[Fmpro] what happens? 66% Writer Share on French Performances - part 1

[Mark Holden]

I specifically recall the royalty split policy from interviewing SACEM execs
when they visited Los Angeles. Here's the primer:

There are "reciprocity agreements" between most of the world's collecting
societies. The purpose is to account for American performances taking place
in foreign territories and vice-versa. In many instances, the societies
agree to treat American performances in their country in the same manner
they treat the performances of their own members. In turn, ASCAP and BMI
agree to treat the works of foreign composers in the same manner they pay
their own members and affiliates. That's the concept.

However, there are stumbling blocks in the application of reciprocity. For
starters, the CONTRACTS of almost all film & television composers in America
get in the way. Our contracts are overwhelmingly "works made for hire" and
stipulate a 50-50 split of public performance royalties worldwide between
composer and publisher. This fact is not lost on the French (and other
societies throughout the world), so they default to paying 50% to American
composers belonging to ASCAP and BMI, MINUS administration fees and cultural
deductions.

It gets stickier. In film & television collections, the French have a
concept called the "broadcast mechanical." Other societies worldwide apply
this practice as well. If SACEM collects 100 Euros for a program, 66.6% is
designated to be a public performance and 33.3% is designated to be a
broadcast mechanical. The French can only send the performance royalty to
America because neither ASCAP or BMI can touch a mechanical royalty. It's
crucial that you understand this practice.

So let's be clear on this. Out of 100 Euros, 33.3 are sent to America for
eventual distribution to the US composer, minus admin and cultural fees.
33.3 is designated for the US publisher, only that publisher (or their
sub-publisher) belongs to SACEM directly and collects at the SOURCE. This
still leaves ONE-THIRD of the money, the "broadcast mechanical" dangling in
the wind. SACEM can't pay it to the composer-- you're not a member of their
society. Nor can SACEM send it to ASCAP or BMI. Instead, they pay that THIRD
of the money to the publisher. Perhaps with a wink and a nod, it's
understood that the publisher will split that money with the composer per
the terms of their original contract. American composers lose millions in
this little dodge.

UNLESS YOU CAN COLLECT from your publisher, or belong directly to SACEM, or
designate a sub-pub to collect on your behalf, you're being ripped for up to
ONE-THIRD of the money coming out of Europe and elsewhere.

This post continues in part 2...

Mark Holden
www.musicomm.net