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Clause & Effect: <b>Examining Concerns In Sales of Rights In Compositions</b>
Songwriters often form their own music publishing companies. If the publishing company sells the songwriter's compositions, what rights will actually be conveyed in the sale?
For example, guitarist Vinnie Vincent served as a member of the rock group KISS from 1982 to 1984. During that time, he co-wrote three songs released on the band's “Creatures of the Night” album. Through his Street Beat Music, Vincent entered into a co-publishing agreement with KISS for a joint 50% ownership of the songs by both parties. The agreement stated that Vincent would receive half of the songwriter's royalties, and that half of the compositions' public performance royalties would be paid to Vincent's Street Beat.
After Vincent left KISS due to disagreements, KISS, Vincent and Street Beat negotiated a settlement agreement under which Polygram Records, KISS's label, was instructed to pay Street Beat a 50% publisher share, including songwriter royalties, for mechanical royalties from record sales, but not to pay Vincent directly.
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