INTRODUCTION TO MUSIC CLEARANCES PowerPoint Presentation, PPT - DocSlides

INTRODUCTION TO MUSIC CLEARANCES PowerPoint Presentation, PPT - DocSlides

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STEVEGORDONLAW.COM. STEVE@STEVEGORDONLAW.COM. 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. ID: 239953

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Slide1

INTRODUCTION TO MUSIC CLEARANCES

STEVEGORDONLAW.COM

STEVE@STEVEGORDONLAW.COM

212 924 1166

Slide2

BASIC CONCEPTS AND DEFINITIONS

“MUSIC CLEARANCES”

Slide3

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)

Slide4

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)

Slide5

“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”

Slide6

NUTS AND BOLTS

MUSICAL COMPOSITIONS (“SONGS”)

VS

MUSIC RECORDINGS (“MASTERS”)

VS

FOOTAGE CONTAINING MUSIC (“FOOTAGE”)

Slide7

Slide8

SONG

SPANISH HARLEMBMI Work #1393049

Songwriter/ComposerCurrent AffiliationCAE/IPI #LEIBER, JERRYBMI17713791SPECTOR, PHILIPBMI63684950

Publishers

Current Affiliation

CAE/IPI #

ABKCO MUSIC,

INC.

BMI

56388746

SONY/ATV SONGS, LLC

BMI

187062752

Slide9

MASTER

Slide10

FOOTAGETHE BEATLES ON THE ED SULLIVAN SHOW

SOFA Entertainment, owners of the Ed Sullivan Show, own footage including the recording contained in the footage.

Slide11

PUBLIC DOMAIN/SONGS

Works Registered or First Published in the U.S.Date of PublicationConditionsCopyright TermBefore 1923NoneNone. In the public domain due to copyright expiration

Copyright Term

 and the Public Domain in the United

States

copyright

.

cornell

.edu/resources/publicdomain.com

Slide12

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

1978 to 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

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

Slide13

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.

Slide14

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.)

Slide15

DOCS (SONGS AND MASTERS)

OPTION 1: Basic Cable or Pay TelevisionTERRITORY: United States & CanadaTerm: 3 YearsFEE: $1,000.00 per songOPTION 2: Foreign TelevisionTERRITORY: World excluding United States & CanadaTerm: 3 YearsFEE: $1,000.00 per song OPTION 3: Internet Streaming Services (eg. Hulu, Netflix)TERRITORY: WorldTERM: 3 YearsFEE: $1,000.00 per songOPTION 4: Airplane and Closed CircuitTERRITORY: WorldTerm: 3 YearsFEE: $500.00 per song (Offer same terms for concert programs)

Home Video 

Royalty: 10 cents PBS Pledge only OR 12 cents for PBS Pledge, commercial DVD and

downloads

of full programs.

Advance: 2,500 units ($300) with rollovers every 2,500 units thereafter

Territory: U.S.

Term: 7 Years

 

Slide16

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)

Slide17

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

Slide18

“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.

Slide19

MUSICAL THEATRE

No

advances

4-5% of Gross Box Office

Pro-rated by the number of songs

Denials depending on identity of writer

Slide20

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

Slide21

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

Slide22

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

Slide23

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)

Slide24

ALTERNATIVES (ESPECIALLY FOR ADS, TV, AND MOVIES)

Music libraries (“stock music”)

Commission/Work for hire

Slide25

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Slide30


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