Music Publishing

Last week a good friend of mine asked me about music publishing. I was overwhelming to see a young cat so interested in the business side of the music industry. I am by far no expert on music publishing; however, I am always willing to share the knowledge that I have so we all can grow as artists and business minded people. After seeing the impact our conversion had on my friend, I decided to write my next blog post about the subject. The aim of Lt’s Groove Plateau is to help artists along their journey in this music industry. With that statement, I encourage inspiring artists, managers, and record label owners to ask questions about the business. Music is a gift from God, I always comeback to that statement; enjoyed it, embraced it, share it, love it, and protect it.

In my opinion, music publishing relates directly with copyrights. I had a previous post on the Groove Plateau that explained copyrights, and the rights they grant to the owner. This is the scenario, when we write and copyright a song the ownership of the song is divided into two equal shares. The 50/50 split is part songwriter and part publisher. If a publisher does not represent an artist, the artist owns both shares. A music publisher job is to bring that created song to the masses by exploiting the rights given by the copyright laws. In other words, a music publisher acts like a sale person for your songs and he/she gives permission to use the song by issuing out licenses that derive from the rights grant by copyright laws. I used the following analogy with my friend; I hope this example can help someone. Think of writing a song like creating a t-shirt you want to sell in stores. In order to get the shirt in a store such as Wal-Mart, you would hire a sale rep that is familiar with Wal-Mart, and the sale rep will try to get Wal-Mart to acquire a license from him/her to sell the shirt. That sale rep acts like a middleman between you and Wal-Mart. Now you can take the shirt to Wal-Mart yourself; however, Wal-Mart might not want to talk to you because you are unknown. (In the music industry most record labels, managers, and music publishers want take any material from an artist without known representation.) This is exactly what a music publisher does with the song or a catalog of song; the music publisher tries to sell licenses to people so they can use the song. The sale rep would negotiate a deal with Wal-Mart pertaining to the rights of the shirt. The deal the sale rep makes with Wal-Mart can be exclusive or non exclusive. An exclusive deal means only Wal-Mart can sell the shirt, a non-exclusive deal means the sale rep can make a deal with another store such as Target. The sale rep does this legwork for a fee that is negotiated between the sale rep and the creator of the shirt. I am speaking in general terms, in the music industry Wal-Mart would actually be movies, TV shows, another artists, streaming sites, etc.
             Artists have to be mindful on the deal they signed with a music publisher or anyone else because a lot of an artist’s revenue generates from publishing. In order to keep thing simple I will use this scenario. If an artist agreed to give a music publisher the publisher percentages I mention earlier in the post, the artist is left with 50%. If the same artist sign a record deal that states the record company will acquire 50% of publishing this does not mean the 50% the artist negotiated with the publisher, the 50% comes from the songwriter’s share, leaving the artist only 25% of publishing. The more deals an artist signs the smaller the artist percentage will get.

I hope this post clears up a gray area for many people. If you need further advise, I have a video embed in this post, and you can always hit me up.

~LtL

It Could Happen

With the explosion of home recording and the numerous websites that host mixtape, unsigned artists should not forget the value and hard work that developed their songwriting skills. I am not knocking the mixtape and its importance to the hip-hop game in this post. The purpose of this post is to help unsigned artists realize their gift for song writing and different avenues that can generate revenue from songwriting.

The first thing I noticed and I am guilty of this, is the rush process that goes into a mixtape. When I mention rushing, it is not to criticize a song that goes onto a mixtape. Most mixtape in my opinion are awesome; however, by rushing I mean the complacency and bad habits that stem from rushing. The goal of a mixtape, in my opinion is to be heard, and being heard is the ultimate goal of an unsigned artist. If unsigned artists are like me, I often neglected valuable steps needed to protect my intellectual property when creating a mixtape. A song in any form is intellectual property and an artist should make sure that they register their songs because they never know what can happen. In addition, registering a song is a good habit that should become second nature. I would like to emphasis that intellectual property is an asset just like stocks. I have included an article from Sound on Sound that describes how songwriters are paid. The 9 cent statutory rate can go along way; just asks any major artist.

In the creation of a mixtape, most of the time we download tracks from the Internet to rap or sing too. Downloading a track is not a bad idea; in fact, it is a perfect situation to develop our networking skills. Reaching out to a producer can completely change the game and the perceived value of our created content. Talking to a producer can open up doors and might even lead to the exclusive rights to use a track. When we obtain rights to use a track on our mixtape, we can consider a mixtape as a professional project because we can now shop the song without infringement concerns. I emphasis again, we never know what can happen. Obtaining permission to use a track will also help us get familiar with the business side of the music industry. Obtaining permission to use a track will also allow us to take advantage of websites that pay artists to feature ads on their videos. YouTube is a great example. Being paid for work that is not entirely our own is illegal. CDBaby has great information on how they issue sync licensing to get ads on our videos.

The whole game changes when we think like professionals and give our songs the creative rights they deserve. A mixtape is a valuable tool and it should be thought of as a professional project. No part of the song creation process should be rushed or taken for grant. We should use the mixtape process to get familiar with the business side of the industry such as: developing contacts, filing out copyright forms, and extended our brand. In order, to take our music career to the next level we have to think on the next level. The music industry is a professional industry and an amateur only gets on the field when they demonstrate that can think and perform as a professional.

~LtL

Industry Liabilities

The music industry is an ever-changing industry with its share of prosperity and risk. Owners of records label must stay ahead of current technology trends, copyrights infringements, and trademark infringements in order to stay competitive. According to Sawan (2008), “A liability is a debt or circumstance in which someone is held responsible for by law” (¶1). Knowingly or unknowingly, record labels owners and their assets are targets on the radars. Certain situations such as: the infringement case involving Grooveshark, the infringement case involving Iggy Azalea, and the trademark infringement case involving Taylor Swift; demonstrate some liabilities that record labels can face.

Recent technology has changed the availability of music to consumers. Record label file numerous infringement lawsuits against streaming sites because some streaming sites operate with the permission of copyright holders. Grooveshark was the latest streaming company declared in fault by the court for infringing against labels. According to Sisario (2014), “Grooveshark claimed 35 million users and was attracting advertising from major brands like Mercedes-Benz and Groupon” (¶3). Streaming sites have become one of the biggest liabilities to record labels, since the Internet. Streaming sites that operate with proper permission, infringe on the exclusive rights of copyrights holders, while making a huge profit from advertisements.

Record label face another liability in the form of their artist and their artist’s past. The current Case of Iggy Azalea vs. Maurice Williams is a demonstration of this liability. According to Nessif (2015), “Azalea filed a lawsuit for infringing copyright and unlawfully promoting yet-to-be released music from her early days as a struggling artist” (¶3). In this case, Maurice claims that Iggy was under contract with him, and he owns numerous of pre recorded material. Depending on the material that Maurice has in his possession, and the ruling of the court, Iggy’s records label could have to share profits and possible face the tarnishing of Iggy’s trademark.

Trademark infringement is another liability that artists and record labels face in the industry. Blue Sphere Inc. filed an infringement case against Taylor Swift for the trademark phrase “Lucky 13”. According to Radar Staff, Taylor Swift wore clothing with the phrase “Lucky 13” for a promotion sweepstakes ad. Blue Sphere had the phrased “Lucky 13” registrar with the PTO in 1991. This infringement case can ruin the image of Taylor Swift that took time and money for a record label to create. The lawsuits against Taylor can also damage the promotion sweepstake, Taylor was involved in, and the clothing company that had the phrase “Lucky 13”.

The law requires streaming sites to obtain permission from record label to have copyright material on their sites. The label that I own will be an indie label, and royalties obtained from streaming sites will be vital to the company’s success. If streaming sites continue to use copyright material illegally, it could hurt the revenue for my label. Considering the case with Iggy, Family Players Records will sign artists, and knowing the history of the artist will be important. If Family Players Records signs an artist, who is under contract with some else, this could cause the label to lose income for lawyer’s fees, and agreements might have to be made with the contract owners to share profits, that should belong to my label. This situation will in turn interfere with the budget, fix cost, and marketing planning. The case involving Taylor Swift brings awareness of the importance of seeking permission to avoid trademark confusion. Using a trademark, that someone else owns can tarnish the image of my label, and cause for profitable items to cease production.

The music industry, as mention can bring success; however there are many risks. There are people whom seem to targeted successful people and their accomplishment for financial gain. Beside people who seek financial opportunity from successful individual, individual like my self who seek success in the music industry have to make sure that we do our research, and seek legal advise before we invest time, creativity, and effort in a product.

~LTL

An Interview with Herbrena Gordon

This month I had the pleasure to interview, Ms. Herbrena Gordon. Ms. Herbrena Gordon is a beautiful, talented, sophisticated, smart, and God fearing entrepreneur. The impact of this interview on my life is overwhelming, and I believe the words I used to describe Ms. Herbrena are not doing her enough justice. Ms. Herbrena began her career in the entertainment industry in a very humble way. Her first job was working on the street team for TLC’s first album. During her time on the street team, Ms. Herbrena learned valuable lessons about negotiation, the topic of our interview. After TLC, Ms. Herbrena career in the entertainment industry began to flourish. Ms. Herbrena was the first host for Grambling State Sport Radio Show, which led to a variety of radio personality jobs in New Orleans, and Ohio. Apart from hosting, Ms. Herbrena has had several roles in movies. Now and days Ms. Herbrena is involve in several entrepreneur ventures. Ms. Herbrena is part owner of Real Talk, a station that talks music with upcoming artists and producer. Apart from the radio Ms. Herbrena is Co CEO of the television shows Trendz Tv, and Trendz Gospel. Ms. Herbrena is also part owner of IM Chronic. IM Chronic will deliver a reality like series that focuses on powerful and influential people who suffer from chronic diseases. After getting to know all that Ms. Herbrena is involve in, I learn her true passion, helping the youth of the community is what really motivates Ms. Herbrena.

My interview with Ms. Herbrena was so dynamic; I not only learned about negotiating, I learned about life from a entrepreneur, who has no fear. During the interview, I had five questions I wanted to ask Ms. Herbrena. The five questions are as followed: How do you separate the people from the problem when you are negotiating? What tips do you have for new negotiators who are trying to do this? Can you give me an example of how you worked toward a mutual benefit when you were negotiating a deal? Have you negotiated with someone who used dirty tricks such as: Deliberate deception, Psychological warfare, or positional pressure tactics? If so, how did you handle the situation? What is the role of self-confidence when negotiating?

In order to answer my questions, Ms. Herbrena gave me a scenario. Ms. Herbrena explained that we begin to learn how to negotiation when we are children. “In order to separate the people from the problem, think about how you got your parents to buy that special Christmas gift.” She stated,  “Your parents probably told you that you had to make good grades and behave good in school.” The key she explained to separating the people from the problem is to research the people to find out their interest. Ms. Herbrena states that researching the other party is the most important part of the negotiating. When you find out the other party interests, then you will have confidence in your ability to negotiate. Ms. Herbrena then told me that once I know the other party's interests we could work on a mutual agreement, I could develop a BATNA, and the objective criteria. Using her example I realize that my parents where interest in me passing to the next grade, good behavior and learning the class material. I could make the objective criteria pertain to the class average in all my courses. If my parents wanted all A’s I could present them with a BATNA, the BATNA would state that I would pick up all my grades by one letter. Ms. Herbrena told me to master this technique because most of all negotiation in the entertainment industry will follow this path. I then ask Ms. Herbrena about dirty tricks used in the industry. Pertaining to dirty tricks, Ms. Herbrena stressed to me the importance of knowing the other party, but also the importance knowing my self before I begin to negotiate. She stated, “Sometimes you will be the product in the negotiation, and integrity goes a long way.” Ms. Herbrena then told me, “Women are sometime used by companies to negotiation with men.” 

In closing, Ms. Herbrena stated,  “We all begin to master our negotiation techniques during childhood. If we look to the child hood tactics that we used, we can learn to master the art of negotiating.”

I would like to Thank Ms. Herbrena for taking time out of her busy schedule to talk with me, a conversion about negotiation, open up my heart to so many different ideas, and concepts. Thank you again, and May God continue to bless you.

~ LT

A Common Theme

When starting a business, we often look to successful people in a particular industry, for inspiration, guidance, and starting points. Recently Forbes.com sat down to interview two successful men, from two different industries, to talk success. An interview with Business Typhoon, Warren Buffett and Hip-Hop Entrepreneur, Jay-Z would grab anyone’s attention. To add more interest to this interview, a person would be amazing by how similar these two men started and established their businesses. Research shows the most important elements for a business are the brand, passion, and impact, and if you are like me, you are probably wondering how can hip-hop and investment be the same.

            History teaches us that a lot of successful people or masters of a particular field had a deep love for this field as a child. During the interview with Forbes, Warren Buffett explained that he knew when he was seven that he wanted to get into investments. Warren’s father was into investments, and by the time he was twelve, he had read his father whole library of books. After graduating from college, Warren explained that he consider his self fifteen years ahead of his classmates because he knew from a young age what we wanted to do with his life. Jay-Z did not release his first album until the age of twenty-six; however, he explained that he had deep roots with music since his early childhood, and ever since a kid he loved words and how they could be use to express life. Authors such as Robert Greene, in his book Mastery, explained the importance of following childhood passions, and these two men are proof in our generation that we can be successful doing what we love.

            If love were all that is needed to be successful, the world would be full of entrepreneur; however, we know that this is not the case. A successful business needs a successful brand. A brand is the consumer’s perception of a business or company. Warren Buffett explained in the interview that it is important to develop a personal brand, and even more important to live that brand. During the interview, Jay-Z explained that he has had success in the music industry over the years by not changing. According to Jay-Z, a lot of artists jumping on every new trend, and this can destroy a career, something we witness over and over. Both men agree in the interview that when businesses stop following their brand they lose their identity and the person or company collapses.

            Success is more that personal wealth and luxury living according to both men. To Warren Buffett his business is about improving society. Earning capital allows him to provide more jobs, better benefits and pension plans to the public. Jay-Z also explained the importance of improving society. Jay-Z started the Shawn Cater Foundation, a foundation that supplies full college scholarships, to help people succeed at their dreams. In Warren Buffet words, “Business is easy Philanthropy work is hard, but has the greater reward.”

            I name this post a common theme because this interview demonstrates how two successful people in two different industries, started and operated their business in the same way. When we follow our hearts, and strive for the improvement of society, we reap great benefits in life. Our childhood often points us in the direction we should go; however, it takes courage to follow this path. This path can lead to a successful life; however we must always remember our brand is being judge constantly, and we have a responsibility to improve society, a common theme amongst professional.

~LT