QUESTION: When a song is used in a motion picture. I know the writer is paid a flat fee. So is that a negotiated fee, or a flat fee. Also, when a song is also used on the soundtrack for a motion picture, do they use the regular statutory rate for those songs to pay out royalties..?
ANSWER: The owner of the song (would be the songwriter unless you’ve transferred your copyright to another) has the right to determine the fee and use of their songs when they are used with visuals. The compulsory license for audio recordings does NOT apply.
You may charge whatever you can get the user to pay, and they MUST have a license from you, the owner of the song, to use the song. Then there’s the sound recording. The film production co will have to obtain a master use license for the use of the recording. now, if they produce the recording themselves, and they’ve negotiated a sync license with you, they do not have to pay a third party for the use of the recording (only the musicians and producers involved in making the recording).
Your question tries to distinguish between a flat fee and a negotiated fee but that’s the same thing. A flat fee just means that it’s a one time payment that has been negotiated.
The amount of the fee is determined by various factors, like the budget and reach of the film and the use of the song in the film (credits and repeated uses pay more).
You can find out more about this on the ascap.com site.
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