Why Signing Up with ASCAP or BMI is Not Enough

April 19, 2013{ 23 Comments }

shutterstock 108783959 300x163 Why Signing Up with ASCAP or BMI is Not EnoughIf you’re an independent songwriter, composer, or lyricist, there are more opportunities than ever to earn significant income from music publishing.

Sadly though, many artists think they’ve covered all the bases in terms of royalty collection when they affiliate themselves with an organization like ASCAP, BMI, or SESAC.

ASCAP, BMI, SESAC, SOCAN, and other associations that collect performance royalties on behalf of songwriters and publishers are called “Performing Rights Organizations” — or P.R.O.s.

Performing Rights Organizations are not collecting all the publishing royalties you’re owed

While these services do perform a valuable and vital role in making sure artists get paid, they don’t do it all. In fact, they don’t even do half of it — and that means songwriters are leaving a lot of money on the table in the form of uncollected publishing royalties.

1. You’re not getting mechanical royalties.

What is a mechanical royalty? It’s a fee that is owed to the publisher/composer of a piece of music (that’s you! — unless you’ve signed your publishing rights away to a publishing company) any time that song is sold digitally or manufactured in physical form (CD, vinyl, etc.). This fee is owed to you whether you are selling a recording of your own music or if another artist is covering your songs.

In many countries, any time your song is downloaded, you (as the songwriter/publisher) are owed a mechanical royalty. Any time one of your songs is streamed on popular services like Spotify or Rdio, you are owed a mechanical royalty.

Despite the fact that your songs are generating income in the form of mechanical royalties, P.R.O.’s like ACSCAP and BMI do NOT collect them for artists. (They only collect performance royalties).

This means there is money out there waiting to be collected — money you’ve EARNED. But these mechanical royalties have traditionally been inaccessible to songwriters unless you’re represented by a major label, big publishing house, or had the muscle of an agency like Harry Fox on your side.

With CD Baby Pro, you’ll be set up to collect all the mechanical royalties you’re owed. No more getting shut out from collecting YOUR OWN money.

2. You’re not getting all your performance royalties from overseas.

What is a performance royalty? Well, any time your music is played on the radio (terrestrial, satellite, and internet), on TV shows, films, video games, and presentations, or performed in a live venue — you are owed a performance royalty.

ASCAP and BMI do NOT register your songs with foreign royalty collection societies. So unless you have a co-writer or an artist who has covered your song and sent that information to a foreign collection society, those international Performing Rights Organizations will probably never know about your songs, never know they should be on the lookout for tallying “performances,” and never know who to pay.

The only way ASCAP and BMI will collect international performance royalties is if a foreign society knows about it through happenstance and directs the payment to the appropriate US-based P.R.O. That likelihood is… unlikely. You don’t want to leave something like royalty collection up to chance.

CD Baby Pro ensures that foreign collection societies WILL know about every one of your songs, and we’ll collect all the royalties you’re owed.

3. You’re not getting the publisher’s share of your royalties.

Even if, by luck, a foreign collection society does pay a performance royalty to ASCAP or BMI for the usage of one of your songs, the chances are even less likely that you’ll be paid the publishing share of your performance royalty for that same usage.

Performance royalties are split into two shares, 50% going to the songwriter and 50% going to the publisher. Unless you’ve signed away your publishing rights to a publishing company — you are BOTH entities: the songwriter AND the publisher.

But even if you’ve set up a publishing company and affiliated with a P.R.O. as both the writer and the publisher — it’s really just a vanity publishing company. Sorry to say it, but it’s true.

You don’t have the money or the muscle to do all of the administrative work that a “real” publishing company can. And that means that P.R.O.s have less incentive to fight for you when it comes to collecting every cent you’re owed. So even if you DO get paid your songwriter’s share of performance royalties, the other 50% you’re owed is going to go uncollected.

Unless you use a service like CD Baby Pro!

With CD Baby Pro, you’ll be set up to collect all the publishing royalties you’re owed — worldwide.

Publishing Guide: Get Paid the Money You Are Owed

[Global money image from Shutterstock.]

  • http://www.thecorporatethiefbeats.com/ Daniel Hartnet

    Some of the big P.R.O's still do things the primitive way, Even if they do collect your performance royalties it will still take them years before your get that check for a couple of bucks in the mail

  • http://www.facebook.com/christopher.bingham1 Christopher Bingham

    The problem with the big three PROs is that they shake down small venues that support small time artists, often tilting the venues to avoid live music alltogether – even if everything they preent is by unaffilliated artists. If a songwriter "slips" and does a Dylan cover, bang – the venue owes a minimum of $1200 – to EACH PRO. (And really, would you trust these sharks NOT to pay a performer to do "accidentally" throw in a few covers?)

    Then comes the payment to the writer. How do they determine who gets paid? Commercial radio play. So by signing up to have BMI / ASCAP / SESAC represent you, you're giving them the fuel they need to extort money from the venues that support you as a performer of original material, and in the end, sending that money to Justin Bieber.

    The PROs have had 70 years of being in bed with the major labels – who often own the publishing half the PRO royalties – in a kind of circular back scratching game where only the megahits get significant money. Don't spend that $3.00 all in one place – and sorry to tell you but the room that used to host the songwriter's showcase just dropped music of any form entirely, to avoid a month's rent in licensing fees.

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      It's not just playing the Dylan cover that could get a non-paying venue in trouble. Tons of relatively unknown songwriters are affiliated with one P.R.O. or another — and when they perform their own material in a club, they're owed a performance royalty.

      And your concerns about the P.R.O.s fighting mostly for the major labels and big publishing houses is EXACTLY why there is a need for CD Baby Pro. We'll handle all the publishing administration work for you to make sure you're collecting EVERYTHING you're owed — not just the songwriter's 50% share of domestic performance royalties that a P.R.O. like ASCAP is likely to pay you. We'll register your songs worldwide and make sure you get the publisher's share of your royalties too — PLUS mechanical royalties which performing rights organizations don't collect.

      @ChrisRobley

  • http://www.facebook.com/brian.j.mcwilliams.5 Brian J McWilliams

    You really want to help the small guy? Monitor the predatory digital download sites and enforce the DMCA laws – it's impossible for a little guy like me to keep on top of all of them!

    • ApathyNihilism

      Yes, yes, and yes. And press for serious legislation that can actually do something about piracy. The technology is there to do it, but the will is not, as long as others are able to illegitimately profit from the work of creators.

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Well, I think some of the P.R.O.s would disagree with you. That's why they created ASCAP Live and BMI Live, so that affiliated artists could enter in their performance information (dates, venues, songs played, etc.) and get get paid performance royalties for those shows — not directly for the venue as part of their fee, but FROM the venue THROUGH the P.R.O.

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Yes, it's true. The US has different laws, and we're pretty much barbarians. We also only get 2 weeks' vacation a year.

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    I understand your frustration and skepticism, as the PROs have a proud history of fighting for the big guy, often to the detriment of the little guy — but as they catch up technology-wise, it's possible that within a few years we'll have a system that pays evenly — per-play, per-performance, etc. — and not skew towards paying the known artists more than their fair share.

    Regarding live venues, they should be paying the live performance dues whether bands are performing famous covers or obscure original — because plenty of those indie bands performing originals are affiliated with ASCAP or BMI as well, so they're owed money too. And both PROs have created live music components to their sites where you can enter in your performance info (date, venue, songs played, etc.) and get paid the performance royalties you're owed.

    Yes, that probably means they're going to approach the venue for that money — which unfortunately can sometimes mean that you're pissing the venue off for "tipping off the man" — but, in the end, you ARE owed that money under the law. And the venue is supposed to pay it under the law. If they want to skirt paying those fees while also being a MUSIC VENUE, then they're operating under a very creative business model.

    I know the system is very flawed now, but as BMI Live and ASCAP Live become more popular, and as digital reporting of performances becomes the norm, I think indie artists will come to see ASCAP and BMI as allies — because ASCAP and BMI will grow (out of necessity) into organizations that benefit everyone, not just the Coug.

    At least that is my sincerest wish. Fingers crossed!

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    All publishing royalties (including mechanicals, performance, and sync) get split into two shares, the 50% for the publisher, and the 50% for the composer/s.

    Publishers are paid mechanicals through administrators like Harry Fox, or through direct relationships with foreign collection societies — or directly from the label/artist selling their music.

    Performance royalties DO get paid to publishers through P.R.O.s such as ASCAP — after all, ASCAP stands for "American Society for Composers and Publishers."

    Regarding sync licensing, yes — that is a completely different thing from performance royalties. However, the sync placement (which requires the initial license/fee) can often generate performance royalties as the song is used on TV/film/commercials, etc.

    Regarding ASCAP's reciprocal agreement, with CD Baby Pro, we register songs directly, so, at minimum, you get paid much faster — and in some cases, you'll get paid more.

    I'm not sure which facts you're suggesting we got mixed, but please let me know if something is unclear about how we're communicating the benefits of CD Baby Pro.

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Hey C — just going through the comments now for the first time since Friday, so I'm sure I'll get to your other comment in a sec. It wasn't being flagged or anything.

    And as for faith, yes. I think healthy skepticism is… healthy.

    @ChrisRobley

  • http://www.facebook.com/ICFRESH Iamcfresh AkaFreshti

    As a artist I don't see any way either help

  • Song Splits

    SongSplits welcomes #Songwriters and #Producers to manage their music copyrights and split sheets free online at http://www.songsplits.com.

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    There is no way to selectively collect performance royalties, unless of course you were acting as your own publishing administrator — which is NOT worth the man-hours and frustration it'd take to do effectively.

    As for the PROs relationship with live venues, that is certainly a concern many musicians have. All I can say is that I hope that some compromise can be made and that technology enables fairer payments for performance venues generated in live venues. On the one hand, venues DO owe performance royalties to the folks who play in their establishments. On the other hand, there's been a tradition of that money getting paid up the pyramid to the top 200-grossing tours of the years. Though both ASCAP and BMI have made huge strides in evening things out with the addition of their live programs. Even if you're only earning $1-$5 per show in performance royalties, that can really add up if you play a couple hundred shows a year — and it's a LOT better than the venue getting "shaken down" for a fee, and then watching that fee go to U2 or Cher.

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Well, if the system were set up so that the venue would include performance royalties as part of its payment to the band — that'd make sense (if the band were performing all original material). But as it stands, they pay those to P.R.O.s. The performance royalty goes to the publisher/writer of the material being performed, and the band might not be performing originals.

    @ChrisRobley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    You’ll get paid mechanical royalties for international downloads and global streams. PROs like ASCAP and BMI do NOT collect mechanical royalties — only performance royalties. But, the great thing about CD Baby Pro is that we’ll affiliate you with either ASCAP or BMI so you’ll be sure to collect all your performance royalties too. CD Baby Pro gives you a wider net to capture maximum publishing royalties, a net which includes affiliation and song registration with ASCAP or BMI — PLUS our working as a publishing rights administrator on your behalf to collect mechanical royalties!

    @ Chris Robley

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Hi there, sorry for the confusion, but yes — at this time, CD Baby Pro is only for US-based artists. We’re working to expand that internationally, and we’ll definitely keep you posted when that happens.

    @ Chris Robley

  • ApathyNihilism

    The US has some rather thuggish laws that remain in place, in contrast to the rest of the world. Like the way radio pays (or rather doesn’t).

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      I wouldn’t argue that. Shameful that terrestrial radio doesn’t pay performers, artists, labels, etc. for plays.

      @ChrisRobley

  • ApathyNihilism

    CDBaby Pro sounds like a great initiative. Can you compare these 2 scenarios, pros and cons?

    1. CDBaby (non-Pro) + direct relationship with SongTrust
    2. CDBaby Pro (which outsources to SongTrust)

    One seeming difference is that in the former case, SongTrust is the publishing administration, whereas in the latter, CDBaby is actually the publisher. Is that correct? Please clarify if possible.

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      CD Baby is technically acting as a publishing administrator as well. And both options would work well, since we’re essentially using the same infrastructure to collect royalties. One bonus to going with CD Baby Pro (if you’re already signing up for distribution) is you can manage it all from one place, one signup, one account, one accounting dashboard, etc.

      @ChrisRobley

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      CD Baby is technically acting as a publishing administrator as well. And both options would work well, since we’re essentially using the same infrastructure to collect royalties. One bonus to going with CD Baby Pro (if you’re already signing up for distribution) is you can manage it all from one place, one signup, one account, one accounting dashboard, etc.

      @ChrisRobley

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      CD Baby is technically acting as a publishing administrator as well. And both options would work well, since we’re essentially using the same infrastructure to collect royalties. One bonus to going with CD Baby Pro (if you’re already signing up for distribution) is you can manage it all from one place, one signup, one account, one accounting dashboard, etc.

      @ChrisRobley

    • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

      CD Baby is technically acting as a publishing administrator as well. And both options would work well, since we’re essentially using the same infrastructure to collect royalties. One bonus to going with CD Baby Pro (if you’re already signing up for distribution) is you can manage it all from one place, one signup, one account, one accounting dashboard, etc.

      @ChrisRobley