From e77ad32d3a2c7e8409e5b0ae20507a5530b53104 Mon Sep 17 00:00:00 2001 From: ronny abraham Date: Sun, 23 Feb 2025 23:04:54 +0200 Subject: [PATCH] how producer contracts work --- _descriptions/desc-sound_exchange_LOD.org | 62 +++++++++++++++++ .../v08-producer_contracts.org | 69 +++++++++++++++++++ 2 files changed, 131 insertions(+) create mode 100644 _descriptions/desc-sound_exchange_LOD.org diff --git a/_descriptions/desc-sound_exchange_LOD.org b/_descriptions/desc-sound_exchange_LOD.org new file mode 100644 index 0000000..6588d68 --- /dev/null +++ b/_descriptions/desc-sound_exchange_LOD.org @@ -0,0 +1,62 @@ +#+title: Description: sound exchage LOD +#+HTML_HEAD: + +* 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. diff --git a/_subsections/music-production-company/v08-producer_contracts.org b/_subsections/music-production-company/v08-producer_contracts.org index 7e58414..fde4101 100644 --- a/_subsections/music-production-company/v08-producer_contracts.org +++ b/_subsections/music-production-company/v08-producer_contracts.org @@ -7,3 +7,72 @@ - [[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