Royalties and Rates/ Songwriter/Publishers/Recording Artists/ Record Labels/ 2019Royalties and Rates/ Songwriter/Publishers/Recording Artists/ Record Labels/ 2019Royalties and Rates/ Songwriter/Publishers/Recording Artists/ Record Labels/ 2019Royalties an

ROYALTIES and RATES/ SONGWRITERS/PUBLISHERS/ RECORDING ARTISTS/ RECORD LABELS/ 2019

 

1.    MECHANICAL:  2018-2022 Copyright Royalty Board/ Statutory License (Section 115 Copyright Law)

        Includes physical copies, downloads, ringtones, limited downloads, interactive streaming,

   Copyright owners, publishers, can also Directly License works in lieu of the Statutory License. CRB rates currently under appeal by Spotify, Pandora and other digital streaming companies.

2.    PERFORMANCE/ Performing Rights Organizations (PROs).   No Statutory License under Copyright Law. Writers and publishers join these organizations who in turn negotiate licenses with the users of music, collect the money and distribute it to writers and publishers based on surveys of performances as well as other factors.

         Voluntary negotiations between music users and ASCAP or BMI. If no agreement, Federal Rate Courts, pursuant to Consent Decrees, determine license fees, terms and what is actually licensable.

          SESAC: Voluntary negotiations  In the local television and terrestrial radio areas, Mandatory Arbitration if voluntary agreements cannot be negotiated.

          GMR ( Global Music Rights): Voluntary negotiations only.  No Rate Court, Mandatory Arbitration or rate dispute mechanism other than copyright infringement litigation.

          Copyright owners, publishers, can also Directly license or Source license copyrighted works to users or program producers thereby bypassing the PRO licenses. With the exception of GMR, all PRO writer and publisher membership or affiliation agreements are Non-Exclusive.

           The 4 U.S. PROs collected in 2018 in the area of 2.8 billion dollars for the performance right.

3.   SYNCH; No Statutory License under the Copyright Law’

           All synch licenses are voluntary negotiated licenses between parties. This includes the use of pre-existing works in movies, television, commercials, e- cards, apps, video games, holograms,etc.

 

RATES/ SOUND RECORDINGS/ ARTISTS AND RECORD LABELS

1.   LIMITED PERFORMANCE RIGHT when sound recordings are publicly performed “by means of a digital audio transmission” pursuant to the Digital Performance Right in Sound Recordings Act of 1995 (DPRA).  Webcasting was included under this right by Digital Millennium Copyright Act of 1998 ( DMCA). This Compulsory License/ Statutory License applies primarily to satellite radio services, internet radio, cable television audio music channels and certain business establishment services. Does not apply to terrestrial radio.

    **The Statutory License as set forth in Sections 112 and 114 of the Copyright Act applies ONLY to NON-INTERACTIVE services (e.g., Pandora). For On Demand services (e.g. Spotify), the right remains with the Copyright Owner and is a negotiated agreement.

   **Copyright Royalty Board Rates/ Statutory License:

Webcasting 2016-2020: .0022 per stream for commercial subscription services and .0017 for non-commercial subscription services.

Sirius XM 2018-2022: 15.5% of gross revenue.

Music Choice 2018-2022: 7.5% of gross revenue.

   **SoundExchange is the sole entity designated by the CRB to collect royalties under the statutory license. SoundExchange distributed 953 million dollars in 2018. SoundExchange also administers record label/ streaming service direct licensing deals that bypass the statutory license.

    ** This is an Audio Right only. Does not apply to music in any audio-visual work.

   **Copyright owners can negotiate directly with services and bypass the statutory license.

    **On Demand/ Interactive Services: No Compulsory License for streaming sound recordings. Negotiated agreements between labels and services. Can take many forms including a % of gross, net or ad revenue, an ownership or equity stake in the service, a per-stream rate advances and guarantees, a trade off of services or a combination of these and other elements.

 

2.    SYNCH LICENSES MASTER RECORDINGS: Negotiated agreements. Many times the license fee will be on a Most Favored Nations (MFN) with the song.

 

Copyright 2019,Todd Brabec and Jeff Brabec

 

 

 

 

ROYALTIES and RATES/ SONGWRITERS/PUBLISHERS/ RECORDING ARTISTS/ RECORD LABELS/ 2019

 

1.    MECHANICAL:  2018-2022 Copyright Royalty Board/ Statutory License (Section 115 Copyright Law)

        Includes physical copies, downloads, ringtones, limited downloads, interactive streaming,

   Copyright owners, publishers, can also Directly License works in lieu of the Statutory License. CRB rates currently under appeal by Spotify, Pandora and other digital streaming companies.

2.    PERFORMANCE/ Performing Rights Organizations (PROs).   No Statutory License under Copyright Law. Writers and publishers join these organizations who in turn negotiate licenses with the users of music, collect the money and distribute it to writers and publishers based on surveys of performances as well as other factors.

         Voluntary negotiations between music users and ASCAP or BMI. If no agreement, Federal Rate Courts, pursuant to Consent Decrees, determine license fees, terms and what is actually licensable.

          SESAC: Voluntary negotiations  In the local television and terrestrial radio areas, Mandatory Arbitration if voluntary agreements cannot be negotiated.

          GMR ( Global Music Rights): Voluntary negotiations only.  No Rate Court, Mandatory Arbitration or rate dispute mechanism other than copyright infringement litigation.

          Copyright owners, publishers, can also Directly license or Source license copyrighted works to users or program producers thereby bypassing the PRO licenses. With the exception of GMR, all PRO writer and publisher membership or affiliation agreements are Non-Exclusive.

           The 4 U.S. PROs collected in 2018 in the area of 2.8 billion dollars for the performance right.

3.   SYNCH; No Statutory License under the Copyright Law’

           All synch licenses are voluntary negotiated licenses between parties. This includes the use of pre-existing works in movies, television, commercials, e- cards, apps, video games, holograms,etc.

 

RATES/ SOUND RECORDINGS/ ARTISTS AND RECORD LABELS

1.   LIMITED PERFORMANCE RIGHT when sound recordings are publicly performed “by means of a digital audio transmission” pursuant to the Digital Performance Right in Sound Recordings Act of 1995 (DPRA).  Webcasting was included under this right by Digital Millennium Copyright Act of 1998 ( DMCA). This Compulsory License/ Statutory License applies primarily to satellite radio services, internet radio, cable television audio music channels and certain business establishment services. Does not apply to terrestrial radio.

    **The Statutory License as set forth in Sections 112 and 114 of the Copyright Act applies ONLY to NON-INTERACTIVE services (e.g., Pandora). For On Demand services (e.g. Spotify), the right remains with the Copyright Owner and is a negotiated agreement.

   **Copyright Royalty Board Rates/ Statutory License:

Webcasting 2016-2020: .0022 per stream for commercial subscription services and .0017 for non-commercial subscription services.

Sirius XM 2018-2022: 15.5% of gross revenue.

Music Choice 2018-2022: 7.5% of gross revenue.

   **SoundExchange is the sole entity designated by the CRB to collect royalties under the statutory license. SoundExchange distributed 953 million dollars in 2018. SoundExchange also administers record label/ streaming service direct licensing deals that bypass the statutory license.

    ** This is an Audio Right only. Does not apply to music in any audio-visual work.

   **Copyright owners can negotiate directly with services and bypass the statutory license.

    **On Demand/ Interactive Services: No Compulsory License for streaming sound recordings. Negotiated agreements between labels and services. Can take many forms including a % of gross, net or ad revenue, an ownership or equity stake in the service, a per-stream rate advances and guarantees, a trade off of services or a combination of these and other elements.

 

2.    SYNCH LICENSES MASTER RECORDINGS: Negotiated agreements. Many times the license fee will be on a Most Favored Nations (MFN) with the song.

 

Copyright 2019,Todd Brabec and Jeff Brabec