Income threshold on reversion

[#tag]

Hello,
Anyone cares to spend a few words on how the income threshold on reversion works in details?
Here in Europe I’ve never heard of it but seems that in US is standard practice.

Looks like a reasonable way of doing business, next week I’ve a meeting with a library guy and would like throw the treshold option on the table.

thanks

[Rob (Cruciform)]

I wouldn’t say it’s standard practice but it does occur. I have a couple of tracks signed to one deal where if they haven’t generated 2k each in 2 years I/they can choose to terminate the deal. If however, the threshold is reached, copyright automatically is assigned to them and they own the track.

[Art Munson]

I think it’s more than reasonable to ask for an income threshold, if a library want’s to own a copyright without paying in advance. What that amount might be would vary with each individual.

[#tag]

thanks Art,
seems like in the US you are a little bit ahead on this.
Here in europe is not uncommon to be asked to write for a library, without an advance and the library asking for publishing rights.

often libraries are also network owners, so they would leverage on that to make you sign an exclusive agreement without advance.

[#tag]

By the way if anyone whises to post a sample of an income treshold on reversion clause I’d be very grateful.
I have never seen one and I’d be nice to go prepared to the meeting.

Many thanks

[Advice]

It’s a good idea to make sure that a reversion clause has a bit more than just “secures a placement”. This is true for traditional publishing deals as well as music library ones. An income test is a good idea but what that $$ value is varies so much for each situation– composer, track, library, etc. Many tracks placed in film/TV never earn $2K in their lifetime, especially with up-front license fees having dropped so much. However, an experienced composer dealing with a higher end library may be able to negotiate $1-2K with that type of income not being unrealistic. In other situations, $250-$500 might be the sweet spot.

If you get offered an exclusive contract with reversion having no qualifiers, nothing wrong with politely asking if the clause could be strengthened. Some libraries will negotiate, some won’t. And then each individual has to decide what’s right for them.

[wilx2]

@Advice –

Thanks for these figures.  I am about to ask for a RC with an exclusive library, and was wondering if you could clarify if you mean total income generated by the track or just composer’s income?

[Wildman]

In Europe it`s unfortunately totaly normal that exclusive libraries ask for lifetime copyrights without paying any upfront fees. I am sitting in the same boat #tag. It`s hard to break those boundaries and it feels like a monkey bizz.

I started to ask for a reversion clause in my last contracts. If nothing happens with the tracks within 3 years they will turn non-exclusive. That is not a super deal but Ok in Europe.

 

[Advice]

@wilx2… That’s just a matter of wording which can vary. With composer’s share most often being 50% of the total, it’s not hard to translate between composer’s income and total income.

[Author]

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