1. Music Licensing
Copyright Law grants rights:
Perform, Duplicate, Distribute, Display,
Derivative (SR Performance through
Digital Transmission)
Those rights may be licensed to others to
generate income.
2. Two Basic Copyrights
PA - for the song and lyrics
SR - for the Sound Recording (the fixed
sounds on the CD)
Usually owner by different people
PA by Publisher/songwriter
SR - by label
3. Big Four Licenses
• Performance (PA)
• Mechanical (PA)
• Synchronization (PA)
• Master Use (SR)
4. Master License
Master Use License -
Master Sampling License
Master Ringtone License
All to Use the Master Recording, Rather
than Only the Song
5. Use in Film
Require Two Licenses
Master License to use the Original
Recording in the Movie
Synchronization License to use the Song
in the Film
Soundtrack Album Requires Mechanical
License
6. Sampling
Copyright Owners Want
A Copy of the New Work
Explanation of the Use
Rights Requested: Album, Video,
Promotional Uses, Third Party Uses.
Copublishing Deal Worked Out
7. Performance Rights
Organizations (PROS)
American Society Of Composers,
Authors, and Publishers (ASCAP)
Broadcast Music Inc (BMI)
Society of European Stage Authors and
Composers (SESAC)
Typically Blanket Licenses, but 1993
Court Ruling Said ASCAP must Offer
“Per-Program” Licensing
8. Performance
PROs Blanket License for their Entire
Catalog
Collect $2 Billion
ASCAP & BMI nonprofit, (18-20% for
overhead)
SESAC is for profit but does not publish
expenses
9. PROs
License all Radio & TV, Cable
10% - 15% From Non Broadcast (Hotels,
Arenas, Airlines, Schools, Restaurants,
Bars, Concert Promoters, Skating Rinks,
Dance Studios, Symphonies,
10. Blanket Performance License
Users of music usually buy a Blanket
License to cover all music.
Clubs charged by seating capacity,
admission charged, weekly music
budget,hours of entertainment
The Fairness in Music Licensing Act of
1998 exempts certain small businesses
(sq ft and number of speakers)
11. Blanket Performance License
The owner of the venue is usually
required to buy the license
For stadiums/arenas the promoter often
pays
Performers, agents, and managers do not
pay.
12. Census vs Sample
Census is a 100% count
Sample is a statistical
Techniques: random samples, cue
sheets/program logs from TV & movies,
Broadcast Data Systems (BDS) or
MEDIAGUIDE computerized tracking
system
14. ASCAP
American Society of Composers, Authors,
and Publishers ( www.ascap.com )
1909 Copyright Law gave the right of
performance
ASCAP founded 1914
Income: 50% TV/cab.e, 25% radio, 20-
25% foreign licenses, clubs & other
venues
15. ASCAP Licenses List
Airlines
Auto Racing Tracks
Background/Foreground Music Service
Baseball - Leagues and Teams
Basketball - Leagues and Teams
Body Building Contests
Bowl Games
Bowling Centers
Boxing
Buses
C-D
16. ASCAP Membership
1 song published & distributed, or
Professionally recorded, performed at a
licensable by ASCAP
200,000 songwriters, composers, &
publishers
Governed by Board 12 writers, 12
publishers
17. Weighing Performances in
Media
Medium (radio, TV, cable, local)
Weight of the station based on license fee
Weight of the network
Time of day
Type of Performance (theme,
background, feature)
18. BMI
Broadcast Music Inc .( www.bmi.com )
Owned by stockholders (475 broadcasters) No
dividends have ever been paid
Formed in response to ASCAP’s increasing fee,
provided competition
Because they signed, C&W, R&B, Jazz, & Folk
composers, they owned 90% of early rock.
19. BMI Members
Written a song published or recorded, or
“likely” to be.
A fee for publishers
Broadcast royalties paid 4xs per yr,
foreign performances 2xs per yr,
commercials & concert performances 1x
per yr.
20. SESAC
Society of European Stage Authors &
Composers, founded 1960, known as
SESAC since 1960.
Privately owner, for profit
Embraced technology early (DBS)
Uses Digital Fingerprint for Jazz &
Americana Stations
21. Sound Exchange
Created in 2000 (RIAA) independent in
2003
Collects Performance Royalties for Digital
Transmissions (internet radio, cable TV
music channels, satellite radio, streaming
services)
2013 Distributed $1B in digital royalties
22. Mechanical License
Most Mechanical Licenses are
“negotiated”
Lower royalty rate
Accounting Quarterly rather than monthly
“notice of intent” is waived
23. Harry Fox
Most publishers use Harry Fox to issue
Mechanical Licenses, 8.5% fee
Will collect foreign royalties for small
publishers, 5-20% fee
24. Synchronization License
Movies & TV
2 licenses, Sync & performance for
Stations (and foreign theaters)
Producer may hire composer as “work-
made-for-hire” thus is the owner
Fees vary: length, feature on camera,
underscore
25. Sync cont.
Want broadest possible sync license:
foreign theaters, TV & cable, home vedio.
Publishers may want to limit time of
license to benefit later
Foreign PROs grant blanket license fot
theaters, changing small % of box office.
26. Sync License
Info for Sync License: type of use
(background, vocal, background
instrumental, instrumental), length,
territory, term of license, format (film, TV,
TV movie, syndication, trade movie, DVD,
etc.)
27. Can’t Get Paid Without A
Cue Sheet
Used to document music used on TV
shows
Types of use
BI: Background Instrumental
VI: Visual Instrumental
EE: Logo
BV: Background Vocal
VV: Visual Vocal
TO: Theme Open
TC: Theme Close
28. New Use
Using a pre-existing recording involves:
Sync, Mechanical and unions (AFM,
AFTRA) new use payments
29. Music Videos
Sync license
Shown on TV uses the blanket license
Cable TV (MTV etc.)
Video discs etc., not part of mechanical,
negotiate with publishers
30. Video Games
Pre-existing song issues: success of song
used, type of game, distribution
Description of game configuration:
platform/computers, existing electronic or
those developed in the future, DVD/CD-
ROM, arcade consoles, handheld
devices, cell phones, on-line, wireless
31. Video Games cont.
Fees: some royalty based (.08-.15 cents),
most one-time buy-out $2,500-$20,000.
Fees based on: value of composition,
prior history, anticipated sales, bargaining
power, needs of game produces vs
publisher/songwriter
32. Transcription Licenses
Syndicated programs, Muzak, in-flight,
music library
Muzak uses Master License fixed fee
based on franchised dealers, others may
pat .05 per copy ($.02 for mechanical,
$.03 for performance)
33. Special Use Permits
Merchandising tie-ins, posters, clothing,
greeting cards, toys
Commercials
34. Grand Rights
Dramatic Music: operas, plays, musical
shows, revues called “Grand Rights”, use
of individual songs are “Small Rights’
Broadway Musicals, rights regulated by
the Dramatists Guild Inc. Rights retained
by authors & composers. Rentals from
Samuel French, Tams-Witmark, Rogers &
Hammerstein Music Library.