Now that you have an understanding of the basics, explained in Part 1, you are now ready to look at the options for licensing music.

Mainstream Music

It is possible to use mainstream music, but it is costly and often a convoluted process. The reason for this is that there are many people in the royalty chain wanting a slice of the revenue. Quite often you will have to negotiate a license with publishers, record labels, royalty collecting societies and so on. It is not a trivial task and you will need deep pockets!

Royalty Free Music

This can be the most affordable route by far, however, you will be limited to original music and you will need to find a good source of quality Royalty Free music. This should not be too hard to do on the web but you will find that there is a lot of poor quality music out there.

The biggest issue with Royalty Free music is the license agreement itself. There is no standard agreement and for this reason they vary from company to company.

You need to make sure that the mechanical rights allow you to make the right number of duplications for your project. Many licenses have small print that limits the number of copies you can make before you have to pay additional fees, sometimes known as a ‘mass duplication license’.

Another big issue is the performance royalty. Most Royalty Free music does not cover this and you will be expected to fill in cue sheets for use in broadcast. What many people overlook is the fact that a broadcast is not just TV or Radio. It is many things including podcasts, websites and flash use.

If the small print states that cue sheets need to be filled in for broadcast, this implies that the music is registered with a performance collecting society who collects revenue for broadcast and performances. This can include exhibitions, vending machine music, on hold music and music in power point presentations, websites and flash. Hardly straight forward!

There are some Royalty Free music sellers that claim their music is 100% Royalty Free. This is true when all aspects of royalties are covered in the license agreement. With 100% Royalty Free you should be completely covered by a one-time payment. But do check the small print… any mention of filling in cue sheets means that the music is not 100% cleared for a number of uses, as described above.

Commissioning a Composer

Commissioning a composer to write a custom piece of music for your project can have two advantages. Firstly, the music will be created with your project in mind and should be a tailored fit. Secondly, much if not all of the licensing can be arranged between you and the composer giving you added flexibility.

For example, if you wish to pay a one-time fee you might require synchronisation with a number of different media types. You may also wish to make a specific number of copies and include certain performance / broadcast options within the agreement. This can all be discussed, drawn up and agreed between you and the composer.

On the other hand, you may be creating a TV programme and decide that performance royalties will be paid by the various broadcasters and collected by the collecting society of that territory.

Conclusion

In a digital age where everything can change quickly and where new copyright and royalty policies are constantly being developed, it can be easy to get confused and unsure what to do for the best. For this reason alone, it is best to have a basic knowledge of royalties and licensing.

Another point we have to remember is that music licensing is there to help composers and artists make a living. For an independent composer this can be the difference between making a living from music or having to get a day job.

I hope theses articles have gone someway to clarifying the issues that surround music licensing and have helped you to consider a licensing route that best suits your needs.

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In this digital age using music in web-based presentations, business applications, products or services has a number of legal implications for you and your business. Minimising copyright issues can be relatively simple and a little knowledge about music licensing can set you off in the right direction and keep you safe for the future.

This two-part article will provide a basic understanding of music licensing and the royalties included in a license agreement. It will serve you well when licensing music and is a starting point for more in-depth research.

What is a License and Why is it Needed?

Put simply, you need a license in order to use music legally. Whether you are using music at home or in a commercial project it will require a license. In the example of home use, the CD you buy from a music store is a license to listen for your own personal pleasure. You are not able to reproduce it or broadcast it in any way.

If you wish to use music as part of your business or in a commercial project you will need to get the relevant licenses depending on your usage. The fee you will have to pay will vary depending on the scope of your project and whether the music is mainstream.

Arranging clearance to use mainstream music can be a complicated process and can require a large budget. In comparison, using original music from an independent composer is less complicated to license and can easily fit into your budget.

Basic Parts of a Music License

The Agreement

When you purchase a license you are paying a fee to have certain rights assigned to you for a defined period. This is subject to the terms and conditions of the agreement. Your agreement will detail where and how you can use the music and will also point out the limits or restrictions of the license. The copyright does not become yours, it remains with the composer – you have only been assigned some of the rights.

Exclusivity

Music can be licensed on an exclusive or non-exclusive arrangement.

An exclusive agreement means that you are the sole user during the life of the agreement and nobody else can use it for the same purpose.

Non-exclusive usage means that anyone can license the music at anytime.

Territory

Music is traditionally licensed within certain territories of the world. This is because the royalty collection societies tend to operate within their own country rather than globally.

Recently, there has been an increase in digital delivery of music with agreements covering worldwide use that bypass the royalty collection societies.

Strange but true, some license agreements even make provision for intergalactic use!

Term

The term is the period of time that you are able to license the music for. This can be from as little as one day or as much as 100 years.

Synchronisation Rights

In order to include music in a product or production you have to pay what is known as the synchronisation or sync fee. There are no standard prices set by the industry for a sync fee and the fee can be open to negotiation.

Mechanical Royalty

The mechanical royalty covers the number of duplications you wish to make of your product. The mechanical royalty collecting societies have set rates for these, however, some composers / companies are now starting to use digital delivery and will license music directly without using the collecting societies. This can get you a better deal and give you the rights to produce a specified number of reproductions within the license agreement.

Performance

Performance royalties are due anytime music is broadcast on websites, TV, radio, podcasts, etc, or played at public exhibitions, events, public houses etc.

Quite often a license agreement will exclude coverage of these, making it the responsibility of the person or company broadcasting the music. This involves paying an additional fee to the performance royalty collecting societies. Many Royalty Free licenses operate in this manner.

There are occasions where a company or composer will cover the performance element in the license fee you pay, but you have to be clear about this, either by negotiating with the composer or checking the small print before purchasing.

Conclusion

Music licensing is a lot simpler to understand once you know the basic components of an agreement and what they actually cover.

Part one of this article should have given you a good basic knowledge of licensing agreements. Part two explores the options available to you as a music licensee.

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Through my experience I have become knowledgeable on a number of issues
surrounding music. Feel free to ask any questions about licensing,
copyright, royalty or any other concerns over music use. I can also help
you with a number of production questions regarding music qualities etc.
I will do my best to answer your questions and if I can’t, I will point
you in the right direction.

Just email me your question through the on-line form link at the bottom
of this page.

I will post your question and answer on the blog and email you directly
with an answer.

I am happy to include your company details and web address too, it is
good for your search engine ranking and also helps me. If you prefer to
remain anonymous please let me know in your message.

Give me a try!

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By Lee Pritchard

This article explains why I created Media Music Now and why I took the decision to sell directly rather than through royalty-collecting societies.

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