class notes

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

13. Foreign Collections
 Subpublishers usually collect
 Or, ASCAP, BMI, & SESAC work through
foreign PROs

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.