Understanding The Roles Of Copyright Holders: Publishers And Labels

A critical part of understanding the music licensing process is understanding the players that control the rights to the music itself. There are several important entities involved in the creation and ownership of any commercial piece of music.
The Publisher
The owner of most commercial songs—the music and lyrics—is a publisher. The publisher may be controlled by the songwriter, or it could be a third party that purchased the rights to the song from the songwriter. A publisher can be a single individual or it can be a huge conglomerate. A publisher, whether an individual or a large company, performs four basic functions: It controls the copyright, exploits the copyright, protects the copyright, and collects the income generated from the use and exploitation of the copyright.
The song publisher grants synchronization rights. A synchronization right is the authorization to use a composition locked with a moving image or other audio/visual work. Just like in synchronized swimming, where all the swimmers move in unison together, a synchronization right grants permission to use a composition in unison with an image, where the sound and the image are integrated.
The Label
Record labels originated to produce records and own masters of their recordings. They often came from humble beginnings, often as recording studios such as Sun Records (Jerry Lee Lewis, Roy Orbison, Johnny Cash, Carl Perkins), Motown (Stevie Wonder, Marvin Gaye, Smokey Robinson, the Temptations), Stax (Sam & Dave, Isaac Hayes, Booker T & the MGs), and Atlantic (Aretha Franklin, Ray Charles, John Coltrane, Eric Clapton). These studios captured the many styles of talent that came through their doors, but they not only recorded the music, they pressed it on vinyl and worked to get the songs played on radio as well. Those lovely 7- and 12-inch discs brought the music to the masses.
A master right, sometimes confusingly called a “master synchronization” right, is the right to use a master recording with a locked moving image or other audio/visual work. This right is secured through the master owner, or the entity that originally paid for the recording. Generally speaking, this will be a record label, but it may also be a production company (if you are requesting music written speci?cally for a prior ?lm) or even the artist themselves (most likely if they released the recording on their own).
- By Brooke Wentz

A Guide To New Media Licensing Terms

Due to our location near Silicon Valley, we work with many new media producers to help them clear music rights and find creative solutions to complex technology-related licensing issues. Here is a guide to some terms that can be relevant to a conversation about licensing music for apps, widgets and viral media.
The Digital Millennium Copyright Act (DMCA): is a United States copyright law that implements two 1996 treaties of the World Intellectual Property Organization (WIPO). It criminalizes production and dissemination of technology, devices, or services intended to circumvent measures (commonly known as digital rights management or DRM) that control access to copyrighted works. It also criminalizes the act of circumventing an access control, whether or not there is actual infringement of copyright itself. In addition, the DMCA heightens the penalties for copyright infringement on the Internet.

For the act in its entirety go here: http://www.copyright.gov/legislation/dmca.pdf

Interactive Streaming: Interactive streaming is when a digital file is transmitted electronically to a computer or other device at the specific request of the end user in order to allow the end user to listen to a recording or a play list contemporaneously with the user’s request. Interactive streams are sometimes referred to as on-demand streams. For services which provide an interactive service or on-demand access to certain tracks or artists (E.g. YouTube), the statutory license does not apply, and a direct license must be obtained from the copyright holder
Interactive Subscription Services: “Interactive” services enable the consumer to interact with the service to hear a specific recording and to create a personalized radio station and play list. (E.g., Pandora and Rhapsody)
Limited Downloads: A limited download is a digital file that is delivered electronically to a computer or other device to reside there on a limited basis. There are two types of limited downloads: time-limited download (for example, the song resides on the computer for 30 days) and use-limited download (for example, the song can be heard 12 times before it can no longer be played). Limited downloads are sometimes called tethered downloads.
Non-Interactive Subscription Services: Non-Interactive Subscription services do not allow the consumer to interact with the service and select specific recordings. Generally, it is one continuous stream of music. These services are very generally defined as those in which the user experience mimics a radio broadcast. Web casting royalties are only paid for “non-interactive” radio and subscription services. Unlike Rhapsody and Napster’s interactive services, the consumer cannot pick and choose which particular songs or artists he wants to hear. The two FCC-approved non-interactive satellite digital subscription services are XM Satellite and Sirius.
Webcasting Royalties: Under the Digital Millennium Copyright Act of 1995 (“DMCA”), Congress provided for a “Webcasting Royalty” to be paid to the owners and/or exclusive licensees of master recordings being streamed.
Peer to Peer (P2P): Also referred to as file sharing, peer-to-peer is a popular type of application in which, rather than accessing files from a central server, users access a common network hub and open up portions of their own computer’s hard drive to the public for downloading. Any unlicensed P2P activity is illegal and can result in criminal prosecution and/or fines.
Permanent Digital Downloads: A permanent digital download (PDD) is each individual delivery of a phonorecord by digital transmission of a sound recording (embodying a musical composition) resulting in a reproduction made by or for the recipient, which may be retained and played by the recipient on a permanent basis. PDDs are sometimes referred to as full downloads or untethered downloads. Each time a song is purchased as a PDD revenue is received via a Fixed Pay Rate (i.e. iTunes, Napster, Rhapsody and Amazon) or a Subscription Pay Rate (i.e. emusic)
Revenue Share: This has multiple meanings depending on the context. On the Internet, revenue sharing is also known as cost per sale, and accounts for about 80% of affiliate compensation programs. E-commerce web site operators using revenue sharing pay affiliates a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party cost that the customer pays) generated by customers whom the affiliate refer via various advertising methods. (E.g., iTunes Affiliate program and Amazon Affiliate program)
Ring-back: Ring-back tones (aka “Answer Tones”) substitute an excerpt of a particular master sound recording of a composition for the sound a caller normally hears while waiting for the person called to answer the phone.
Ringtone: A ringtone is an excerpt of a musical composition embodied in a digital file and rendered into audio. Ringtones are stored in an end-user’s mobile telephone, pager or other portable communications device and played whenever the device activates its ring or alert function (upon the arrival of a call, message or other notification).

There are two basic types of ringtones: Phonic Ringtones and Pre-Recorded Ringtones. Phonic Ringtones are, most commonly, standard MIDI sound files that are either monophonic, where the ringtones are recreated using standard single notes, or polyphonic, where notes can be played simultaneously creating harmony and/or counterpoint. Pre-Recorded ringtones play actual clips from sound recordings.

SoundExchange: SoundExchange is a non-profit performance rights organization that collects statutory royalties from satellite radio (such as SIRIUS XM), Internet radio, cable TV music channels, and similar platforms for streaming sound recordings. The Copyright Royalty Board, which is appointed by The U.S. Library of Congress, has entrusted SoundExchange as the sole entity in the United States to collect and distribute these digital performance royalties on behalf of featured recording artists, master rights owners (like record labels), and independent artists who record and own their masters.
Satellite radio or subscription radio: is a digital radio signal that is broadcast by a communications satellite, which covers a much wider geographical range than terrestrial radio signals. Satellite radio offers an alternative to ground-based radio services in some countries, notably the United States. Mobile services, such as Sirius, and XM allow listeners to roam across an entire continent, listening to the same audio programming anywhere they go.
Streams or Streaming: A stream is when someone listens to your song but does not own it and has not downloaded it. Consumers typically listen to streams as part of a subscription model where they pay a monthly fee to stream a certain amount of music. (E.g., Rhapsody, Mog, Rdio). There are two ways to listen to a song as a stream: “Tethered” and “Non-Tethered.”

• A Tethered Stream means the media player must be connected (or “tethered”) to the Internet at all times in order to listen to the music.
• A Non-Tethered Stream means the media player (either a computer, mp3 player or mobile phone) only needs to be connected to the Internet once a month for the service to confirm that the user has paid their monthly subscription fee. After one month, if the person either stops paying their fee OR if the person does not connect their device to the Internet to verify that they have paid, the songs will stop playing on their computer or portable player.

Web casting: Web casting generally refers to the online streaming, either live or on demand, of an audio or video source to various simultaneous users. Web casting is sometimes referred to as Internet radio or Internet television. Web casters may be Internet-only services that transmit several different genre-based channels, re-transmitters of traditional AM/FM broadcasts, or services that syndicate music programming as background music on Web sites. HFA does NOT handle web-casting licensing.
User Generated Content: User Generated Content (UGC) refers to various kinds of websites where either entire or large portions of the content on the site are created by the users of the site (as opposed to the administrators). Also referred to as “consumer generated media” (CGM) or “user created content” (UCC), UGC includes contents such as blogs, podcasts and user product reviews.
Virtual Goods: are non-physical objects that are purchased for use in online communities or online games. [1] They have no intrinsic value and, by definition, are intangible. [1] Virtual goods include such things as digital gifts [2][3] and digital clothing for avatars. Virtual goods may be classified as services instead of goods. Sales of virtual goods are sometimes referred to as micro transactions. They are sold by companies that operate social networks, community sites, or online games. (E.g., Farmville, Zombie Farm)
Widgets: A widget is a stand-alone application that can be embedded into third party sites by any user on a page where they have rights of authorship (e.g. a webpage, blog, or profile on a social media site). Monetize your own digital content or link to Amazon’s digital products with the widgets below. These widgets provide compelling audio and video content for your site. Your viewers can preview music, movies or TV shows before buying. (E.g., Amazon MP3 Clips Widget)
Sources:
http://www.harryfox.com/public/DigitalDefinitions.jsp#20
http://www.tunecore.com/faq
- By Jenna Levy

BMG Acquires Stage Three Music

BMG Rights Management (BMG) announced the signing of an agreement to acquire Stage Three Music (Stage Three) from its shareholders, Apax Partners, Ingenious Ventures and the Management. Stage Three is a leading independent, international music publisher founded in 2003 and run by ex-Virgin and Chrysalis CEO, Steve Lewis. The business is headquartered in London, with offices in Los Angeles and Nashville run by Lionel Conway, former President of Island Music, Polygram Music Inc. and Maverick Music Inc.
- BMG Acquires Stage Three Music

AudioBox.fm Hits iPhone, Stream Your Music Collection From The Cloud

AudioBox.fm, the cloud-based music service that lets users upload their music collection and access it anywhere, has added the iPhone/iPod touch to its list of supported devices through a native application.Previously, iPhone users could only access AudioBox via Mobile Safari, a bit of a kludge since the QuickTime Player plugin effectively takes over the phone’s browser.
- AudioBox.fm Hits iPhone, Stream Your Music Collection From The Cloud

Girls Rock!

For those of you in the Bay Area, Girls Rock! will be screening this Sunday. The film is a documentary about the early days of girls rock camps, and it’s also one of our favorite projects – check it out here.

Tips for Choosing the Right Composer

Selecting the right composer for a score seems like a daunting task, but can ultimately lead to a union that will elevate your project to the next level. Once the idea of the project takes shape the question then becomes; how should I go about selecting the ever-important composer for my project? Here are some tips to help guide you through the decision-making process.

Before you even begin to compile a list of names, you should think about instances in which you felt the music that accompanied a project was particularly effective. This is important, as you are more likely to see eye to eye with someone when you are already accustomed and comfortable with his or her musical style. Take note of the composer’s name and seek them out while keeping in mind that the composer of your choice may already be established or renowned, which can mean that they command rates that exceed what your budget will allow. For this reason, it should be your first step to focus on a particular style because by doing so, you have given yourself the option of finding your composer based on his or her style, not name and reputation.

As for where you should look for your composer, a good start would be to turn to music schools and classified sections of selected magazines such as The Independent MovieMaker and Release Print. These resources will help you make a choice on the basis of musical style and to select from a pool of “composers” as opposed to “musicians.” Being a member of a well-known band does not necessarily lend a musician an understanding of complexities of composing for visual media. If you do decide to choose a big name musician as your composer, it is essential that you have someone with experience as a music director or arranger, as well as someone with adequate recording equipment and technological resources to carry out the project.

Once the composer is chosen, communication becomes crucial. It is imperative that your vision and direction is explained clearly and understood by the composer. Failing to do so can lead to projects that are over- or underscored and will detract from the final product. It is also important to set realistic goals for your composer. Too often tensions arise between the director and the composer as a result of mismanaged expectations. Start communicating early and often with your composer in order to ensure that you are both on the same page with regards to the direction of the project and what is to be expected.

The Rights Workshop works with filmmakers and producers at all stages of production, and can provide support for composer searches as well as budget-appropriate referrals. If you’re looking for a composer or have questions about contracting with a composer, please feel free to contact us for a free consultation.

- By Nathaniel Pachtne