Understanding Music Licensing: Rights, Licenses, and Industry Insights

Music licensing is complex due to the multiple rights that need to be cleared. Protected by copyright law, music consists of a bundle of rights that grant different ways for artists to earn from their work. Musicians often work with professionals to manage these rights, enabling them to focus on their craft while generating revenue through various licensing channels.

A copyright owner can license their music in several ways, including mechanical, public performance, synchronization, print, and grand rights. Typically, a musician may assign these rights to a publishing company or manage them independently. Let's dive deeper into the different types of licenses and the roles various entities play in music licensing.

Key Players in Music Licensing

For film, TV, and other media, music licensing involves a network of players: music publishers, record labels, performing rights societies, collectives, managers, and music supervisors. Each group has a role in ensuring the rights are properly managed and compensated. Musicians need to assess if partnering with a publisher, label, or manager aligns with their goals, especially if the partner promises a "one-stop-shop" for handling publishing, recording, and merchandising rights. It's crucial to verify that a label or manager actively pursues master and synchronization licenses with music supervisors, as this can be a significant income stream.

Types of Music Licenses

1. Synchronization License

A synchronization (synch) license grants permission to use music in conjunction with visual content, such as films, TV shows, advertisements, video games, or online media. With this license, a producer can synchronize the music to images on screen. Notably, if a producer cannot secure the master rights for an original recording, they may obtain a synch license to re-record a song, using a new version tailored to their project.

2. Master Use License

Master use licenses are required when using an original recording of a song. This license allows the holder to use the specific sound recording, rather than a re-recorded or cover version.

3. Mechanical License

Mechanical rights cover the reproduction of music in physical formats (such as records, CDs) or digital formats (like downloads and streaming). In Canada, the Canadian Musical Reproduction Rights Agency (CMRRA) manages these rights, which provide royalties each time a song is reproduced. This license is essential when a record company wants to release a new recording of a song, as it requires permission from the publisher, author, or song administrator.

4. Public Performance License

Public performance rights allow for music to be played in public spaces like restaurants, radio stations, and theaters. In Canada, SOCAN (Society of Composers, Authors and Music Publishers of Canada) administers these rights, covering the public broadcasting and performance of songs. Businesses like pubs, retail stores, and broadcasters require this license to legally play music for their patrons.

5. Print Rights

Print rights pertain to the reproduction of music in sheet music form. They allow lyrics and compositions to be printed and distributed, typically through sheet music or lyrics books.

6. Grand Rights

Grand rights cover the use of music in theatrical works such as musicals, operas, ballets, and plays. These rights are distinct from standard performance rights, as they apply specifically to live performances integrated into dramatic narratives.

7. Subsidiary Rights

Subsidiary rights include the right to adapt, arrange, or translate a piece of music, allowing for unique versions or adaptations in different languages or formats.

8. Soundtrack Rights

Soundtrack rights permit the music to be used as part of a film or television soundtrack, often controlled by the record label in collaboration with the music publisher.

Choosing a Publishing Arrangement

Musicians must weigh the benefits of working with a publisher who can facilitate licensing, promotion, and revenue generation. A reputable publisher with industry connections can secure synch and master use licenses, providing income and exposure for an artist. Typically, a songwriter-publisher or full publishing agreement involves a 50/50 split, where the writer retains the writer’s share (50%) and the publisher receives the publisher’s share (also 50%).

In a co-publishing arrangement, the writer might receive 25% of the publisher’s share in addition to the writer’s share, totaling 75% of the revenue, while the other publisher receives 25% and a portion of the copyright.

Important Considerations in Music Licensing

First Use Rights: These rights may prevent a recording from being licensed for certain uses until the initial rights holder permits it.

Sound-a-Like Concerns: Film and TV producers must be cautious when using sound-a-likes—recordings with a singer or arrangement similar to the original artist—as this may require a music license to avoid legal issues, especially when mimicking a well-known artist’s distinctive sound.

Working with Legal Professionals

Legal expertise is essential for navigating music licensing, especially for issues like music clearance, recording agreements, and publishing contracts. Entcounsel provides specialized legal services to help musicians secure their rights, handle licensing, and manage potential disputes. For those considering publishing agreements, a legal advisor can ensure fair terms, especially regarding upfront advances, revenue splits, and long-term rights management.

By understanding the various licenses and industry players, artists can make informed decisions about managing their music rights, whether independently or through a publishing partner. This approach not only safeguards their creative work but also maximizes their earning potential in a competitive industry.