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Music Rights Webinar           29th November 2011Music Rights For Marketing & Procurement Executives         10 things you...
.… a bit about meThe Company She Keeps         Miro                               Soul To Squeeze
Quick Poll #1                     What’s your role?1. Brand Client Marketing Team2. Brand Client Procurement Team3. Brand ...
Why know more about music rights?• Information is power• Knowledge empowers Advertisers to challenge established practices...
10 things you need to know• Songs vs. Recordings                • Out-of-copyright• Types of licence & who to talk to   • ...
1. Songs vs. Recordings
Songs vs. Recordings      COLDPLAY
Songs vs. RecordingsSongwriters              Recording Artist              COLDPLAY
Songs vs. Recordings    Songwriters                   Recording ArtistSongs / Compositions         “Master” Sound Recordin...
Songs vs. Recordings    Songwriters                   Recording ArtistSongs / Compositions         “Master” Sound Recordin...
Songs vs. Recordings    Songwriters                   Recording ArtistSongs / Compositions         “Master” Sound Recordin...
Songs vs. Recordings    Songwriters                   Recording ArtistSongs / Compositions         “Master” Sound Recordin...
“The Scientist” – Original Artist Recording   Martin / Champion / Berryman / Buckland           Coldplay                  ...
“The Scientist” – Cover VersionMartin / Champion / Berryman / Buckland      Natasha Bedingfield                Song       ...
Songs vs. Recordings – Now                     Key Rights OwnersMajor Music Publishers                   Major Record Labels
Songs vs. Recordings – Future                     Key Rights OwnersMajor Music Publishers                                 ...
Songs vs. Recordings                                   Key Rights OwnersIndependent Music Publishers                      ...
TOP TIPS #1• Be clear which title you wish to use• Be clear if it’s an original artist recording or cover version• Establi...
2. Types of Licence
Types of Licence                    Why do you need a licence?• Songs and recordings are someone else’s intellectual prope...
Types of Licence                                                    Who do you talk to?                     Songwriters   ...
Types of Licence                                                             Who do you talk to?                          ...
Types of Licence                Who do you talk to?Songwriters                                          Recording Artist  ...
Types of Licence                Who do you talk to?Songwriters                                           Recording Artist ...
Types of Licence                Who do you talk to?Songwriters                                           Recording Artist ...
Types of Licence                                                            Who do you talk to?                           ...
Licence Exclusivity• Relevant to all licence types EXCEPT performing right• Limited by Term & Territory• Can be limited by...
TOP TIPS #2• Be clear which rights you need (determined by proposed usage)• Be clear who controls those rights• Bring all ...
3. Approval Times
3. Approval Times                                           Why does it take so long?Licence Request                   UK ...
3. Approval Times                                            Why does it take so long?Licence Request                    U...
TOP TIPS #3• Start as early as possible• Always have back-up tracks• “No” (usually) does mean “No” – Be prepare for denial...
Quick Poll #2How many music rights negotiations have you      previously been involved in?1. None2. 1 - 53. 6 - 104. Over 10
4. Re-records
4. Re-recordsMartin / Champion / Berryman / Buckland   Arranger / Producer      Song : “The Scientist”               Engag...
Re-records : The Facts                               Taking an existing published songRe-record                      and r...
TOP TIPS #4                                 Changing the LYRICS always   Parody                      requires more complex...
5. Cost-drivers
5. Cost-drivers  Channel vs. Context                      B2C vs. B2B        Usage                        Term, Territory,...
Channel vs. ContextHigh Licence Fees    Low                                               Overt                Subtle     ...
Usage   Broadcast / ATLHigh                                                                                    World      ...
StatureHigh Licence Fees    Low                                High                Low   Fame
Rights OwnersHigh Licence Fees    Low                                      High                Low      Fame
TimingsHigh Licence Fees    Low                                High                Low   Urgency
Competitive EnvironmentHigh Licence Fees    Low                                                           High            ...
Fees to extend licence termsHigh Licence Fees                                                    NOT                      ...
TOP TIPS #5• Only buy the “must-have” usage you need now• Include options for all “nice-to-have” usage within the licence•...
6. Out-of-Copyright
How long does copyright last?             Songs                               Recordings   Publishing Rights – EU Law     ...
“The Scientist” – Original Artist Recording   Martin / Champion / Berryman / Buckland            Coldplay                 ...
So, what is out-of-copyright (in the EU)?                         Songs                         RecordingsAny song or comp...
TOP TIPS #6• If it’s in Copyright – you need a licence• Copyright Term varies between songs and recordings• Copyright Term...
7. Risk Avoidance
TOP TIPS #7• No sound-a-likes• No intent to infringe• No minor changes (6 note myth)• Identify all interested parties• Myt...
8. Competitive Tendering
Competitive EnvironmentHigh Licence Fees    Low                                                           High            ...
STAGE #1 : SOURCING TRACKSCreative Requirement                Business RequirementEmotional Objective                     ...
STAGE #2 : PURCHASING TRACKS   Simultaneous Shortlist Research Negotiate from Position of Strength      Secure Multiple Ap...
TOP TIPS #8•Start early                        •Start late•Collate all usage data up-front    •Have incomplete usage data•...
9. Procurement Responsibility
Who handles music procurement for your agency?                  In-house TV Producer                  “Sister” company sup...
Who handles music procurement for your agency?                  • How are they charged?                  • Hour/Day rate o...
TOP TIPS #9• Challenge agency on default supplier choice• Insist on competitive tendering to source supplier• Avoid remune...
10. Benchmarking
Are you benchmarking your music procurement?   • Post-project auditing   • Assessment of fees paid to rights owners   • Ma...
TOP TIPS #10• Challenge agency on full accountability• Insist on proper due diligence• Spot-check contracts for full execu...
RECAP: 10 things you need to know• Songs vs. Recordings                • Out-of-copyright• Types of licence & who to talk ...
Thank Yourichard@resilientmusic.com+44 (0)7976 2022705+44 (0)20 3137 0324richardkirsteinwww.resilientmusic.com@resilientmu...
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10 things marketers need to know about Music Rights

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A WFA Webinar in partnership with Richard Kirstein from Resilient Music on the 10 things marketers need to know about Music Rights. Covering: risk avoidance, re-records, tenders and approval times.

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Transcript of "10 things marketers need to know about Music Rights"

  1. 1. Music Rights Webinar 29th November 2011Music Rights For Marketing & Procurement Executives 10 things you need to know Presented by Richard Kirstein Founding Partner, Resilient Music LLP
  2. 2. .… a bit about meThe Company She Keeps Miro Soul To Squeeze
  3. 3. Quick Poll #1 What’s your role?1. Brand Client Marketing Team2. Brand Client Procurement Team3. Brand Client Finance Team4. Marketing Procurement Consultant5. WFA Team Member6. Other
  4. 4. Why know more about music rights?• Information is power• Knowledge empowers Advertisers to challenge established practices• Greater understanding improves cost & risk management• Procurement can help Marketing if engaged sufficiently early
  5. 5. 10 things you need to know• Songs vs. Recordings • Out-of-copyright• Types of licence & who to talk to • Risk avoidance• Approval times • Competitive Tendering• Re-records • Procurement Responsibility• Cost-drivers • Benchmarking
  6. 6. 1. Songs vs. Recordings
  7. 7. Songs vs. Recordings COLDPLAY
  8. 8. Songs vs. RecordingsSongwriters Recording Artist COLDPLAY
  9. 9. Songs vs. Recordings Songwriters Recording ArtistSongs / Compositions “Master” Sound Recordings COLDPLAY
  10. 10. Songs vs. Recordings Songwriters Recording ArtistSongs / Compositions “Master” Sound Recordings Music Publisher Record Label COLDPLAY
  11. 11. Songs vs. Recordings Songwriters Recording ArtistSongs / Compositions “Master” Sound Recordings Music Publisher Record Label “Publishing” right “Master” right COLDPLAY
  12. 12. Songs vs. Recordings Songwriters Recording ArtistSongs / Compositions “Master” Sound Recordings Music Publisher Record Label “Publishing” right “Master” right COLDPLAY
  13. 13. “The Scientist” – Original Artist Recording Martin / Champion / Berryman / Buckland Coldplay Song “Master” Sound Recording Music Publisher Record Label “Publishing” right “Master” right
  14. 14. “The Scientist” – Cover VersionMartin / Champion / Berryman / Buckland Natasha Bedingfield Song “Master” Sound Recording Music Publisher Record Label “Publishing” right “Master” right
  15. 15. Songs vs. Recordings – Now Key Rights OwnersMajor Music Publishers Major Record Labels
  16. 16. Songs vs. Recordings – Future Key Rights OwnersMajor Music Publishers Major Record Labels Subject to regulatory approval
  17. 17. Songs vs. Recordings Key Rights OwnersIndependent Music Publishers Independent Record Labels IMAGEM BEGGARS GROUP BMG RIGHTS DOMINO MUSIC SALES PIAS KOBALT MUTE BUCKS MINISTRY OF SOUND CARLIN WARP BLUE MOUNTAIN PALM PICTURES NOTTING HILL NINJA TUNE MUTESONG COOKING VINYL GLOBAL TALENT NETTWERK NOTE: Some companies are Europe-based only, others also cover North America & Far East
  18. 18. TOP TIPS #1• Be clear which title you wish to use• Be clear if it’s an original artist recording or cover version• Establish which rights owners have an interest in song & recording
  19. 19. 2. Types of Licence
  20. 20. Types of Licence Why do you need a licence?• Songs and recordings are someone else’s intellectual property• To use them, you need a licence• Usage without a licence is an infringement of copyright• GET A LICENCE (before usage starts)
  21. 21. Types of Licence Who do you talk to? Songwriters Recording Artist Music Publisher Music PublisherMechanical Right Synchronisation Digital Downloads Use of song in TVC / Video
  22. 22. Types of Licence Who do you talk to? Songwriters Recording Artist Experiential Performing at a live eventPerforming Right #1 Broadcast & in-store “transmission” of songPerforming Right #2 On-line & mobile “transmission” of song Music Publisher OR Music Publisher Mechanical Right Synchronisation Digital Downloads Use of song in TVC / Video PRS (UK-based) used as an example collection society
  23. 23. Types of Licence Who do you talk to?Songwriters Recording Artist Record Label Performing Right #2 On-line & mobile “transmission” of recording Record Record Label Label Synchronisation Reproduction Right Use of recording in TVC / Video Digital Downloads
  24. 24. Types of Licence Who do you talk to?Songwriters Recording Artist Experiential Endorsement Performing at a live event Brand Ambassador Role Artist Artist Manager Manager Record Label Performing Right #2 On-line & mobile “transmission” of recording Record Record Label Label Synchronisation Reproduction Right Use of recording in TVC / Video Digital Downloads
  25. 25. Types of Licence Who do you talk to?Songwriters Recording Artist Experiential Endorsement Performing at a live event Brand Ambassador Role Artist Artist Manager Manager Performing Right #1 Broadcast & in-store “transmission” of a recording Record Label Performing Right #2 On-line & mobile “transmission” of recording Record Record Label Label Synchronisation Reproduction Right Use of recording in TVC / Video Digital Downloads PPL (UK-based) used as an example collection society
  26. 26. Types of Licence Who do you talk to? Songwriters Recording Artist Experiential Experiential Endorsement Performing at a live event Performing at a live event Brand Ambassador Role Artist Artist Manager ManagerPerforming Right #1 Performing Right #1 Broadcast & in-store Broadcast & in-store “transmission” of song “transmission” of a recording Record Label Performing Right #2Performing Right #2 On-line & mobile On-line & mobile “transmission” of recording “transmission” of song Music Publisher OR Music Record Record Publisher Label Label Mechanical Right Synchronisation Synchronisation Reproduction Right Digital Downloads Use of song in TVC / Video Use of recording in TVC / Video Digital Downloads
  27. 27. Licence Exclusivity• Relevant to all licence types EXCEPT performing right• Limited by Term & Territory• Can be limited by product category or across all brands• Always attracts a premium fee
  28. 28. TOP TIPS #2• Be clear which rights you need (determined by proposed usage)• Be clear who controls those rights• Bring all parties to the table from the outset• Don’t approach artist management for synch rights for signed writers / artists
  29. 29. 3. Approval Times
  30. 30. 3. Approval Times Why does it take so long?Licence Request UK Publisher US Publisher Manager Songwriter Brand (or agency) UK Record Label US Record Label Manager Artist US controlled repertoire From 1-2 days to 1-2 weeks
  31. 31. 3. Approval Times Why does it take so long?Licence Request UK Publisher US Publisher Manager Songwriter Brand (or agency) UK Record Label US Record Label Manager Artist US controlled repertoire From 1-2 days to 1-2 weeksGranting Approval (or Denial!) Songwriter Manager US Publisher UK Publisher Brand (or agency) Artist Manager US Record Label UK Record Label US controlled repertoire From 3-5 days to 2-3 months
  32. 32. TOP TIPS #3• Start as early as possible• Always have back-up tracks• “No” (usually) does mean “No” – Be prepare for denial of licence• Accept that not everyone loves your brand as much as you do
  33. 33. Quick Poll #2How many music rights negotiations have you previously been involved in?1. None2. 1 - 53. 6 - 104. Over 10
  34. 34. 4. Re-records
  35. 35. 4. Re-recordsMartin / Champion / Berryman / Buckland Arranger / Producer Song : “The Scientist” Engaged Services Music Publisher Re-recording “Publishing” right Assigned or Licensed Brand (or Agency)
  36. 36. Re-records : The Facts Taking an existing published songRe-record and re-recording it specifically for the campaign The publishing rights (in the song)Publishing DO have to be cleared with the appropriate publisher(s) The master rights (in the original Master sound recording) DO NOT have to be cleared with the record label
  37. 37. TOP TIPS #4 Changing the LYRICS always Parody requires more complex approval & usually a higher fee Directly copying the original“Passing Off” recording may risk a “Passing Off” claim from the artist or their label Change singer gender, key,Risk Reduction instrumentation for a noticeable difference
  38. 38. 5. Cost-drivers
  39. 39. 5. Cost-drivers Channel vs. Context B2C vs. B2B Usage Term, Territory, Media Stature Song vs. Artist Rights Owner Major vs. Independent Timings Urgent vs. Not UrgentCompetitive Environment Single choice vs. optionsExtending Licence Terms Options included or not
  40. 40. Channel vs. ContextHigh Licence Fees Low Overt Subtle Branding
  41. 41. Usage Broadcast / ATLHigh World On-line Experiential Licence Fees In-store Internal UK Term 1 Yr 2 Yrs Low High Low Usage
  42. 42. StatureHigh Licence Fees Low High Low Fame
  43. 43. Rights OwnersHigh Licence Fees Low High Low Fame
  44. 44. TimingsHigh Licence Fees Low High Low Urgency
  45. 45. Competitive EnvironmentHigh Licence Fees Low High Low No. of track options on the table
  46. 46. Fees to extend licence termsHigh Licence Fees NOT Included in Original Licence Included in Original Licence Low Inclusion of Pre-negotiated Options
  47. 47. TOP TIPS #5• Only buy the “must-have” usage you need now• Include options for all “nice-to-have” usage within the licence• Include options to extend the term into a 2nd & 3rd period (usually @ 10%)• Always have back-up tracks• Be very aware of balance of power between licensee & licensor
  48. 48. 6. Out-of-Copyright
  49. 49. How long does copyright last? Songs Recordings Publishing Rights – EU Law Master Rights – EU LawCopyright in the song / composition Copyright in the sound recordingRemains “in copyright” for 70 years Remains “in copyright” for 70 years from the death of (youngest) from date of first commercial composer / songwriter release Outside Europe, laws vary, notably USA.
  50. 50. “The Scientist” – Original Artist Recording Martin / Champion / Berryman / Buckland Coldplay Song “Master” Sound Recording First registered 2002 First released 2005 Assume last writer dies aged 85 Copyright expires end 2075 (in 2063) Copyright expires end 2133
  51. 51. So, what is out-of-copyright (in the EU)? Songs RecordingsAny song or composition whose last Any sound recording commerciallysurviving writer/author died in 1940 released in 1940 or earlier.or earlier. Elgar d. 1934 Wagner d. 1883 Benny Goodman Septet “Ad Lib Blues” Recorded: NYC October 28, 1940 Includes : Original 78rpm discs Excludes : remastered CDs Beethoven d. 1827 J.S.Bach d. 1750
  52. 52. TOP TIPS #6• If it’s in Copyright – you need a licence• Copyright Term varies between songs and recordings• Copyright Term varies between territories• For internet usage, you must abide by US law• Don’t make assumptions without proper due diligence
  53. 53. 7. Risk Avoidance
  54. 54. TOP TIPS #7• No sound-a-likes• No intent to infringe• No minor changes (6 note myth)• Identify all interested parties• Myth re attempted search• Escrow accounts
  55. 55. 8. Competitive Tendering
  56. 56. Competitive EnvironmentHigh Licence Fees Low High Low No. of track options on the table
  57. 57. STAGE #1 : SOURCING TRACKSCreative Requirement Business RequirementEmotional Objective Budget & Usage Music Brief Commercial Terms Brief Music Sourcing Tender Music Rights Owners Track Submissions Track Shortlist Hero Tracks & Back-ups
  58. 58. STAGE #2 : PURCHASING TRACKS Simultaneous Shortlist Research Negotiate from Position of Strength Secure Multiple Approvals Final Choice Optimal Outcome
  59. 59. TOP TIPS #8•Start early •Start late•Collate all usage data up-front •Have incomplete usage data•Clarify optional usage •Have no option data•Clarify deadlines •Have fluid deadlines•Don’t move the goalposts! •Have fluid parameters•Have back-up tracks •Track is a must-have
  60. 60. 9. Procurement Responsibility
  61. 61. Who handles music procurement for your agency? In-house TV Producer “Sister” company supplier Independent supplier
  62. 62. Who handles music procurement for your agency? • How are they charged? • Hour/Day rate or flat fee? • Is this the default agency choice? • Are they proven as “best in class”? • Remunerated by flat fee or commission? • Truly independent or preferred supplier? • Sourced by competitive tendering? • Remunerated by flat fee of commission?
  63. 63. TOP TIPS #9• Challenge agency on default supplier choice• Insist on competitive tendering to source supplier• Avoid remuneration by commission (conflict)• Incentivise supplier to broker the best deal
  64. 64. 10. Benchmarking
  65. 65. Are you benchmarking your music procurement? • Post-project auditing • Assessment of fees paid to rights owners • Matching invoices to POs • Assessment of fully executed contracts • Visibility by client-side Legal prior to signature
  66. 66. TOP TIPS #10• Challenge agency on full accountability• Insist on proper due diligence• Spot-check contracts for full execution• Spot-check invoice & PO matching• Insist on removal of agency mark-up on any costs• Share anonymous data with peers
  67. 67. RECAP: 10 things you need to know• Songs vs. Recordings • Out-of-copyright• Types of licence & who to talk to • Risk avoidance• Approval times • Competitive Tendering• Re-records • Procurement Responsibility• Cost-drivers • Benchmarking
  68. 68. Thank Yourichard@resilientmusic.com+44 (0)7976 2022705+44 (0)20 3137 0324richardkirsteinwww.resilientmusic.com@resilientmusicwww.linkedin.com/in/richardkirstein
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