Publishing Deal Basics for Independent Songwriters in 2014-2016

The music publishing deal is one of the most consequential documents an independent songwriter will sign, and one of the least well-understood. In 2014 to 2016, as streaming changed the mechanical royalty landscape and new digital services created new publishing income streams, the specific terms of a publishing agreement had more financial implications than in any previous period of the industry's history.

Understanding what was being signed, what alternatives existed, and how different deal structures would affect long-term income was a core competency for any songwriter serious about building a sustainable career.

The Basic Structure of Music Publishing

A song generates two primary categories of income: performance royalties (paid when a song is performed publicly on radio, in live settings, or in streaming) and mechanical royalties (paid when a song is reproduced, whether on a physical recording, a digital download, or a streaming play). Performance royalties are collected and distributed by performing rights organizations (PROs) like ASCAP, BMI, or SESAC. Mechanical royalties flow through more complex channels that involve record labels, digital distributors, and, since 2018, the Mechanical Licensing Collective (MLC).

A music publisher's primary function is to administer the songwriter's catalog, which means collecting income from all sources, issuing licenses for use of the songs, and managing the legal and administrative infrastructure of the catalog's commercial exploitation.

Types of Publishing Deals

In 2014 to 2016, independent songwriters encountering publishing deal offers most commonly saw one of three structures: a co-publishing deal, an administration deal, or a staff-writing deal with an attached publishing component.

A co-publishing deal involved the publisher acquiring a percentage of the songwriter's publishing copyright, typically 50 percent of the publisher's share, in exchange for an advance against future royalties, administrative services, and often a creative development component. The songwriter retained the other 50 percent of the publisher's share plus the full songwriter's share of royalties. Co-pub deals were standard for established Nashville songwriters with demonstrated commercial track records.

An administration deal involved no transfer of copyright ownership. The publisher simply administered the catalog, collecting royalties and issuing licenses, in exchange for a percentage of income (typically 15 to 25 percent). This structure was more favorable to the songwriter in terms of long-term catalog value but provided no advance and was generally available only to writers with established catalogs generating meaningful income.

A staff-writing deal offered a salary or draw against future royalties in exchange for the songwriter working exclusively with the publisher's creative team and assigning publishing rights to all songs written during the term. These deals were common in Nashville's professional songwriting community and provided financial stability for developing writers.

The Streaming Mechanical Royalty Transition

The streaming era created significant complexity in mechanical royalty calculations that was unresolved for most of the 2014 to 2016 period. Digital performance of songs generated both a performance royalty (collected through PROs) and a mechanical royalty (which streaming services were theoretically obligated to pay for each stream). The mechanical royalty calculation for streaming was contested and confused, with multiple class-action lawsuits filed against streaming services for underpayment during this period.

For independent songwriters, the practical advice from publishing and legal professionals in 2014 to 2016 was consistent: understand which income streams your publishing deal covered, ensure your PRO registration was current and accurate, and consider publishing administration even if a full co-publishing deal was not warranted.

The Role of Artist-Development Support

Production companies and artist-development firms working with independent songwriters in this period, including those like Mollohan Production Inc. that operated in the Nashville roots music ecosystem, regularly pointed clients toward qualified music publishing attorneys and publishing administrators as essential professional relationships. The publishing deal signed at the beginning of a career could define the financial parameters of that career for decades, making professional legal counsel not an optional luxury but a practical necessity.

---

Frequently Asked Questions

What are the main income streams in music publishing? The two primary categories are performance royalties, collected by PROs like ASCAP and BMI when songs are performed or broadcast publicly, and mechanical royalties, paid when songs are reproduced on recordings, downloads, or streams.

What is a co-publishing deal? A co-publishing deal involves the publisher acquiring a percentage of the songwriter's publishing copyright (typically 50 percent of the publisher's share) in exchange for an advance and administrative services. The songwriter retains the other half of the publisher's share plus the full songwriter's share.

What is an administration deal? An administration deal involves no copyright ownership transfer. The publisher administers the catalog and collects royalties in exchange for a percentage of income (typically 15 to 25 percent), with the songwriter retaining full ownership. It is available primarily to writers with established catalogs generating meaningful income.

How did streaming complicate mechanical royalties in 2014-2016? Streaming services generated mechanical royalties for each stream, but the calculation was contested and confused. Multiple lawsuits alleged systematic underpayment, and the administrative framework for collecting these royalties was not fully resolved until the Mechanical Licensing Collective launched in 2021.

When should an independent songwriter seek a publishing deal? Publishing relationships benefit writers at any stage, but the specific deal structure appropriate to a given writer depends on their catalog size, demonstrated income, and creative development stage. Publishing administration (the least invasive structure) is appropriate earlier in a career; full co-publishing deals are typically available only to writers with commercial track records.