The goal of music publishing administration is to maximize royalty collections and make prompt and accurate distribution of royalties. Timely and accurate registration of songs with performing rights societies around the world is one of the keys to maximization of royalty collection.

At Universal, we have created a centralized global administrative model and developed computer systems designed to compliment our administrative model. The result is a virtually seamless global process. Here's how it works:

When rights in a song are initially obtained by any one of our branch offices, the details relating to the song, including writer shares, publisher shares, and territory of control, are input by the branch office into our computer system. On a monthly basis, song information is extracted from our branch offices and uploaded into a centralized database in our London center. Next, the centralized database exports song information into the systems of those branch offices which may claim the songs. As a result of this process, songs are circulated to more than 40 offices worldwide within a month of initial entry into a branch office's system. In addition, a central database is created consisting all of Universal's songs regardless of territory. This centralized database will be a vital resource in taking advantage of the new licensing models currently in development within the industry.

The next step in the administrative process is society registration. Our computer system automatically creates electronic song registration files. Our electronic song registration files are accepted by all societies that accept electronic song registration, including U.S., Canadian, and all major European societies. Electronic registration files are submitted on a monthly basis. The electronic format improves the speed and accuracy of registration because no manual intervention is required.

In territories where electronic song registration is not accepted, we are using a pre-emptive claim facility whereby we claim songs directly with the record companies. This is done on a release basis and the forms are submitted to the record companies on a monthly basis.

Royalty collection and distribution is also aided by a centralized process. Royalties are collected by branch offices in all countries of the World in which copyright laws are enforced. We have made special efforts to collect royalties in developing market countries such as Poland, Czechoslovakia, Russia, Greece, Korea, Malaysia, and China. Branch offices report their royalty earnings to our London center. The London center then acts as a royalty clearing house, processing all royalties payable to other branch offices and making the appropriate payments to those offices. This centralized process does not create any delays in royalty processing or payment, nor does it result in any additional charges to our payees. Centralized royalty processing creates a database of global earnings history for each of our songs.

All details relating to new signings are circulated automatically to each branch office via the London center in the form of a contract summary. These contract summaries are registered with those societies which require such filings.

Although performing rights societies claim to circulate cue sheets to other societies, we take the precaution of distributing cue sheets to the London center for distribution to all branch offices. Each branch office then registers the cue sheets with their local societies.

Our income tracking departments located in the US, London and the Netherlands (where worldwide reviews are centered) function as a safety net making certain that we receive all royalties due us.

In summary, below is list of the key elements of our administrative model:

• Over 40 Offices Worldwide
• Royalty collection in emerging market countries
• Electronic Worldwide song circulation
• Electronic society registration
• Centralized song database
• Centralized royalty distribution
• Worldwide contract distribution
• Worldwide cue sheet distribution
• Royalty collection in emerging market countries
• Income Tracking

In a business where every nickel counts, UMPG's income tracking departments leave no stone unturned when it comes to collecting your money. By monitoring payments in every territory worldwide, UMPG ensures all songs on releases are getting paid at the correct rate and that proper payments are received and credited for performance royalties. UMPG staffs also work directly with artists and writers to investigate any opportunity to find money that may have slipped through the cracks.

For more information:
In Los Angeles contact: 310-235-4700
In the Netherlands contact: (31 35) 5489 343