Sub-publishing agreements explained — what they are and how they affect your royalties

A sub-publishing agreement is an arrangement where a music publisher appoints a third party — a sub-publisher — to represent a catalog in a specific territory or group of territories. The sub-publisher handles registration, collection, and promotion within their territory in exchange for a percentage of the royalties they collect.

Most songwriters encounter sub-publishing not as something they negotiate directly, but as a clause in their primary publishing deal that allows the publisher to appoint sub-publishers on their behalf. Understanding how sub-publishing works, what it costs you, and what to check in your deal is essential for managing international royalty income.

Why sub-publishing exists

Music publishing royalties are generated in every territory where a composition is used commercially. A UK songwriter registered with PRS for Music collects UK performance and mechanical royalties through PRS's direct systems. But the same song generating royalties in Germany, Japan, Brazil, or the US requires collection through those territories' own collecting societies — GEMA, JASRAC, ECAD, and ASCAP/BMI respectively.

PRS for Music has reciprocal agreements with many of these societies. For territories without direct PRS coverage, or where active local promotion is needed alongside collection, sub-publishers fill the gap. A sub-publisher with strong relationships in Germany can promote the catalog to German recording artists and music supervisors, as well as ensuring correct registration with GEMA.

How sub-publishing deals are structured

The sub-publisher receives a commission on the royalties they collect from their territory, typically between 15% and 25% of the income they handle.

In some arrangements, sub-publishers retain a higher percentage of income (up to 25–30%) in exchange for more active promotional services — pitching the catalog for covers, sync placements, and co-writing opportunities within their territory.

The deal between the primary publisher and sub-publisher is separate from the deal between the songwriter and the primary publisher. The songwriter typically does not sign the sub-publishing agreement directly — it is the primary publisher's arrangement. However, the cost of sub-publishing comes out of the pool of royalties before distribution to the songwriter, which is why understanding it matters.

The at source vs receipts basis distinction

This is the most financially significant detail in sub-publishing arrangements, and the one most songwriter deals address inadequately.

At source means royalties are calculated based on the income generated at the point of collection — before the sub-publisher takes their commission. The songwriter's percentage is applied to the full amount, and the sub-publisher's commission comes out of the publisher's share separately.

Receipts basis means the songwriter's percentage is calculated on what the primary publisher actually receives after the sub-publisher has already taken their commission.

The difference is significant:

A composition generates £1,000 in German royalties. The sub-publisher takes 20%.

At source: the songwriter's 75% co-pub share is calculated on £1,000 = £750. The sub-publisher's 20% is taken from the publisher's portion.

Receipts basis: the sub-publisher takes 20% (£200) first. The primary publisher receives £800. The songwriter's 75% is then calculated on £800 = £600.

The difference is £150 from one territory on a £1,000 payment. Across multiple territories over years of collection, the at-source versus receipts basis distinction produces meaningfully different income levels.

Negotiate at-source calculation for sub-publishing in your primary deal. This is a standard negotiating point and most established songwriters' deals include it. See publishing deal red flags.

What to check regarding sub-publishing in your deal

When reviewing a primary publishing deal's sub-publishing provisions:

Does the agreement require at-source or receipts basis calculation? If not specified, negotiate at-source.

What territories can the publisher appoint sub-publishers for? A global sub-publishing right with no limitations gives the publisher broad discretion; territory-specific approval rights give you more visibility.

What commission rates are capped at? A clause limiting sub-publisher commissions to a maximum percentage protects you from high-cost sub-publishing arrangements the primary publisher might otherwise enter.

Is the primary publisher's own affiliated sub-publisher excluded from these caps? Some major publishers have affiliated companies in international territories and appoint them as sub-publishers — which can create conflicts of interest where the publisher benefits from the sub-publishing commission as well as the primary publishing share.

Self-publishing internationally without sub-publishers

For songwriters managing their own publishing, PRS for Music collects from most major international territories through reciprocal agreements and the ICE (International Copyright Enterprise) hub. The coverage is extensive — PRS distributes royalties from over 150 countries.

For territories where PRS's collection is limited or where active local promotion would add value, a publishing administrator like Songtrust can fill the gap with a flat 10–15% administration fee, no rights assignment, and no sub-publishing arrangements that reduce your income at source.

The right choice depends on the specific territories where your music generates meaningful income. For most independent UK songwriters, PRS's coverage through ICE handles the majority of international collection without sub-publishers. See self-publishing your music.