I’m trying to find out exactly who licenses our product. If we promote our music, and say someone contacts us wanting a sync license/master use license - how is the licensing handled exactly?
Do we just agree to let them use our music over the phone and then they negotiate the license through a PRO? Or does the PRO handle ALL licensing from top to bottom without even contacting us? Also, does the PRO negotiate all the rates for us? Or do (we) the publisher have to draw up an actual paper contract license to fax and etc? We’re rather confused about the ways of licensing.
Do we just agree to let them use our music over the phone and then they negotiate the license through a PRO? Or does the PRO handle ALL licensing from top to bottom without even contacting us? Also, does the PRO negotiate all the rates for us? Or do (we) the publisher have to draw up an actual paper contract license to fax and etc? We’re rather confused about the ways of licensing.
I ask because we’re rather inexperienced as far as negotiating rates - we wouldn’t even know where to start if we have to do it ourselves just starting a company. However, we don’t want to sound like we’re completely incompetent if a music supervisor contacts us over the phone and tells us to give them rates.
(Our main focus is working to license music out for film/tv/etc).
We’d really appreciate if you could break this down for us.
Thank you!
Thank you!
Answer:
Basically, it’s all about copyright law. When create an original work and “fix it” in a tangible form, you receive a copyright as if by magic and also six exclusive rights under federal copyright statutes, including the right to copy, distribute and public perform the work.
There are eight categories of protected work, including songs and sound recordings, and there are six exclusive rights, but it’s those first three rights that are most pertinent to your question.
As the author if the work, you may “authorize” someone else to use your “rights” of copy, distribute, publicly perform. You can license your right to publicly perform your song to ASCAP and BMI and they will collect your money for you, and keep a small percentage for their effort. All TV, radio, schools, clubs, venues, etc. pay a bulk licensing fee to all them to publicly broadcast music. The rates vary depending on use and reach. Basically, PROs collect for the public performance on the radio.
If someone wants to use your song on a record, you (or your publishing company - the entity to which you assign your rights under copyright statutes) can grant them a mechanical license for that use. The statutes allow anyone to use a previously publishing song on an audio recording WITHOUT permission as long as the user pays the statutory rate of 9.1 cents per unit manufactured for each song. That’s called a compulsory license.
For use in a film or visual, that’s a synchronization license and that’s a negotiated license. The owner author can set whatever fee he or she wants to set. The use of the sound recording is another license: a master use license. That too is a negotiated license.
YOU as the copyright holder would issue these licenses. There are examples on the Internet and in various books. Or you can make a deal with the Harry Fox Agency to license your songs to record companies, any users, really, including sync licenses.
Anyway, these can be rather complicated little agreements so if you should consult an entertainment lawyer before you start signing over your copyrights. Remember, everyone who got ripped off in the music biz did it in writing.
Check out “Music, Money, Success” by Todd and Jeff Brabec, “The Musician’s Legal & Business Guide” by Halloran (and a bunch of Beverly Hills lawyers”, or just about any copyright book. We use “The Music Business Handbook” by Baskerville (9th edition) in our intro classes.
This article is not intended to, and does not constitute, legal advice with respect to your particular situation and fact pattern. Do secure counsel promptly, if you see any legal issue looming on the horizon which may affect your career or your rights. What applies in one context, may not apply to the next one. Make sure that you seek individualized legal advice as to any important matter pertaining to your career or your rights generally.
Good luck!
Good luck!
John Snyder
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