This article explores some of the key areas to be considered if you are intending to earn money from your own recorded music. The article is purposely focused on independent composers, artists and bands. The topics include copyright issues, royalty collections and how Media Music Now sells music.
More detailed accounts of topics discussed can be found via the links at the end of the article.
Copyright in music exists when you create an original work and write it down or record it. By exploiting our copyright we earn money from our music, it is therefore important to understand what rights we need to retain and how we can charge for them.
In the UK, you do not register copyright, it exists automatically, however, in the event of a dispute you have to prove that you are the creator. This can be done in a number of ways.
For example, if you send a copy of the work to yourself by recorded delivery and keep it un-opened, you have a dated copy of the work as proof.
Licensing: Whenever somebody uses a piece of music, in whatever format, they are paying for a license to use it. The license agreement will be in print or electronic format and will cover all the accepted circumstances of use that have been assigned. The price to the user will vary greatly; depending on where the license is sourced from and what areas the music will be used in.
Exclusivity: If you create a piece of music for somebody who wants to use it exclusively for his or her company, you cannot let anyone else use that piece of music. An exclusive license can limit your income potential; therefore you have to charge much more to make it worth your while.
Exclusivity can be assigned to the client for any period of time. The longer the period the more you can charge. A typical reason for issuing an exclusive assignment to a client might be if they want a theme tune for a TV show.
If you assign non-exclusive rights to your music, you charge much less but sell it to as many people as you like. For example, when you buy a CD to listen to at home, you are effectively buying a non-exclusive license to personally listen to that music. A typical reason for issuing a non-exclusive assignment might be if the client requires a low cost track for a one off corporate presentation. You can re-sell the use of the track as many times as you like.
Synchronisations: A sync fee is charged according to what your music is being used with. For example, it may be combined with presentation slides, a CD ROM or a movie. You or your representative according to usage can negotiate the fee you charge. Generally, the bigger the product the more you can charge.
Mechanical Royalties: This royalty is charged in relation to the number of copies being made. Obviously, somebody including your music in a million copies of a computer game, retailing at £30.00 each, is going to create a significant revenue, whereas a corporate training video that is duplicated 100 times and used for six months, is not going to generate any revenue.
In the UK, you or your representative can negotiate these with the client or you can join MCPS and get them to collect and charge at their rates on your behalf.
Performance Royalties: In the UK, if your music is registered with PRS, they have the sole rights to charge and collect for this.
Performances have to be paid for, whether it is a performance of a live band or a DJ playing recordings to an audience. This is probably the hardest fee to calculate. PRS charge all public venues and broadcasters a license with the revenue distributed to members pro rata. The majority of the pay back to artists is calculated based on statistics and random samples of play lists. It is done this way because the admin burden of calculating every single play of every song would not be practical.
It is a matter of personal judgement whether you use a collecting agency. If you feel that it will benefit you financially; if there is a lot of your music out there and you feel that you can make profit as well as recoup the agency’s fees, then you should look into it further.
It may be worth asking existing members if it has been worthwhile for them.
For example, if your music is played regularly on ITV, then PRS is the way to go. On the other hand, if your music is played in a few local radio stations, it is doubtful that you will recoup your membership fee. This is due to the fact that many stations pay a blanket license, which is divided between artists based on statistics and random samples of play lists. It is inevitable that this system will under-pay some artists while at the same time will over-pay others.
Media Music Now is doing something a little different. We are seeking music that we can license directly to our client base on our Royalty Paid License. Our license provides limited performance usage upfront, along with the synchronisation and mechanical royalties.
Anyone can distribute music through Media Music Now providing his or her music passes our assessment criteria and is not signed to a collecting agency/publisher that exercises sole royalty collecting rights. Details about joining us can be found here
As a composer, you may have all the equipment and skills to create the melodies, do the arrangement, perform the parts, record and produce the piece without the need for external help. In this case, providing the music is original, and all samples are licensed, legally you can exploit all of the copyright areas.
If you intend hiring a studio, instrumentalists and a recording engineer to assist, this can have implications on royalties due. For example, session musicians can work for one off fees, royalties or a combination of both and producers and engineers can often claim royalties for their recording, especially if they have a high profile in the industry or have some creative input into the production.
It is highly advisable to always get agreements and release forms signed by all parties. It is your responsibility to get this everything in writing before the session goes ahead. Without it people involved may be entitled to a share of the income.
If you are in a band or group, the same copyrights apply, however, they may be split between a number of people. In this case, it is strongly advisable to draw up a band agreement if you are in a band, or an agreement of collaboration if you are working together on a one-time piece. This should cover and clarify a multitude of issues from royalties and profit splits to who is responsible for financial losses.
Again, you should do this before work starts because in the eyes of UK law, if no agreement exists, then each band member is entitled to an equal share of any profits and can be held equally liable for any financial losses.
Over the last few years advances in technology and user habits have forced the conventional industry to rethink delivery methods of music. Copyright laws remain constant, but the royalty payment mechanisms need bringing into line with these advances.
The digital age and relatively inexpensive technology, means that the major record labels are less of a requirement for getting a professional recording produced and mastered, however, distribution and promotion is still a major challenge for independent artists, composers and bands.
The mission of Media Music Now is to develop an effective distribution network bridging the gap between talented individuals and professional music users.
Music will be sold on a royalty paid basis ensuring that our team of music makers receive a fair deal and retain copyright ownership.
The next decade will be revolutionary for music makers and music users alike.
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