Copyright is the foundation of music publishing and licensing. In order for a music publisher to legally publish another songwriter's work, the publisher must be granted access to the music copyright. The music publisher agrees to actively pursue licensing opportunities for the copyrighted music and promote the songwriter's work in exchange for the songwriter assigning the rights of his copyrighted music to the music publisher.
While the role of the non-performing songwriter has diminished due to the rise of successful singer/songwriters, music publishers often hire songwriters with a hit track record as staff songwriters. Music publishers agree to advance a songwriter a sum of money in order for the songwriter to live and eat while he is writing songs. As part of the agreement, the songwriter usually has to assign the copyright to every song he writes during that period of time. The songwriter than pays back the publisher the amount of the advance based on royalties earned from his licensed songs.
Other than staff songwriter positions, known as exclusive song writer agreements, there are a number of different types of music publishing agreements. A music publisher and a songwriter will negotiate a contract that may be about one song (a single song agreement), or a whole series of songs. In a co-publishing agreement, the songwriter and music publisher split royalties 50/50. A collection agreement is when a writer retains his copyright and a publisher doesn't exploit the songwriter's music, but acts like an accountant, collecting and disbursing royalties.
One of the major aspects of music publishing agreements is the element of music licensing. In most music publishing agreements, a music publisher agrees to actively promote and acquire licensing opportunities for the copyrighted music. In order for a TV show, radio show, movie, etc. to feature copyrighted music in any function, it must obtain the rights to do so by paying a negotiated fee. Licensing agreements may be for one song or for the music publisher's entire catalog.
According to Laura Becker, creative director at Famous Music Publishing, music publisher agreements often include added perks for songwriters and bands. Music publishers often work as record label artist & repertoire departments, helping out with promotion and marketing, offering advice on producers and hooking bands up with collaborators.