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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Presentations text content in INTRODUCTION TO MUSIC CLEARANCES
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”
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.
Download this presentation
DownloadNote - The PPT/PDF document "INTRODUCTION TO MUSIC CLEARANCES" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in INTRODUCTION TO MUSIC CLEARANCES
INTRODUCTION TO MUSIC CLEARANCES
STEVEGORDONLAW.COM
STEVE@STEVEGORDONLAW.COM
212 924 1166
Slide2BASIC CONCEPTS AND DEFINITIONS
“MUSIC CLEARANCES”
Slide3MUSIC 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)
Slide4EXAMPLES 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”
Slide6NUTS AND BOLTS
MUSICAL COMPOSITIONS (“SONGS”)
VS
MUSIC RECORDINGS (“MASTERS”)
VS
FOOTAGE CONTAINING MUSIC (“FOOTAGE”)
Slide7Slide8SONG
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
Slide9MASTER
Slide10FOOTAGETHE BEATLES ON THE ED SULLIVAN SHOW
SOFA Entertainment, owners of the Ed Sullivan Show, own footage including the recording contained in the footage.
Slide11PUBLIC 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
Slide12PUBLIC 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
Slide13MFN
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.
Slide14PBS
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.)
Slide15DOCS (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
Slide16FEATURE 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)
Slide17TV
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.
Slide19MUSICAL THEATRE
No
advances
4-5% of Gross Box Office
Pro-rated by the number of songs
Denials depending on identity of writer
Slide20ADVERTISING
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
Slide21STAND-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
Slide22APPS
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
Slide23OTHER 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)
Slide24ALTERNATIVES (ESPECIALLY FOR ADS, TV, AND MOVIES)
Music libraries (“stock music”)
Commission/Work for hire
Slide25Slide26Slide27Slide28Slide29Slide30