When most people think of the music industry, they picture fame, fortune, and the glamorous lives of superstar artists. However, beneath the glitzy surface lies a complex and often treacherous landscape, especially when it comes to music publishing deals. For many artists, these deals can become traps that stifle their creativity and financial potential. In this article, we'll delve into what bad music publishing deals look like, why they happen, and how artists can protect themselves from falling into these pitfalls.

Understanding Music Publishing

Before we dive into the pitfalls, it's important to understand what music publishing entails. Music publishing is the business of managing the rights to songs, ensuring that composers and songwriters are paid when their work is used commercially. This includes collecting royalties from various sources such as radio airplay, streaming services, live performances, and sync placements in movies or commercials.

A music publishing deal typically involves a songwriter signing over certain rights to a publishing company in exchange for services like royalty collection, licensing, and creative support. While this can be beneficial, not all deals are created equal.

Common Pitfalls of Bad Publishing Deals

1. Unfavorable Royalty Splits: One of the most common issues in bad publishing deals is the royalty split. In a fair co-publishing deal, the songwriter might receive around 50-75% of the royalties, with the publisher taking the rest. In a fair pub admin deal, the songwriter should receive around 75-85% of the royalties. However, in a bad deal, the split can be heavily skewed in favor of the publisher, leaving the songwriter with a meager percentage of their own earnings.

2. Long-Term Commitments: Another major pitfall is the duration of the contract. Some deals lock artists into long-term commitments, sometimes spanning decades. During this period, the publisher may have control over the artist's catalog, severely limiting their ability to make independent decisions about their work.

3. Rights Grab: In the worst cases, publishing deals can involve a rights grab, where the publisher takes ownership of the copyrights to the songs. This means that even if the deal ends, the publisher retains control over the music, and the songwriter loses their claim to their creations.

4. Lack of Transparency: Transparency is crucial in any business relationship, and its absence can lead to serious problems. Bad publishing deals often lack clear communication about how royalties are calculated and distributed. This opacity can result in songwriters not receiving the full compensation they're entitled to.

5. Recoupment Clauses: Many publishing deals include recoupment clauses, where the publisher recoups any advances or expenses before the songwriter sees any royalties. In a fair deal, this is standard practice, but in a bad deal, these clauses can be excessively burdensome, making it nearly impossible for the artist to earn money.

Why Bad Deals Happen

Bad publishing deals often arise due to a combination of factors:

• Desperation and Inexperience: Emerging artists, eager for their big break, might sign unfavorable deals out of desperation or lack of knowledge. Without proper legal counsel, they may not fully understand the terms they're agreeing to.

• Power Imbalance: The music industry is notorious for its power imbalances, with established publishers often holding significant leverage over new artists. This dynamic can lead to exploitative practices. Creatives should not settle for a bad deal just because a recognizable brand made them an offer. 

• Complex Contracts: Music publishing contracts can be complex and filled with legal jargon. Without a solid understanding of contract law, artists might overlook crucial details that could have long-term consequences.

Protecting Yourself from Bad Deals

While the landscape can be daunting, there are ways for artists to protect themselves:

1. Seek Legal Advice: Always consult with an experienced entertainment lawyer before signing any deal. They can help you understand the terms and negotiate better conditions.

2. Educate Yourself: Take the time to learn about the music publishing industry. Knowledge is power, and understanding the basics can help you spot red flags in a contract.

3. Negotiate Terms: Don't be afraid to negotiate. Key areas to focus on include royalty splits, contract duration, rights to your music, and recoupment clauses.

4. Consider Alternatives: If a deal seems too restrictive, explore other options. Independent publishing or working with a reputable music licensing company might offer more favorable terms.

5. Build Leverage: Building a strong, independent following and proving your commercial potential can give you more leverage in negotiations. The more valuable you are, the better terms you can demand.

Sea of Tunes

Bad publishing deals can impact any artist at any stage of their career. Everyone recognizes The Beach Boys and their timeless hits like "Surfin' U.S.A.," "Wouldn't It Be Nice," and many others. However, not many are aware of their publishing woes. Murry Wilson, an American songwriter, talent manager, record producer, and music publisher, is best known as the father of The Beach Boys' Brian, Dennis, and Carl Wilson. As the band's first manager, Murry was notorious for his dubious business practices.

In June 1962, Murry established Sea of Tunes, a publishing company he claimed was intended to protect the band's records. He never explained to Brian, Dennis, and Carl how publishing worked or how they could earn money from it. Mike Love, the lead vocalist of The Beach Boys, once admitted, "I didn’t even know what publishing was when we started out. I wasn’t from a show business background." Murry exploited this ignorance, taking advantage of Mike and his own sons.

In July 1965, he wrote to Brian requesting sole ownership of Sea of Tunes (and thus, The Beach Boys' publishing catalog), citing a verbal agreement from 1962. Historian Keith Badman notes, "Brian allowed Murry to take total control to end his father's constant hassling over the issue." In 1969, Murry sold Sea of Tunes to Irving Almo Music for $700,000 (equivalent to $5.82 million in 2023). Over the years, the catalog generated over $100 million in publishing royalties, none of which the band members received. By 1994, the catalog's value was estimated at $40 million (equivalent to $82.2 million in 2023).

Conclusion

Bad music publishing deals can have long-lasting negative impacts on an artist's career and financial wellbeing. By understanding the common pitfalls and taking proactive steps to protect themselves, artists can navigate the industry more safely and retain greater control over their creative output. Remember, the music industry is a business, and like any business, it's essential to enter agreements with caution and awareness. Your music is your art, your passion, and your livelihood—treat it with the respect and care it deserves.