INTRODUCTION TO MUSIC CLEARANCES STEVEGORDONLAW.COM

Size: px

Start display at page:

Download "INTRODUCTION TO MUSIC CLEARANCES STEVEGORDONLAW.COM"

Eustacia Foster
5 years ago
Views:

1 INTRODUCTION TO MUSIC CLEARANCES STEVEGORDONLAW.COM

2 BASIC CONCEPTS AND DEFINITIONS MUSIC CLEARANCES

3 MUSIC CLEARANCES CLEARANCES = SECURING LICENSES TO USE PRE-EXISTING SONGS AND MUSIC RECORDINGS FOR VARIOUS PROJECTS MUSIC MUSIC CLEARANCES DOES NOT PERTAIN TO CREATING NEW MUSIC (e.g., HIRING A MUSICIAN OR A COMPOSER TO CREATE ORIGINAL MUSIC)

4 EXAMPLES OF MUSIC CLEARANCE PROJECTS ELVIS BY THE PRESLEYS -- DOC AIRED ON NETWORK TV. SECURED LICENSES TO USE DOZENS OF SONGS RECORDED BY ELVIS. FENDER DIGITAL LEARNING -- CLEARED HUNDREDS OF SONGS FOR STAND-ALONE INTERNET VOD SERVICE THE GLORIOUS WORKS OF G.F. ZWAEN -- CLEARED SONGS AND MASTERS FOR THIS INDIE FEATURE MERCY STREET TELEVISION SERIES -- CLEARED SHERYL CROW SONG FOR PROMO FRONT AND CENTER -- TV CONCERT SERIES ON PBS FEATURING VARIOUS BLUES ARTISTS. SECURED LICENSES TO USE THE SONGS THAT THE ARTISTS PERFORMED IN THE SHOW (e.g., BUDDY GUY PLAYED SONGS BY HENDRIX, DYLAN AND OTHERS) NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE -- CLEARED OVER 150 SONGS AND MASTERS FOR MORE THAN 130 SHORT FILMS TO BE PLAYED AT THIS NEW MUSEUM SOUNDTOYS -- CLEARED SONGS FOR TOY ANIMAL COLLECTION ROCK THE PERFORMANCE CLEARED HUNDREDS OF SONGS FOR DIGITAL SHEET MUSIC SALES

5 MUSIC CLEARANCES VS MUSIC LICENSING MUSIC LICENSING IS SOMETIMES USED TO REFER TO MUSIC CLEARANCES, BUT IS ALSO USED TO REFER TO THE SYNC BUSINESS MUSIC LICENSING IS ALSO USED TO REFER TO PITCHING PRE-RECORDED MUSIC TO PRODUCERS AND MUSIC SUPERVISORS FOR PLACEMENTS

6 The Basics MUSICAL COMPOSITIONS ( SONGS ) vs. MUSIC RECORDINGS ( MASTERS ) vs. FOOTAGE CONTAINING MUSIC ( FOOTAGE )

7 SONGS vs. MASTERS

8 SONGS (aka Musical Compositions SPANISH HARLEM BMI Work # Songwriter/Composer Current Affiliation CAE/IPI # LEIBER, JERRY BMI SPECTOR, PHILIP BMI Publishers Current Affiliation CAE/IPI # ABKCO MUSIC, INC. BMI SONY/ATV SONGS, LLC BMI The writers of this song, Leiber and Phil Spector, are represented by two different publishers. Consent to use this song for any project is required from the publishers, although they may have gain approval from the writers -- as a matter of contract or courtesy.

9 MASTER (aka Sound Recording ) SONY MUSIC OWNS COPYRIGHT IN THE MASTER

10 FOOTAGE THE BEATLES ON THE ED SULLIVAN SHOW SOFA Entertainment, owners of the Ed Sullivan Show, controls exclusive rights in the footage including the recordings contained in each episode.

11 PUBLIC DOMAIN: SONGS Works Registered or First Published in the U.S. Date of Publication Conditions Before 1923 None Copyright Term None. In the public domain due to copyright expiration Producers can use public domain songs without permission

12 PUBLIC DOMAIN: MASTERS Date of Fixation/Publication Duration of Copyright Fixed prior to 15 Feb Subject to state statutory and/or common law protection. Fully enters the public domain on 15 Feb Feb to years from publication at the earliest 1978 to 1 March years after death of author, or if work of corporate authorship, the shorter of 95 years from publication, or 120 years from creation at the earliest 70 years after death of author, or if work of corporate authorship, the shorter of 95 years from publication, or 120 Sound Recording Act of 1972 extended the term of copyright for sound years from creation at the earliest recordings for a very long time. After 1 March 1989

13 MFN Most Favored Nations: In the event Licensee grants more favorable terms including, without limitation, additional consideration in any form, to the co-publisher(s) of the Composition or the party granting rights to use the master recording thereof (if applicable) in the Motion Picture, Licensee shall notify Licensor thereof, and this Agreement shall be deemed amended to incorporate same as of the date when such higher fee is paid or such more favorable terms are granted to such third party, and to continue for the duration of the period which such more favorable terms are granted.

14 Special Rules for Public Broadcast Stations are Favorable for Producers SONGS Section 118 provides for a compulsory license subject to rates negotiated by PBS and publishers. PBS pays that rate on behalf of producers of programs airing on public broadcasting stations. But this only applies to transmission by PBS stations, and not any other media such as home video. MASTERS Section 114(b) exempts sound recordings for PBS stations: The exclusive rights of the owner of copyright in a sound recording... do not apply to sound recordings included in educational television and radio programs... distributed or transmitted by or through public broadcasting entities... Provided that copies or phonorecords of said programs are not commercially distributed by or through public broadcasting entities to the general public. Permission and payment is required for other media.

15 STANDARD TERMS AND FEES Documentaries Feature Movies TV Shows Musical Theatre Ad Campaigns Stand Alone Digital Projects

16 OPTION 1: Basic Cable or Pay Television TERRITORY: United States & Canada DOCUMENTARY Standard Terms Home Video Royalty: 12 cents per song and master for DVD and permanent downloads. Advance: 2,500 units ($300) with rollovers every 2,500 units thereafter Term: 3 Years FEE: $1, per song OPTION 2: Foreign Television TERRITORY: World excluding United States & Canada Term: 3 Years Territory: U.S. FEE: $1, per song Term: 7 Years OPTION 3: Internet Streaming Services (eg. Hulu, Netflix) TERRITORY: World TERM: 3 Years FEE: $1, per song OPTION 4: Airplane and Closed Circuit TERRITORY: World Term: 3 Years FEE: $ per song (Offer same terms for concert programs)

17 FEATURE MOVIES (INDIE MOVIE) RIGHTS: Film Festival/One (1) year/ World $500 OPTION: All Media Broad Rights Step Deal: Media: All media now known or hereafter devised Initial Fee: $ With Steps of $ at $3M, $5M, $8M, $10M, $12M and $15M worldwide gross receipts based in ALL forms of exploitation (including but not limited to theatrical, all videograms/dvd, all TV media, and Internet streaming and downloading). (Principle factors determining price: Identity of song or master; use, e.g., foreground/background or over credits; production budget)

18 TV Producers will seek buy-outs of all rights in perpetuity Example: $12,000 for excerpts of 2 songs in HBO docudrama Spectrum of fees: MTV generally offers $0 for songs by new bands to be used in any of their programs; artist only receive PRO royalties, if any Cable For shows will offer a few thousand to a few more thousand for emerging acts stars such as Bruno Mars, fee may be $25,000 and up

19 TOMORROW NEVER KNOWS IN MAD MEN In 2012 Lionsgate, the studio that produces Mad Men for AMC paid about $250,000 for the recording and publishing rights for the Beatles Tomorrow Never Knows. "Tomorrow Never Knows" was used at the end of an episode in Season 5 of Mad Men.

20 MUSICAL THEATRE No advances 4-5% of Gross Box Office Pro-rated by the number of songs Denials depending on identity of writer

21 ADVERTISING Price: $0 for current hit song in a promo for homeless dog $5,000 for Billy Ocean hit from 80 s for ten days in five small markets for commercial for car show $375,000 for song and $375,000 for master for national TV commercial for life insurance Other terms: Duration usually no longer than a year; Media on-line in addition to TV may cost extra; Identity of song obscure songs may be cheap Save 50% by re-recording

22 STAND-ALONE DIGITAL PROJECTS EXAMPLES: VOD services: Flat fee for term of years Kickstarter Digital and other crowd sourcing sites: $500 sheet music: Royalty and advance Music Apps: Huge advance for major label music Video Games: Flat Fee buy out

23 MUSIC BASED APP BLANKET LICENSES FROM MAJORS: Major Label 1: Advance: $50,000 advance Minimum guarantee: $250,000 for one year. Royalty: 70% of gross revenues deriving from that label's masters. Territory: U.S. only Major Label 2: Advance $350,000 advance payable upon execution Additional After $20,000 "content prep fee" also payable upon execution. the first year $30,000 would be due at the beginning of each month. Royalty: 50% of revenues from that label's masters. Territory US Only Publishing included

24 ALTERNATIVE TO LICENSING FROM MUSIC PUBLISHERS and LABELS Indie Music Music libraries ( stock music ) Commission/Work for hire

25 OTHER STAND-ALONE DIGITAL PROJECTS Simulcasting Webisodes Lyric (PRO licenses) and web series (Similar to TV) sites (LyricFind) Artists Websites (avoid covers) Music Webzines and Blogs (Pitchfork - avoid covers) Ringtones and Ringbacks (26 cents)

26 National Museum of African American History and Culture Cleared over 150 songs and masters for more than 130 short movies

AGREEMENT RELATING TO THE USE OF LITERARY AND DRAMATIC WORKS FOR RADIO AS EXTRACTS/POEM

AGREEMENT RELATING TO THE USE OF LITERARY AND DRAMATIC WORKS FOR RADIO AS EXTRACTS/POEM BRITISH BROADCASTING CORPORATION 4th Floor Brock House 19 Langham Street London W1A 1AA Payment Enquiries:- Phone 0800 098 8106 Contract Ref.: Req. Ref.: Date: Contributor(s): Title of Series: Title of