.. cal exhibition requires a synchronization license that includes a right to exhibit. The producer of the motion picture issues this license and the royalties are handled by ASCAP, BMI and SESAC. Broadcast commercial requires a negotiated license issued from the publisher. These are some of the highest earnings from special use permits. A commercial advertisement will pay thousands of dollars for the use of a popular song on a broadcasted advertisement.
In these licenses the advertiser can usually alter the words to suit the product. If the music is composed specially for a commercial the composer can grant a buyout deal giving the advertiser unlimited usage of the music. ASAP, BMI, and SESAC would collect the royalties from music used under a special use permit. Merchandising tie-ins, computer software applications are a negotiated license issued by the publisher. These are similar to broadcast commercials however, there may be no way of tracking times played so a one-time fee may cover the entire license and no royalties collected. Business music provided by companies like Muzak, require a transcription license issued by the publisher, the Harry Fox Agency or SESAC.
The types of uses would be music provided in shopping centers, in-flight music, or hotel elevator music. The collection of royalties is negotiated with ASCAP, BMI, and SESAC. Dramatico-musical production requires a grand right or dramatic right license negotiated with the copyright owner. These types of uses are for music used in a production where the music plays an integral part in the plot and carries the drama forward. Broadway shoe and similar productions fall into this category. The show’s composer receive the royalties from ASCAP, BMI, and SESAC for this type of use. Public broadcasting station and jukebox use require a negotiated license. PBS is a television station along with Public radio that negotiate fees with the publisher.
ASCAP, BMI, and SESAC collect any royalties. The jukebox operator negotiates fees with the copyright owner. The Jukebox License Office contacts the jukebox operators and offers them one blanket license to cover ASCAP, BMI, and SESAC. The last type of music is in use with cable television. A compulsory license or negotiated license is issued by the Copyright office for secondary transmissions use.
The Copyright office then distributes this money to the copyright owners. Rates are set and periodically reevaluated with the assistance of a Copyright Arbitration Royalty Panel (CARP). Question 3. The Copyright Act of 1976 was implemented with the intent to “minimize any disruptive impact on the structure of the industries involved and on generally prevailing industry practices.” The act has seven essential provisions that cover almost every aspect of copyright law. It was also designed open-ended to allow it to change and be amended to change with this growing industry. This act applies to every part of the music industry from recording to publishing.
The songwriters benefit greatly for a few reasons. One, the duration of copyright was lengthened to the authors life plus seventy years. This allows a songwriter to continue making money even past his death in which the money would go into his estate. This ensures writers that they will be generously compensated even when they are not able to reap the benefits themselves. Section 101, work made for hire, is very significant to composers, publishers, and movie producers. When a composer is writing on a work-for-hire basis, the employer is under law as the author of the creative work.
Thus, the employer owns the rights to the work. Another policy that will apply to songwriters is the periodic reexamination of policies and rates of music licenses. This ensures that as the industry grows and evolves to new places, that if a situation arises where they are at a disadvantage because of old law, the policy will be in review for change. In the same manner the music publishers share similar benefits to the songwriter. The publisher and writer are on the same level when the sign the contract agreeing to share profits 50-50.
The greatest part of this act is Section 106, the Exclusive Rights in Copyrighted Works. Six exclusive rights are given to the owner of copyrights including (1) the right to reproduce the copyrighted work in copies or phonorecords; (2) to prepare derivative works based upon the copyrighted work. This allows the owner to expand the uses of their work outside of the original use. (3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending. The freedom to distribute and copy their own works makes it possible for not only the artist to be successful, but also the publisher along with the affiliated record label, and distribution companies.
(4) In the case of literary, musical, dramatic, and choreographic works .. to perform the copyrighted work publicly. This right makes the continuation of the performing arts possible. (5) In the case of literary, musical, dramatic, and choreographic works .. to display the copyrighted work publicly.
(6) In the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission. The Internet is the way of the future in a big way in the music industry and this exclusive rights leaves it open to change in the digital domain. The provisions that apply to the songwriter also apply to the publisher and all the divisions of the full-line publisher. The recording industry is fighting one of the biggest disputes in music history because of the way that our industry is changing with the evolution of the Internet. Napster, an Internet site that acts as the middleman for the sharing of music over the web.
Napster claims that they aren’t responsible for the rights not being paid for this shared music because they do not actually touch the music. They provide a way for one user to look into another users personal computer and download audio files from their computer for free. Napter is facilitating the stealing of this music by providing this open door to users and bypassing the paying of rights to the artists and publishers of the music. The policies of music licenses being reexamined will allow the law to shape to this dispute and pay those who own the rights to the music. In this subject we also include the fair use of copyrighted material. The law gives guidelines to what is considered fair use for this material.
The act list the criteria for a fair use that includes: 1. The purpose or character of the use, including whether such uses is of a commercial nature or is for nonprofit educational purposes. 2. The nature of the copyrighted work 3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole 4. The effect of the use on the potential market for or value of the copyrighted work There are exceptions to certain performances that are included in the fair use portion of the act. (1) The performance or display of a work by instructors or pupils in the course of face-to-face teaching activities of a nonprofit educational institution.
(2) Performance of a nondramatic literary or musical work, display of work, by or in the course of transmission. These two uses allow students to study music for more that a hobby, but for a preparation for their careers upon graduation. This is a great resource for colleges to be able to teach and perform music and art for free as a fair use. Question 4. In the music industry there are three organizations that dominate the performance rights collection.
These organizations are responsible for collecting royalties from clubs, concert halls, stadiums, bars, colleges, airlines, or any business or group that uses music to promote business for themselves. The money collected from these businesses is dispersed to publishing companies that split the profits with the songwriter. These performance rights organizations will take legal action against the venues that do not purchase the appropriate licenses for the uses of the copyrighted music. Some examples of licenses include mechanical, performance, special uses, synchronization and grand rights. The first performance rights organization established in 1914 is the American Society of Composers, Authors, and Publishers (ASCAP).
ASCAP’s income is derived from the following places in the music industry: 1. 20% to 25% from reciprocating foreign licensing organizations. 2. About half from television stations and networks 3. Radio generates about 25% 4.
Annual fees are figured on a small percentage of the adjusted gross income Membership of ASCAP is comprised mostly of composers and lyricists of Broadway shows, movie musicals, and pop songs. To become a member of ASCAP you must have at least one song commercially recorded, available on rental, or performed in media licensed by the society. ASCAP has a board of twelve writers and twelve publishers. In weighting performances ASCAP takes into account the following: 1. The medium in which the performance takes place 2.
The weight of the station on which the performance is carried 3. The weight of a television network 4. The type of performance The organization pays its members on the basis of census and sample surveys of performances. These are usually done at random at places that have commercial airplay. The data is then figured on an average and royalties are paid based on the average.
Broadcast Music Inc. is set up different from ASCAP in its financial structure. BMI is owned by stockholders. It’s board of directors consists of those who own shares in the company; several hundred people. The affiliates of BMI are songwriters from genres including jazz, rhythm and blues, country, rock, gospel and much more.
Unlike ASCAP, BMI has no members, but has writer and publisher affiliates. BMI accepts those who have written a musical composition and have recorded or performed the work commercially. BMI pays higher for songs that originate in a Broadway show or feature film. As the song is play or performed more the copyright owners receive bonus payments of up to four times the minimum rate. BMI has many foreign writers and publishers in Europe and relays on income from overseas greatly. BMI does withhold 3.6% for servicing foreign accounts.
BMI deals with most licenses, as does ASCAP. The Society of European Stage Authors and Composers (SESAC) is the third of the performance rights organizations. SESAC is the smallest of the three organizations. They believe that by being a smaller organization they can meet the needs of their writers and publishers better then the bigger organizations. The other side to this is that it is much more costly to the copyright owner to join with SESAC.
SESAC is the technological leader among these organizations. They have a state-of -the-art tracking system which allows them to accurately track the performance and recording of works by its owners. SESAC uses a chart payment system, which makes royalty payments based on chart positions in major trade publications. Unlike ASCAP they do not have a weighing system. The success of the song is based on how high up on the chart it is. ASCAP and BMI operate under court consent decrees; SESAC does not. Each of these organizations has their own strength, and all three are important to the industry.
Question 5. Working musicians can become members of unions and guilds that are respected around the nation. There are many benefits to being apart of these organizations. At a glance one may not like the idea of paying yearly dues to a group of musicians, but the benefits can be immeasurable in the right parts of the country. The American Federation of Musicians (AFM) is a trade union. It is the oldest union in the United States representing musicians that are active in their professional career.
Over the year this union has seen decease in numbers because of difficulty in attracting new young members and state and national laws restricting certain kinds of collective bargaining. The union dues can range from one to five percent of union scale wages earned by its members. These dues are used to finance activities all over the nation and locally. The Union provides these musicians with the proper treatment and paid work. Most symphonies are made up from union players.
Other organizations include the American Guile of Variety Artists. The AGVA represents singers, dancers, comedians, ice skaters, jugglers, magicians, and others who perform live. The AGVA provides membership to all types of performers from the struggling to the world-famous. The AGVA will negotiate with the venues of its performers. The Screen Actors Guild is made up for actors, singers and even on-screen instrumentalists. All of these organizations are very specific to its members and who can join.
A musician may have to be a part several unions or guilds to get the attention he need to succeed. Some of the benefits to being a part of a musicians union are laid out in a “Bill of Rights” fashion including how union musicians are to be paid: 1. The right to enjoy a minimum wage, whether derived from live performance, royalties, or reuse, that is sufficient to provide a standard of support proportional to the entire investment of time and resources required to secure and perform said gainful employment. 2. The right to safe and healthy working conditions including protection from health threatening theatrical devices, demeaning and exploitive costumes or uniforms, excessive sound pressure levels, substandard travel arrangements, ingestion of second hand tobacco smoke, irrelevant recorded music before performances and during intermissions and the right to reasonable rest periods.
3. The right to equal employment opportunities based on musical qualifications and/or entertainment value regardless of race, ethnic background, age, gender, religion, cultural diversity or political affiliations. 4. The right to negotiate fairly on one’s own behalf with universal recognition and legal enforcement of resulting contracts on agreed terms. 5.
The right to ownership of all intellectual property rights as applied to compositions, performances, and recordings by all players and singers as well as leaders and publishers who are already protected. Minimum wage from gainful employment must be sufficient to pay all necessary costs for life, shelter, and health care in the proportion of 100% for 40 hours weekly invested and directly proportional for fewer hours. This investment of time includes, in addition to hours of actual live performance, those hours spent in practice, rehearsal, preparation, post-production and (when required by the employer) promotion of the event. In absolutely no instance shall this total work investment be compensated for less than federally mandated minimum wages. We can see that union protects and serves the musicians and gives them freedom to pursue their own careers in the performing arts.
These organizations create stability for the pursuit of full-time jobs in many different areas of the arts, not only in music but also in the world of theatre and visual arts. Music Essays.