Posted by Glen Sears, Editorial Content Manager | December 11, 2015 12:55 pm | No Comments
Publishers take many forms. Large companies, small mom-and-pop shops, or even artists themselves. The thing that remains the same is what a publisher does: ensure songwriters and composers receive payment when their compositions are used commercially.
Throughout the course of being a publisher, you will almost certainly receive at least one Notice of Intent to acquire a “compulsory mechanical license.” If a composition has already been commercially recorded and released to the public, and a party wishes to record and distribute that composition themselves (and they are not the original songwriter), they must obtain a mechanical license from a publisher.
Sometimes, publishers can’t be contacted or won’t agree to a direct deal. In this scenario, Section 115 of the 1976 U.S. Copyright Act allows the party to obtain a “compulsory” mechanical license. This means a composition can be re-recorded and/or distributed without the publisher’s express permission, provided the publisher is paid the standard royalty rates set out by Congress.
The Copyright Act also requires parties acquiring compulsory licenses to provide publishers with a Notice of Intent (NOI). This NOI alerts the publisher that their musical property is being used. Often royalty statements (and payments) will follow thereafter.
Posted by Glen Sears, Editorial Content Manager | July 28, 2015 8:24 am | No Comments
Performing rights organizations, or PROs, are societies responsible for collecting income on behalf of songwriters and music publishers when a song is publicly broadcast. This includes live covers, radio plays, television plays, internet radio services like Pandora, streaming services like Spotify, restaurants or bars, nightclubs, and any other public performance. All these users pay the associated PRO a fee, which the PROs then pay to their registered songwriters.
For a comparison of performing rights organizations, click here.
Given the different processes in digital music, PROs have different distribution schedules. Many times payments will be remitted as much as two quarters following the performance. We’ve taken the liberty of combining all 3 U.S. PRO payment schedules here:
ASCAP, an organization owned and run by its members, is the leading U.S. Performing Rights Organization representing over 540,000 songwriters, composers and music publishers.
|2015 DATES||TYPE||PERFORMANCE PERIOD|
|April 6, 2015||Domestic Writers||July, August & September 2014 (3Q14)|
|May 11, 2015||International Distribution|
|June 19, 2015||Domestic Publishers||October, November & December 2014 (4Q14)|
|July 6, 2015||Domestic Writers||October, November & December 2014 (4Q14)|
|August 10, 2015||International Distribution|
|September 18, 2015||Domestic Publishers||January, February & March 2015 (1Q15)|
|October 5, 2015||Domestic Writers||January, February & March 2015 (1Q15)|
|November 9, 2015||International Distribution|
|December 18, 2015||Domestic Publishers||April, May & June 2015 (2Q15)|
BMI is the bridge between songwriters and the businesses and organizations that want to play their music publicly. As a global leader in music rights management, BMI serves as an advocate for the value of music, representing more than 8.5 million musical works created and owned by more than 650,000 songwriters, composers and music publishers.
|PERFORMANCES BETWEEN||ENTERED BY||PAYMENT|
|October 1, 2013 – March 31, 2014||June 30, 2014||September 2014|
|January 1, 2014 – June 30, 2014||September 30, 2014||January 2015|
|April 1, 2014 – September 30, 2014||December 21, 2014||March 2015|
|July 1, 2014 – December 31, 2014||March 31, 2015||June 2015|
|October 1, 2014 – March 31, 2015||June 30, 2015||September 2015|
SESAC currently licenses the public performances of more than 400,000 songs on behalf of its 30,000 affiliated songwriters, composers and music publishers.
Domestic Royalty Payments
|PERFORMANCES OCCURRING BETWEEN||ARE DISTRIBUTED ON OR AROUND|
|January 1 – March 31 (Qtr 1)||June 30|
|April 1- June 30 (Qtr 2)||September 30|
|July 1 – September 30 (Qtr 3)||December 31|
|October 1 – December 31 (Qtr 4)||March 31 (next year)|
Foreign Royalty Payments
|ROYALTIES RECEIVED FROM FOREIGN||ARE DISTRIBUTED ON OR AROUND|
|January 1 – March 31||September 30|
|April 1- June 30||December 31|
|July 1 – September 30||March 31 (next year)|
|October 1 – December 31||June 30 (next year)|
Monthly Radio Royalty Payments
Have more questions about managing your musical rights and payments? Email us here!
Posted by Glen Sears, Editorial Content Manager | June 19, 2015 11:08 am | No Comments
There you are, on the cusp of planning or building your digital music service. Maybe you’re creating an online radio station. Maybe something as simple as covering a song and posting the video online. Whatever your project, if it contains copyrighted music you need a license. Probably more than one. It’s critical that everyone gets paid each time the play button is pressed.
The question is: what license(s) do you need? Mechanical? Performance? Do I have to negotiate? Is it compulsory? What about synchronization? Where do I go to obtain the licenses?
Posted by Glen Sears, Editorial Content Manager | June 12, 2015 2:10 pm | No Comments
In almost every situation, before you can use a copyrighted piece of musical content, you need to obtain at least one license. This license entitles you to use the work, and also requires you to pay various types of royalties to the copyright owners. In many cases, more than one type of license is required.
In this article, we’ll cover the basics of music licenses, who they are obtained from, and what they are used for.
Master Recording License
Gives the holder of the license the right to use a recording made by someone else. Master recording licenses are controlled directly by the rights holder, usually the artist or record label. A master recording license must be obtained for each song required for a project. These projects typically include things like compilation CDs.
Gives the holder of the license the right to copy or duplicate a song. Mechanical licenses are controlled by the song’s publisher or songwriter(s), sometimes both. A mechanical license entitles the rights holder to mechanical royalties, which are paid every time the song is “reproduced.” Projects that require mechanical licenses typically include CD pressings and cover songs.
Public Performance License
Gives the holder of the license the right to “publicly perform” a work of music. Performance licenses are controlled by the songwriter, or the songwriter’s Performing Rights Organization. These PROs include ASCAP, BMI, SESAC, and others. The term “public performance” includes much more than just live performances. DJ sets, background music in businesses, presentations and meetings, and digital radio & streaming services all require performance licenses.
Gives the holder of the license the right to “synchronize” a musical work to another visual medium, usually video. Sync licenses are controlled by the composer, songwriter, or publisher; sometimes all three. Projects that require sync licenses typically include theme songs for television, video advertising, movie soundtracks, and video games.
Gives the holder of the license the right to reproduce lyrics or sheet music for a musical work. Print licenses are controlled by the song’s publisher or songwriter(s), sometimes both. Projects that require a print license typically include sheet music books and lyrics websites.
Allows an individual or company to obtain a music license without first seeking the rights holder’s consent. In exchange, that individual or company pays the rights holder a set fee for the license called The Statutory Rate. Projects that can receive a compulsory license are jukeboxes, digital broadcasts, Public Broadcasting Service, Cable TV broadcasts of local stations, and mechanical licenses for an album or digital recording (also called a compulsory mechanical license).
Posted by Glen Sears, Editorial Content Manager | May 27, 2015 10:00 am | No Comments
If you’re a part of the music industry at any stage, you’ve almost certainly heard of the Digital Millennium Copyright Act (DMCA). Yet despite being over 15 years old, many industry professionals don’t have a firm grasp on what it means or how it works.
What is the DMCA?
As the internet’s popularity exploded in the late 1990s, media industry executives from Hollywood to Nashville and abroad were searching for a way to protect their intellectual property online. To that end, the World Intellectual Property Organization (WIPO) implemented new copyright policies in 1996 for their member nations to adopt. Their role as the primary rights protection organization on the planet assured that most nations would adopt similar rules.
The United States government convened to create updated legislation that both aligned with the new WIPO treaties and established protections for businesses operating in the new digital world. It was named the Digital Millennium Copyright Act, signed into law by President Clinton in 1998.
While a complicated piece of legislation, the DMCA has three major points of interest for music industry professionals: (1) making circumvention of Digital Rights Management (DRM) illegal, (2) providing ISPs, web hosts, search engines, and other “interactive services” immunity when its users infringe on copyright, and (3) updating compulsory license law to include webcasting.
DRM & Anti-Circumvention
Many pundits credit the anti-circumvention measures in the DMCA (Title I) with the proliferation of technologies like the DVD and the subsequent success of companies like Blockbuster and Netflix. From an industry standpoint anti-circumvention measures made adopting emergent technology much easier. However, some like the Electronic Frontier Foundation now posit that these same anti-circumvention measures are stifling innovation and “have not been used as Congress envisioned.”
Whatever the case may be in regard to anti-circumvention, arguably the far more important part of the DMCA is Title II, which deals with “Safe Harbor” legislation. This section also lays out the groundwork for what we now know as the DMCA Takedown Notice, and its importance in the modern music and technology industries cannot be overstated.
DMCA Safe Harbor
Piracy of copyrighted materials such as master recordings or movies doesn’t just involve the end user and pirate. Transmission of pirated material often involves internet service providers (ISPs), hosting services such as GoDaddy, search engines such as Google, and “interactive services” such as Soundcloud and YouTube — usually without their knowledge.
Safe Harbor provisions protect these companies from legal action related to copyright infringement on their networks, so long as they implement specific takedown procedures. This protection was pivotal to the internet as we know it today. Services like YouTube, lacking these protections, could be buried in direct litigation for material residing on their servers that infringed a rights holders copyright.
To qualify, a service provider must 1) not receive a financial benefit directly attributable to the infringing activity, 2) not be aware of the presence of infringing material or know any facts or circumstances that would make infringing material apparent, and 3) upon receiving notice from copyright owners or their agents, act expeditiously to remove the purported infringing material.
DMCA Takedown Notices
So, what happens when an artist, songwriter, publisher, label, or other rights holder discovers their work improperly hosted on one of these services? The rights holder submits a DMCA Takedown Notice to the service provider requesting the material be removed. That notice, given to the service provider’s listed DMCA agent, sets in motion a series of actions:
- Upon receiving the Takedown Notice, the service provider must remove the work in question and inform the Original Poster (OP) of the action.
- The OP now has the option to counter the claim of copyright infringement by providing notice of their right to use or post the work in question. If they do not, the work stays removed.
- If the OP does submit a counter-notice, the rights holder has 14 days to issue a lawsuit or the material will be reinstated as the OP had posted.
Writing a DMCA Takedown Notice is easy, as this article on WikiHow shows. Similarly, writing a DMCA counter-notice is easy. In both cases, you must identify yourself, the material, your claim to the material, and state both the verity of your claim and your consent to the proper legal jurisdiction.
Takedowns themselves don’t have a set time frame, only “expeditious” action is required. Different service providers have different interpretations of “expeditious,” and the time between a Takedown Notice submission and the actual takedown varies. Some services like Muso will automate this process for you, sending notices, follow-ups, and aiding in the legal process.
If the OP has no counter-claim to the Takedown Notice, the takedown is complete. Certain service providers levy penalties on posters for having successful DMCA Takedowns leveraged against them. Others simply remove the content and move on.
If the OP does have a counter-claim, a protracted legal case is possible but unlikely. In many cases the Takedown Notice is merely an oversight and the counter-claim ends the conversation. If this is the case, the rights holder is then liable to the OP for any damages resulting from improper removal. In the event that the rights dispute does make it to court, cases can sometimes last a year or more.
As the landscape becomes more complex, service providers are seeing their Safe Harbor come into question more often. This has lead some to speculate that Safe Harbor protection is less robust than it used to be. In any event, the DMCA Takedown Notice system remains the primary way for rights holders to remove infringing material from services without penalizing their providers.
Title IV of the DMCA also largely expanded compulsory licensing. Compulsory licensing is a part of copyright law that allows an individual or company to use another’s intellectual property without first seeking the rights holder’s consent. In exchange, that individual or company pays the rights holder a set fee for the license.
Essentially, the rights holder is required to allow another entity to use their copyrighted material, in exchange for royalties at a rate set by Congress (the Statutory Rate). Prior to the DMCA, compulsory licenses were granted for things such as jukeboxes, cable broadcasts, or use on public broadcasting stations.
The DMCA expanded the umbrella of compulsory licensing to include “webcasting.” This opened the door for things like simulcasting of television events, streaming of concerts, and other synchronized licenses to exist as compulsory licenses, rather than be subject to pre-arranged deals. This also removed a large barrier for fledgling fields like podcasting and online radio.
One More Thing: Boats?
Title V of the DMCA added a unique copyright protection: boat hulls. Hull designs were not covered under copyright law because they are useful articles whose form cannot be clearly separated from their function. So if you’re a musician or label owner who also builds boats in their spare time — you have another reason to love the DMCA.
Read the full U.S. Copyright Office Digital Millennium Copyright Act summary here.
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