Getting Your Songs Back...in plain english

Sometimes there’s elephant in the room that can’t be ignored.

In 1976, Congress created an opportunity for songwriters and artists or their families to get the ownership of their songs back for free! Remember, the life of the copyright lasts for the life of the author plus 70 years…and that’s a long time. The window for that opportunity is now open and the songwriters or their families need to be aware that they have the right to regain the ownership of their catalog or renegotiate a significantly more favorable deal than they currently have. There are two different termination provisions in the Copyright Act of 1976 for getting your songs back depending on whether you signed over the ownership of your songs to a publisher after January 1, 1978 or before 1978.

My good friend and esteemed legal scholar, Robert Clarida at Cowan, Liebowitz & Latman, P.C. in New York has provided a basic how to in plain English, which is available at http://bit.ly/GetYourSongsBack

Keep it in the groove,

Eli Ball

Founder

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LYRIC Announcements

Our royalty advance program, FastForwardMyRoyalties, now in its third year has come a long way since it began with BMI in 2007. We have funded nearly $5MM in royalty advances to songwriters, publishers, artists and producers. Yep…that’s right we are now funding artist and producer advances.

LYRIC funds advance

requests on performance, mechanical, artist or producer royalty streams from ASCAP, BMI and most of the major labels/publishers.

For more information on royalty advances, visit www.fastforwardmyroyalties.com or you can contact me directly at eli@lyricfinancial.com. FastForwardMyRoyalties is a simple, safe and fast way to access your royalties.

LYRIC Success Stories

For those who could not attend, BMI’s Trailblazer Gospel Awards Luncheon in Nashville last month…it was incredible. The Grammy’s should take a page from BMI VP of Urban, Catherine Brewton’s playbook as she turned a barren warehouse into an intimate, dramatic venue. To experience Marvin Winans, Donnie McClurken and Yolanda Adams on the same stage was simply life affirming!

And did I forget to mention that my friend and LYRIC client, Derrick Starks won the award for “Most Performed Gospel Song of the Year”. All of us in the LYRIC family are so proud of Derrick’s success…he’s an absolutely phenomenal talent and most importantly, he’s a genuinely great human being! Check out Derrick at myspace.com/derrickstarkstodaysgeneration

- Eli

Lyric Financial had the chance to catch up with Derrick and this is what he's up to...

From his early years at the edge of an organ stool, watching as his Auntie Chaquila played hymns at church, Derrick Starks found himself drawn into the world of music. And through two decades in the music industry, Derrick has worked with some of the greats — and remains passionate about songs that “transcend generations.”

Between writing and recording his own music, and running his Starks Music Group gospel label, Derrick is busier than most — but music doesn’t offer the comfort of weekly paychecks, which is why he’s sought out Lyric Financial.

“Lyric has given me the resources to start and run my label, support a studio, and develop new artists,” Derrick says. “At a time when our economy was having major problems, Lyric helped me continue to pursue my dreams. They offer a variety of financial solutions, with more flexibility than a traditional financial institution… I encourage anyone who relies on royalties to consider talking to Lyric.”

Read Derrick's entire interview here

Upcoming Events

March 9, 2010

California Copyright Conference

"Monetizing Music Publishing - Show Me The Money!"

Commerce in music publishing has never been livelier. Buying, selling and borrowing against copyrights remains a vibrant market. During these challenging economic times, lenders are offering publishers and writers creative ways of generating cash flow . A panel of experts (including Eli Ball of Lyric Financial) will discuss music catalog valuation and deal structures for sales and securitization purposes, how royalty streams can be pledged, what lenders require to finance publishing deals and the due diligence steps publishers can take to enhance copyright value.

To register for this event please visit http://www.theccc.org/meetings.php

Get Your Rights Back: Statutory Termination of Copyright Grants

Get Your Rights Back: Statutory Termination of Copyright Grants

by Bob Clarida (rwc@cll.com)

Imagine you sold some songs back in the 1980s, maybe the 60s or 70s. Your assignment to the publisher said, as per the usual boilerplate, that you were assigning the songs "for the full term of copyright in the work, including all renewals and extensions thereof." The copyright in the songs may not expire for a very long time – 70 years after you’re dead. Does this mean your rights are locked up until that date? No. Under the Copyright Act, there are two different statutory termination provisions, set forth in sections 203 and 304 of the 1976 Copyright Act, under which you or your family could get back your rights in the songs prior to the end of the copyright term.

Section 203 – Recapture 35 years after the contract date

Under § 203, any grant of rights in a copyrighted work "executed by the author on or after January 1, 1978" may be terminated at any time during a five-year window beginning 35 years after the date of execution of the grant. Before termination, you have to serve a written notice on the party who’s being terminated, and that notice has to be served not less than two years, and not more than ten years, before the effective date of the termination. Accordingly, if your old deal was signed on January 1, 1978, your termination window would run from Jan. 1, 2013 to Jan. 1, 2018 and the period for serving the notice would run from 2003 (2013 – 10 = 2003) to 2016 (2018 -2 = 2018). Notices have already been sent to terminate a number of high-profile contracts from the late 1970s, and no doubt more writers will begin sending notices as the word gets around. So dust off those old contracts you thought you were stuck with, and send out the notices during the proper time period; if they’re early or late they won’t count.

Who can do it: Only the songwriter can terminate, if he or she is alive. If the songwriter is deceased, the right may be exercised by the widow or widower, if living, and any children or grandchildren. If more than one of these relatives is living, the rights are divided half to the widow/widower, half to the children and surviving grandchildren, divided among them proportionally. A vote of the majority of the termination interest is required to make an effective termination – if there is a stand-off between the widow/widower (who owns half) and everybody else who owns the remaining half, the termination is not effective. If there are none of the above relatives still living, the right can be exercised by “the author’s executor, administrator, personal representative, or trustee.”

The written notice has to specify what work is being terminated, the particular agreement being terminated, the effective date of termination, and the authority of the person exercising the termination (as author, widow, trustee, etc.)

Significantly, the termination right under § 203 may not be waived by prior agreement, as the statute provides that termination may be effected "notwithstanding any agreement to the contrary, including an agreement to make a will or a future grant." So the writer or heirs cannot actually sell or waive their termination right to anybody. Like life, liberty and the pursuit of happiness these termination rights are literally “inalienable.” The law does specifically allow authors to negotiate new deals with their original publishers after the termination notice has been served, however. Many publishers try to acquire such rights whenever possible, to avoid losing valuable older titles.

Even before the termination notice is served, recent cases in the courts have also allowed authors to make new contracts with the original grantee to supersede the older, termination-prone ones, but courts scrutinize such agreements very carefully to make sure that the original buyer is not taking unfair advantage and undercutting the basic purpose of termination, which is to give the writer a second bite at the apple and realize the true long-term value of a song that may have been sold too cheaply back in the day.

Section 203 does have its limits, however. It does not apply to works made for hire, since those works are deemed owned by the employer ab initio rather than by means of a grant from the individual creator. Also, it does not divest the publisher of foreign rights in the work, but only pertains to rights under the US Copyright Act. Moreover, only grants executed by the author may be terminated under the section. Further, § 203 does not prohibit the continued exploitation of derivative works prepared by the publisher "under authority of the grant before its termination." Accordingly, a publisher would not be able to continue issuing licenses for new uses after termination, but older recordings or videos could continue to be sold.

Section 304 –Recapture 56 (or 75) years after publication

Section 304 provides for another form of termination, which takes effect at the end of the 56th year of the copyright term. Under § 304, any grant executed before 1978, by the writer or any of his/her statutorily designated heirs, may be terminated in a five-year window between the 56th and 61st year, allowing the author or heirs to recapture the copyright in the work for the remainder of the term. For works still under copyright but beyond their 61st year as of 1998, the § 304 right is available in the five-year period between the 75th and 81st years of the copyright term.

Like § 203, § 304 does not apply to works made for hire and does not allow for the termination of foreign rights. Like § 203, Section 304 also permits the continued exploitation of derivative works made prior to termination, but only when the terminated grant was made by a party other than the author (§ 304(c)(6)(A)). As noted above, under § 203, grants made by persons other than the author are not terminable at all, but all pre-termination derivative works may continue to be exploited.

As with § 203, only widows, children and executors can exercise the termination rights, and they must follow similar procedures as to the timing and content of the notice of termination. These formalities are easily complied with by motivated authors and their estates, however, provided that they are made aware of their termination rights.

In sum, if you sold your rights under a grant that was (a) made prior to 1978, (b) by the author or a widow/child/executor, § 304 makes those rights subject to termination, in the US, as of the 56th year of the copyright term in the work, or beginning in the 75th year, if the work was already past its 61st year in 1998. If you sold your rights under a contract (a) made in 1978 or later, (b) by the author, those rights are vulnerable to termination under § 203 starting in the 35th year after the execution of the grant.

Robert Clarida is a partner at Cowan, Liebowitz & Latman, P.C. in New York

Please contact Robert with any questions you may have at rwc@cll.com

© 2010 Cowan, Liebowitz & Latman, P.C.

Q & A with Derrick Starks

Q: Do you have any nicknames?

A: Big “D”, Minister “D”, “Fingers”, “Snake Eye” and Pookie

Q: What has been your role in the music industry?

A: I feel like my role in the music industry has been to write and sing songs of hope and inspiration.

Q: How did you get your start?

A: My father purchased our family an organ when I was seven years old. Also at my father’s church I would sit on the edge of the organ stool and watch my Auntie Chaquila play week after week. I remember watching TV and would go and play what I had heard. I would play commercials, TV themes, game show music, etc…

Q: Who have you worked with?

A: I have been blessed to work with so many great artists from the Clark Sisters to the Winans Family, John Tesh, Yolanda Adams, Tramaine, Edwin, and Walter Hawkins, Keisha Cole, Bobby Valentino, Howard Hewett, Vickie Winans, The Mighty Clouds of Joy, Rance Allen, Vanessa Bell Armstrong, and the list goes on..

Q: Do you have a mentor? If so, who?

A: I must say that I really consider the late Thomas A. Whitfield (The “Maestro”) to be the person that served as my personal mentor. I would also like to add that Andre Crouch, Marvin Winans, and my father Pastor C. James Starks have greatly influenced my viewpoints on music as well as my personal and spiritual life.

Q: What types of projects do you enjoy working on?

A: I most enjoy working on projects that result in music that transcends generational time. Children, their parents, and grandparents can receive the music from their own perspectives but still love it and be excited and inspired by it.

Q: What have been your most meaningful successes?

A: I think that my most meaningful successes include receiving a Grammy nomination and being a recipient of the 2010 Trailblazer Award. I also consider my recent participation in the Germany GoGospel Festival to be a huge success. I was able to see that the hope and deliverance offered through gospel music really has no limits and can cross racial as well as continental lines.

Q: What are you working on right now?

A: I am currently working on completing projects for gospel artists on my newly founded record label.

Q: It’s one thing to write one hit song, but what does it take to make a career out of it?

A: I believe to truly make a career out of writing songs and hits you must consistently operate with a spirit of humility and exercise tremendous patience and endurance. It is important to be true to yourself and write from your heart and personal life experiences. Don’t be afraid of failure. Often times, you may write several songs before you compose a “recognized hit”.

Q: What has been your most difficult challenge as a music professional?

A: My most difficult challenge as a music professional has probably been starting my own record label. Operating your own record label requires much more than the writing of music and artistic ability.

Q: Your catalog is quite diverse. How do you find inspiration to create music in an authentic way for all of the artists that you have worked with?

A: First and foremost I try to develop a relationship with the respective artist so that I have a clear understanding of their innermost heart and spirit. Wherever possible I research the artist’s past styles and vocal performances so that my song will appropriately communicate the artist’s perspectives as well as accommodate their vocal styles and gifts.

Q: How has the music industry changed from the beginning of your career until now?

A: The music industry has changed dramatically from the beginning of my career until now. Technology has changed the way producers produce and record music and vocals. Even the distribution of music has gone through a metamorphic process. I remember as a child playing 45’s, but today the digital revolution allows us to listen to music via IPODs!

Q: How has a your role changed over time?

A: I believe that over the past several years (although I still reflect on the teachings and inspirations of my personal mentors) I have now grown to a place where I have embraced the role of being a mentor for others and giving back the same teachings, inspiration, and encouragement that have been given to me and account for much of my personal success.

Q: How has technology had an effect on your career (home studios, digital distribution, etc.)?

A: Technological advances have given me “fingertip access” to the gospel industry. I am now able to reach artists and audiences locally and globally instantaneously. I think that technology has created an awesome and amazing avenue to more easily reach the masses and infuse hope into their lives through music and song.

Q: What are your thoughts on the Performance Rights Act?

A: I feel that every artist and musician from the biggest stars to the working class performers deserve to be paid when their performance, work, or creation is broadcast via any medium.

Q: What advice can you give the young songwriters and musicians today?

A: The most important advice I would offer a young songwriter or musician today is to study the great songwriters and musicians of our past and present and to always write and play from the heart. We must remember that “what comes from the heart, reaches the heart…”

Q: How did you find out about Lyric Financial?

A: I found out about Lyric Financial through my Wife and business partner of 14 years…

Q: How has Lyric Financial played a role in your life? What opportunities or needs has it fulfilled?

A: Lyric Financial has truly been a great help to me. Lyric Financial has provided me the necessary resources to launch my company, Starks Music Group (SMG). Under the umbrella of SMG, I have been able to start my own record label and studio, acquire state-of-the-art recording supplies, develop new artists, and hire additional musicians and a small staff. At a time when our economy was experiencing grueling difficulties, Lyric Financial helped me to start SMG and continue the pursuit of my dream.

Q: Based on the challenges of the music industry today, what advice would you give other royalty earners if they have financial need? (either for living expenses or professional development)

A: I would encourage other royalty earners to seriously consider Lyric Financial as a wonderfully, viable resource to assist them in overcoming any financial challenges relative to developing themselves or their businesses. Lyric Financial offers a variety of financial solutions for artists and provides greater flexibility than traditional financial institutions.

Q: Anything else you would like to share?

A: I would just like to extend my most gracious and heartfelt thanks to Lyric Financial and to everyone that has influenced The “STARK” Truth. American author Melodie Beattie wrote, “Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos into order, and confusion into clarity…. It turns problems into gifts, failures into success, the unexpected into perfect timing, and mistakes into important events. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow…” I am incredibly grateful! I pray that I can continue to do great work and offer hope and deliverance through music and song.