🎵Songs and Song-writing Unit 12 – Songwriting Business: Rights and Licensing

Key Concepts in Music Rights

• Music rights protect the intellectual property of songwriters, composers, and publishers
• Two main types of music rights: composition rights (lyrics and melody) and sound recording rights (specific recording of a song)
• Composition rights are typically owned by the songwriter or their music publisher
• Sound recording rights are usually controlled by the record label or the artist
• Synchronization rights involve using a song in timed relation to visual media (film, TV, video games, commercials)
• Public performance rights generate royalties when a song is performed publicly (live venues, radio, TV, streaming)
• Mechanical rights involve reproducing and distributing copyrighted musical compositions (physical copies, digital downloads, streaming)
• Print rights cover the right to print and distribute sheet music of a composition

Copyright Basics for Songwriters

• Copyright is a form of intellectual property protection for original works of authorship, including musical compositions
• In most countries, copyright is automatic as soon as a work is created and fixed in a tangible form
• Copyright owners have exclusive rights to reproduce, distribute, perform, display, and create derivative works
• Copyright duration varies by country, but generally lasts for the life of the author plus 70 years
• Registering a copyright with the national copyright office provides additional legal benefits
  • Establishes a public record of ownership
  • Required to file an infringement lawsuit in some countries
• Copyright can be transferred or licensed to others through contracts and agreements
• Fair use allows limited use of copyrighted material without permission for purposes like criticism, commentary, news reporting, teaching, and research

Publishing and Royalties Explained

• Music publishing involves the exploitation and management of composition copyrights
• Publishers often handle tasks like pitching songs, collecting royalties, and negotiating licenses
• Songwriters typically assign a portion of their composition rights to a publisher in exchange for these services
• Royalties are payments made to copyright owners for the use of their works
• Performance royalties are generated when a song is performed publicly (live, radio, TV, streaming)
  • Collected and distributed by Performing Rights Organizations (PROs)
• Mechanical royalties are paid when a song is reproduced and distributed (physical copies, digital downloads, streaming)
  • Rate is set by law or negotiated through contracts
• Synchronization fees are paid upfront for using a song in timed relation to visual media (film, TV, video games, commercials)
• Print music royalties are generated from the sale of sheet music

Licensing Types and Opportunities

• Licensing allows others to use a copyrighted work in exchange for a fee or royalty
• Synchronization licenses permit the use of a song in timed relation to visual media (film, TV, video games, commercials)
  • Fees are negotiated between the licensee and the copyright owners (songwriter, publisher, record label)
• Master use licenses grant the right to use a specific recording of a song
  • Typically controlled by the record label or artist
• Mechanical licenses allow for the reproduction and distribution of a musical composition (physical copies, digital downloads, streaming)
• Public performance licenses permit the use of a song in live performances, radio, TV, and streaming
  • Obtained through Performing Rights Organizations (PROs)
• Print licenses grant the right to print and distribute sheet music of a composition
• Sampling licenses are needed when using a portion of an existing recording in a new song

Performing Rights Organizations (PROs)

• PROs are entities that collect and distribute performance royalties on behalf of songwriters, composers, and publishers
• Major PROs in the United States: ASCAP, BMI, SESAC
• PROs issue licenses to venues, broadcasters, and streaming platforms for the right to perform copyrighted music publicly
• Songwriters and publishers register their works with a PRO to receive performance royalties
• PROs track music usage, collect license fees, and distribute royalties to their members
• PROs also advocate for the rights of songwriters and publishers in legal and legislative matters
• International PROs have reciprocal agreements to collect and exchange royalties across borders

Digital Streaming and Mechanical Rights

• Streaming has become a dominant form of music consumption, impacting the licensing and royalty landscape
• Interactive streaming services (Spotify, Apple Music) require both performance and mechanical licenses
  • Performance royalties are collected and distributed by PROs
  • Mechanical royalties are paid to publishers and songwriters, often through agencies like Harry Fox Agency (HFA)
• Non-interactive streaming (Pandora, iHeartRadio) is treated as a public performance, requiring only performance licenses
• Mechanical royalty rates for streaming are determined by law or through negotiations with publishers
• Digital Service Providers (DSPs) like Spotify and Apple Music pay a portion of their revenue to copyright owners
• Streaming has led to increased data tracking and more complex royalty calculations and distributions

Contracts and Negotiations

• Music industry contracts outline the rights, obligations, and compensation of the parties involved
• Publishing contracts establish the relationship between a songwriter and a music publisher
  • Defines the ownership split of the composition rights and the services provided by the publisher
• Recording contracts are agreements between artists and record labels for the creation and exploitation of sound recordings
• Producer agreements outline the terms of a producer's involvement in the creation of a recording
• Licensing agreements grant specific rights to use a copyrighted work in exchange for a fee or royalty
• Synchronization licenses are negotiated between the licensee and the copyright owners (songwriter, publisher, record label)
• Advances are upfront payments provided to creators (songwriters, artists, producers) against future royalties
• Royalty splits determine how income from a song or recording is divided among the various contributors

Emerging Trends in Music Licensing

• Music licensing is evolving alongside technological advancements and changes in music consumption habits
• Micro-licensing platforms (Songtradr, Musicbed) are simplifying the process of licensing music for content creators
• Blockchain technology is being explored as a means to improve transparency, data tracking, and royalty distributions
• Artificial Intelligence (AI) is being used to analyze music data and assist with tasks like music discovery and sync placements
• User-generated content (UGC) platforms like YouTube and TikTok are creating new licensing challenges and opportunities
• Direct licensing deals between publishers, labels, and streaming platforms are becoming more common
• Global music copyright initiatives (CISAC, WIPO) are working to streamline licensing and royalty processes across borders
• The rise of remote collaboration is leading to more complex ownership and royalty splits for songs and recordings