This article is Part 5 of a five-part series on inheriting music rights and royalties. Here is a list of all the articles in the series:
- Part 1: What Heirs Need to Know
- Part 2: Identifying What the Decedent Owned
- Part 3: How to Locate and Claim Royalties
- Part 4: Maximizing Royalty Income
- Part 5: When to Hire a Publishing Administrator
Introduction
By this point in the series, we have examined how music rights are inherited, how to determine what rights a decedent actually owned, and how estates can begin locating and claiming royalty income. We also discussed the due diligence that may be required to ensure that royalties are properly collected.
For many heirs, however, managing music rights can are an ongoing responsibility that continues long after the estate administration is complete. The systems that collect and distribute those royalties require continuous monitoring and maintenance. For this reason, many heirs choose to hire a publishing administrator to manage these responsibilities.
What a Publishing Administrator Does
A publishing administrator is a company or professional that registers, collects, and administer royalty income on behalf of the copyright owner. Unlike a traditional music publisher, a publishing administrator typically does not acquire ownership of the copyright. Instead, the administrator manages the catalog and collects income on behalf of the owner in exchange for a commission.
The responsibilities of a publishing administrator may include:
- registering compositions with royalty collection organizations
- monitoring royalty statements and distributions
- correcting ownership records in industry databases
- collecting mechanical royalties and performance royalties worldwide
- administering foreign income through international partners
Because royalty systems are fragmented across multiple organizations and countries, a publishing administrator often acts as a central point of coordination for the catalog.
When Administration May Make Sense
Not every catalog requires professional administration. In some cases, the heirs may prefer to manage the rights themselves, particularly if the catalog is small and the royalty income is limited. However, professional administration may make sense in several situations:
- the catalog contains multiple compositions or co-writers
- foreign royalties are likely to be generated
- ownership records require ongoing monitoring or correction
- heirs prefer not to manage industry registrations and royalty systems themselves
How Publishing Administrators Are Paid
Publishing administrators are typically compensated through a commission on the royalties they collect. The percentage varies, but agreements commonly provide for commissions in the range of fifteen to twenty percent of collected income, depending on the size of the catalog.
In exchange for this commission, the administrator assumes responsibility for maintaining registrations, monitoring royalty streams, and collecting income from multiple organizations worldwide.
Importantly, administration agreements generally do not transfer ownership of the underlying copyrights. The heirs retain ownership of the music rights while delegating the administrative work required to collect royalties.
Conclusion
Collecting the full value of royalty income often requires ongoing registration, monitoring, and administration across multiple royalty systems. For some heirs, managing these responsibilities directly may be practical for those inclined to learn the business. For others, hiring a publishing administrator provides a way to ensure that royalties are collected and catalog records remain accurate while the heirs retain ownership of the music rights.
Understanding the structure of music rights and the systems that collect royalties allows heirs to make informed decisions about how those rights should be managed for the long term.
Assistance With Royalty Recovery and Administration
In many estates, identifying and administering music rights requires a combination of legal analysis and industry knowledge. Copyright ownership must be verified, catalog registrations must be corrected, and royalty streams must be located across multiple collection systems. In some cases, disputes over ownership or past royalty payments must also be addressed.
Our firm assists heirs, estates, and probate attorneys with these issues. In addition to providing legal services related to copyright ownership and estate administration, we also operate a publishing administration company that assists estates and heirs with the ongoing collection and administration of royalty income.
These services may include:
- identifying and verifying copyright ownership
- locating and recovering unpaid royalties
- correcting catalog registrations across industry databases
- registering compositions with royalty administrators
- administering royalty collection in the United States and internationally
For heirs who have inherited music rights, these services can help ensure that royalty income is properly collected and that the catalog remains accurately registered over time.
If you believe a decedent may have owned music rights or generated royalty income, our office can assist in evaluating the catalog and determining the appropriate next steps.
Christian Carson
Christian Carson is the founding attorney of Carson Law Firm LLC in Cleveland, Ohio. He holds degrees in law and accountancy from Case Western Reserve University. With a strong background in accounting and finance, Christian focuses on real estate, probate, and business law. He is committed to providing practical legal solutions for individuals and small business owners.
