Understanding Publishing Companies for Record Labels: Do You Need One?

Do I need a publishing company for my record label?

It's not always necessary to have a dedicated publishing company for your record label. Record labels and publishing companies have different roles and purposes in the music industry. Record companies typically focus on managing the sound recordings and paying artists for their work. On the other hand, publishers handle the song's copyright, ensuring that songwriters are compensated and that the rights to the song are properly managed.

What Exactly Do Record Companies and Publishers Do?

Record Companies: Record companies are responsible for producing and distributing music recordings. They handle the physical product, digital distribution, marketing, and promotion of the songs and albums. Artist management, branding, and touring are also key areas where record companies operate. Essentially, they focus on the sound recording and the artist’s performance.

Publishers: Publishers manage the copyright for musical compositions and the income generated from publishing rights. They ensure that songwriters receive royalties from various sources, such as mechanical and synchronization licenses, performance rights, and more. Publishers also help in negotiating lucrative deals and maintaining the songwriter's rights over their musical works.

Do You Need a Publishing Company if You Have a Record Label?

Many record labels choose to partner with or own publishing companies to handle these rights. However, this is not a requirement. If your record label is going to also be a publisher and manage songwriting rights, you can set up your label as a publisher. This means:

Managing the songwriting rights and income Ensuring proper royalty distribution Handling licensing and sync deals

Setting up publishing rights within a record label can streamline operations and eliminate the need for a separate entity. However, it's crucial to understand the intricacies of copyright law and the different roles within the music industry. Not knowing these details can lead to potential legal issues.

Why Consider Hiring an Entertainment Attorney?

For those who are new to the music industry, it can be challenging to navigate the complex world of record labels, publishing, and copyright law. An entertainment attorney can provide valuable guidance and ensure that all legal aspects of your record label are properly set up and managed. Some key areas an attorney can help with include:

Reviewing contracts and agreements Ensuring compliance with industry regulations Advising on the formation of publishing entities Protecting intellectual property rights

Hiring an attorney can save you time, money, and potential legal issues down the line. They can provide the expertise you need to navigate the industry and help ensure that your record label operates smoothly and legally.

The Possibility of Owning Publishing as a Record Label

One of the unique advantages for record labels is the opportunity to own the publishing rights alongside the sound recordings. This is often referred to as a 360-degree deal or a strategy where the label takes control of both the sound recording and the songwriting rights. Here’s how it works:

Owning Sound Recordings**: The label controls the physical product and distribution of the music. Owning Publishing Rights**: The label takes on the responsibility of managing the songwriting rights, royalty distribution, and licensing.

By owning both aspects, the record label can maximize revenue streams. For example, synchronization licenses, digital distribution royalties, and performance rights can all be managed in-house. This strategy can be particularly beneficial for larger labels with the resources to handle both aspects effectively.

Conclusion

Whether you need a dedicated publishing company or can handle the publishing in-house is a decision that depends on your specific goals and resources. Understanding the roles of record companies and publishers, and the potential benefits of owning both, can help you make an informed choice. For those new to the industry, consulting with an experienced entertainment attorney is highly recommended to navigate the complexities and ensure your record label’s legal and financial interests are protected.