Legalese for Songwriters
In a music industry without unions, we are still governed by laws and contracts! It is best to do your due diligence to understand some of, if not all of, legal concepts and frameworks that will appear over and over again in your work life and the work life of your collaborators. Today, let’s go over six legal frameworks you need to know about! Btw, there are way more than six you need to know about which is why you should also hire a music lawyer asap!
1. Public Domain and The Copyright Act of 1976: The public domain comprises creative works, including music, that are no longer under copyright protection and can be freely used. The Copyright Act of 1976 established parameters for copyright duration and the eventual entry of works into the public domain.
Songs typically enter the public domain when the copyright expires, which, under the 1976 Act, is the life of the creator plus 70 years. In 2024, songs from creators who passed away in 1954 or earlier may have entered the public domain. Cole Porter’s “Let’s Do It” is one such work that is now public domain!
2. Sunset Clauses: contractual provisions setting an expiration date for specific rights or obligations. They allow for reassessment or renegotiation after a predetermined period.
Per Tunecore: A “sunset” clause may be used to reduce a manager’s commission in the years following expiration of the term of the management agreement. This clause reduces the percentage the artist owes to the manager over time and eventually extinguishes this obligation entirely.
3. Work-For-Hire Agreements: Agreements that involve hiring a songwriter for a specific project, with the hiring party owning the rights to the work. Instead of receiving an up-front fee and subsequent royalties, a work-for-hire agreement ensures that the creator only receives a one-time up-front fee for their work.
Necessity: These agreements are often necessary in collaborative projects, film scores, or commissioned works where the hiring party requires full ownership and control of the music.
Who Writes Them: Typically, legal teams or representatives of the hiring party, such as film producers, write work-for-hire agreements to ensure clarity and protect their interests.
4. Statutory Technical Royalty: Rates that govern the compensation songwriters and copyright owners receive for various uses of their music. The U.S. Copyright Act and the Copyright Royalty Board set these rates.
Governing Process: The Copyright Royalty Board periodically reviews and sets rates to ensure fair compensation. For instance, changes may occur when stakeholders advocate for adjustments based on market dynamics or technological shifts. In May of 2023, The CPR established a new rate for songwriter royalties between 2018-2022 which saw a government imposed raise for songwriter royalties (yay)!
5. Renewal Options or, plainly, Options: Renewal options allow parties to decide whether to extend a contract after a specified period.
How They Work: Songwriters and publishers use renewal options strategically to reassess agreements, typically publishing contracts, potentially renegotiating terms based on their evolving careers and the success of their compositions.
Impact: These options offer flexibility and ensure that agreements remain relevant, fostering a dynamic and mutually beneficial partnership. They can ensure that songwriter’s advances grow over time.
6. MDRC Clauses: Minimum Delivery Release Commitment (MDRC) are publishing contract clauses that place a commercial sound recording release quotas on songwriter.
How They Work: MDRC’s might says that a minimum of three 100% songs (300% total) must be recorded and released by a major record company, or a mutually approved indie label. A songwriter can work up to that 300% through co-writing songs as well. If you have 33.33% of a song, then you will only 267.66% of your MDRC left before your contract is completed. This version of the MDRC can be easier for a songwriter/artist, because they’re recording an album of their music.
Does this benefit the writer?": There’s no guarantee that a writer’s songs will be recorded and released under a major/indie label. In fact, your entire output might be sync related or independantly released. In such circumstances, you will not be able to get out of your deal. You could make hundreds of thousands of dollars for your pub company, but still not succeed in meeting your MDRC.
