: SONGS vs. COPYRIGHTS
Filed Under: Business Models, Publishing, Record Label, Technology
Hopefully everyone reading this is at least somewhat familiar with the debate that started a couple of weeks ago in congress concerning future royalty rates. If not, then you need to get your head out of whatever hole it’s been in and start educating yourself.
Not to alarm anyone, but our very existence could very well be in jeopardy. That may be a little harsh, but not by much. Certainly we smaller publishers and writers are at great risk. Depending on the outcome of these proceedings, it may come to pass that there will only be one publisher and one label left standing in the end; THE publisher and THE label. Won’t that be nice?
First a little knowledge…
On our best day, on our very, very best day, a publisher and writer split 9.1 cents per unit sold; 4.5 to the writer and 4.5 to the publisher. That’s if the publisher publishes the writer 100%, they are the sole writer and the record company is paying full stat. Unfortunately, that doesn’t happen very often.
One of the issues that has been raised by the RIAA, i.e. record companies, is to lower the mechanical rate (that’s right, I said LOWER) to about half of what they currently pay. Are they nucking futs!!!!!
Basically, labels have been steadily losing their asses since Napster opened Pandora’s Box ten years ago and illegal downloads started in earnest. But the label’s argument for going after our mechanicals is that they say they want to use that money for artist development. Poppycock! They’re trying to raise revenue any way they can, including the new 360 deals, because they don’t see a solution to the problem beyond that.
So I’ve come up with a very simple solution…quit cutting songs and start cutting copyrights! And yes, there is a difference. A song is something that might fly up the charts because either the artist is established enough to get away with it or it’s a song the label is willing to push with whatever means are necessary, sparring no expense in the process.
A copyright, on the other hand, is something that causes someone to want to go out and find it, either at a Target or Wal-Mart or on-line, pay for it and own it. As a publisher, give me a song that dies at 15 but sells half a million units any day of the week. That means I have a copyright in my catalog, not just a song.
The only way we all win, the absolute only way, is when records sell. Then the labels win, the artists win, the writers win, the publishers win, the managers win, and most importantly, the people win.
Just like labels who have successful artists, publishers use the revenue from successful writers and reinvest that money in new writers. Take that away from me and you take away my ability to speculate in unproven talent. And that my friend is where the expression “cutting off your nose to spite your face” comes from. If I don’t have the ability to try and develop the next great writer, or writer/artist, then in the end the labels will lose too. The music will just stagnate. We won’t have the chance to infuse new blood into the mix and buyers will look elsewhere for the next great thing or spend their money on something else entirely.
People love music; just like you and I loved music, like I still love music. And the naïve, old jaded music publisher I am believes people will pay for good music. We just have to give them something worth paying for.
We’re all blessed to be able to work in this industry. I love the people and the passion that I still find here. Let’s work together to find equitable solutions for the future. Our very livelihoods depend on it.

(2 votes, average: 4 out of 5)


Adam | Feb 25, 2008 | Reply
Well put! The pendulum has swung to the “business” in the Music Business. In fact, the pendulum may have swung off the clock all together! Why? Greed. The big green monster blinds us to the truth, strokes our egos, and makes our economy incestuous. It’s time for a return to the music and find a balance - where art meets commerce: The Music Business.
Leslie Tomasino DiPiero | Feb 26, 2008 | Reply
If I had some “nucking Futs” I’d want to be Pat Finch! Amen my Brutha! We all need to be the “change” we want to see in this business. What a great article!!