Why does the label give out licenses to other labels and not the publisher?!!

[Dance123]

Hi,

 

How comes that it is the record label who gives out licenses to other labels in other countries or to labels who make compilation CD's?!

 

I mean, isn't that what the publisher should do as they own the copyright?! Isn't the publisher being involved in any way when licenses are being given out?!

 

Could anybody please clarify this! Thanks!!

 

Mike.

[SomeGuyNamedRob]

 

Originally posted by Dance123 Hi, How comes that it is the record label who gives out licenses to other labels in other countries or to labels who make compilation CD's?! I mean, isn't that what the publisher should do as they own the copyright?! Isn't the publisher being involved in any way when licenses are being given out?! Could anybody please clarify this! Thanks!! Mike.

 

 

It depends on the contract an artist has with a record company.

[Dance123]

Hi Rob,

 

Euh.. could you please explain a bit more what you mean..

 

Thanks!

 

Mike.

[SomeGuyNamedRob]

 

Originally posted by Dance123 Hi Rob, Euh.. could you please explain a bit more what you mean.. Thanks! Mike.

 

 

In some (actually, probably a whole lot of) cases, the record company takes care of the publishing, or owns it outright.

[Dance123]

My question is more which entity - either the record company or the publisher (no matter if they are affiliates of each other or not) - is the one who gives out the licenses to foreign labels, etc.. That was more my question..

 

If I am correct the publisher owns the copyright in the composition and the label the copyright in the sound recording, but who gives out the licenses for compilation CDs, etc..?

 

Anybody knows more about this? Thanks!

 

Mike.

[SomeGuyNamedRob]

 

Originally posted by Dance123 My question is more which entity - either the record company or the publisher (no matter if they are affiliates of each other or not) - is the one who gives out the licenses to foreign labels, etc.. That was more my question..

 

 

 

If you want to add a track to a compilation, you would need to arrange it with the label.

 

The label authorizes compilation tracks because the label is responsible for sale and distribution of an artist's music - which is outlined in a recording artist's contract.

 

If the artist is unsigned, you would need to arrange things with the artist directly.

[BlueStrat]

 

Originally posted by SomeGuyNamedRob If you want to add a track to a compilation, you would need to arrange it with the label. The label authorizes compilation tracks because the label is responsible for sale and distribution of an artist's music - which is outlined in a recording artist's contract. If the artist is unsigned, you would need to arrange things with the artist directly.

\

 

Yes. Because while you may own the song (though usually a record company will want at least half ownership through it's own publishing, if not all) the record company owns the rights to the actual recording and can do what it wants with it. Case in point: a country band called Desert Rose recorded a CD with a major label, I think it was MCA. MCA then shopped one of the songs on that CD to a big name artist, who wanted to record it. So MCA shelved Desert Rose's CD because they didn't want two versions of the same song out. So while the writer got royalties, the rest of the band lost the opportunity to further their careers through that CD. Their only recourse was to engage in a protracted lawsuit to get out of their contract, which they eventually did, but MCA still owns the rights to their own song.

[Dance123]

 

Originally posted by BlueStrat \ Case in point: a country band called Desert Rose recorded a CD with a major label, I think it was MCA. MCA then shopped one of the songs on that CD to a big name artist, who wanted to record it. So MCA shelved Desert Rose's CD because they didn't want two versions of the same song out. So while the writer got royalties, the rest of the band lost the opportunity to further their careers through that CD.

 

 

1/ When somebody covers a song like you desribed, which type of royalties does the original songwriter receive from that?! Also mechanical royalties?

 

2/ and same when your song appear on a compilation CD, do you also get mechanical royalties for that as songwriter?

 

Mike.

[BlueStrat]

 

Originally posted by Dance123 1/ When somebody covers a song like you desribed, which type of royalties does the original songwriter receive from that?! Also mechanical royalties? 2/ and same when your song appear on a compilation CD, do you also get mechanical royalties for that as songwriter? Mike.

 

 

Royalties paid are usually the standard 7.5 cents a unit per song. The royalties he recieves are mechanical licensing royalties. If he has a split publishing agreement, then the publisher gets half or whatever percentage they negotiate. You will be paid the same royalty rate on a compilation CD as long as it's being offered for sale.

[memphisblues]

Going back to your original question, if you're signed to a label you may be the owner of the song copywright as well as the publishing rights (although most labels want a piece of that), but the label will own the actual recorded performance. They're pretty much free to do with it what they want, whether it's loaning it out for another labels compilation or merely putting it on a shelf and doing nothing with it. You would still get a performance royalty for your track on the compliation but that's it. The advantage is that if you're sales are low and you end up on a compilation with someone who's doing well, it can create a lot of new interest with people who had never heard of you. That can be better than royalties since it's bound to get you more exposure and improve your sales.