Are the publishing royalty amount & the writer's royalty amount equal?

[midi]

A standard deal with music libraries is the library gets 50% of publishing royalties, the composer gets 50% of publishing royalties, and the composer gets 100% of writer royalties.

But my question is not about the library; my question is about the PRO. In general, how are the royalties broken down? Are they identical?

Just as an example to make this simple, say I own 100% of the publishing royalties and 100% of the writing royalties—there’s no library involved. I license a song to the Discovery channel directly and the total amount given to ASCAP from Discovery is $20.00. Does that mean the publishing royalties amount to $10.00 and the writing royalties amount to $10.00? Is it always evenly split like that? If not, how is the distribution calculated?

Sorry if my question is confusing; I don’t know if I worded it correctly.

[Art Munson]

Does that mean the publishing royalties amount to $10.00 and the writing royalties amount to $10.00? Is it always evenly split like that?

Yes, as far as I know.

[midi]

Thank you for the reply Art.

Different question…

With respect to one’s PRO, what percent commission do they take on the royalties? PROs don’t really have membership dues, so I don’t understand how they earn enough money to exist if they’re not taking a commission on the royalties. But if I am getting 50% of publishing, and the library is getting 50% publishing, and I am getting 100% of writing…then where does the PRO take its own cut?

[Art Munson]

Google is your friend!

From BMI’s web site.

““Where does my music licensing fee go?” doesn’t even make the top ten. Ask the owners of businesses using copyrighted music, however, and the question may earn an honorable mention.

It’s a good question with a simple answer. After paying expenses, the remaining licensing revenue is distributed by BMI to affiliated songwriters and publishers. Currently, copyright owners receive approximately 85% of every revenue dollar collected. Songwriters pay nothing to join BMI.

“Many of our customers don’t realize BMI operates on a non-profit basis,” said Tom Annastas, Vice President, General Licensing. “We are firmly dedicated to giving the maximum amount of money possible to those whose rights we protect: the songwriters, composers and publishers. Our diligence in cost management has resulted in a substantial drop in the company’s overhead rate in recent years.

“Some of our business customers are surprised to hear that BMI never earns a profit,” said Annastas. “Since its founding in 1939, BMI has had a unique business model.””

[midi]

Thank you, Art. 15% seems fair.

[Author]

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