Licensing

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					Licensing

The Transferring
   of Rights
How Do Songwriters Make
        Money?

            Write Songs
             (create copyrights)




            Exploit
             Copyrights
    Exploiting Copyrights
 Q: What does it mean to exploiting copyrights?

 A: Marketing and licensing them
 Q: Who should do it? The Writer?
 A: The Publisher (is supposed to)
 Q: How is this accomplished?
 A: Contracts and Transfers of Rights and song-
   plugging opportunities
 Transferring Copyrights
 Not A Sale

 SSCA - Single Song Contract Agreement
    States royalty rates and other terms

 Publisher Controls ALL ASSIGNED RIGHTS

 Publisher Transfers Rights to Others Through
   Licensing
  Transfer of Copyright
       Ownership

 A ‘Transfer of Copyright Ownership’ is an
   assignment or exclusive license of a
   copyright or of any of the exclusive rights
   comprised in a copyright.
Three Types of Licenses
           Mechanical
            License
 “Mechanicals” refers to the piano roles and
   recording cylinders and disks (1909)
 A Mechanical License is the copyright owner’s
   permission to make copies or phonorecords
 The copyright owner may withhold the First
   Mechanical License
   Statutory Mechanical
    Royalty Rate (SMRR)
 Pay Schedule is set by Law
   revised every 2 years
   $0.0175/minute/unit or $0.091/ song /
     unit – whichever is greater 2006-2012
   ALWAYS ROUNDED UP
      5:02 = 6 minutes
   Label pays per song per unit
    No Mechanicals
       Paid On
 Cut Outs, or Promo Copies
 “Free Goods” used in promotion
 “Free Goods” “Sold” to Record
  Stores   >
Where the Money Goes
Where the Money Goes
Where the Money Goes
What the artist gets from
       Ringtones
 Sale price -       $1.99

 Label gross -      $1.20

 Label net -        $0.80

 Artist Royalty Rate – 14%

 Artist Royalty - $0.112 per ringtone sold

 Emerging Tech. Reduction– 25%

 Net to Artist -    $0.084 per ringtone sold
    CONTROLLED COMPOSITION
            CLAUSE

   Applies to Artist/Writers

   Required in most Artist/Writer Deals

   Artist/writer Paid 50 to 75% of the Current
    Statutory Mechanical Royalty Rate

   Applies to song co-written by Artist, too

   Minimum Rate - Even if Song is Longer
 CONTROLLED COMPOSITION
         CLAUSE

 10 Song Budget per Album
 Artist/Writer Pays Overage
 Per Song Royalty Reduced
  from $0.091 to $0.06825
 Maximum Allowed per Album:
  $0.6825 (10 X $.091 X .075)   >
Harry Fox Agency
 Harry Fox first department administrator for NMPA

 Later restructured as a separate agency

 Fox Board answers to NMPA

 Any publisher can use the Agency

 NMPA members not required to use the Harry Fox
   Agency

 FEE - 3 to 5% (based on scale)>
     Sync Licenses
 License covers audio recording when it is
   coordinated with another medium

 Audio synchronized with film, video, TV, DVD, CD-
   ROM, etc.

 Sync licenses are totally negotiable

 There is no statutory rate or fee for sync licensing

 Sync licenses can run from free to millions of dollars

 No standard – only what the market will bear
     Sync Licenses
 Music videos require sync license

 Broadcaster pays performance fees, not sync license

 Soundtrack albums are phonorecords and do not
   require sync license

 Music used in TV commercials require sync license

				
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