How To Set Up A Publishing Company For Music In 2025 | Do I Need A Music Publishing Company?

Summary

In this video, a seasoned music attorney explains the concept of music publishing and how creators can set up their own publishing companies. The video clarifies the difference between sound recordings (masters) and compositions, highlighting ways to earn from music publishing beyond streaming. It also covers the process of collecting publishing royalties through performance rights organizations and offers advice on setting up a limited liability company (LLC) for legal protection. The video includes practical tips on copyright registration, working with platforms like SongTrust, and collecting royalties internationally.

Takeaways

• 😀 Publishing is the money generated from the composition (not the recording) of a song.
• 😀 Music distributors pay you for sound recordings (the master), but they don’t handle publishing rights.
• 😀 You can earn money from a song’s composition over time, even if it’s not the final recording.
• 😀 Selling a music catalog, like Justin Timberlake did, means selling your publishing rights to compositions, not sound recordings.
• 😀 Understanding the difference between the 'writer share' and 'publisher share' of publishing is key to collecting your royalties.
• 😀 If you write all of a song, you get to collect 100% of the publishing rights as the writer and the publisher.
• 😀 To collect publishing, register with a Performance Rights Organization (PRO) like BMI, ASCAP, or SESAC.
• 😀 A sole proprietorship is one option to set up a publishing company, but an LLC is often a better choice for liability protection.
• 😀 Setting up an LLC for your publishing company protects you from personal liability, even if you haven’t earned money yet.
• 😀 If you want to act as your own publisher, you can register an LLC and use a 'Doing Business As' (DBA) for your publishing name.
• 😀 Registering copyrights is essential, and you should do so within a month of releasing your music, ideally before release.
• 😀 To collect publishing worldwide, Songtrust is a platform that helps you gather royalties from different countries through international relationships.

Q & A

What is music publishing?

Music publishing refers to the management, promotion, and monetization of a song's composition (the music and lyrics). It is distinct from the sound recording or 'master,' which generates revenue through streaming platforms like Spotify.

How is music publishing different from streaming revenue?

Streaming revenue comes from the distribution and play of the final recorded version of the song (the 'master'), while music publishing deals with the composition of the song (the music and lyrics) and generates income through sources like performance royalties, licensing, and cover versions.

Why is it important for creators to understand publishing?

Understanding publishing is essential for creators because it allows them to collect revenue from their compositions, which can generate income over time through various channels such as performance royalties, synchronization deals, and mechanical royalties.

What does it mean to sell your music publishing, and how much can an artist earn from it?

Selling music publishing means transferring ownership of the compositions (music and lyrics) to another party, often for a lump sum payment. For example, Justin Timberlake made $100 million by selling his music publishing, highlighting how valuable compositions can become.

What is the difference between the writer's share and the publisher's share in publishing?

The writer's share refers to the portion of publishing income attributed to the creator of the song's composition, while the publisher's share refers to the portion managed by a publishing company or entity. The total publishing income includes both shares.

How do you collect your publishing royalties as a songwriter?

To collect your publishing royalties, you need to register with a Performance Rights Organization (PRO) like BMI or ASCAP in your country. If you're the sole writer of the composition, you can collect both the writer's share and the publisher's share.

What is the process of registering your music with a Performance Rights Organization (PRO)?

When you register with a PRO like BMI, ASCAP, or SESAC, you provide details about your song, including its title and percentage breakdown (if co-written). You then select which side of the publishing (writer or publisher) you want to collect, and the PRO handles royalty distribution on your behalf.

Why should I set up an LLC for my publishing company?

Setting up an LLC for your publishing company provides legal protection by separating your personal assets from your business. If a lawsuit is filed against your company, the LLC protects your personal belongings such as your house or car from being seized.

What are the benefits of registering a publishing company as an LLC rather than as a sole proprietorship?

An LLC offers liability protection for your personal assets, unlike a sole proprietorship, which does not provide such protection. Additionally, an LLC can provide a more professional structure for managing contracts and copyright registrations.

What are mechanical royalties, and why should I register with the Mechanical Licensing Collective (MLC)?

Mechanical royalties are earned from the reproduction of a song, such as physical copies or digital downloads. To collect mechanical royalties, songwriters and publishers must register with the MLC in the U.S. or other similar organizations internationally to ensure they receive these earnings.

How can I collect publishing royalties internationally?

To collect royalties from international markets, you can register with global platforms like SongTrust, which has established relationships with many countries' PROs. This ensures that you receive your publishing income from around the world.