Understanding Music Copyright—
Streaming, Music Videos, and Licensing
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Estimated reading time: 8 minuteswritten by: David Frazee
I know how important copyright is, and I know that it can also be completely confusing and overwhelming… so I’m breaking it down and going through it, bit by bit.
This is the third article in the Copyright series. If you missed the first and/or second article, please take a moment to go back and read them before continuing this one.
Stream Digital Versions (Audio only)
You know some of your fans are all over the streaming services, such as Pandora, Spotify, and XM radio. While you don’t want to put all of your music on there (since they won’t buy it if they can stream it for free or almost free), you are interested in offering two songs off of your newest album—one is an original, and one is a cover.
But streaming is a bit more complicated than it seems, and you might have no idea what rights are involved with putting your music out there. The good news is I’ve done some digging for you.
Streaming companies gain a license from musicians to play the recordings; the particular license depends on whether the streaming service is interactive or not. An interactive service—such as Spotify—allows the user to select the exact songs they listen to. In that case, the company would have to obtain the right to “digital performances of sound recordings” from the copyright owner. On the other hand, non-interactive services—like Pandora or XM Radio—provide a pre-programmed or semi-random combination of tracks; with these services, users cannot control exactly what song plays or when. These services need a “statutory license.” SoundExchange is a service authorized by Congress to administer statutory licenses.
Additionally, streaming digital music is considered a public performance, so the services need to obtain performance rights to perform underlying musical composition.
So, to stream music online, you will likely need to transfer the underlying performance rights in the musical composition and the right to the digital performances of your sound recording to the service providing the streaming.
Unless you have given up some of your rights, you have the right to place your own music online or on the radio.
If you have not already created a digital version of a song someone else created, you will need a mechanical license to create that sound recording in digital form and to stream that song. Again, most copyright owners use the Harry Fox Agency to manage this interactive streaming license. Additionally, you will need a public performance license for the musical composition, and you will need to pay the performance fees to the correct PROs. After acquiring the proper rights from the original song owner or publisher and creating your version, you will need to give the service the right to the digital performance of your sound recording.
Creating a Music Video
In an effort to promote your new album, you’ve taken the best songs—the one with the killer hook, and the crowd pleaser—and come up with crazy-awesome concepts for a music video. You’re ready to start production, but you want to make sure you cover all the bases first.
When you create a music video of your original songs that is not being live streamed, your reproduction, distribution, and synchronization rights come into play. “Synchronization” is a special kind of right not precisely defined by law; that said, it is generally understood to be part of your reproduction rights and comes about anytime visual images are placed with your music.
To get your music video online or on TV generally requires you license the company or service a portion of your rights. To start, this will include both some sound recording (because you are not performing live) and musical composition rights (because your music and lyrics are still being played). Since companies will want to cover all their bases, the contract you enter with the company will likely be over-inclusive for what is actually required. Often this will include the right to reproduce the video, distribute the video, display your band name or CD cover, perform (or “play”) your work for public viewing, and derivative rights, to prepare derivative works. You may be thinking, “what are derivative rights, and why do they need them?” Derivative rights allow the company to adapt or change the music video—usually to fit their programming and produce the show for viewing—without infringing your copyright. It is more common with television programs than online services.
In terms of songs someone else created, you need two things to legally distribute your music video of a cover song: a mechanical license and a synchronization license. Why do you need two licenses? Your music video has an underlying audio track that exists as a separate file from the final video. That audio track technically requires a mechanical license (to create the recording and distribute it; the Harry Fox Agency handles mechanical licenses. But, in order to make a music video and align that recording of someone else’s song with any moving images, you need a special license called a “synchronization license.” This is obtained from the musical composition rights owner—likely the artist’s publisher. To find the publisher, you can look the song up on the PRO’s (BMI, ASCAP, or SESAC) website; find and contact the owner/publisher; and request to negotiate a synch license. One thing worth noting: since you can also obtain the mechanical right from the owner/publisher, you might be able to obtain a “sync license” that includes all the necessary reproduction and distribution rights you need for your video… meaning you wouldn’t need a separate mechanical license.
What does this mean, practically speaking? That hit song that everyone and their brother is covering online—those artists either obtained the proper licenses (which can cost a pretty penny, depending on the song) or they did it illegally. And doing things illegally has a range of repercussions ranging from your account being penalized to legal action. Even if everyone else seems to be doing it the wrong way, is it really worth risking your reputation, your online presence, your finances, and your career?
Song Placement: TV Shows, Movies and Commercials
Your music videos’ view counts are climbing by the minute, and your new album is trending on social media and climbing the charts (congrats!). You’ve had two emails come in—one from a company wanting to use your cover of a song in a television ad, and one wanting to use your original song in a movie.
Let’s start with your original song and the movie. The rights you might have to give up depend on whether the movie company is using a pre-recorded version of your song or is asking you to record a new version for the movie.
If they want to use a previously recorded version of your song, they will have to obtain a synchronization license and the sound recording license (called a “mast use license”). The mast use license is acquired from whomever owns the rights to the sound recording–likely you or your record label. Anytime your music is placed with moving images, a sync license is required from you and/or your publisher. The sync license should cover your performance royalties from the showing of the movie; this means the producer will submit a “cue sheet” to your PRO and the authorized broadcasts will be granted only to companies registered with your PRO. The license might also include a mechanical license, since they will likely want to release, reproduce, and distribute a soundtrack with copies of your song… and you want to get paid for those copies!
If you are recording a new version, you will likely have to give up sound recording rights, display rights, distribution rights to the work that results, the right to reproduce copies of that recording, as well as any derivative works resulting from that recording. Seems like a lot to give up, but it is pretty standard.
This is important: if you have already recorded a version of your song with a record label, be sure you do not need their permission to use the previous recording or to record a new version of the song for this new use.
Now, for licensing the cover song. Whether it’s a movie, a music video, or on television, anytime you want to place someone’s music with moving images, you need a synch license. If you already have a music video and obtained a synchronization license from the artist’s publisher, you might think you’re covered. Think again. Since this is a different use, the sync license will most likely need to be negotiated again. Additionally, performance rights to the underlying musical composition need to be obtained from the proper PRO and fees paid accordingly. Hopefully, the ad producers will take care of this for you!
So far, we’ve covered the most common Copyright issues. Let me know if there are additional topics you’d like me to address by leaving a comment below… and be sure to check back and find out more!
Disclaimer: The above article is not legal advice; is it not intended to, nor can it, replace professional legal advice in any way. It is only intended to provide a short guide to basic legal terms and practices in the music industry. In your own interest, consult with a copyright attorney before entering into any contractual agreement or taking any action against copyright infringement.
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