Music Publishing Agreements: What Songwriters Assign, What They Keep, and How the Money Splits

Every dollar a song earns is split between two shares. The writer's share (50 percent of total income) belongs to the songwriter. The publisher's share (the other 50 percent) belongs to whoever controls the publishing rights. A publishing agreement determines who owns or administers that publisher's share, how much of it the songwriter keeps, and what the publisher does in exchange.

Publishing income flows from multiple sources. Performance royalties (generated when a song is performed on radio, television, in a live venue, or streamed on a digital platform) are collected by performing rights organizations like BMI, ASCAP, and SESAC and distributed to the songwriter (writer's share) and publisher (publisher's share) separately. Mechanical royalties (generated when a song is reproduced on a physical format, downloaded, or streamed on-demand) are collected by the publisher or through the Harry Fox Agency or the Mechanical Licensing Collective. Synchronization fees (generated when a song is licensed for use in film, television, advertising, or video games) are negotiated by the publisher and split according to the publishing agreement. And print royalties (generated from sheet music sales) are collected by the publisher and paid to the songwriter as a royalty. How much of this income the songwriter receives depends entirely on the type of publishing deal.

Full Publishing (Exclusive Songwriter Agreement)

Under a full publishing deal (also called an exclusive songwriter agreement or staff writer deal), the songwriter assigns 100 percent of the publisher's share to the music publisher. The songwriter retains the writer's share (50 percent), and the publisher takes the publisher's share (50 percent). The publisher typically pays the songwriter a weekly or monthly advance against future royalties, owns or co-owns the copyrights in the compositions written during the term, and takes on the obligation to exploit the catalog (pitching songs for recording by other artists, seeking sync placements, and administering the business side of the catalog worldwide).

Advances under a full publishing deal are recoupable but not refundable. "Recoupable" means the publisher deducts the advance from royalties the songwriter would otherwise receive. If the publisher advances $50,000 and the songwriter earns $70,000 in royalties, the publisher deducts the $50,000 advance and pays the songwriter the remaining $20,000. "Not refundable" means if the songwriter earns only $30,000 in royalties, the songwriter doesn't owe the $20,000 difference. The publisher absorbs the loss.

Full publishing deals give the publisher the most control and the largest share of income. They're most common for developing songwriters who need financial support and industry access but don't yet have the bargaining position to negotiate a co-publishing or administration arrangement.

Co-Publishing Agreements

A co-publishing agreement is the most common deal structure for established songwriters. Under a co-pub deal, the songwriter assigns 50 percent of the publisher's share to the music publisher and retains the other 50 percent (typically through a publishing entity the songwriter owns). Combined with the writer's share, the songwriter receives 75 percent of total income (100 percent of the writer's share plus 50 percent of the publisher's share), and the publisher receives 25 percent.

In exchange for 25 percent of total income, the publisher pays an advance, administers the catalog, pitches for placements, issues licenses, registers the songs with PROs and mechanical collection agencies worldwide, and collects and accounts for all income. The publisher also becomes a co-owner of the copyright, which means the publisher's interest in the songs doesn't expire when the deal term ends unless the agreement includes a reversion clause.

Co-pub deals are structured around a term (typically one to three years, often with options for additional years), a delivery commitment (a minimum number of commercially released songs the songwriter must deliver during each contract period), and territorial scope (usually worldwide, though some deals carve out specific territories for sub-publishing through local partners).

Advances in a co-pub deal are larger than in a full publishing deal because the publisher is taking a smaller share of income and needs to recoup the advance from only 25 percent of total income (the publisher's retained share). A songwriter who generates $200,000 per year in total publishing income will produce $50,000 per year in publisher's share under a co-pub deal. An advance of $150,000 will take three years to recoup at that rate, which is why co-pub advances are calibrated against projected income over the term.

Administration Agreements

An administration agreement is the songwriter-friendliest deal structure. Under an admin deal, the songwriter retains 100 percent of the copyright and the writer's share. The administrator (the publishing company acting in an administrative capacity only) receives 10 to 20 percent of gross publishing income in exchange for handling registration, licensing, collection, and accounting worldwide.

Administration deals don't include creative exploitation. The administrator doesn't pitch songs for recording or actively seek sync placements (though some enhanced admin deals include limited creative services for a higher percentage). Generating opportunities is the songwriter's job, and the administrator handles the paperwork and the money.

Admin deals typically run three to five years, with rights reverting to the songwriter when the term ends. Because the administrator doesn't own any portion of the copyright, there's no permanent transfer. The administrator collects its percentage only during the term (and typically for a short post-term collection period to capture income from licenses issued during the term that's received after expiration).

Administration agreements make sense for songwriters who are already established, who generate income from an existing catalog, and who don't need a publisher to pitch or develop their career. For a songwriter earning $300,000 per year in publishing income, an admin deal at 15 percent costs $45,000 per year in fees but preserves full ownership and control of the catalog.

Controlled Composition Clauses

If the songwriter is also a recording artist signed to a record label, the label's recording agreement may include a controlled composition clause that affects publishing income. Under a controlled composition clause, the label pays the songwriter a reduced mechanical royalty rate (typically 75 percent of the statutory rate) on songs the artist wrote or co-wrote. At the current statutory mechanical rate of 12 cents per song (effective January 1, 2024, under the Copyright Royalty Board's determination for the 2023-2027 period), a controlled composition clause reduces the per-song mechanical to 9 cents.

Controlled composition clauses also typically cap the total mechanical royalties the label will pay per album (usually 10 or 12 times the controlled rate, regardless of how many songs appear on the album). If an album has 14 songs and the cap is 12 times the controlled rate, the label pays mechanicals on only 12 songs, and the songwriter absorbs the shortfall on the remaining two.

Songwriters and their publishing attorneys should review the recording agreement's controlled composition clause before signing a publishing deal, because the clause directly affects the income the publisher will collect and the rate at which the advance will recoup.

Reversion Clauses

A reversion clause specifies when and how copyright ownership returns to the songwriter. Without a reversion clause, a publishing deal that assigns copyright ownership transfers those rights for the life of the copyright (the songwriter's life plus 70 years). The publisher owns the songs effectively forever, which means the songwriter's grandchildren will still be sharing income with the publisher long after the songwriter's career has ended.

Reversion clauses can be time-based (copyrights revert 10, 15, or 25 years after the term ends), performance-based (copyrights revert if the publisher fails to generate a minimum income threshold or fails to secure a commercial release within a specified period), or recoupment-based (copyrights revert after the publisher has recouped the advance and earned an agreed return).

Federal copyright law also provides a statutory termination right under 17 U.S.C. § 203, which allows songwriters to terminate grants of copyright made after January 1, 1978, during a five-year window beginning 35 years after the grant was made. This right can't be waived by contract. But 35 years is a long time to wait, and a well-negotiated contractual reversion clause returns rights far sooner.

Audit Rights

Publishing agreements should include an audit clause giving the songwriter the right to inspect the publisher's financial records. A standard audit clause allows the songwriter to audit the publisher's books once per calendar year, at the songwriter's expense, with a lookback period of two to three years from the date of the most recent royalty statement. If the audit reveals an underpayment exceeding a specified threshold (typically 5 to 10 percent of the amount owed), the publisher reimburses the songwriter's audit costs.

Without audit rights, the songwriter has no mechanism to verify that the publisher is accounting correctly, collecting all available income, or paying the contractual share. Audit rights are a baseline protection that belongs in every publishing agreement.

Practical Recommendations

Understand which deal structure fits your career stage. Developing songwriters who need advances and industry access may benefit from a co-publishing deal. Established songwriters with active catalogs and existing income may be better served by an administration agreement that preserves full ownership.

Negotiate a reversion clause in any deal that involves an assignment of copyright. Don't accept a life-of-copyright transfer without a mechanism to get the songs back. Time-based reversion (10 to 15 years after the term ends) combined with performance-based reversion (rights revert if the publisher fails to generate minimum income) provides the songwriter two independent ways to recover ownership.

Review your recording agreement's controlled composition clause before signing a publishing deal. If the label pays a reduced mechanical rate, that reduction affects the income the publisher will collect and the time it takes to recoup the advance.

Include audit rights with a lookback period of at least two years, an underpayment threshold that triggers publisher reimbursement of audit costs, and the right to audit sub-publishers and any third-party collection entities the publisher uses.

Don't sign a publishing agreement without an entertainment attorney reviewing every provision. Publishing income is one of the longest-lived revenue streams in the music business. A bad deal signed at 25 can cost the songwriter money at 65.

Need advice tied to your business issue?

Share the issue. Get direct attorney review. Receive a concrete recommendation.

Submit an Inquiry