Archive for the ‘Broadcast Licensing’ Category

Don’t Double Pay For Performance Rights-Part 1

Thursday, July 16th, 2009

Analog TV and Internet UsageJason Walker_Blog
by Jason Walker

(Originally published in Smart Licensing Volume 10, Number 3. September 2006)

As broadcast television stations embrace new platforms to deliver their local programming, they are beginning to recognize the need to expand the scope of rights they license from their news theme and production music library providers. While stations can expect to pay more for a broader grant of rights, they should also try to avoid licensing rights directly from a music provider that they have already licensed from ASCAP, BMI and SESAC.

Analog TV
Local television station blanket and per program licenses both grant stations the right to broadcast any and all music in a given society’s repertory over their analog signal for a monthly fee.  The two forms of license differ only in the manner by which these fees are calculated.

Stations on an ASCAP or BMI blanket license pay specified monthly fees that do not reflect the amount of music they broadcast, nor do these fees reflect whether stations have obtained the performance rights for any music through a direct license.  Although the recent SESAC arbitration award specifies that blanket license fees be partially allocated to stations according to the amount of SESAC music contained in the programs they broadcast, stations on a SESAC blanket license cannot further reduce their allocated blanket fees through a direct license.  As a result, there is no economic incentive for stations on an ASCAP, BMI or SESAC blanket license to also license the performance rights to music used in their local programs directly from their music provider.

Alternatively, stations on a per program license pay a fee that varies depending on how many programs contain music from a society’s repertory that has not been otherwise direct licensed.  Per program stations often find it economically attractive to license the performance rights directly from their production music provider if they intend to use that music regularly in their local programs.

Performance rights to music used in promotions and commercials that stations broadcast over their analog signal are already granted in the blanket and per program licenses offered by ASCAP, BMI and SESAC.  Consequently, there is no economic incentive for stations on either a blanket or per program license to secure a direct license from their music provider for these types of uses.  It is important to note that although stations do not need to license the performance rights to music used in promotions and commercials (or PSAs and logos) directly from their music provider, other music licensing issues do exist.  Rights of reproduction (i.e., synchronization and/or master use rights) may also be required for these types of uses.
Internet

The most recent ASCAP, BMI and SESAC blanket and per program licenses also grant stations limited performance rights to music used on their web site, which may obviate the need to license these same rights directly from production music providers.
Under these licenses, stations are permitted to offer simultaneous retransmissions (i.e., streams) of their locally-produced and aired programs.  And while the ASCAP and SESAC licenses also permit stations to offer archived retransmissions of all of their locally-produced programs, the BMI license limits coverage of archived retransmissions to local newscasts and local news based public affairs programs.

Although the ASCAP and BMI licenses do not explicitly state that the grant of performance rights for simultaneous and archived retransmissions of local programs also extends to the commercials, promos and PSAs contained therein, several industry experts agree that coverage for these incidental uses is implied.  The SESAC license does make it clear that these incidental uses are covered.

Stations are also granted performance rights to music used in content made available on their web site that is designed to promote viewership of the station and its television programming.  While the ASCAP license grants performance rights for this type of use without restriction, the BMI and SESAC licenses each require that: (a) no single performance of this type exceeds 30 seconds in duration, and (b) the total duration of all BMI or SESAC performances of this type does not exceed 15 minutes.

ASCAP and SESAC each offers these internet rights at no additional fee and with no additional reporting requirements.  BMI currently bills television stations their allocated share of the industry-wide BMI Internet blanket license fee as set forth in Exhibit A of the BMI blanket and per program licenses.  In addition, stations are required to complete and send Exhibit B to BMI once they use BMI music in their web site and stations may also be asked by BMI to complete and return Exhibit C each year.

It should be noted that the internet rights described above do not extend to sections on a station web site where members of the public are charged a fee.  For such uses, the station would need either a separate Internet license from the appropriate society or a direct license from the company that owns or controls the copyright, such as their production music provider.

It’s worth reiterating that even though the current ASCAP, BMI and SESAC blanket and per program licenses grant performance rights to the most common uses of music on station web sites, rights of reproduction (i.e., synchronization and/or master use rights) may also be required.  Please see our “Broadcaster’s Guide to Music Licensing” at http://accounting.musicreports.com/blog.php/ for more information.  And be sure to read “Don’t Double Pay for Performance Rights-Part 2: Digital TV and New Media Uses” in the next issue of Smart Licensing™.

Don’t Double Pay For Performance Rights-Part 2

Thursday, July 16th, 2009

Digital TV and New Media UsageJason Walker_Blog
by Jason Walker

(Originally published in Smart Licensing Volume 10, Number 4. December 2006)

Part 1 of this article in the last issue of Smart Licensing™ discussed the need for television stations to license the performance rights to music contained in programs broadcast over their analog signal and through their website.  In this issue, the discussion continues with a look at digital television and new media uses.

Digital
TV
The current ASCAP blanket and per program licenses grant stations the right to publicly perform music contained in free, over-the-air digital broadcasts occurring within a station’s market without additional cost or reporting obligations.  This covers pure simulcasting and time-shifting of a station’s analog signal as well as so called market expansion channels (i.e., digital channels that broadcast programming from a source other than that allocated to the station’s analog signal, such as a different network).

The interim BMI blanket and per program licenses grant stations the right to publicly perform music contained in free, over-the-air digital broadcasts occurring within a station’s market without additional cost or reporting obligations, with one caveat.  Each year BMI may ask stations to fill out a simple one-page questionnaire concerning their digital television signal.  See Exhibit D of the BMI blanket and per program licenses for an example of the Digital Signal Questionnaire.  As with the ASCAP licenses, the BMI interim licenses cover pure simulcasting and time-shifting of a station’s analog signal as well as market expansion channels.

Stations should note that the Television Music License Committee is currently negotiating with BMI over the terms of the next license (which will be retroactive to January 2005) and that the scope of coverage and the fee for digital broadcasts could change. This uncertainty aside, there is currently no economic incentive for stations on an ASCAP and BMI blanket or per program license to also license the performance rights to ASCAP or BMI music broadcast on their digital channels directly from their news theme or production music provider.

The interim SESAC blanket license also grants stations the right to publicly perform music contained in free, over-the-air digital broadcasts occurring within a station’s market without additional cost or reporting obligations, provided that the digital broadcasts are predominantly simulcasts of a station’s analog signal.  Digital channels that are dedicated to time-shifting of a station’s analog programming or to market expansion programming are not covered under the interim SESAC blanket license and, consequently, would generally require an additional digital license from SESAC.

The TMLC and SESAC concluded an arbitration proceeding in January 2006 to determine reasonable blanket and per program fees going back to January 2005.  In the arbitration proceeding, the TMLC also requested an expansion of coverage for performances of SESAC music in non-simulcast digital broadcasts similar in scope to the coverage offered by the most recent ASCAP and BMI licenses. In June 2006, the arbitrators essentially denied this request by ruling that the digital coverage offered by the new SESAC blanket and per program licenses will be the same as that offered by the interim SESAC blanket license.

Music Report’s understanding of the separate Digital Television Broadcasting Performance License offered by SESAC is that stations would be charged annually the greater of $157.50 or an amount equal to 10% of a station’s blanket license fee for the first non-simulcast digital channel, and the greater of $105.00 or an amount equal to 2% of a station’s blanket license fee for each additional non-simulcast digital channel.  In the event that any digital channel broadcasts market expansion programming, the fee for that channel would increase by an additional amount equal to 10% of a station’s blanket license fee.

The SESAC Digital Television Broadcasting Performance License also contains several reporting and verification obligations for each digital channel covered by the license.  Within sixty days after the end of each quarter, stations are required to furnish SESAC with: (1) music cue sheets for all locally-produced programs, (2) a listing of all syndicated programs including the episode title and/or number and the name of the producer, and (3) music cue sheets for all non-local programs to the extent they are made available to the station. Further, SESAC would have the right, upon thirty days advance written notice, to examine a station’s books and records in order to verify all payments, statements, computations, reports and accounting required by this license.

Unless a station can ensure that all of the music broadcast over a digital channel – including the music in every commercial, promo and PSA – is either not affiliated with SESAC or has been direct licensed, the safest practice would be to secure an additional digital license from SESAC.  If a station does secure an additional digital license from SESAC, they would not need to also license the performance rights directly from their news theme or production music provider.

New Media Uses
While technology has made it easier and cheaper for stations to reach audiences on the go, music rights issues have become increasingly complex. The blanket and per program licenses currently offered by ASCAP, BMI and SESAC give stations certain limited rights to publicly perform music over their analog and digital broadcast signals and on their websites. But these licenses do not give stations all of the rights that may be necessary to deliver their programming to handheld devices like cell phones and MP3 players, or to certain public locations like airports, grocery stores, elevators and buses.

Arguments over whether performance rights are needed to deliver programming to handheld devices often hinge on subtle distinctions like whether the mode of delivery is a stream or a download.  And even when it’s determined that performance rights are needed, it’s not always clear who is responsible for securing them – the station?  the cell phone carrier?  the grocery store?
In addition to performance rights, stations may also need to license the reproduction rights to songs and recordings contained in locally-produced programs that are delivered to new media platforms.  Many stations believe the Copyright Act entitles them to “synchronize” songs and recordings in a locally-produced program without the need to secure a reproduction license as long as they satisfy certain criteria, but the Copyright Act is restrictive and unclear.

Certainly, the safest practice would be to license in advance both the performance rights and the reproduction rights to all music contained in locally-produced programs that are delivered to new media platforms.  As a practical matter, this would limit the use of music to selections from a station’s news theme or library package.  Fortunately, more and more production music providers are recognizing the rapidly changing needs of television stations and are offering them broad grants of rights.  For instance, one major music provider offers an “All-Media License Addendum” and others routinely add contract language that allows stations to use their music “in all media now known or hereafter devised.”

Stations can contact Music Reports to discuss their specific music licensing needs.  They can also learn more by reading the “Broadcaster’s Guide to Music Licensing” and the “Television and Film Producer’s Guide to Music Licensing” on our Smart Licensing™ at http://accounting.musicreports.com/blog.php/

Television and Film Producer’s Guide to Music Licensing

Wednesday, July 15th, 2009

The following FAQs and answers provide a comprehensive guide for television and film producers seeking to understand music licensing. The points were originally printed in Smart Licensing.

1. What is music clearance?
Simply, it is the process of securing permission to use musical compositions and recordings owned by someone else. More specifically, however, it involves:
1) determining who owns the copyright to any given musical material; negotiating permission to use that material in the territories and media in which exhibition or distribution is planned; and
2) paying the negotiated license fees to the copyright owners.
3) An agreement between a copyright owner (or its representative) and a user of the copyright is called a “license.
There are many kinds of licenses that cover many different media of exploitation. Every production presents a unique set of legal and business issues that should be addressed and resolved before production begins. The media and terms of distribution effect the rights to be obtained from music copyright owners.The clearance process should be undertaken before being committed to using specific songs and recordings in order to eliminate musical material that may be too expensive or that the copyright owners do not want used. For example, some musical compositions, while popular and in general use in areas such as radio broadcast or nightclub performance, are not available (at any price) in certain other media application. It is advisable that music clearance issues be addressed early in the planning stages of a project to assure the availability of the musical compositions and recordings for their intended use and subsequent exploitation. The unauthorized use of such material could result in an injunction blocking the distribution of the production, as well as other financial penalties. An early phone call to an attorney or music clearance service is highly recommended.

2. Why does a producer have to secure licenses for “music rights?”
The music that is broadcast every day on radio, television and cable, or that is performed in nightclubs and concerts, is subject to federal copyright protection. Pursuant to the U.S. Copyright Act and other related legal doctrines, the owners of copyrighted musical compositions, and the recordings thereof, have the right to control how their musical material is used and the fees that will be paid for that use.This system of law makes it possible for composers, lyricists and recording artists to earn a living from their creations and requires that broadcasters, cable programming services and others desiring to use protected musical material secure proper permission to do so.

3. Is there a distinction between musical compositions and recordings?
Yes. Musical compositions include all of the copyrighted popular songs, themes, underscore, background music, and production library music commonly used in television and film programs. Additionally, recordings of that music may also be protected by copyright law, state anti-piracy statutes and other legal theories. For example, the musical composition “Thriller” (written by Rod Temperton and published by Almo/Irving Music) and the recording of “Thriller” (performed by Michael Jackson and owned by SONY Music Entertainment, Inc.), are two separate copyrights. Use of the recording of “Thriller” may require a license from the owners of the musical composition and the recording, depending upon the circumstances.  In copyright terms, the recorded performance (i.e., record, tape, compact disk) is called a “sound recording” and a license to re-record a sound recording in a television or film production is called a “master use” license.

4. What is a producer’s responsibility for clearing the music used in a television, motion picture or video project?
Both as a matter of copyright law and the producer’s own distribution or exhibition agreements, it is generally the producer’s responsibility to secure the clearance of musical material used in his television, motion picture or video production.  This is required to avoid liability for copyright infringement, to meet broadcaster or distributor delivery requirements, and to comply with Errors and Omissions insurance procedures (see question 5).
Failure to properly clear copyrighted musical material may result in substantial copyright infringement liability, an injunction against distribution, legal fees, and the very real possibility of massive re-editing of the finished program or the destruction of release prints or dubs. Once the musical material is properly cleared, it can be used to the full extent of the license terms.

5. What is an Errors and Omissions insurance policy?
Distribution and broadcast agreements require that the production be insured for such things as inadvertent copyright infringements or the unauthorized use of protected materials. Errors and Omissions insurance covers all of the parties in the production/distribution chain for reasonable errors and omissions that may occur during production.

Generally, the applicant for an E&O policy (usually the producer or distributor) will be required to follow the insurance company’s written procedures for the clearance of material used in the production. The applicant must sign a written declaration stating that the detailed information required in the application for insurance (including all of the specific clearance procedures) is in all respects true, and that no information has been omitted, suppressed or misstated.

Additionally, the application for insurance must be signed by an attorney who is familiar with the clearance procedures of the insurance company.  The attorney must also sign a written declaration that the attorney will use best efforts to assure that the “clearance procedures” are followed, and that he believes that the statements in the application are correct.

6. Who are the owners of musical compositions and recordings?
This is a very complex question. Generally, a songwriter may sell or assign the copyright in his song to a music publisher who pays the writer a share of the royalties derived from its exploitation.In such cases, the publisher generally owns the copyright (or a portion of it) and is the party with authority to grant permission for its use. However, the approval of the songwriter may be required before a music publisher can grant a license. In other cases, songwriters may own the copyright and transfer the right to grant permission and collect royalties for certain types of rights to other representatives or outside agencies, who collect royalties and generate license agreements (i.e., administration) for them.

It is now common for copyright ownership in a musical composition to be divided by percentages and territories.Several songwriters may collaborate, with each controlling his own interest.Several publishers could own rights in the United States, while several others could own rights for the rest of the world. All of this may result in situations where several parties must agree to the license, thereby increasing the difficulty in obtaining clearance.

Recordings are usually owned by the record company that paid for the recording session, or that had the recording artist under contract. However, the terms of recording contracts can require certain artist approvals before the record company can grant a license.

7. What was the U.S. Supreme Court’s “Rear Window” decision and how does it effect music licensing?
A full discussion of the so-called “Rear Window” decision is far beyond the scope of this booklet.  However, you must be aware of how this decision effects music licensing.

In broad and general terms, songs copyrighted before January 1, 1978 are entitled to two terms of copyright protection: a first copyright term of 28 years, and a renewal term of 47 years – for a total of 75 years.  If the author of a song copyrighted before January 1, 1978 were to die during the first 28-year copyright term, any productions that used the song would lose the right to continue distribution of the production containing the song at the end of the first copyright term.  At that point, the heirs of the songwriter would be entitled to receive additional license fees for any continued exploitation of the song in the renewal term.

For example, if a producer enters into a 10-year music license during the 25th year of the original term of a song’s copyright, that license agreement may become unenforceable at the end of the 28-year term (i.e., three years into the 10-year license) if the songwriter dies during the first term of copyright.  In such a case, a new license agreement (for the remaining seven years) would have to be negotiated.

Unfortunately, this is not a problem that can be easily solved. In order to do so, a producer would have to get the separate consent of all the songwriter’s heirs before the songwriter dies. Even if the producer were to do so, leaving aside the additional administrative cost and license fees, there is no assurance that a songwriter would not thereafter have additional children or wives.

No producer wants to be in a position of losing the rights to a song after he has recorded it into his production, or after he has paid for the rights. Your attorney or music clearance service should advise you as to which songs are effected by the decision, and the policies of distributors or broadcasters who, for legal or business reasons, may prohibit or restrict the use of such songs.

8. What rights are needed in order to make sure that the musical material used in a production is properly cleared?
In general, the rights commonly required in order to use musical compositions and recordings in television and film productions may be divided into the following categories:

PUBLIC PERFORMING RIGHTS: A public performance is a term of art that refers to the right to do such things as recite, play, sing, dance, act out or broadcast a musical composition in public.  However, there is a vast difference between the rights required to merely sing a song on a bare stage, and the rights required to dramatize or tell the story of a song using sets, costumes, props, etc.  A detailed explanation of dramatic and non-dramatic rights is beyond the scope of this booklet; however, the rights required, and the complexity of their clearance, will depend upon the way the song is to be performed.

Pursuant to the U.S. Copyright Law, a record may be “performed” in public without the permission of the record company because the U.S. Copyright Law does not provide for a performance right for sound recordings. ; However, legislation was enacted in 1995 that now gives owners of sound recordings a limited performance right in “digital transmissions.”  The new legislation is very complicated and was written to address the seemingly narrow issue of digital transmissions, (traditional broadcasts are currently exempt).  The legislation may have far-reaching effects when music is distributed via phone or cable lines, or as traditional broadcast media migrate to digital platforms.

REPRODUCTION RIGHTS: A music publisher has the right to control the reproduction (recording) of a musical composition.  Reproduction Rights are referred to, in television and film production, as “synchronization rights” because the musical composition is recorded on a soundtrack in synchronization with visual images.  ”Sync rights,” as they are called, should not be confused with so-called “mechanical rights,” which refer to the reproduction of songs on audio CDs, records or tapes for distribution to the general public.

Record companies also have the right to control the reproduction of their recordings.  A license to reproduce a record in an audio/visual work is generally referred to as a “master use” license.

ADAPTATION RIGHTS: A copyright owner has the right to control the alteration or adaptation of musical compositions including arrangements, parodies, comedic uses, lyric changes, translations, etc.  If a composition is to be used in an adapted form, specific permission may be required directly from the copyright owner.  Some copyright owners, while open to the use of their material as it was originally written, may not grant permission for adaptations.

The way in which a song is performed or used will determine the applicability of these various rights.  The media in which distribution is planned (broadcast television, home video, feature film, etc.) will significantly affect how these rights are negotiated, with whom they are negotiated, and the amount of the license fees.

9. From whom are these music rights obtained?
The previously mentioned rights are generally not handled at one source, but instead, are often licensed individually by separate parties.  For certain rights, one may have to deal directly with the songwriter, the songwriter’s heirs, attorneys, publishers and agents or performing artists, record companies and unions.

MUSICAL COMPOSITIONS: Public performing rights for television broadcasts have traditionally been the responsibility of the broadcasters of television programming.  Networks, local stations, cable programming services and cable system operators secure these rights from the music performing rights organizations which represent composers and publishers.  In the U.S., those organizations are the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC.  Pursuant to the U.S. Government’s Consent Decrees with ASCAP and BMI, broadcasters have the choice of securing either a “blanket” or “per program” license.  In either case, a broadcaster may use any or all of the songs in the ASCAP/BMI catalogues.  Under the per program license, however, a broadcaster pays a performing rights society only for the programs that contain music licensed by that society.  Performing rights licensing for media other than broadcast television, such as feature films, non-theatrical and non-broadcast distribution, are generally secured directly from the copyright owner.

Synchronization rights and the right to adapt a musical composition are generally obtained by approaching the owner directly.  Some music publishers, while retaining the function of quoting the fees and approving the uses, prefer to have licenses prepared and executed through an intermediary organization (e.g., The Harry Fox Agency, Inc.), which they retain to license those rights on their behalf.

Often, in the case of popular songs, the songwriter may own the copyright, and designate an attorney, accountant, manager, girlfriend or other representative to handle licensing for television or film use.  If several parties own a composition, each may have to be contacted.  If a writer is deceased and his rights have passed on to his heirs, the process can become even more difficult.

RECORDINGS: Record companies generally control and license their recordings themselves; however, in some instances, the prior approval of the performing artist may be required.  A master use license may also contain provisions requiring the user to pay any fees required pursuant to the record company’s collective bargaining agreements with the performer’s unions.

A producer working in television, film or music video, has no reason to personally keep track of the ownership and representation of the thousands of protected compositions and recordings that may be available.  One who did would face the basic problem of where to start, with whom to talk, what paperwork to do, and how to negotiate the license fees in accordance with current industry standards.  All of this takes a great deal of time, even if the basic information is readily at hand.

10. What is a music cue sheet and why is it so important?
A music cue sheet is a document that lists all of the music contained in a production including the title, composer(s), publisher(s), performing rights affiliation, and use and timing of each musical cue.

The cue sheet functions like an invoice that is used by all parties in the music licensing process to determine the amount of royalties to be paid for the public performance of the music contained in the program, and to whom those royalties are paid. For example, many broadcasters require copies of cue sheets for the television programs they broadcast in order to calculate the fees they must pay to ASCAP and BMI.  Without the timely receipt of music cue sheets, they may not have access to the information necessary to correctly calculate the full amount of the license fee that would otherwise be due — resulting in a loss of income to composers and music publishers.  Moreover, ASCAP and BMI use a cue sheet to identify the composers and publishers entitled to receive royalties and to calculate the share of royalties they receive.  The flow of music publishing royalties should be of vital concern to the producer if musical cues composed for the production are owned by the producer.

The timely delivery of an accurate music cue sheet has always been a requirement in most production/distribution/station license agreements.  Practically speaking, the music cue sheet is also a delivery requirement for music publishers and record companies whose materials have been used in the production.  The practical effect of not creating an accurate music cue sheet and delivering it to the proper parties may be a breach of various production/broadcast agreements and/or synchronization licenses, and may result in composers and publishers not receiving the royalties they are due.

11. To where should music cue sheets be sent?
For all of the reasons listed in question 10, producers should send cue sheets to the following organizations:

MRI (Music Reports, Inc.)
21122 Erwin St.
Woodland Hills, CA  91367
Phone: (818) 558-1400

ASCAP
One Lincoln Plaza
New York, NY  10023
Phone: (212) 595-3050

BMI
320 W. 57th Street
New York, NY  10019
Phone: (212) 586-2000

12. Can a copyright owner prevent music from being used?
Yes. The owner of a musical composition or recording can, except in very limited situations, restrict or deny permission for its reproduction or adaptation.  In certain circumstances, the performing rights organizations also allow an owner to restrict the public performance of musical compositions that are normally subject to blanket performance clearance.  Some popular music, freely broadcast on radio or used in nightclub performances, may be blocked from use on commercial television or in motion pictures.  The Copyright Law leaves the final decision up to the owner or owners of the work.

13. What happens if a song is used without clearance?
If the copyright owner never knows — nothing.  However, if the matter is discovered by the copyright owner, the producer of the project, and any broadcaster or distributor, may be held liable for copyright infringement as well as other actionable claims.  Under the Copyright Act, an infringer may be liable for both the damages sustained by the copyright owner, and the producer’s profits resulting from the unauthorized use of the music.  Even if the copyright owner cannot show what the damages or the producer’s profits are, he can still be awarded substantial statutory damages as provided for in the Copyright Act.

The producer may face an injunction, an out-of-court settlement with the copyright owner, or the task of going back to the finished program and making extensive changes to remove the uncleared material.  A producer with a completed project from which release prints or dubs have already been made, may find himself incurring costs many times what the original clearance and license fees might have been.

Quite recently, several “watchdog” operations have been formed to monitor use of music in all media on behalf of composers, publishers, record companies and artists.  Additionally, both ASCAP and BMI have increased their viewing of television programs and monitoring of music cue sheets in order to determine their accuracy, and resolve questions involving performing rights payments to composers and publishers.  This, of course, only increases the chance that someone may find out – particularly if the project is successful.

14. What about old songs?  Aren’t these songs in the public domain, and free to be used without restrictions?
There is a certain amount of music for which all copyright protection on a worldwide basis has lapsed.  Some musical material that may be in the public domain in the United States, may still be protected in other countries.  Failure to obtain proper international copyright clearance may severely limit exploitation of the project.  With the changes in the U.S. Copyright Law that became effective January 1, 1978, some older material has had its protection extended, and worldwide rights issues have become even more complicated.

If you plan to use public domain material, you must be sure that ANY arrangement created for your use is based on the original public domain version, and not on a subsequent copyrighted or protected version which would require additional clearance.

Actual clearance of the material should still be carefully undertaken to insure its public domain status and to comply with Errors and Omissions insurance procedures.  It can take as much time and expense to determine whether a composition is in the public domain as to clear one that is not.

15. How long can music be protected by copyright?
Generally, music created after January 1, 1978, will be protected by copyright in the U.S. for a period of fifty years after the death of the last surviving writer.  ”Works made for hire” (created by employees or independent contractors) are protected 75 years from publication, or 100 years from creation, whichever is less.  For songs written before January 1, 1978, the term of protection will last for a total of 75 years from the end of the year the copyright was originally secured. As of this writing, there is legislation pending in Congress that would, if enacted, extend the term of copyright protection in the U.S. by an additional 20 years.

Remember that foreign laws may provide for different copyright terms (life plus seventy years), and may have to be verified on a country-by-country basis.  Moreover, as a result of the recently implemented General Agreement on Tariffs and Trade (GATT), certain works, which were previously in the public domain, have had their copyrights restored.

Also, the fact that a musical composition does not contain a copyright notice does not mean that it is in the public domain.  When the United States became a member of the Berne International Copyright Convention (in order to increase foreign protection for domestic works), our copyright law had to be amended to eliminate the requirement of a copyright notice as a prerequisite for copyright protection.  While a copyright notice is still required in order for a copyright owner to be entitled to certain remedies for infringement, it is not required in order for a work to be protected.

16. May I use eight bars of a song without paying for it?
NO! This is one of the most common misconceptions regarding music and its protection under U.S. Copyright Law.  Any unauthorized use of material that is recognizable as having come from a copyrighted source is a potential infringement of copyright.

17. What is “fair use”?
There is an exception to the exclusive rights of copyright owners called “fair use,” which permits the limited use of copyrighted material in special circumstances without requiring an owner’s consent.  In theory, the public interest in the dissemination of ideas and information is served when the use of music for such purposes as criticism, comment, news reporting, scholarship, teaching, etc., is freely permitted.  Parodies of material for humorous effect or social commentary are usually treated under the same principles.  HOWEVER, caution in the area of parody is strongly recommended.

The U.S. Copyright Law lists the factors which must be considered in each case of a claimed “fair use.”  These factors include:  1) the purpose and character of the use; 2) the nature of the work; 3) the amount and substantiality of the portion used; and, 4) the effect of the use on the potential market for, or value of, the work.  Although the laws of certain foreign countries contain concepts similar to the U.S. doctrine of fair use, they are not necessarily the same.  Therefore, a fair use in the U.S. could be a violation of law or an author’s moral right of integrity in foreign territories.  Since there are no clear and definitive guidelines, it is difficult to determine in advance what may or may not be a permissible “fair use.”

A detailed discussion of what constitutes “fair use” is beyond the scope of this booklet.  However, if you are faced with a question of this nature, it would be prudent to contact your attorney or music clearance service.

18. May the title of a song be used as the title of a program?
While titles are not protected by copyright law, they may be protected via other legal doctrines.  Use of the title and story line of a song may involve the clearance of dramatic performing rights, or require negotiations similar to those required for the acquisition of rights in a literary property.  For protection, your attorney should advise you as to whether the title may be freely used, or if specific permission should be obtained from the owner of the musical composition.

19. Must a license be secured if song lyrics are spoken in dialogue?
The copyright in a song protects the lyrics as well as the music.  Therefore, if an identifiable part of a song lyric is used in dialogue, a license may have to be secured in order to avoid potential liability

20. May lyrics to an existing song be changed without permission?
Changes made to the copyrighted lyrics of the song, including what may appear to be only minor changes, usually have to be cleared by obtaining specific permission from the copyright owner.  This may even apply to the translation of the original lyrics into a foreign language

21. If a song is cleared for one episode of a television series, may it be used in other episodes without additional permission?
No.  Licenses are normally granted on a show-by-show basis.  Specific permission is required for use in multiple episodes of a program.  In addition, a new episode containing clips from previous episodes will usually require additional licenses for the music contained in the clips.

22. Is it necessary to clear music that is to be used in commercials?
Yes.  In order for copyrighted music to be used in the advertising of products and services, the entire procedure for clearing music must be followed.  Popular songs are frequently changed or adapted to fit the product or service being promoted.  Accordingly, specific permission for use must be obtained from the copyright owner, based upon the markets and media to be exploited.

23. May records or compact discs be used on a television show?
Be careful.  This is a complex and gray area of both law and practice.  Some use of records on television teen dance shows, for instance, has been permitted by record companies because the use is considered promotional.  Other uses of records in television, home video, and motion picture productions may require permission in advance from any number of involved parties, including the music publisher, record company, artist, performers’ unions, etc.

Commercial phonograph recordings made and released after February 15, 1972 are eligible for federal copyright protection.  Recordings made prior to that date, though not copyrightable, may still be protectable under state anti-piracy statutes and other legal theories.

24. If a license is obtained to use a film clip from a television program or feature film, will that license include the right to use the music contained on the clip?
Be careful.  This is a complex and gray area of both law and practice.  Some use of records on television teen dance shows, for instance, has been permitted by record companies because the use is considered promotional.  Other uses of records in television, home video, and motion picture productions may require permission in advance from any number of involved parties, including the music publisher, record company, artist, performers’ unions, etc.

Commercial phonograph recordings made and released after February 15, 1972 are eligible for federal copyright protection.  Recordings made prior to that date, though not copyrightable, may still be protectable under state anti-piracy statutes and other legal theories.

25. If a record company issues a license to use a music video clip, will further clearances be required?
The use of so-called “promotional” music videos of performing artists raises a number of music licensing issues.  As with other programs, the proper licensing of the musical composition contained in a music video may require public performance rights and synchronization rights.  In addition, “dramatic” performing rights may be required if the video is telling the story of the song.

A producer wishing to use a music video clip in his program must first determine which of the above music rights, if any, have been granted to him by the licensor of the music video (usually a record company).  Music videos are typically licensed with the user being responsible for all third party licensing obligations, including payments to the music publisher, and payments required to be made pursuant to the collective bargaining agreements of any performer’s unions.

If the performing artist has written the song and owns or controls the publishing rights, the record company, by virtue of its agreement with the artist, may be able to grant a license for promotional use of the music.  However, if the performing artist has no royalty or ownership interest in the song, the record company may not be willing to assume the responsibility of securing or granting synchronization licenses for your purposes.

Since most record sales occur in the first 90 days of distribution, there is an issue as to whether use of a music video in a program intended to be distributed for a period substantially longer than 90 days, would be considered promotional or commercial.  The more the use is considered to be commercial, the greater the likelihood that publisher clearance will be required, along with possible payment to the record companies for continued use of the music video itself.

26. Is a synchronization license required for the first U.S. network broadcast of an original live or taped television program?
Generally, no!  However, the law in this area is restrictive and unclear, and the answer to this question may depend on a number of factors.  The Copyright Act entitles a transmitting organization (e.g., a network, local station, or cable programming service) to synchronize musical compositions and recordings in a program, and to repeat that program or delay its broadcast for a period of six months, as long as the broadcaster has a license to perform the musical composition.  However, U.S. network broadcasts that occur more than six months after the first network run, and syndicated broadcasts, usually require full music rights clearances.

Therefore, a program that will run for less than a six-month period on U.S. network television, and which has no value in syndication, may not need synchronization licenses for the music.  If a program will be broadcast for more than six months, distributed in syndication or aired outside the U.S., a synchronization license will almost certainly be required.  Even if no synchronization license is required, all other rights, such as performance and adaptation rights, must be cleared.

The safest practice may be to seek knowledgeable advice and/or clear the synchronization rights through an experienced music clearance service.

27. What do music copyright owners charge for home video rights?
As with all licenses, copyright owners can charge whatever they think the market will bear. Generally, they may require: 1) a flat fee or royalty per unit sold; 2) a pro-rata percentage of the wholesale or retail sales price; or, 3) a combination of both. These royalty arrangements usually require that the producer account to the copyright owners on a quarterly or semi-annual basis. In addition, copyright owners may seek non-recoupable fixing fees (one-time flat fee payments similar to synchronization fees), recoupable advances, or sometimes both.

It is also common (particularly with feature films, non-theatrical/educational programs and programs using very little music), to work out arrangements similar to flat fee licenses or “buyouts,” thereby avoiding costly accounting procedures. However, some copyright owners may not agree to such license terms.

There is an additional question as to whether a music publisher can or will issue a worldwide home video license. This must be answered on a song-by-song basis, and will depend on the arrangements between the domestic publisher and its representative (sub-publisher) in each foreign territory. In some cases, the right to grant licenses and collect royalties may have been contractually transferred to the sub-publisher in each territory. If this is the case, the producer may have to deal with the respective sub-publisher or collection society in each territory in which distribution is planned

28. How are feature films licensed?
In feature films, music rights, whether for a song or a recording, are usually licensed worldwide for duration of copyright, on a flat fee basis. This is partly because of the tremendous investment required to make a feature film, and the complicated contractual arrangements involved in feature film distribution. Unlike other types of productions for which rights may be licensed on a medium-by-medium basis, the producer of a feature film will usually secure a very broad grant of synchronization rights for theatrical, television, non-theatrical, home video and other rights, so that the film can be exploited in all possible media existing now or in the future.

For anti-trust reasons, the performing rights organizations are not allowed to collect performing fees from motion picture theaters in the U.S. Therefore, a producer must also secure a United States theatrical performance license directly from the music publisher or its agent when securing a synchronization license for a musical composition.

Feature film producers must pay particular attention to the way home video and new media rights are acquired, as the major studios and distributors strongly resist paying any kind of continuing home video music royalty. There are well-known cases where studios have required producers of feature films in current theatrical release, to delete, prior to home video distribution, material which carried a royalty obligation.

29. How is music licensed in religious programs?
The licenses that television stations secure from the performing rights organizations include the right to broadcast religious programs that contain copyrighted musical compositions. These licenses are required even if the programs emanate from a place of worship.

However, a non-profit organization producing the broadcast generally does not need a synchronization license to record and make copies of a program that includes songs of a religious nature (or sound recordings of such works), as long as there is no charge for the distribution of copies, and only one transmission is made by each station. However, synchronization licenses must be secured for the use of secular songs, even if they have an underlying religious theme. Even songs of a religious nature would require clearance if the program were repeated by a station.

30. How much will it cost to clear a song for use in my television or film project?
This depends on a number of factors, including the length of the song, whether it will be performed “on camera” or as background music, etc. A key element of the cost will be the intended distribution of the program. Many television producers can get by with a one-, three-, or five-year synchronization license for just the United States; others need more extensive worldwide rights and/or longer distribution terms. A license for free television only, will generally be less expensive than a license for all forms of television distribution. Feature film producers must make sure that they obtain perpetual worldwide motion picture rights, as well as television rights for eventual domestic and foreign syndication, home video and other “new“ media.

The new technologies, such as CD-ROM, the Internet, and digital video disks (DVDs), have complicated the matter even further, and the rights for these areas are frequently obtained on a medium-by-medium basis. There is no established pattern for these fees, as they vary from song to song, and must be computed separately for each project’s specific rights and releasing requirements.

31. What is a needle drop?
This refers to the use of a single portion, or “cue,“ of an existing recording (placing the needle down on the recording and then lifting it), in synchronization with filmed or taped images.

If a needle drop or “cue“ from a commercially-produced popular recording has been used, one must deal with all of the normal clearance requirements discussed in this booklet with respect to the song, the recording of the song, the recording artist and the performer’s unions.

There are organizations known as “production music“ libraries that provide commercially-produced recordings specifically for background broadcast and film use at a variety of reasonable license rates. Most production music libraries have reporting requirements which can be satisfied by filing a music cue sheet with the performing rights societies, or informing the library of the use. The libraries will usually issue one license that includes rights for the musical composition and the master recording. Some production music companies include so-called “sound-alike“ recordings of popular artists in their libraries. Remember that if such recordings are used, the producer must still secure a license from the publisher of the song. A producer that is a union signatory company must be sure to use caution, as some production music may not comply with union requirements.

32. What happens when licenses expire?
If the right to use music contained in a program has been granted for a limited period of time (e.g., five years) or for limited media (e.g., free television only), the licenses will have to be renewed or expanded if continued or additional exploitation of the program is contemplated. Broadcasts of the program beyond the license period or media may constitute an infringement of the music copyrights. This is seldom an issue in feature films, where music is traditionally licensed in perpetuity.

Because of recent legislation, court decisions and business practices, it may not be a simple matter to renew all old licenses. It is also possible that the copyright owner who originally granted the license may no longer control the music. Also, there are well-known cases where composers and publishers of popular songs have refused to renew expired licenses, or have charged exorbitant fees for license renewals.

It may be possible to negotiate perpetual licenses for all media at the time of initial licensing. However, the price charged by the copyright owner may increase significantly over the normal price of a limited term or limited media license.

Broadcaster’s Guide to Music Licensing

Wednesday, July 15th, 2009

The following FAQs and answers provide a comprehensive guide for broadcasters seeking to understand music licensing. The points were originally printed in Smart Licensing.

1. Why does a broadcaster have to secure licenses for “music rights?“
The music that is broadcast every day on radio, television and cable or that is performed in nightclubs and concerts, is subject to federal copyright protection. Pursuant to the U.S. Copyright Act and other related legal doctrines, the owners of copyrighted musical compositions, and the recordings thereof, have the right to control how their musical material is used and the fees that will be paid for that use. This system of law makes it possible for composers, lyricists and recording artists to earn a living from their creations and requires that broadcasters, cable programming services and others desiring to use protected musical material secure proper permission to do so.

The owner of a music copyright controls various rights, and receives income by granting permission to use those rights in exchange for fees or royalties. An agreement granting permission to use the rights in a musical composition is called a “license.“

2. What are the specific rights a broadcaster needs to be concerned about in order to use musical compositions?
The rights most commonly needed by television broadcasters are the right to “perform“ (i.e., broadcast), the right to “synchronize“ (i.e., record/reproduce), and the right to adapt (i.e. change or modify) the musical compositions contained in the programs they broadcast. The performance right refers to a station’s right to broadcast the musical compositions contained in television programming. The synchronization right refers to the right to reproduce, or record, the musical composition in synchronization with visual images. The adaptation right includes the right to change or modify the musical composition (e.g., to change the lyrics).

Over the years, different rules and mechanisms have developed to enable television broadcasters to get a license (i.e., secure permission) and pay for these separate rights.

3. For copyright and licensing purposes, is there a distinction between musical compositions and recordings?
Yes. Copyrighted musical compositions used by a broadcaster may include all of the themes, underscore, background music, production library music and popular songs used in syndicated and locally-produced programming. Additionally, recordings of that music are also protected by copyright law, state anti-piracy statutes and other legal theories. For example, the musical composition “Thriller“ (written by Rod Temperton and published by Almo/Irving Music) and the recording of “Thriller“ (performed by Michael Jackson and owned by SONY Music Entertainment, Inc.), are two separate copyrights. Use of the recording of “Thriller“ may require a license from the owners of the musical composition and the recording, depending upon the circumstances (see questions 13, 15, 16 and 20). In copyright terms, the recorded performance (i.e., record, tape, compact disk) is called a “sound recording,“ and a license to re-record a sound recording is called a “master use “ license. The master use license may also contain provisions requiring the user to pay any fees required pursuant to the record company’s collective bargaining agreements with the performer’s unions.

4. What is the right to perform?
The right to “perform“ a musical composition includes the right to do such things as broadcast, sing, play, recite and/or dance to that composition in public. The broadcasting of a program, whether produced by a station locally, by a network to which the station is affiliated, or by a distributor, constitutes a “performance“ of the music contained in the program. A performance license must be secured from the owners and composers of musical compositions (i.e., the theme, score and popular songs) in order for the program to be broadcast without infringing the owner’s right to perform.

New federal legislation has been enacted that creates a performance right in the digital transmission of sound recordings. However, this legislation provides an exemption for television broadcasters. Therefore, television broadcasters do not need to secure performing rights in order to broadcast recordings of musical compositions.

NOTE TO PER PROGRAM LICENSEES: If a station is paying for performing rights to musical compositions pursuant to the per program license (see question 11 below), the use of a popular recording that contains a musical composition licensed by a society could trigger the payment of a per program fee to the performing rights society that controls the musical composition.

5. From whom does a station secure performing rights licenses for musical compositions?
Composers and music publishers assign the performing rights in their musical compositions to one of three organizations (called performing rights societies), which issue licenses and collect license fees from individual night clubs, restaurants, radio and television stations, and other venues. After deducting the costs of administration, the societies distribute the license fees they collect to their composer and publisher members.

In 1914, composers and publishers banded together for the first time to form the American Society of Composers, Authors and Publishers (ASCAP), so that they could have a cost-effective way to collect license fees from the thousands of venues that perform music in this country. Today, along with ASCAP, there are two other organizations which perform the same function for different sets of composers and publishers in the U.S. They are Broadcast Music, Inc. (BMI) and SESAC.

In order to make sure that a station is not infringing any copyrights, a station generally enters into license agreements with each of the performing rights organizations, since they each represent a different group of composers and publishers.

6. Who is responsible for securing performing rights licenses for musical compositions?
A local station is generally responsible for the performing rights to musical compositions contained in the syndicated and local programming it broadcasts, including local promos, commercials and PSAs. For affiliates of the ABC, CBS and NBC television networks, performance of the music contained in network programming, promos, commercials and PSAs is generally paid for by the network as part of the network’s own performing rights license with ASCAP and BMI. At this time, the WB, UPN and Fox networks do not have separate contracts with ASCAP and BMI. Therefore, performing rights licenses for the music contained in programming broadcast by those networks are the responsibility of the local station.

7. What kinds of licenses do the performing rights societies offer to local television stations?
The societies generally offer two kinds of licenses. A station can choose which license is the most cost-effective, depending on the amount of music it broadcasts. The “blanket license“ allows a station to perform any and all musical compositions controlled by a society without having to report what music was used. Stations pay a yearly fee for that privilege.

The “per program“ license (PPL) also allows a station to perform any and all musical compositions controlled by a society, but the station pays the society only for the individual programs it broadcasts that actually contain music from that society. By utilizing the per program license, a station may reduce its performance license fees to a society by broadcasting programs that do not contain music licensed by that society. Stations choosing the per program license option for a particular society are required to send highly detailed reports to that society on a monthly basis.

8. What does a local station’s performing rights license cover?
Generally, performing rights licenses (both blanket and per program) between the station and each of the performing rights societies give the station the right to perform all of the musical compositions contained in each of the societies’ catalogues. The performing rights in virtually all musical compositions are controlled by one of the three performing rights societies.

The license covers the right to make so-called “non-dramatic“ performances, which include the vast majority of theme and background uses, and live performances. The license does not cover “dramatic“ performances (i.e., dramatizing or telling the story of a song using sets, costumes, props, etc.). In order to secure “dramatic“ rights, a music user must secure a license directly from the copyright owner.

IMPORTANT NOTE: A “performing rights“ license does not include the right to synchronize (i.e., record) musical compositions and recordings on film or video tape. (See questions 13, 14, 15 and 16.)

9. How are performing license fees determined?
The fees that are paid to ASCAP and BMI have traditionally been negotiated on an industry-wide basis. An organization called the Television Music License Committee (The “Committee“), representing local television stations, negotiates the license fees separately with each of the performing rights societies representing composers and music publishers. The Committee is comprised of a group of local broadcasters representing the major station groups, as well as smaller, individual stations.

Pursuant to the Justice Department’s consent decrees with ASCAP and BMI, if agreement cannot be reached between the societies and their licensees, either party may request a proceeding in the Federal District Court in New York to determine “reasonable rates.“ In a “rate court“ proceeding, ASCAP and BMI have the burden of proving that the rates they seek are reasonable.

10. How is an individual local station’s blanket license fee calculated?
In prior years, the blanket license has been calculated as a percentage of the station’s revenues. However, as a result of the most recent round of litigation/negotiation between ASCAP and the Committee, the ASCAP blanket license has been set at an industry-wide flat fee that is adjusted annually. The industry-wide ASCAP fee is allocated according to an “audience-based“ formula that was proposed by the Committee and approved by the Federal Court. The allocation formula is reprinted as Appendix A.

A new two-year agreement with BMI became effective in April of 1997. Stations pay BMI an industry-wide flat fee that is roughly 80% to 85% of the ASCAP blanket license fee. This blanket license fee is allocated among stations pursuant to the ASCAP blanket allocation formula.

SESAC, in the past, dealt individually with each local television station for the rights to its repertory. However, in January of 1997, an industry-wide blanket license flat fee was agreed to between the Committee and SESAC, which covers the period of October 1, 1995 through December 31, 2000. SESAC blanket license fees are allocated among stations pursuant to a formula created by SESAC that is similar (with some differences) to the ASCAP blanket allocation formula.

11. How is a local station’s per program license fee calculated?
If a station broadcasts very little of any particular society’s music, it may be able to reduce its blanket license fees to that society by utilizing the per program license. This is because the per program license requires a station to pay only for the programs that contain musical compositions licensed by a society.

License fees payable to ASCAP and BMI are a function of revenues attributable to, and music content of, both syndicated and local programming. A station must identify the performing rights society affiliations of musical compositions contained in such programming (including creating music cue sheets for local programming), report the revenue derived from all syndicated and local programming, and file detailed electronic reports on a monthly basis. A music cue sheet is a document that lists all of the musical compositions contained in a program, including their composers, publishers and how the music was used. SESAC does not offer a per program license option.

12. How can a PPL station maximize its savings by utilizing direct and source licenses?
A station can reduce its performing license fees to a society if it broadcasts a sufficient number of programs that do not contain music licensed by that society.

The copyright owner of a musical composition has the right to appoint a performing rights society to issue licenses and collect license fees on its behalf. A copyright owner may choose instead, on a song-by-song or program-by-program basis, to issue such licenses directly to broadcasters that request such rights. In such a situation, the performing rights license fee is paid directly to the copyright owner and not to the performing rights society. A license between a station and a copyright owner for the performing rights to a musical composition is called a “direct“ license. These direct licensing transactions are a major way for stations to reduce the amount of programming that would otherwise trigger a per program license fee payable to a society.

For example, a station can hire a composer to create news themes and background music to be included in its local programming, and secure a direct grant of performing rights from the composer (see question 18 below). Thereafter, the use of such music in a program will not trigger a fee to a society (as long as there is no other society-controlled music in that program). A station can also contract with one or more music libraries for such performing rights and accomplish the same purpose (see question 17 below).

For syndicated programming, a station can request that a syndicator provide programming complete with music performing rights included. These transactions are called “source licenses“ because the program supplier (i.e., the source of the program) has entered into a direct license with the copyright owner of the musical compositions. As of this writing, syndicators such as King World and Multimedia have been willing to enter into source licensing transactions with television stations.

13. What is a synchronization right?
A copyright owner also has the right to control how its musical compositions are recorded and reproduced. In the television and film production business, where musical compositions are recorded in synchronization with visual images, these recording/reproduction rights are called “sync rights,“ and a license to record is called a “synchronization“ license.

Synchronization rights should not be confused with so-called “mechanical rights,“ which have historically referred to the mechanical recording/reproduction of musical compositions on audio records, CD’s or tapes for distribution to the general public.

Record companies also have the right to control the re-recording and reproduction of their sound recordings. A license to re-record/reproduce a sound recording (e.g., Michael Jackson’s recorded performance of “Thriller“) in synchronization with visual images is called a “master use“ license.

14. Does a station need a synchronization license for musical compositions and recordings contained in network or syndicated programs?
No. When synchronization rights are required, they are generally the responsibility of the party that supervised the production process – usually the producer or owner of the program. Stations are not responsible for the sync rights to musical compositions or recordings included in network or syndicated programming.

A producer acquires these rights, most commonly, as a result of its agreements with composers hired or commissioned to create original music, or directly from the owners of any popular songs or recordings included in the program.

15. Does a station need a synchronization license for musical compositions and recordings contained in locally-produced programming?
The law in this area is unclear, and the answer to this question may depend on a number of factors. The producer of the program, in this case the station, is generally responsible for securing synchronization rights, if they are required.

Many broadcasters believe that the Copyright Act entitles them to “synchronize“ musical compositions and recordings in a locally-produced program and repeat that program or delay its broadcast for a period of six months, as long as the broadcaster has a license to “perform“ the musical composition. The Copyright Act, however, is restrictive and unclear. For example, among other restrictions, the program can only be broadcast in the station’s local service area, and only one copy of the program can be made. The station will have the greatest latitude with locally-produced and broadcast news programs.

When in doubt, the safest practice may be to seek knowledgeable advice and/or clear the synchronization rights through an experienced music clearance service. If the program will be broadcast for more than six months or on other stations, a synchronization license will almost certainly be required. Also, if a station plans to distribute video tapes or multimedia projects, it will have to secure synchronization licenses for the musical compositions and recordings that it does not own or control.

NOTE TO PER PROGRAM LICENSEES: While no synchronization license may be required to synchronize a musical composition in a locally-produced, non-syndicated program, the use of that musical composition may trigger a performing rights payment if the station is utilizing the per program license.

16. Does a station need a synchronization license for musical compositions and recordings contained in locally-produced promos or commercials?
Again, as discussed above, many broadcasters believe that the Copyright Act allows them to record music in local station promos as well. The safest practice would be to clear those rights through a knowledgeable and experienced music clearance service.

With regard to locally-produced commercials, however, a synchronization license would be required to use musical compositions and recordings in commercials produced locally for third party advertisers.

NOTE TO PER PROGRAM LICENSEES: Use of musical compositions in local promos, PSAs and commercials does not trigger a separate music performance license fee to ASCAP or BMI. The per program license includes an “incidental use fee“ that covers such uses.

17. What is a music library and what rights will they grant?
Music libraries provide commercially-produced recordings of musical compositions designed specifically for broadcast and film background use. Often, a station can avoid the necessity of hiring composers to write and produce news themes, station promos, etc., by acquiring the rights to pre-recorded music libraries.

Music libraries generally sell stations an annual license to their catalogues. Most commonly, such licenses only give a station the right to synchronize the recordings in local programming. They do not allow a locally-produced program to be broadcast on other stations, nor do they include performing rights unless specifically requested.

NOTE TO PER PROGRAM LICENSEES: A direct license to perform the musical compositions contained in a music library can often be purchased from the library for an additional license fee. This practice allows a per program station to reduce the number of programs that will trigger a performing rights fee to ASCAP and/or BMI. However, some music libraries do not grant performing rights; therefore, stations who utilize a per program license should ask music library vendors about their licensing policies before entering into license agreements. Additionally, the language in the license agreement that grants performing rights must be clear and unequivocal.

18. If a station wants an original musical theme for a local program, can it contract directly with a composer to get a direct grant of performing and synchronization rights?
Yes. A station generally contracts with a composer in one of two ways. First, a station can enter into a simple license agreement with a composer in which the composer creates original music for the station and licenses the musical compositions, and recordings thereof, to the station for the station’s needs. In this situation, the composer retains ownership of the music copyrights but grants all necessary rights (including performing rights, if requested) to the station. Second, a station may hire a composer as its employee or independent contractor to create original music. In such relationships, the station owns the copyrights, including the performing and synchronization rights.

A detailed discussion of license agreements, “employee for hire“ and “independent contractor“ agreements is beyond the scope of this booklet. In order for these relationships to properly vest the necessary rights or copyright ownership on the station, there are complicated technical requirements and contractual issues which must be satisfied. For additional information, you should contact your attorney or MRI directly.

19. Does a station need a license to use music from unsolicited tapes which are sent to the station?
Tapes are sometimes recorded by local “garage“ bands looking for a break – or by cousins of station employees who are would-be film composers.

Special care is required in these situations. Artists just starting out on their careers may not be members of a performing rights society; therefore, the performance may not be covered by the station’s blanket license. In such a situation, it is prudent to have the party submitting the tape sign a very broad license giving the station all performance and synchronization rights to utilize both the music and the recording. The station must be sure that it is dealing with the true owner of the music and the recording.

20. How does a station get a synchronization and master use license for popular songs and recordings?
Synchronization rights for songs are not licensed collectively like performing rights. A user may have to deal directly with the music publisher, the publisher’s agent, the songwriter, or the songwriter’s heirs, attorneys, etc. If several parties own a composition, each may have to be contacted. Some music publishers retain the function of quoting license fees, approving uses and issuing licenses themselves. Other publishers prefer to utilize the services of an intermediary organization (e.g., The Harry Fox Agency, Inc.), which the publishers retain to perform those functions on their behalf.

Record companies generally control and administer the licensing of their recordings themselves; however, in some instances, the prior approval of the performing artist may be required, and the musicians and background singers who performed on the recording may have to be compensated.

There is nothing that requires a music publisher or record company to give you a license if they don’t want to. In practice, many television and film producers utilize a music clearance service to determine copyright ownership, negotiate fees and handle the paperwork. For a more detailed discussion about securing synchronization rights, you may request a copy of “A Television and Film Producer’s Guide to Music Clearance“ from the Copyright Clearinghouse, a division of MRI.

21. Does a station have to pay for music that is in the public domain?
There is a certain amount of music for which all copyright protection on a worldwide basis has lapsed. This “public domain“ music can be used without payment for performance or synchronization rights.

However, as a result of the recently implemented General Agreement on Tariffs and Trade (GATT), certain works, which were previously in the public domain, have had their copyrights restored. As of this writing, there is legislation pending in Congress that would, if enacted, extend the term of copyright protection in the U.S. by an additional 20 years. Therefore, it has become difficult to determine what music may now be in the public domain. It can take as much time and expense to determine whether a composition is in the public domain as to clear one that is not.

If you plan to use public domain material, you must be sure you are using the original public domain version. Music that is in the public domain can be modified by a composer who may add new material. The resulting arrangement may be entitled to separate copyright protection for the new elements. If you are using a copyrighted arrangement of a public domain work, you must secure permission to use the arrangement from the owner of the copyright in the arrangement.

22. What are music cue sheets and why are they important?
A music cue sheet is a document, usually prepared by the producer/distributor of a program, that lists all of the music contained in a production including the title, composer(s), publisher(s), performing rights affiliation, and use and timing of each musical cue. The cue sheet is used by all parties in the royalty distribution process to determine the amount of royalties to be paid for the public performance of the music contained in the program, and to whom those royalties are paid. More importantly, the information contained in the music cue sheet determines whether a performing rights fee must be paid to a society. Historically, cue sheets for syndicated programs have not been available to the television industry. Therefore, the Committee has launched an effort to seek access to music cue sheets for syndicated programming.

23. What should a station do to help the industry obtain cue sheets for syndicated programming?
The Committee needs to expand and improve the integrity of its programming and music database. Therefore, the Committee has recommended that each station ask each of its syndicators to send one copy of all music cue sheets of each of their programs to MRI. The Committee has suggested the following contract language for inclusion in all syndication agreements:

“It is agreed that (Syndicator Name) will cause to be sent to Music Reports, Inc. at 21122 Erwin St. Woodland Hills, CA 91367, one copy of the music cue sheet for each (Series Episode or Movie Title) in this package. If a copy of the cue sheet has already been sent to Music Reports, Inc. by (Syndicator Name), then no additional copy need be sent.“