Recording and Publishing Agreements
Two different copyrights, owned by different people, licensed to different parties. Almost every misunderstanding in a music deal starts there.
Start My Enquiry →Two different copyrights, owned by different people, licensed to different parties. Almost every misunderstanding in a music deal starts there.
Start My Enquiry →Recording Deals | Publishing | Ownership | Reversion
They are two separate copyrights under the Copyright Act and this is the foundation of everything in music. The musical work is the composition, defined in section 2 as any work of music or musical composition, with or without words. Under section 13(1) the author is the first owner, so the songwriter owns the song. The sound recording is a different work, and under section 24(b) the first owner is the maker. Section 2 defines the maker as the person by whom the arrangements necessary for the first fixation of the sounds are undertaken, and section 2.11 states that those arrangements include entering into contracts with performers, financial arrangements and technical arrangements. So under a conventional recording agreement, where the label funds and organises the session, the label is the maker and owns the master. Where the artist self finances, the artist or their company is the maker. A publishing agreement deals with the composition; a recording agreement deals with the master. They are negotiated separately and frequently with different counterparties.
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Ownership of a master does not depend on who performed or who wrote it. It depends on who undertook the arrangements necessary for the first fixation, which section 2.11 spells out as the contracts with performers, the financial arrangements and the technical arrangements.
That is why funding matters so much. An artist who paid for the studio, engaged the musicians and organised the session is the maker and owns the master. An artist who signed to a label that did all of those things is not, and no amount of creative contribution changes it.
The practical consequence is that self funded artists often own masters they assume they gave away, and artists on informal arrangements with a producer who paid for everything often do not own masters they assume they hold. Both situations are resolved by looking at who actually made the arrangements, and both are better fixed by a written agreement at the outset.
A recording agreement assigns or licenses the master. The commercial questions are the term, usually expressed as an initial album or delivery commitment with options, the territory, the royalty rate and the basis on which it is calculated, and the recoupment of advances and recording costs.
Recoupment is where the money actually sits. Advances are ordinarily recoupable from royalties, as are recording costs and often a share of video and marketing spend, and until they are recouped the artist receives nothing beyond the advance already paid. An artist can be commercially successful and unrecouped for years without any error having occurred.
Reversion is worth negotiating and is more available than it used to be. A term that returns the masters to the artist after a defined period, or on recoupment, or on the label ceasing to exploit them, changes the long term position substantially. Section 13(4) requires any assignment to be in writing signed by the owner, so the reversion mechanics need to be drafted with the same care as the grant.
A publishing agreement concerns the musical work. The publisher administers and exploits the composition, collects income, pursues synchronisation opportunities and registers the work with the relevant collectives, in exchange for a share.
The structures vary considerably. A full publishing deal assigns the copyright in the composition; a co-publishing deal splits it; an administration deal transfers no ownership at all and simply appoints the publisher to administer for a fee. The difference in what the writer retains is large, and the terminology is used loosely in conversation.
The rights that generate income are set out in section 3(1): reproduction including the mechanical right, the right to reproduce or adapt the work as part of a cinematographic work which is the basis of synchronisation, and communication to the public by telecommunication, which section 2.4(1.1) confirms includes making the work available on demand. A deal should be read against that list, so it is clear which income streams the publisher takes a share of.
Under section 14.1(1) the author of a work has the right to the integrity of the work and, where reasonable in the circumstances, the right to be associated with it by name or pseudonym or to remain anonymous.
Section 14.1(2) provides that these may not be assigned but may be waived in whole or in part, and section 14.1(3) that an assignment of copyright does not by that act alone constitute a waiver. So a contract that transfers copyright and is silent on moral rights leaves them intact.
Whether an artist should waive is a real question rather than a formality. Section 28.2 requires prejudice to honour or reputation for an integrity claim, so the right is not a general veto over changes. But it does mean an artist who has not waived retains a say in distortions and in uses that would prejudice their reputation, and licensees further down the chain will usually ask for a waiver expressed so they can rely on it.
Send the draft before you sign it. Term, territory, recoupment and reversion are the four that determine what the deal is worth, and all four are easier to change beforehand.
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