Should Musicians Self-Publish?

kurt_dahlArticles, Lawyer News21 Comments

As a songwriter, you have likely heard talk of self-publishing your compositions. You’ve likely noticed, while perusing the fine print in the liner notes of your favorite albums, that nearly all major artists have created their own publishing company.

This means that they’ve incorporated a publishing company, through which the publisher’s share of income flows.

The other half of publishing revenue, known as the writer’s share, flows directly to the individual writers, and cannot be assigned or transferred to a publisher.

So: why do major artists self-publish and should you do the same?

Publishing company

The “why” is fairly straightforward: for tax and liability reasons. When your songs are earning enough revenue, it makes sense to incorporate to allow the publisher’s share of revenue to flow through a company rather than you individually, and thereby be taxed at a much lower corporate rate. From a liability perspective, god forbid you are ever sued for plagiarism, the party suing can only go after the corporation’s assets, not your house and car.

The “when” is not so clear. I say “when” rather than “if”, as all songwriters incorporate a publishing company at some stage. When is the right time for you? If your songs are earning under a few thousand dollars a year, it doesn’t likely justify the costs of incorporation and maintenance of the company. As long as you’re registered as a writer with SOCAN in Canada and ASCAP/BMI in the USA, you will receive 100% of the publishing revenue, as an individual.

Publishing company

There are few scenarios that might indicate that the time is right. If you find yourself licensing music internationally, entering a sub-publishing deal with a foreign publisher, or being offered a co-publishing deal from a third party publisher, the time is right to incorporate your own publishing entity. This entity would then be the contracting party to the above agreements.

Another scenario is if you want to act as a publisher yourself and sign other writers to your company. This involves administering the rights of these writers, including issuing licenses, collecting revenues and distributing royalties.

Once you establish that you’d like to self publish, call your performing rights organization (PRO). They will perform a name search, and let you know if you have the green light to register the business name with the government. You will likely need to be creative in selecting your company name because any name that is identical or too similar to an existing music publishing company will be rejected in order to avoid confusion and the potential of payments being issued to the wrong company.

Once you’ve successfully incorporated and have a business bank account set up and confirmed with your PRO, you complete an application with the PRO, sign a publishing agreement (consult with an entertainment lawyer), and you are in the business of publishing.

Remember, being self published and being a successful publisher are two different things, so you may still want to partner with a publishing company when the right opportunity arises. For more on this topic, email me.

Publishing company

21 Comments on “Should Musicians Self-Publish?”

  1. My question is if i made the music and produced a record with an artist would i copyright the complete song or just my music?

    1. Most smaller artists are self published. Some big names are as well, where they create their own pub company and might get the assistance of a bigger pub house like Warner Chappell etc.

      Thanks

      Kurt Dahl
      Entertainment Lawyer

  2. Thank you so much for the info! I’ve been looking everywhere for this easy explanation! I am going to self-publish my EP when registering it on BMI. If the money starts flowing in big-time, I’ll start my own publishing company. Thanks for this write-up!

  3. Hello, name is AYIE BIIE . i’m the one who emailed you yesterday. ok so i had a few questions. im just skeptical about a publishing company that i was signed to for 3 years. so basically i had a 3 year pub contract , with a producer who started has the pub company Smash Coast. with in those years nothing was placed, mainly due to not enough consistent work. (thats what the pub founder said was the reason why).

    so my #1 questions is should i be signed with a publishing company that is owned by another producer. i just see this being a conflict with getting my tracks to big placement. wouldn’t he want to get his own tracks in there first?

    #2 concern so recently i spoked with him . He said that the company i was signed under he stopped working with. and went back to his original pub company. so basically when i signed with him i signed under a name Mechach Media, he stopped working with them so now technically im free from publishing. but he introduced signing to a 5 year contract with his original pub company. so my question is , is that legit. i dont want to find out later down the road im still signed to that other company. . also his contract with his company is still similar 50/50 sync. i own 100% master . but is 5 years too long to be with a pub company. that i may still never get placements.

    #3 this pub company is more so boutique as they say, not a major company. should i be dealing with a pub company that doesn’t offer advances.

    sorry if this seems jumbled lol, i have so many concerns. Im due to sign with him. just want to get some clarity if i should commence with that. i can send contract if need be. Thank you sooo much for your time!

    1. It does sound a bit sketchy. I would try to find reviews online and/or from other artists that have worked with this publisher, to see what their track record is like. Don’t sign anything until you’ve done your due diligence. And feel free to send me the deal they offered you, I’m happy to give my opinion.

      Kurt Dahl
      Entertainment Lawyer

  4. Hey had one more question. could i have a publishing company and still sign with another publishing company.?

  5. Hi, Kurt! Great article!
    How about Songtrust? It administrates the royalties and affiliets an artist with PRO both as songwriter and publisher. The artist still owns 100% of copyright. In this case there is no need in creating your own publishi g company, right?

    1. Hi Mary

      I think there would still be a great benefit from a tax perspective, as all the pub money would flow through the pub co rather than the writer personally.

      Kurt Dahl
      Entertainment Lawyer

  6. If I have a publishing admin set up (ie songtrust, sentric) is it worth it to still set up a self publishing entity for the long term?

  7. Hi! If I am with a publishing admin ie Sentric or Songtrust, should I still set up my own publishing entity for the long term?

    1. It would be worth it at some point Merilou, as you would pay a lower tax rate on those revenues. Every writer creates their own pub co at some point, so it’s really a question of when rather than if. And the “when” is when it makes sense financially.

      Kurt Dahl
      Entertainment Lawyer

  8. Hey Kurt, fantastic article!

    I have a few questions regarding my 16 year old son who is a artist/songwriter, and is currently making music that’s soon to be released. I’d like to know what’s the best way to approach protecting him and his music, while maintaining 100% ownership of his works, since he’s still a minor? Should I set up a pub co? If so, what would be the best structure? Also, is it necessary to sign with other pro’s in addition to BMI or Ascap?

    This whole journey and process is all very new to me, therefore any advice you can give would be so greatly appreciated.

    Best,

    Jay

    1. Email me Jay and I can help. Sounds like your questions require fairly in depth answers. There are many ways to protect him and his music.

      Kurt Dahl
      Entertainment Lawyer

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