When music publishers partner with musicians, one of the first things they will do is sign a contract. According to US Entertainment Lawyers, the most common type of contract is a co-publishing agreement. Under this type of contract, both the musician and the publisher get equal copyright ownership of the compositions. Contracts can also take place between two music publishers. This contract is called a purchase agreement, where one publisher purchases the catalog of another publisher.
Music publishers also license the use of music. The American Society of Composers, Authors and Publishers notes that there are many different types of licenses. Two common types of license are a blanket license and a per program license. A blanket license gives the user the right to perform any piece of music in the licensed catalog as often as they wish. A per-program license allows radio programmers to play all music in a licensed catalog.
An important part of music publishing is dealing with copyrights. According to the 1976 Copyright Act, musical work must be registered with the Copyright Office before it is protected. It is the music publishers job to make sure this gets done. Once it is registered, a musical work will be protected for up 75 years, if the copyright is renewed. If the copyright is not renewed, the work will fall into the public domain.
Royalties are fees paid to copyright owners for the use of their work. Users of copyrighted material pay royalties when they are granted a license. Based on the type of contract between a publisher and a musician, royalties are split between the two parties. A copyright owner can make only a certain amount in royalties per song. This rate is periodically reviewed by the government and can be adjusted to reflect inflation or deflation, according to the 1976 Copyright Act.