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Music Publishing & Copyright Administration In The Internet Age

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The following presentation is from my lecture, "Music Publishing & Copyright Administration In The Internet Age" at the Independent Music Conference on October 25th, 2014 at SAE Institute in Los Angeles.

Conference Description: This workshop will cover basic music publishing and copyright administration from the perspective of a DIY independent artist. You will learn about self-publishing in the Internet age and takeaway resources for music placement, music licensing, and royalty collection around the world. Attendees should leave with an understanding of synchronization rights, mechanical rights, and performance rights in the United States.

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Music Publishing & Copyright Administration In The Internet Age

  1. 1. Intellectual Property (Song Development) Copyright Protection (Song Created) Music Publishing (Song Monetized) Music Publishing & Copyright Administration In The Internet Age Lecture by Dae Bogan | Dae Bogan Music, LLC
  2. 2. 2 About Dae Bogan 3rd Generation Music Industry Professor of Entertainment Marketing & Cross Promotions at Emerson College Master of Arts Candidate in Music Industry Administration at CSUN Music Industry Professional, Consultant, Educator, Speaker, Pundit at DaeBoganMusic.com
  3. 3. • Intellectual Property • Copyright Administration • Music Publishing • Music & The Internet • Self-Publishing Tool Kit • Q&A 3 Overview
  4. 4. Intellectual Property 4
  5. 5. Music as Intellectual Property Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. 5
  6. 6. Industrial Property • patents for inventions, • trademarks, • industrial designs, and • geographical indications Copyright • Literary works (such as novels, poems and plays), • films, • music, • artistic works (e.g., drawings, paintings, photographs and sculptures), and • architectural design. 6 Two Categories of IP
  7. 7. Industrial Property (Trademark) Copyright (Music) 7 IP in the Music Industry KISS logo is trademarked KISS songs are copyrighted
  8. 8. 8 From IP to Copyright Protect your musical works (IP) with copyright protection.
  9. 9. Copyright Administration 9
  10. 10. • Copyright is a form of legal protection provided by the laws of the United States to the creators of intellectual property. (U.S. Copyright Act of 1976) • This protection is available to both published and unpublished works. • Copyright protection is only available to original works of authorship that are fixed in a tangible form such as a copy or phonorecord. – Ideas can not be copyrighted 10 Copyright Basics
  11. 11. Copyright protection grants six exclusive rights: 1. The right to make copies and duplicate your CD (reproduction) 2. The right to prepare derivative works (alternate versions, new arrangements, adaptations) (derivative works) 3. The right to distribute your music (distribution) 4. The right to perform the songs publicly (public performance) 5. The right to display the product publicly (public display) 6. The right to perform publicly via digital audio transmission (digital public performance) 11 Six Exclusive Rights
  12. 12. • The reproduction right is perhaps the most important right granted by the Copyright Act. • Under this right, no one other than the copyright owner may make any reproductions or copies of the work. • It is not necessary that the entire original work be copied for an infringement of the reproduction right to occur. All that is necessary is that the copying be "substantial and material.“ • MUSIC INDUSTRY EXAMPLE: Making copies of a master CD or sampling a song. 12 #1 Right to Reproduction
  13. 13. • The right to make a derivative work overlaps somewhat with the reproduction right. • According to the Copyright Act, a derivative work is a work based upon one or more preexisting works. • A derivative work usually involves a type of transformation. • MUSIC INDUSTRY EXAMPLE: Making a cover song or remixing a song. 13 #2 Right to Derivative Works
  14. 14. • The distribution right grants to the copyright holder the exclusive right to make a work available to the public by sale, rental, lease, or lending. • This right allows the copyright holder to prevent the distribution of unauthorized copies of a work. • In addition, the right allows the copyright holder to control the first distribution of a particular authorized copy. – However, the distribution right is limited by the "first sale doctrine", which states that after the first sale or distribution of a copy, the copyright holder can no longer control what happens to that copy. • Congress has enacted several limitations to the first sale doctrine, including a prohibition on the rental of software and phonorecords. • MUSIC INDUSTRY EXAMPLE: Distributing copies of a duplicated CD via sale, rental, or no monetary exchange. 14 #3 Right to Distribution
  15. 15. • Under the public performance right, a copyright holder is allowed to control when the work is performed "publicly." • A performance is considered "public" when the work is performed in a "place open to the public or at a place where a substantial number of persons outside of a normal circle of a family and its social acquaintances are gathered." • A performance is also considered to be public if it is transmitted to multiple locations, such as through television and radio. • MUSIC INDUSTRY EXAMPLE: A band performing a song at a venue, a singer-songwriter covering a song on Hollywood Blvd., or songs heard on over-head speakers in coffee shops. 15 #4 Right to Public Performance
  16. 16. • The copyright owner holds the exclusive right to publicly display protected works. • As defined by the Copyright Act, displaying a work means showing a copy of the work, directly or via some device or process. • Such a display is considered public in one of four situations: 1.when it is at a place open to the public; 2. when it is at a place with a group of people larger than a gathering of family or the normal circle of friends; 3. when it is transmitted to a place open to the public or a group of people larger than a gather of family or the normal circle of friends; or 4.where it is transmitted to the public (i.e., television and radio broadcasts). • For the music industry, public display and public performance is similar. • MUSIC INDUSTRY EXAMPLE: Playing a song on the radio. 16 #5 Right to Public Display
  17. 17. • The digital public performance right stems from the Digital Performance in Sound Recording Act of 1995 (DPRA). • Gives owners of a sound recording (e.g. a record label) the exclusive right to perform the copyrighted work publicly by means of a digital audio transmissions. • MUSIC INDUSTRY EXAMPLE: Music performed on Pandora and iTunes Radio 17 #6 Right to Digital Public Performance
  18. 18. 18 Music Copyrights Applied #1 Reproduction #2 Distribution #3 Derivative Works #4 Public Performance #5 Public Display #6 Digital Public Performance
  19. 19. • Copyright is secured automatically when the work is created and fixed in a tangible form, such as the first time it is written or recorded. No other action is required to secure copyright protection – neither publication, registration nor other action in the Copyright Office (although registration is recommended). • The term of copyright protection lasts from the moment of its creation until 70 years after the author’s death. 19 Copyright Protection & Term
  20. 20. • Copyright registration is a legal formality intended to make a public record of the basic facts of a particular copyright. • Copyright registration is not required, however, the benefits of registration include: – Public record of the copyrighted work, – Ability to file a copyright infringement claim in court, – Prima facie evidence in court of the validity of the copyright and of the facts stated in the certificate, – Statutory damages and attorney fees for copyright infringement, – Registration with the U.S. Customs Service 20 Copyright Registration
  21. 21. • Register online with the eCO Online System at www.copyright.gov/eco. • Complete the application: – Complete Form SR (Sound Recording) to get protection for both the recorded performance and the underlying musical composition. – Complete Form PA (Performing Arts) to get protection for only the musical composition, not the recorded performance. • Singer-Songwriter: If you have cover songs on your album, you’ll exclude those under the "Limitation of Claim" section. • Pay the $35 fee (single work or collection) • Mail two copies of the CD no later than 3 months after publication to the Copyright Office. • Complete details at http://www.copyright.gov/circs/circ01.pdf 21 Copyright Registration Process
  22. 22. 22 Two Music Copyrights C P Copyright for musical work “composition” Copyright for sound recording “master” **Digital Public Performance right applies
  23. 23. C C P P Sony Music Entertainment 23 Two Music Copyrights Diane Warren wrote “You’ll Never Stand Alone” and owns the (C) copyright in the musical work (“Songwriter”) Whitney Houston performed the song on album “My Love Is Your Love” but owned no rights (“Recording Artist”) Now RCA Records / The record was recorded and released by Arista Records, which owned the (P) copyright in the sound recording
  24. 24. 24 Two Music Copyrights C C P P John Legend wrote “All of Me” and owns the(C) copyright in the musical work John Legend performed the song and owns the (C) copyright (“Singer-Songwriter”) GOOD Music / Columbia Records The record was released by GOOD Music, which owns the (P) copyright in the sound recording
  25. 25. Music Publishing 25
  26. 26. “Publication” is the distribution of copies or phonorecords of a work to the public by sale or other transfer of ownership, or by rental, lease, or lending. The offering to distribute copies or phonorecords to a group of persons for purposes of further distribution, public performance, or public display constitutes publication. A public performance or display of a work does not of itself constitute publication. 26 Publication by Law
  27. 27. • The essential purpose of a music publisher is to administer, exploit, and collect royalties for its copyright properties. • Administration entails – the filing of a notice of copyright with the U.S. Copyright Office, – the issuing of licenses, – collecting of royalties, and – paying writers and co-publishers their share of the proceeds. • Exploitation involves – getting artists to record your songs, and – getting your songs used in films, television, radio and TV commercials, etc. • Publishers also police the use of copyrighted works and take action to prevent or stop infringement 27 The Role of a Music Publisher
  28. 28. • Public Performance License • Mechanical License • Synchronization License • Transcription License • Print Rights • Foreign Monies • Administration and Registration of Copyrights • Song Plugging • Translations • Obtaining a Record Deal 28 Publisher Administration
  29. 29. • Self-Publishing – Writer owns 100% of publishing • Co-Publishing Agreement – Writer owns 50% of publishing • Single Song & Exclusive Songwriter Agreement – Writer owns 0% of publishing • Administration Agreement – Writer owns 100% of publishing and publisher gets an administration fee of 10-25% of income earned. 29 Publishing Agreement Types
  30. 30. • A publisher in a foreign territory who collects your publishing royalties and performs some publisher duties for a fee. • Many countries overseas have government entities to collect performance and mechanical royalties. 30 Foreign Sub-Publishing
  31. 31. • Songs must be registered with a performing rights society to collect performance royalties. • ASCAP, BMI, and SESAC are the three major societies in the United States. • ASCAP and BMI are non-profit and easy to join • SESAC is for-profit and selective. • A publisher can join all three societies. • A writer can join only one society. • SoundExchange collects digital performance royalties for the owners of sound recordings. – 50% paid to the sound recording owner, 45% to the artist, and 5% to the backup musicians and session players (paid to AFM) 31 Performing Rights Societies
  32. 32. 32 Publishing Splits: Single Song Agreement & Exclusive Songwriter Agreement Publishing WRITER’S SHARE 50% PUBLISHER’S SHARE 50%
  33. 33. Publishing Splits: Co-Publishing Agreement 33 Publishing WRITER’S SHARE 50% PUBLISHER’S SHARE 25% WRITER’S PUBLISHING SHARE 25%
  34. 34. 34 Royalty Collection License Issued By Royalty Collection Paid To Public Performance ASCAP, BMI, SESAC ASCAP, BMI, SESAC Publisher and Writer Mechanical Harry Fox Agency Harry Fox Agency Publisher Synchronization & Transcription Publisher Publisher Publisher Print Publisher Publisher Publisher Foreign Licenses Publisher or Sub- Publisher Foreign Public Performance & Mechanical Societies Publisher Digital Public Performance SoundExchange SoundExchange Record Label (50%), Artist (45%), Musicians (5%)
  35. 35. Music & The Internet 35
  36. 36. • U.S. Copyright Act in general • Digital Millennium Copyright Act of 1998 (DMCA) – Criminalizing circumventing digital rights management that controls access to copyrighted materials • Online Copyright Infringement Liability Limitation Act (OCILLA) – Also known as the “Safe Harbor” provision, limits liability of Internet service provides and intermediaries against copyright infringement 36 U.S. Regulations of Music & The Internet
  37. 37. • Video Sharing – YouTube, Vevo, Vimeo • Internet Radio – Pandora, Spotify, iTunes Radio, Beats Music, Rdio, Grooveshark, Rhapsody, Tunein, iHeartRadio, Jango • Music Websites – MTV.com, Songza, Yahoo! Music, Myspace, last.fm, AllMusic • Music Social Media – SoundCloud, Reverbnation • Music Lockers – Amazon Cloud, Google Play Music, iTunes in the Cloud, Style Jukebox, AudioBox • Music Blogs 37 Types Of Internet Music Platforms
  38. 38. • Performance Income – All Internet platforms that use music must pay public performance fees to ASCAP, BMI, and SESAC. • Sound Recording/Master Use Income – Interactive (on-demand) services pay a royalty for the licensed use of a sound recording. (e.g. Beats, Rhapsody, Rdio, Spotify) • Mechanical Income – Digital sales earn mechanical income equal to 9.1 cent per track under 5 min. (Amazon, iTunes, Google Play) – Interactive services pay streaming mechanical fees to a mechanical agent such as Harry Fox Agency, Music Reports, or SongTrust. (e.g. Spotify, Rhapsody, YouTube) • Digital Performance Income – Non-interactive services must pay digital public performance fees to SoundExchange. (e.g. Pandora, SiriusXM, NPR Streaming) 38 Publishing Income from Internet
  39. 39. • User Generated Content – User generated content is when users upload videos on YouTube containing a copyrighted song (e.g. background music, recording of a live performance, lyric video). – YouTube Content ID system detects copyrighted works in UGC and matches it to works registered in the system to create claims against the UGC and serve advertisements on the content. – The song must be registered with YouTube Content ID • Cover Songs – When someone creates a cover song and uploads a video to YouTube, the same UGC process applies. – When the song is released digitally for sale, then mechanical royalties must be paid for streams and sales. • YouTube Partner Program – Channel owners can earn income from ads served in and around videos on your channel. Music videos can be monetized this way. 39 Additional Income from Internet
  40. 40. Self-Publishing Tool Kit 40
  41. 41. • Copyright – eCO Online System • Publishing Registrations – Composition: Performing Rights Society (ASCAP/BMI/SESAC) – Sound Recording: SoundExchange • Music Tracking – Nielsen BDS (Broadcast Data Systems) – tracks radio airplay and music video channels; powers Billboard charts – Clear Channel’s MediaBase – tracks radio airplay with real people; powers Radio & Records charts – TuneSat – Tracks music used on TV and web • Music Sales Reporting – Nielsen SoundScan – tracks music and video sales at retail – RIAA – RIAA certifies sales Gold, Platinum, Multi-Platinum 41 Registrations
  42. 42. • Synch Licensors (Marketing/Film/TV) – Music Dealers – RumbleFish – YouLicense – Pump Audio • Production Music Libraries (Film/TV) – Omni Music – Extreme Music – APM Music – FirstCom Music • Self Licensing – License Quote 42 Licensing
  43. 43. • Synch Licensors (Marketing/Film/TV) – Music Dealers – RumbleFish – YouLicense – Pump Audio • Production Music Libraries (Film/TV) – Omni Music – Extreme Music – APM Music – FirstCom Music • Self Licensing – License Quote 43 Licensing
  44. 44. 44 Audiam | YouTube Collection
  45. 45. 45 SongTrust | Pub Administration
  46. 46. 46 That’s all folks! More music industry insights for the DIY indie artist at www.DaeBoganMusic.com

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