In this agreement, the songwriter usually assigns 50 percent or as much as 100 percent of the publishing rights to the publisher for a determined period of time. During this time, the publisher will attempt to place the song on an album or in a television show or movie. The songwriter retains 100 percent of the writer’s rights, which represents half of the song’s potential earnings.
Usually, this agreement will be in effect for a term of 12 or 24 months from the signing date. If the publisher successfully places the tune during this term, the copyright of the song will be transferred to the publisher. If the publisher is unable to place the song, all rights to the song revert to the songwriter.
Often, a writer of a proven hit will sell a portion or all of that song’s publishing rights to a publisher for a substantial amount of money. This type of agreement is mutually beneficial for a songwriter in need of immediate funds and a publisher wanting to own a profitable copyright in perpetuity.