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Sunday Edition


01
Jun
2006
Thieves In Our Midst


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Webster defines a thief as, "one who embezzles", and the definition of embezzle is, "to take money for ones own use in violation of a trust".

When you keep money that is owed to someone you are "in violation of a trust"

Some forms of thievery are obvious, like the clerk who pockets money from the cash register, or the bank robber. Some forms of thievery are more subtle. Regardless, it is still "stealing".

As Christians, many of us are taught that not paying our tithe is stealing from God. The concept of "withholding money" being the same as stealing is interesting, and accurate, in my view.

For example, I recently had some furniture delivered to my home. The two men who delivered it did a good job and I wanted to tip each of them 10 dollars, but only had a twenty dollar bill. I gave the twenty to the driver with instructions to split it with his helper. As they drove off, I wondered if he would.

In my view, if the driver keeps the helper's ten dollars, it is exactly the same as stealing a ten dollar bill from his wallet.

Providing goods and services is the method most of us use to earn a living. When someone fails to pay you for the goods or services you provided, they are stealing from you.

As Christians, we are supposed to hold ourselves to a higher standard, but apparently stealing from each other is okay.

I realized the full impact of this statement as we prepared our royalty statements. As a new company, we are trying our best to take care of business correctly, but we are far from perfect. One of our biggest problems has been getting our computer programs set up for royalties. We were way too slow on the first round and were promptly reprimanded by a writer who accused us of stealing his money. We apologized for being late and assured him his check was already on the way. He was gracious enough to call the next day when his check arrived. We are just now getting caught up and are very grateful to all
the wonderful writers who have trusted us with their songs without complaining about our tardiness. However, the process has taught me a valuable lesson. Not paying our songwriters is the same as stealing from them.

Using a writer's song without paying is essentially the same as not paying for your gas, your groceries, etc. etc…..get the idea?

It makes no difference whether you are an artist who orders your product from a manufacturer or whether you order your product from a record company, songwriters must be paid for their songs.

The current statutory rate is 9.1 cents. That means for every song you record, you owe a songwriter 9.1 cents.

Here's how it works:

Once you have selected the songs for your recording, you must request a Mechanical License for each song from the publisher of each song.

This is an agreement that gives you permission to record the song and tells you where to send the money. THE MONEY IS DUE UPON MANUFACTURE OF THE PRODUCT, NOT THE SALE OF THE PRODUCT. This means if you order 500 CDs, you owe songwriter royalties for 500 CDs. It makes no difference whether you sell them in a week or a year.

This process applies to every recording…custom…major label…minor label…no label.

Recording at "I Be Deaf" Recording Studios and getting a package deal with 500 CDs does not get you off the hook.

YOU OWE THE ROYALTIES…EVERY CD…EVERY SONG!

You can call yourself anything you want to...part-time, full-time, professional, amateur, anointed, dedicated, soul winner, minister of music, but…if you don't pay songwriter royalties your real title is…THIEF!

Consider these facts.

The average cost of a manufactured CD is around $1.00, depending on the number ordered.
Royalties on a ten song CD are $.91.

Therefore the minimum basic cost of a CD is around $2.00. If you are buying your CDs directly from the manufacturer, you are the one responsible for requesting Mechanical Licenses and paying the royalties.

If you are buying your CDs from a record label, then the label should be requesting Mechanicals and paying royalties.

If you or the company you record with doesn't have the Mechanical Licenses on file for every song you have recorded, that is a good indication that the writers were not paid. You should go to your record company and ask to see the Mechanicals for your recordings. If they don't have them, shame on you for staying with a company that steals from our songwriters.

My friends, this is a serious matter. How can we expect God to bless our industry and use us for His purpose when we are stealing from one another? I believe this is another reason we are not as effective in reaching the lost and are failing to grow as an industry.

I truly believe this is something we must get corrected if we are to succeed.

Perhaps you are an artist or a record company that has been guilty of not paying royalties. It makes no difference whether you are an amateur or a seasoned veteran, it is time to correct this situation. There is little we can do about the past, but the future is a different story. We can start right now to end this practice of stealing from our songwriters.

As an artist, you are responsible for your work. In the end it falls to you to make sure that the royalties on your recording are paid.

Record companies, you have an obligation to our industry to account correctly for every song recorded by your company. It is no small task, I will attest to that, but it must be done.

I leave you with this scripture. "Therefore to him that knoweth to do good, and doeth it not, to him it is sin. James 4:17 KJV

As always, I welcome your comments.

God Bless You,

Nick Bruno
http://www.songgardenmusic.com

Reader Comments

Can't think of a reason I would want to take a "jab at SGM". What would be the point? I was simply and honestly telling of my personal experience. The only time I've ever NOT been paid royalties is when they've been recorded by SGM groups.
Perhaps you are correct when you say that it is a common problem in music, but MY experience has been as I stated it.
Seems that Mr. Bruno is addressing this subject in a SGM forum, and that is why I made the specific reference to SGM.


Commented by On 06/04/2006
Great article. I have recently had one of my songs recorded by a major SG artist. So far, the record company has paid up.
The thing that frustrates me though is that many of the local groups in my area have made their own recordings of the song and none of them have asked. One group in paricular is related to me!
Although this is a complement to have all these people recording your music, it is still stealing in my opinion. I'm not concerned about what little money would be made from their few record sales, it's just the courtesy of asking that matters to me.


Commented by On 06/05/2006
David Bruce Murray's avatar To Kelleymik,
It isn't exactly stealing. Once you have a song recorded the first time, any other artist can record it as well without your permission. No songwriter has exclusivity on the songs they write aside from giving permission to the initial artist who records each song. This is (for better or worse) unlike any other business where you can create something original, have it patented, and sue anyone who infringes on your original creation.

The assumption of the law is that every songwriter wants their song exploited as much as possible. Setting a standard rate for everyone is seen as a way of facilitating this process rather than having each songwriter and/or publisher cut their own deal with each record label on a song by song basis.

Now, if these local artists recorded your song without paying you any royalties, then that IS stealing, but they really don't have to "ask permission" since another artist has already recorded it. They ARE required by the law, though, to inform you of their intentions to record BEFORE they do it. It sounds like they failed to do that.

(For the record...I'm not a lawyer and I'm not giving you legal advice.)

To Nick...
I have a question that's somewhat related. Why do some record labels fail to indicate the name of the songwriter(s) and the copyright information on the products they produce and sale?

Every mechanical license I've ever seen has included this as a requirement. I understand it's not required by law if you approach it as a compulsory license rather than a mechanical license, but it seems to me that a record label would want to provide this info...especially the "all rights reserved" line that mechanical licenses typically require. If for nothing else, it would let people know they've paid the songwriters.

I've noticed that some of Song Garden's releases don't include songwriter/copyright notices, so that's another reason I am asking...the new Chuck Wagon Gang CD being one example.

--Making hay while the sun shines--
sgnforum@musicscribe.com - BLOG - SGHistory.com



Commented by David Bruce Murray On 06/05/2006
Nick you are so right I have seen ton's of local groups and choirs do this down through the years,and when you tell them about paying royalites they look at you like your crazy.Then comes the statement if there(songwritters) just in it for the money they are not right with GOD then I tell them to stop reciving any $ when the preach sing or whatever they then proceed to tell me how that is different and the argument insues THANKS FOR ALL YOU DO CARL FORD


Commented by On 06/06/2006
In Reply to Mr. Murray,

You are correct Bruce about anyone being able to record a song after it is released , however ... the artist still owes it to the publisher or writer/publisher to seek a mechanical license before they cut the song. This is the law and I must tell you that in all the years I have been writing in this industry I have seen very few mechanical request come across my desk. This is because of the lack of education in our industry. There are 3 reasons a group should request a mechanical license from the publisher. 1. It is ethical to get clearance for sales in the usa as well as internationally. 2. It establishes with the group the proper publishing information about the song for print purposes and insures that the publisher will be paid out. 3. Failure to do so can cause litigation (I have personally seen groups have to pay out up to $10,000.00 per incident). With these principles in mind , there would be a lot more writers getting paid and working in the songwriting field on more of a full time bases if these artist and record labels understood their responsibility. Bill Gaither once said something very interesting in a songwriting meeting I attended. He said that It is the songwriter who generates this industry. "The nice buses, clothes, sound equipment, lighting ect ... are generated by the songs". I would agree with this whole-heartedly. If I know someone is not paying their royalty ... it is most likely because they do not understand the legal ramifications of their improprity. I would love to at this point give you a list of artist as well as record companies who do not pay out royalties ... but alas ... the list would be to long to write it here. If there is a writer out there not being paid by a company or that has a question about a company, please contact my email and I will be honest with you as to wether I have ever received payment from them or not. The following is to the artist. If your record company is not paying the royalties on the songs you record, it is then your responsibiliy to make sure you pay them. To the record company I would say ... you owe it to the songwriters to make sure they are paid in a timely fashion for what they have cut on your label. If I can ever be of service to any songwriter, please feel free to contact me. I hope you all have a great day !

Sincerely,
In Christ ... and so glad I am !!!
Steven Cheney


Commented by On 06/06/2006
To David,
Thanks for educating me. I apparantly had the wrong information. But, I suppose then, that these local artists are still stealing from all the writers regardless.
One question, the record company has allowed another group on their label to record the same song that I gave the first group. Should I have been notified or anything? Does anyone know if I would get a seperate royalty statement from the other groups sales or what?


Commented by On 06/06/2006
Dear Nick,

Sorry this is an afterthought, but I must tell you I agree with you. Thanks for such a great article. Know this sincerely from the heart of this songwriter, that what you have written here is not only true but it blessed me to know that we have people who are still interested in the song and the treatment of the ones who write in this industry. Be Blessed Bro. Nick

Sincerely,
In Christ ... and so glad I am !!!
Steven Cheney


Commented by On 06/06/2006
There is an interesting twist to this discussion. According to Circlular 73 (http://www.copyright.gov/circs/circ73.pdf). Royalties for compulsory licenses are paid on recordings that are "made and distributed." It defines distributed as when the "licensee has voluntarily and permanently parted with possession of the phonorecord." If the record company obtains the license, then the royalties are due when it distributes the CDs either to the artist or to retail outlets. If the artist obtains the license, royalties are not due until they either sell or give away the CDs.

If we live in the Spirit, let us also walk in the Spirit

- Galatians 5:25

Visit My Website



Commented by Keith Prater On 06/06/2006
For kelleymik, Circular 73 should answer all your questions.

If we live in the Spirit, let us also walk in the Spirit

- Galatians 5:25

Visit My Website



Commented by Keith Prater On 06/06/2006
Nick,

Great article as usual. When I first started recording, I was told by a "veteran" of the music industry that you only needed to pay royalties after you had ordered several thousand pieces of product. The writers weren't really concerned about us "small fries". I didn't think this sounded right so I researched it myself and found out the truth. Thankfully I was able to take care of the ones that I had recorded and not paid for before I knew the truth. I have in turn been able to steer other new artists in the right direction. Again, great article and much needed.
Jonathan White


Commented by On 06/06/2006
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