The money you receive in advance in a co-publication agreement must be refunded to the paying company. Since half of the writer`s income and half is considered a publishing share, you are entitled to 75 cents of every dollar earned (i.e. Your 50 cents as an author and 25 cents as a publisher, since you have distributed half of the publishing house). The company collects your 75 cents of each dollar and puts it against the advance you receive, and you won`t see any other income from them until your total advance is repaid. In the meantime, they receive the remaining 25 cents of every dollar. I don`t ask this question with some kind of malice to someone who is involved in publishing or administration, but collecting and managing rights worldwide for a songwriter or producer is not a minor task. Also, if you offer co-publication services, you really need to be able to bring songwriters and producers into the internship and skills development rooms and be realistic, most of the companies that offer these services are not able to do so. Speaking of numbers, suppose you have a song that you wrote yourself on a record that sells a million times in the United States. This generates $91,000 in mechanical royalties (1,000,000 copies x 9.1 cents as the current mechanical rate in the United States). Under a co-publication agreement, you would see $68,250 of that income as your 75%.
With a 10% administration agreement for domestic income, you would see $81,900 of that income. The difference is $13,650. That`s a big difference. So choose your offers carefully, but the most important thing is that you take care of a company that you think is your partner. Nothing can surpass the strength of an excellent working relationship. Now you`re stuck with a company that can`t provide the support or advertising tools you need to succeed all because a paycheck is suspended at a sensitive time. Imagine a scenario in which you used your online and offline connections without the help of your co-publication company for shore placements, but you`ll still get half your publisher`s share, no matter what work they do. This is a situation that happens all the time to discrete composers who have an immediate need for capital and have a little money without competent management or a legal team. These chords represent the paradoxical scenario that musicians face in the field of music.
They are forced to make important, short-term decisions that are extremely effective in the long run. As a general rule, co-publishing arrangement is primarily available to authors who have achieved past successes, writers/performers who have the potential to obtain a record contract, writers who have a current record artist contract, writer-producers and all other authors who have the negotiating power to negotiate such a deal with a music publishing house. B) If you are not an artist, the agreement could also stipulate that you have a so-called «Record-Release» obligation. This means that you must have a minimum number of songs recorded by an artist on a legitimate label, and the songs must be published at the end and start earning income. Another situation that often occurs is that the best-selling author already has a music publishing house and a large publishing house would like to sign the author. In these circumstances, the large company will generally agree to a co-publication agreement to obtain the right to publish the songwriter`s past and future compositions.