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Updates for Songwriters

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Update No. 1-2009 for Songwriters

Under Contract with Access 2 MYusik as Publisher

 

Access 2 MYusik is presently finetuning its database for determining royalties to be distributed to songwriters, artists and others who were involved in producing the original sound recording of your song/s.  We have received payments from Odyssey, our CD retailer for Access 2 Love, only starting January 2009.  We shall be prioritizing royalties to be given to songwriters.

 

We would like to request three things from you (songwriters who are not Filipino citizens can skip items 1 and 2, and go directly to item 3):

  1. Apply for Membership at the Filipino Society of Composers Authors and Publishers (FILSCAP)

We are in the process of fulfilling requirements for application for membership of Access 2 MYusik in FILSCAP as a Publisher Member.  The three of us (Lynman, Dennis and Debbie) shall be applying for individual membership with FILSCAP as Songwriter Members.  We are encouraging you to apply as Regular Member directly with FILSCAP since your work has been published with us, if you are not yet a member of FILSCAP.  There is an annual fee of P150.00 and other initial one-time expenses.  For more information on FILSCAP, including contact information, location map and membership information, please visit: http://www.filscap.com.ph/ or contact FILSCAP directly at:

FILIPINO SOCIETY OF COMPOSERS, AUTHORS, AND PUBLISHERS, INC.
140 Scout Rallos St.
Brgy. Sacred Heart, Quezon City, Philippines
Tel Nos. (632) 415-6277; (632) 415-6282; (632) 415-6284; (632) 927-5986; (632) 929-4658
Fax. No. (632) 928-9852
Email: info@filscap.com.ph

  1. Apply for Membership at the Organisasyon ng Pilipinong Mangaawit (OPM)

We also encourage songwriters, artists (solo and band), arrangers and musicians to register with the OPM, if you have not yet done so.  The registry is supported by the government.  As far as we know, there are presently no fees for registering with OPM.  You may contact OPM directly.  The forms may be downloaded using this link: http://www.opm.org.ph/registry/submit.php

  1. Accomplish the Certification of Song Royalty Sharing

We have designed an Unbundled Royalty Rates scheme for CD Albums and for Digital Downloads, copies of which are provided below.  The royalty rates are intended to allocate royalties according to the contribution of each person involved.  The royalty rates were conceived by Access 2 MYusik so that the songwriter may recoup his/her production expenses, and in order to build a good long-term working relationship with all those involved.  We hope that the royalty rates will help achieve a just and equitable distribution of income derived from the use of your song/s based on the particular sound recording that was produced.  We have created a cross-subsidy fund for marketing/operations that will be built up from the 10 percent share of the net profit.  The fund will be used to support marketing efforts for active songwriters and artists through the production of music videos, promotional tours, Internet viral marketing, among others.

Please note, for example, even assuming that all the initial 1,000 copies of Access 2 Love CD album that we produced would have been sold, Access 2 MYusik will not be able to recoup its production expenses based on CD sales alone.  However, we are aware that with our entry into the field of digital downloads (initially via Phil Digi Awards and PinoyTunes) and talent management, we will eventually recoup our expenses.

For purposes of determining the distribution of royalties, we would like to request you to indicate the names of those who played the key roles in the Certification of Song Royalty Sharing which we are sending to songwriters.  If several or all of the roles were fulfilled by the songwriter/s, please write your complete name/s for each role.  Please add rows if needed.  We shall be attaching a sample fictitious accomplished form for your reference.  The information you provide shall be the basis for recouping expenses and for distributing royalties for all mechanical uses of the particular sound recording of your song.  If you have not received these forms, please let us know so that we may send them to you.

The distribution of royalties to the persons concerned shall be based on the following conditions:

  1. All amounts initially paid by the songwriter to the artist, song producer-director and arranger/s shall be considered recoupable.  Our scheme will give the songwriters the opportunity to recover their investments.  Thus, royalties shall be paid directly to the foregoing persons only after the amounts have been recouped by the songwriter.
  2. Royalties to be distributed to the artist shall be based on the effort given by the artist in promoting the song during the period—the greater the effort, the higher the amount of royalties.  However, there is a floor for “part-time” artists and a ceiling for “full-time” artists indicated in the Unbundled Royalty Rates.  An artist shall receive the minimum rate at the least.
  3. Royalties to be distributed to the song producer-investor, song producer-director and arranger/s shall be based on the cooperation and/or support extended by these persons to the songwriter and artist in producing the original sound recording.  Thus, the royalties may be held by Access 2 MYusik in an escrow account until such time that the persons concerned are considered to have rectified the situation.  Otherwise, if the situation is not corrected within one month from the time that the persons concerned were informed about the royalties they may receive, the royalties may be forfeited and transferred to the Cross-Subsidy Fund for Marketing/Operations. 
  4. In distributing royalties, Access 2 MYusik Company shall rely on the information provided by the songwriter/s on the attached form to be accomplished by the songwriter/s as well as the founding partners of Access 2 MYusik, if they have first-hand knowledge.

This method of distribution or rates may change as Access 2 MYusik gains more actual experience.  We hope all those involved will understand this.  We may be making adjustments in the future depending on how the situation in the music industry changes.

Please do not hesitate to contact us if you have any comments, questions or if you need assistance in accomplishing the form.  Thank you for your usual cooperation.

Access 2 MYusik

Unbundled Rates of Access 2 MYusik (A2M)

Retail Price of P299.00 Per CD for Access 2 love 2008 Album

Type of Royalty/Cost

%

Amount

(in P)

Publisher

Songwriter

Artist’s Royalty

API’s Royalty

SPI’s Royalty

APD’s Royalty

SPD’s Royalty

Instrum Arranger

Vocal Arranger

1.      Retailer’s Commission

(Odyssey)

35%

P104.65

 

 

 

 

 

 

 

 

 

 

2.      Gross Profit of A2M

65%

P194.35

 

 

 

 

 

 

 

 

 

Less VAT on Gross Profit

(12%)

 

(12%)

(12%)

(12%)

(12%)

(12%)

(12%)

(12%)

(12%)

(12%)

a.      Publisher’s Royalty[1]  

   (to be split equally between A2M and the songwriter/s)

45%

P87.46

 

P43.73/34 songs = P1.29 per song

P43.73/34 songs = P1.29 per song

 

 

 

 

 

 

 

b.      Artist’s Royalty[2]

(to be shared among members if the artist is a duo or group)

22.5%

P43.73

 

 

P43.73/34 artists = P1.29 per song

 

 

 

 

 

 

c.       Producer-Investor’s Royalty[3] (to be split equally between Album Producer-Investor and the Song  Producer-Investor)

7.5%

P14.58

 

 

 

 

P7.29/34 songs = P0.21 per song

P7.29/34 songs = P0.21 per song

 

 

 

 

d.      Producer-Director’s Royalty[4] (to be split equally between Album Producer-Director and the Song Producer-Director

7.5%

P14.58

 

 

 

 

 

P7.29/34 songs = P0.21 per song

P7.29/34 songs = P0.21 per song

 

 

e.      Arranger’s Royalty[5] (may be split between Arranger for Instruments and Arranger for Lead and Background Vocals)

7.5%

P14.58

 

 

 

 

 

 

 

P7.29/34 songs = P0.21 per song

P7.29/34 songs = P0.21 per song

f.       Cross-Subsidy Fund for Marketing/Operations[6]

1)      Artist’s live promotions

2)      Internet Marketing

3)      Radio/Music Video

10%

 

 

P19.44

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: All items are subject to VAT; Items 1 and 2 are based on the retail price.  This method of distribution or rates may change as Access 2 MYusik gains more actual experience.  We hope all those involved will understand this.  We may be making adjustments in the future depending on how the situation in the music industry changes.

 

The songwriter/s shall indicate the names of the persons who should be credited for the following:

 

  1. Songwriter/s
  2. Artist
  3. Album Producer-Investor (for albums previously released in CD format)
  4. Song Producer-Investor
  5. Album Producer-Director (for albums previously released in CD format or if there is an album producer-director other than the individual song producer-directors)
  6. Song Producer-Director
  7. Arranger for Musical Instruments
  8. Arranger for Lead and Background Vocals

 

The royalty rates are intended to allocate royalties according to the contribution of each person involved.  The royalty rates were conceived by Access 2 MYusik so that the songwriter may recoup his/her production expenses, and in order to build a long-term working relationship with all those involved.  The royalty rates are envisioned to help achieve a just and equitable distribution of income derived from the use of a song based on the particular sound recording that was produced.

All amounts initially paid by the songwriter to the artist, song producer-director and arranger/s shall be considered recoupable.  Thus royalties shall be paid directly to the foregoing persons only after the amounts have been recouped by the songwriter.

Royalties to be distributed to the song producer-investor, song producer-director and arranger/s shall be based on the cooperation and/or support extended by these persons to the songwriter and artist in producing the original sound recording, if such persons are other than the songwriter.  Thus, the royalties may be held by Access 2 MYusik in an escrow account until such time that the persons concerned are considered to have rectified the situation.  Otherwise, if the situation is not corrected within one month, the royalties may be forfeited and transferred to the Cross-Subsidy Fund for Marketing/Operations.

            In distributing royalties, Access 2 MYusik Company shall rely on the information provided by the songwriter/s on a form to be accomplished by the songwriter/s as well as the founding partners of Access 2 MYusik, if they have first-hand knowledge.

 



[1] This refers to the original publisher of the song which is Access 2 MYusik.

[2]  The Artist shall be entitled to a minimum royalty of 7.5% as Part-Time Artist but may be given the maximum royalty of 22.5% for Full-Time Artist depending on efforts exerted by the artist to promote the song during the period covered.

[3] The Album Producer-Investor (Access 2 MYusik) who invested in the packaging and replication of the physical CD album shall have a 50% share of the Producer-Investor’s Royalty.

[4] The Album Producer-Director (Access 2 MYusik) who directed the production and packaging of the physical CD album shall have a 50% share of the Producer-Director’s Royalty.

[5] The Arranger for Musical Instruments shall have a maximum 50% share of the Arranger’s Royalty, while the Arranger for Lead and Background Vocals shall have a maximum 50% share of the Arranger’s Royalty.  If the background vocals were arranged by a person other than the arranger for the lead vocal, then the royalties may be further sub-divided between the arranger for the lead vocal and the arranger for the background vocals.

[6] The fund will be used to support marketing efforts for active artists and songwriters through the production of music videos, promotional tours, Internet viral marketing, among others.

Unbundled Rates Per Digital Download

Access 2 MYusik as Publisher (as of 23 May 2009)

Type of Royalty/Cost

Part-Time Artist

Full-Time Artist

1.   Distributor’s Commission based on the Retail Price

(Example: PinoyTunes.net)

30%

30%

2.   Gross Profit of Access 2 MYusik (GP)

70%

70%

Less VAT on Gross Profit

12%

12%

3.   Net Profit (GP-VAT=NP)

NP=100%

NP=100%

a.    Publisher’s Royalty[1]

      (to be split equally between Publisher and the

       Songwriter/s)

45%

45%

b.   Artist’s Royalty[2]

7.5%

22.5%

c.    Producer-Investor’s Royalty[3]

(to be split equally between Album Producer-Investor and Song Producer-Investor)

7.5%

7.5%

 

d.    Producer-Director’s Royalty[4]

(to be split equally between Album Producer-Director and Song Producer-Director)

7.5%

7.5%

 

e.    Arranger’s Royalty[5]

(to be split equally between Arranger for Musical Instruments and Arranger for Lead and Background Vocals)

7.5%

7.5%

f.     Cross-Subsidy Fund for Marketing/Operations[6]

1)    Artist’s live promotions

2)    Internet Marketing

3)    Radio/Music Video

10%

10%

 

 

 

g.    Additional Input to Cross-Subsidy Fund for Marketing

15%[7]

--

 

Note: Items 1, 2 and 3 are subject to tax.  This method of distribution or rates may change as Access 2 MYusik gains more actual experience.  We hope all those involved will understand this.  We may be making adjustments in the future depending on how the situation in the music industry changes.

 

            The songwriter/s shall indicate the names of the persons who should be credited for the following:

 

  1. Songwriter/s
  2. Artist
  3. Album Producer-Investor (for albums previously released in CD format)
  4. Song Producer-Investor
  5. Album Producer-Director (for albums previously released in CD format or if the album producer-director is other than the individual song producer-directors)
  6. Song Producer-Director
  7. Arranger for Musical Instruments
  8. Arranger for Lead and Background Vocals

 

The royalty rates are intended to allocate royalties according to the contribution of each person involved.  The royalty rates were conceived by Access 2 MYusik so that the songwriter may recoup his/her production expenses, and in order to build a long-term working relationship with all those involved.  The royalty rates are envisioned to help achieve a just and equitable distribution of income derived from the use of a song based on the particular sound recording that was produced.

All amounts initially paid by the songwriter to the artist, song producer-director and arranger/s shall be considered recoupable.  Thus royalties shall be paid directly to the foregoing persons only after the amounts have been recouped by the songwriter.

Royalties to be distributed to the song producer-investor, song producer-director and arranger/s shall be based on the cooperation and/or support extended by these persons to the songwriter and artist in producing the original sound recording, if such persons are other than the songwriter.  Thus, the royalties may be held by Access 2 MYusik in an escrow account until such time that the persons concerned are considered to have rectified the situation.  Otherwise, if the situation is not corrected within one month, the royalties may be forfeited and transferred to the Cross-Subsidy Fund for Marketing/Operations.

In distributing royalties, Access 2 MYusik Company shall rely on the information provided by the songwriter/s on a form to be accomplished by the songwriter/s as well as the founding partners of Access 2 MYusik, if they have first-hand knowledge.



[1] This refers to the original publisher of the song which is Access 2 MYusik.

[2] Royalties to be distributed to the artist shall be based on the effort given by the artist in promoting the song during the period—the greater the effort, the higher the amount of royalties.  However, there is a floor for “part-time” artists and a ceiling for “full-time” artists indicated in the Unbundled Royalty Rates.  An artist shall receive the minimum rate at least.

[3] The Album Producer-Investor who invested in the packaging and replication of the physical CD album shall have a 50% share of the Producer-Investor’s Royalty.  However, if the album was released direct to digital download, the Producer-Investor’s Royalty shall go only to the Song Producer.

[4] If there is an Album Producer-Director who directed the production and packaging of the physical CD album or if the Album Producer-Director is other than the individual Song Producer-Directors, that person shall have a 50% share of the Producer-Director’s Royalty.  However, if the album was released direct to digital download without any Album Producer-Director, then the Producer-Director’s Royalty shall go only to the Song Producer-Director.

[5] If a song has background vocals, then the background vocals arranger shall have a maximum 50% share of the royalty of the Arranger for Lead and Background Vocals.  If the background vocals were arranged by a person other than the arranger for the lead vocal, then the royalties may be further sub-divided between the arranger for the lead vocal and the arranger for the background vocals.

[6] The fund will be used to support marketing efforts for active artists and songwriters through the production of music videos, promotional tours, Internet viral marketing, among others.

[7] This 15% may be given to the artist if he/she becomes full-time.  If not, this will go to the Cross-Subsidy Fund for Marketing/Operations which will be used to support marketing expenses for active artists and songwriters.

Certification of Song Royalty Sharing for the Song ________________________________

Role

Name of Person

Tax Identification Number

% Contribution to the Role

Initial Amount Paid by Songwriter/s, if any

1.    Songwriter/s

 

 

__% of Songwriter/s

 

2.    Artist

 

 

__% of Artist

 

3.    Album Producer-Investor

Access 2 MYusik

 

 

 

4.    Song Producer-Investor

 

 

__% of Song Producer-Investor

 

5.    Album Producer-Director

Access 2 MYusik

 

 

 

6.    Song Producer-Director

 

 

__% of Song Producer-Director

 

7.    Arranger for Instruments

 

 

__% of Arranger for Instruments

 

8.    Arranger for Vocals

 

 

__% of Arranger for Vocals

 

 I have read and understood the cover letter and hereby certify to the accuracy of the above-information that I have provided.  I shall abide by the Unbundled Royalty Rates for CD Albums and for Digital Downloads set by Access 2 MYusik Company. 

 

 

                                                                                                                                                _____________________________________       

                                                                                                                                                          (Print full name and signature)

NOTE:  1.  Please accomplish this form for EACH SONG and return it to us as soon as you can.

2.    The Tax Identification Number shall be used in crediting taxes deducted from royalties by Access 2 MYusik to the persons concerned at the Bureau of Internal Revenue.

3.    For clarification on how to fill out this form, please do not hesitate to contact any of the Founding Partners of Access 2 MYusik Company.

4.    Likewise, we may contact you for any clarification about your entries in the form.

SAMPLE ACCOMPLISHED Certification of Song Royalty Sharing

for the Song “Sunrise” (Fictitious only)

Role

Name of Person

Tax Identification Number

% Contribution to the Role

Initial Amount Paid by Songwriter/s, if any

1.    Songwriter/s

Dennis M. Lalata

0000-1111-1111-1111

50% of Songwriter/s

 

 

Lynman L. Bacolor

0000-1111-1111-1111

50% of Songwriter/s

 

2.    Artist (Band)

Jane Smith

0000-1111-1111-1111

25% of Artist

P500.00

 

Sam Highland

0000-1111-1111-1111

25% of Artist

P500.00

 

Richard Hughs

0000-1111-1111-1111

25% of Artist

P500.00

 

Joe Stotsenberg

0000-1111-1111-1111

25% of Artist

P500.00

3.    Album Producer-Investor

Access 2 MYusik

 

 

 

4.    Song Producer-Investor

Dennis M. Lalata

 

50% of Song Producer-Investor

 

 

Lynman L. Bacolor

 

50% of Song Producer-Investor

 

5.    Album Producer-Director

Access 2 MYusik

 

 

 

6.    Song Producer-Director

Dennis M. Lalata

 

50% of Song Producer-Director

 

 

Lynman L. Bacolor

 

50% of Song Producer-Director

 

7.    Arranger for Instruments

Jane Smith

 

25% of Arranger for Instruments

P500.00

 

Sam Highland

 

25% of Arranger for Instruments

P500.00

 

Richard Hughs

 

25% of Arranger for Instruments

P500.00

 

Joe Stotsenberg

 

25% of Arranger for Instrumemts

P500.00

8.    Arranger for Vocals

Lead Vocal – Jane Smith

 

50% of Arranger for Vocals

P500.00

 

Background Vocals – Joe Stotsenberg

 

25% of Arranger for Vocals

P500.00

 

Background Vocals – Jane Smith

 

25% of Arranger for Vocals

P500.00

 

Note: In this situation, the two songwriters hired a band to arrange the instruments and vocals of the songs, and to interpret the song.  The songwriters served as the Song Producer-Investor and Song Producer-Director.

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