Thursday, April 23, 2015

Songwriting 101: Work for Hire Agreements

When it comes to any kind of music contract, songwriters are typically advised to consult an attorney. In the case of Work for Hire (W4H) agreements, a budget that has no room for attorney fees has forced a longtime songwriter like myself to resort to DIY. The cost of a demo is high enough. Those of us who are not performers already shell out hundreds of dollars, sometimes more, to pay for studio, engineer, musicians, singers and/or producer. Yes, even in the Pro Tools era.
But a company looking specifically for film/TV music does not want to deal with any material that will leave it vulnerable to a legal suit from parties who contributed to the recording. So the first question about any song you pitch in that category is: do you have clearance? The answer is: no, unless you have a signed W4H. Ergo, obtaining this agreement has now become routine for me with any demo.  Here’s what I’ve learned.
What is a W4H?
A W4H is all about ownership and therefore, all about money. Like publishing contracts, there is no one size fits all. As the songwriter and publisher, I do own the copyright of my song but not necessarily the actual recording unless I paid the performers a master rate that, like the attorney, equates to a fortune. A W4H agreement clarifies what rights I have to ownership and use of the recording.
Who gets paid what?
This is a murky area and depends on what you can negotiate. I have multiple versions on file. In one, a singer requests an upgrade payment for the difference between the demo rate and master rate if the demo is used as is. Incidentally, I like to make sure that in any W4H, the singer grants permission to use his or her name as the performer, just in case. I don’t want any legal problems either.
In another version, a producer stipulates that the demo can only be used for demonstration purposes with a provision that, in the case of interest in use of the existing recording, the upgrade price will be set solely by him. That price can amount to thousands of dollar. Plus, if some artist wants to use the track and only rerecord the vocals, not uncommon these days, this producer wants to be paid a set fee for release of the digital files (important for remixing) as well as for use of the produced instrumental track. The problem is that demo costs don’t get repaid first.
If you have an agreement that states you have to upgrade any musicians to the master scale rate set by the American Federation of Musicians (AFM), that amount too can be more than the film/TV company has budgeted for a track. An alternative is to give the performers a percentage of the earnings from synchronization fees and master use. The problem is that demo costs don’t get repaid first. Are you sensing a pattern here of how songwriters end up with the short (expensive) end of the stick?
The most pro-songwriter agreement is one in which everyone who worked on the track agrees to that one time payment with no entitlement to any future royalty earnings. In other words, those involved give the songwriter complete ownership rights to the recording. 
Consider co-writing credit
If you work with one producer on a track, either as a songwriter and/or an artist, and if that producer makes a major contribution to recording, you can consider giving him or her co-writing credit. I definitely have done that on numerous occasions even though the producer did not write the music or lyrics. Yes, you will need to put that into writing and share ownership of the copyright too.

The U.S. Copyright Office does provide a PDF on W4H agreements if you want to read more on the subject.

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