Music Royalties Explanation Part 6 - International Monies with Bobby Borg

Why It Matters

Securing a foreign subpublisher ensures artists capture higher overseas royalties and prevents revenue from disappearing into unclaimed funds, directly impacting their global earnings.

Key Takeaways

• Foreign subpublishing routes royalties from overseas sales to U.S. publishers.
• Without a subpublisher, royalties may fall into unclaimed “black box.”
• Mechanical rates abroad are percentage‑based, often higher than U.S. penny rate.
• Subpublishers typically charge 10‑20% fee, sometimes with advance arrangements.
• “At source” clauses protect artists’ share of foreign income.

Summary

The video explains foreign subpublishing – the mechanism that channels mechanical, performance, sync and print royalties earned outside the United States back to the songwriter’s U.S. publisher.

Because foreign territories use mandatory mechanical rights agencies, royalties first go to those agencies, then to the local subpublisher, which deducts its fee and forwards the remainder to the U.S. publisher and writer. Mechanical rates abroad are calculated as a percentage of the published price to dealer (typically 8‑10 %), producing larger pools than the U.S. penny‑rate. Performance royalties are collected by local societies, but U.S. societies only handle performance, not mechanics.

Bobby cites Japan’s JazzRrack and the UK’s 9.9 % PPD rate as examples, and stresses that without a subpublisher the money can sit in a “black box” for three to six years before being redistributed pro‑rata to local publishers. He also describes an “at source” clause—20 % fee on foreign earnings—that guarantees artists retain 80 % of overseas income regardless of subpublisher cuts.

The takeaway for creators is to negotiate a subpublishing agreement, include at‑source language, and monitor registrations to avoid losing revenue to the black box. Properly managed foreign subpublishing can unlock significantly higher royalties and protect rights across multiple markets.

Original Description

Music Royalties Explanation Part 6 - International Monies with Bobby Borg - explain music royalties in plain english. See book: Introduction to Music Publishing for updated version. Playlist: https://www.youtube.com/playlist?list=PLW0G4pYSe2QseTsIv60aVHDmrLSzyGRub

In Music Royalties Explained, Bobby Borg and Michael Eames break down music publishing royalties simply so that songwriters, music artists and musicians understand how to collect their money and what may be coming to them.

In this video, Bobby Borg and Michael Eames explain Foreign Sub-publishing Royalties. For updated information, please be sure to see our new book here https://www.amazon.com/Introduction-Music-Publishing-Musicians-Perspectives-ebook/dp/B0F6RY5YLH/ref=sr_1_3?crid=R7EA4TP2ORYL&dib=eyJ2IjoiMSJ9.hC9gQl3prI3bTyt4DAyfif47cHNcXOYrrGhquuuT7Kzv4RFpLOXiRr2LAymiEhU0oN2_HpcTmJhfnbH3qAIIlIgj4BBNEk690LZj3ZPxE6YniimVtbJLfOrm9d8o5MXOiwR6hEg0Iz_V0SJDpomOLYyxm754qmak8y0WcIdDgRPdKT1JxXXTfot4G_3DayLucsaG-FRn___dNjBs1_a2vjTFrrbH6xOiVLBvZNsthf4.bzmTqv30YpykZSDc7ZRKXkD_lSTHkQ7upPiXA4khoCc&dib_tag=se&keywords=bobby+borg&qid=1765775591&s=books&sprefix=bobby+borg%2Cstripbooks%2C127&sr=1-3

This video is designed for artists searching for clear answers about music copyright, music publishing, song ownership, copyright protection, artist rights AND MUSIC ROYALTIES. If you are a musician trying to understand how to copyright your music, how publishing works, or how copyright law affects your songs and recordings, this video covers the foundational copyright knowledge every music artist needs.

Bobby Borg is a music business educator known for teaching artists about music copyright, publishing, royalties, contracts, and artist rights. Michael Eames brings additional perspective on copyright law, ownership, and protection for music creators. Subscribe to Bobby Borg Music Business Education for in-depth videos on music copyright, music publishing, music industry contracts, and building a sustainable music career as an independent artist.

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00:00 Introduction to International Monies

00:14 Foreign Subpublishing Income Defined

02:53 Mechanicals in Foreign Territories

07:48 Performances in Foreign Territories

10:13 Outsource Collections

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====WHAT YOU NEED TO KNOW ABOUT BOBBY BORG=====

🎓WHO? Bobby Borg is a former major label, indie, and DIY recording and touring musician (with the rock groups Beggars & Thieves, Left For Dead, and Warrant) 💯, the author of several music business books (Music Marketing For The DIY Musician, Business Basics For Musicians and Introduction to Music Publishing For Musicians📕, and a professor of music industry studies (at USC Thornton School of Music)🏫. Bobby Borg holds several degrees in music, marketing, and communications from Berklee College of Music, UCLA and USC 🎓. Borg is available for one-to-one consultations via https://www.bobbyborg.com

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