how producer contracts work

_descriptions/desc-sound_exchange_LOD.org

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+#+title: Description: sound exchage LOD
+#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../../_share/media/css/org-media-sass/categories/business.css" />
+
+* link
+
+- [[../_subsections/music-production-company/v08-producer_contracts.org][producer contracts]]
+
+* SoundExchange LOD in a Music Producer Contract
+** What is a SoundExchange LOD?
+A *Letter of Direction (LOD) for SoundExchange* is a formal document signed by an artist, directing **SoundExchange** (the U.S. organization responsible for collecting and distributing digital performance royalties) to pay a portion of royalties to a producer or another third party.
+
+** Why is an LOD Important?
+- Ensures that the *producer receives a share* of **digital performance royalties** from non-interactive streaming services like Pandora, SiriusXM, and web radio.
+- Since SoundExchange only pays **artists and labels**, an LOD is necessary for a producer to be paid directly.
+- Without an LOD, the artist receives all royalties and must pay the producer manually.
+
+** How an LOD Works
+1. *Producer & Artist Agreement*: The producer's contract includes a percentage of digital performance royalties.
+2. *Artist Signs the LOD*: The artist fills out and signs a **SoundExchange Letter of Direction**, specifying the producer’s share.
+3. *Submission to SoundExchange*: The LOD is sent to SoundExchange for processing, and upon approval, the producer starts receiving their share directly.
+
+** Sample SoundExchange Letter of Direction (LOD)
+#+BEGIN_SRC text
+[Artist’s Name]
+[Artist’s Address]
+[City, State, Zip Code]
+[Email]
+[Date]
+
+SoundExchange
+733 10th Street NW, 10th Floor
+Washington, DC 20001
+
+Subject: Letter of Direction to Pay Producer Royalties
+
+To Whom It May Concern,
+
+I, [Artist’s Name], am the Featured Recording Artist registered with SoundExchange for the sound recordings listed below. I hereby direct SoundExchange to pay [Producer’s Name] ([Producer’s SoundExchange Member ID, if applicable]) a percentage of my digital performance royalties for these recordings, as detailed below.
+
+**Sound Recordings:**
+1. "[Song Title 1]" - [ISRC]
+2. "[Song Title 2]" - [ISRC]
+3. "[Album Title]" - [ISRC] (if applicable)
+
+**Royalty Percentage to be Paid to Producer:**
+- [X]% of the featured artist’s digital performance royalties
+
+By signing below, I authorize SoundExchange to make the above payments directly to [Producer’s Name] and acknowledge that this direction is irrevocable except by mutual written agreement.
+
+Sincerely,
+[Artist’s Signature]
+[Printed Name]
+
+**Acknowledged and Agreed:**
+[Producer’s Signature]
+[Printed Name]
+#+END_SRC
+
+** Additional Notes:
+- The ISRC (International Standard Recording Code) helps identify the exact recordings.
+- The artist must be a **registered member of SoundExchange** for this to be processed.
+- This LOD is **only for digital performance royalties**, not mechanical or publishing royalties.

_subsections/music-production-company/v08-producer_contracts.org

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 - [[https://youtu.be/qynZtQICdtk?si=zU-bh4iBYrAOXrdW][youtube video]]
 
 * notes
+** how it normally goes
+*** you gave away your session files without saying one of the following:
+
+- hey i'll send you the session files you send me the paperwork
+- hey let me send the paperwork over to you
+- let my attorney contact you with the paperwork
+
+*** in this case you are fucked
+- session files are out of yoru control
+- and the negotiations are now up in the air
+  - they can make moves without you
+  - they already have it
+
+** producer contract
+*** you need this if you are
+- manager
+- artist
+- producer
+- record label
+
+*** for producers the contract must have the following:
+1. producer fee
+2. advance
+3. points in there
+4. publishing in there
+5. [[../../_descriptions/desc-sound_exchange_LOD.org][sound exchange LOD]] (Letter of Direction)
+6. mechanical royalties
+7. writers credit
+
+- must also include insurence
+
+**** fee
+- non recoupable
+  - you don't owe the record label back
+  - artist does have to pay this back
+- what you get for making the beat
+  - nothing to do with advance
+  - you will not be credited on your royalties
+  - this is for packaging the product and delivering it to the label
+
+**** points
+- percentage of streams and sales outside of the master recording you produced
+- usually 3.5%
+- this is the one thing you want outside of your publishing
+  - will produce a lot of money
+- points come from master recording
+  - you don't want this on advance
+
+**** advance
+- recoupable
+- advance against your producer points
+- you have to pay this back
+
+**** writers credit
+- you will get credit on musical work copywrite and writers share of performance royalty
+  - you get credit as an AUTHOR on the writers share on PRO (performance royalties)
+- percentage is direclty correlated with your publishing percentage at the PRO and mechanical royalty collection societies
+
+**** mechanical royalties
+- royalties paid every time your song is reproduced on:
+  - streaming sites
+  - social media sites
+  - sheet music
+  - etc
+- you need to receive these WITHOUT REDUCTION
+  - your contract must state you get paid 100% of scale
+
+**** sound exchange LOD
+- allows producers to receive a portion of artists share of the performance royalties