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Tuesday, August 26, 2008

Administration Deals (aka "Admin Deals")


Typical Scenario. This type of deal is used when the songwriter just wants a publisher to collect royalties and handle the various paperwork (for example, the BMI/ASCAP song title registrations, copyright applications, the issuance of licenses, etc.), and where the songwriter does not want or need a publisher to proactively promote his or her catalog of song. A good example of a company that does a lot of Administration Deals is Bug Music in Los Angeles.

Material Covered by the Deal. Most often this kind of deal covers all material written by the songwriter, or at least any material that the songwriter has not already committed to other publishers.

Copyright Transferred. No transfer of copyright.

Income Sharing. Typically, the publisher will take 10% to 20% of the income, and the pay the rest to the songwriter and the songwriter’s publishing company.

Term. Administration deals are normally in the range of three to five years.

Advances. For catalogs generating a modest amount of income, usually no advance is paid. For more profitable catalogs, usually an advance will be paid, with the amount to be determined on the basis of the income that has been generated in recent years by the catalog.

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