Why Sign a Music Publishing Contract?

It can be very advantageous for an artist or producer to score a publishing deal. However, it is important to be aware of the potential pitfalls before signing a contract. But what are those pitfalls and how do they compare to the potential advantages of such a deal?

Before we begin it is important to ask ourselves what exactly a music publishing contract is. Unlike a record deal, a music publishing contract does not concern itself with you as a performer, or a ‘brand’. It concerns itself with your work, and how to maximise the amount of money that can be made from it, perhaps by seeking out other, better-known, artists to release cover versions of your songs, perhaps by getting it synced for film and TV, perhaps by getting it used in the next McDonald’s advert. In exchange for ownership of the rights to it for a specified amount of time (usually around ten years) and a percentage of all the profits made from it (usually around 25%) a publisher will seek to exploit your work in order to make as much money as possible out of it, money that you would then have to share with him. Such exploitation could be very difficult to do alone, and a publisher’s efforts are likely to be much more aggressive and fruitful than yours, given that he has devoted his career to making contacts within the music industry. It is this exploitation that represents one of the greatest advantages of signing a music publishing contract. (It is worth noting that such exploitation is only carried out within the confines of the industry. Unlike a recording contract, a publishing contract does not concern itself with marketing an artist’s work to the general public). Conversely, one of the great disadvantages of signing a music publishing contract would be if that particular publisher was ineffective at exploiting your work.

Because it is a non-reversible decision. There is no going back. Although a publisher will normally include within the contract what are known as option periods, which mean he can drop you if you are not making him any money, you cannot drop him. Even if he does absolutely nothing at all to exploit your work not only can you not get out of the contract but you cannot sign a contract with another publisher or maximise the potential of your work yourself. The contract is binding and exclusive. (One way to avoid the pitfalls of exclusivity are single-song agreements, which can be very beneficial, although the terms are usually quite different).