Transcript introduction to music clearances

INTRODUCTION TO
MUSIC CLEARANCES
STEVEGORDONLAW.COM
[email protected]
212 924 1166
BASIC CONCEPTS
AND DEFINITIONS
“MUSIC CLEARANCES”
MUSIC CLEARANCES
•
•
MUSIC CLEARANCES = SECURING LICENSES TO
USE PRE-EXISTING SONGS AND MUSIC
RECORDINGS FOR VARIOUS PROJECTS
MUSIC CLEARANCES DOES NOT PERTAIN TO
CREATING NEW MUSIC (e.g., HIRING A MUSICIAN
OR A COMPOSER TO CREATE ORIGINAL MUSIC)
EXAMPLES OF MUSIC
CLEARANCE PROJECTS
•
“ELVIS BY THE PRESLEYS” –DOC AIRED ON
NETWORK TV—SECURED LICENSES TO USE
DOZENS OF SONGS RECORDED BY ELVIS
•
“FRONT AND CENTER”—TV CONCERT SERIES ON
PBS FEATURING VARIOUS BLUES ARTISTS—
SECURING LICENSES TO USE THE SONGS THAT
THE ARTISTS PERFORMED IN THE SHOW (e.g.,
BUDDY GUY PLAYED SONGS BY HENDRIX, DYLAN
AND OTHERS)
“MUSIC CLEARANCES” VS
“MUSIC LICENSING”
“MUSIC LICENSING” IS SOMETIMES USED TO
REFER TO MUSIC CLEARANCES, BUT IS ALSO
USED TO REFER TO THE “SYNCH BUSINESS”
NUTS AND BOLTS
MUSICAL COMPOSITIONS (“SONGS”)
VS
MUSIC RECORDINGS (“MASTERS”)
VS
FOOTAGE CONTAINING MUSIC (“FOOTAGE”)
SONG
SPANISH HARLEM
BMI Work #1393049
Songwriter/Composer
Current Affiliation
CAE/IPI #
LEIBER, JERRY
BMI
17713791
SPECTOR, PHILIP
BMI
63684950
Publishers
Current Affiliation
CAE/IPI #
ABKCO MUSIC, INC.
BMI
56388746
SONY/ATV SONGS, LLC BMI
187062752
MASTER
FOOTAGE
THE BEATLES ON THE ED SULLIVAN SHOW
SOFA Entertainment, owners of the Ed Sullivan Show, own footage including the recording
contained in the footage.
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
Copyright Term and the Public Domain in the United States
copyright.cornell.edu/resources/publicdomain.com
PUBLIC DOMAIN/MASTERS
Date of Fixation/Publication
Duration of Copyright
Fixed prior to 15 Feb. 1972
Subject to state statutory and/or
common law protection. Fully enters the
public domain on 15 Feb. 2067
15 Feb. 1972 to 1978
95 years from publication. 2068 at
the earliest
70 years after death of author, or if
work of corporate authorship, the shorter
of 95 years from publication, or 120 years
from creation. 2049 at the earliest
1978 to 1 March 1989
After 1 March 1989
70 years after death of author, or if
work of corporate authorship, the shorter
of 95 years from publication, or 120 years
from creation. 2049 at the earliest
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.
PBS
Special Rules for Public Broadcast Stations are Favorable for Producers
Songs
Section 118 provides for a statutory license subject to rates negotiated by PBS and publishers.
PBS, on the producers’ behalf—with funding from the Corporation for Public Broadcasting—
will pay the federally prescribed fees to the copyright owners.
(But Section 118 does not provide for a statutory license for any other windows including home
video.)
Masters
Section 114(b)
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.
(Again, clearances are required for other windows.)
DOCS (SONGS AND MASTERS)
OPTION 1: Basic Cable or Pay Television
TERRITORY: United States & Canada
Term: 3 Years
Home Video
FEE: $1,000.00 per song
Royalty: 10 cents PBS Pledge only OR 12 cents for
PBS Pledge, commercial DVD and downloads of
full programs.
OPTION 2: Foreign Television
Advance: 2,500 units ($300) with rollovers every
2,500 units thereafter
TERRITORY: World excluding United States & Canada
Term: 3 Years
FEE: $1,000.00 per song
Territory: U.S.
OPTION 3: Internet Streaming Services (eg. Hulu, Netflix)
Term: 7 Years
TERRITORY: World
TERM: 3 Years
FEE: $1,000.00 per song
OPTION 4: Airplane and Closed Circuit
TERRITORY: World
Term: 3 Years
FEE: $500.00 per song
(Offer same terms for concert programs)
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: $2500
With Steps of $2000 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).
(Factors in determining price – Identity of song or master; use, i.e.,
foreground/background or over credits; personalities and approvals)
TV
Producers will seek buy-outs of all rights in perpetuity
Example: $12,000 for excerpts of 2 songs in HBO docudrama
Spectrum:
MTV will offer $0 for songs by new bands to be used in any of their programs
The bands only get ASCAP BMI $
Cable shows will offer a few thousand to a few more thousand for emerging acts
Bruno Mars will cost $25,000 and up
“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.
MUSICAL THEATRE
• No
advances
• 4-5%
of Gross Box Office
• Pro-rated
•
by the number of songs
Denials depending on identity of writer
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
STAND-ALONE DIGITAL PROJECTS
Apps
Simulcasting
Webisodes and web series
Kickstarter videos
Digital sheet music
Lyric sites
Artists Websites
Music Webzines and Blogs
Ringtones and Ringbacks
Video Games
APPS
BEWARE 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 $20,000 "content prep fee" also payable upon execution.
After 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
OTHER STAND-ALONE DIGITAL PROJECTS
Simulcasting (PRO licenses)
Webisodes and web series (Similar to TV)
Kickstarter videos
Digital sheet music (Pennies for downloads)
Lyric sites (LyricFind)
Artists Websites (avoid covers)
Music Webzines and Blogs (Pitchfork - avoid covers)
Ringtones and Ringbacks (26 cents)
Video Games (buy-outs)
ALTERNATIVES
(ESPECIALLY FOR ADS, TV, AND MOVIES)
•
Music libraries (“stock music”)
•
Commission/Work for hire