Recently in music Category

July 3, 2009

All Federal Works in the Public Domain (NOT!)

obama-taking-oath-of-presidency.jpgDear Rich: Are all works created by the federal government or agents of the federal government automatically in the public domain? Specifically, when the Inauguration Committee commissioned John Williams to arrange "Air and Simple Gifts" is this new work automatically in the public domain and is the recorded inaugural performance also in the public domain?  The short answer to your question is that no, not all federal government works are in the public domain. Those created by federal employees and federal officers in the course of their duties are in the public domain; but contractors who create federal government works sometimes reserve copyright in their work. According to public domain expert Stephen Fishman, it all depends on what the government decides at the time the independent contractor is hired. If the government wants the work to be in the public domain, it can require it; otherwise, the contractor would own the work that's created. That seems to be the case with John Williams' Air and Simple Gifts which is owned by Williams' publisher  Warner-Tamerlane/Marjer Music Corp and can be licensed for reproduction from the Harry Fox Agency. You may also be interested to know that the underlying theme of the piece is borrowed from a shaker hymm, "Simple Gifts" (The Dear Rich Staff assumes that Williams contributed the "Air") "Simple Gifts" was also used by Aaron Copland in his Appalachian Spring. Okay everybody, have a safe Fourth of July. You don't want to have to call on the PI lawyers! (And has it really been a year since we posted this?)

June 18, 2009

Wedding Videography and Sync License

Dear Rich: I'm thinking of starting a wedding videography business and I'm trying to find out if and/or when I need to obtain music license(s) for making wedding DVDs. Researching on the web has proven nothing but confusing. Some places say using any song under any circumstance is illegal. Other's say something along the lines of... the couple has the right to private listening/playing/performing these songs since the wedding is a private event. I'm not wanting to add the music (I have a production music library for that). I'm just wanting to know if any songs played or sung during the ceremony need licenses like what about if someone sings or plays Shania Twain's "From This Moment" during the unity candle. I even asked a lawyer about this and he said that because only a couple copies are made it's covered under fair use. I've researched fair use and don't think this qualifies. I'm not a lawyer, but if a lawyer doesn't make sense, you understand my apprehension? In order to distribute a DVD in which music accompanies a video, you need a sync license from the owner of the song. Good luck getting one. The Harry Fox Agency tried to organize a system for people like you and you can read about their attempts, here. In addition, if a DJ at the wedding party plays pre-recorded music (not a wedding band covering the song), you'd need permission (a Master Use license) from the owner of the recording (a record company). We assume you won't have the ability to research this stuff and enter into separate licenses for every song (even if you could get the music publisher or record company to take your calls). 
Are you an infringer if you don't get a sync license? 
Probably. Will you get caught? Probably not. Unless you're videoing a wedding in which someone from the RIAA marries someone from ASCAP, chances are good that nobody will know or care about your work. The legal advice you received may also apply -- if you are hassled, you may be able to argue that it's fair use but that depends on the four fair use factors, particularly the first and last ones. If you're looking for a jerry-rigged solution to your situation, you could obtain a mechanical license for the song from Harry Fox and if hassled, argue that you made these payments in lieu of any other system for compensation. The mechanical license is not intended to cover video but your payment would demonstrate your good faith (and the Dear Rich staff bets that a music publisher is more likely to back off if you took this route). What's the video clip got to do with your question? This movie has our favorite wedding music
June 8, 2009

Pre-Loaded iPods: Part Two

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Dear Rich: If I buy 20 CDs and load those CDs on to an iPod, is it legal for me to sell that preloaded iPod as long as I send the CDs with the iPod to the customer?
The short answer to your question is that nobody is certain whether this activity violates the law but if we were a betting blog, we'd bet that you could get away with it. (See this related Dear Rich question.) The RIAA's failure (so far) to attack businesses such as RipDigital or MusicShifter may mean you don't need to worry. (That strategy differs from the movie industry approach.) In any case, the law is not clear. Even if it is considered fair use for you to copy a legitimately purchased CD to an iPod, the law doesn't allow you to exercise somebody else's fair use rights. Speaking of fair use, Jim of Povmedia.com, brought to our attention another helpful resource. (Also note that if you must disable any digital rights management software to rip the CD, you would be violating the DMCA.)
 
P.S. Even though you didn't ask what 20 CDs we wanted on our custom iPod, the Dear Rich staff has proceeded to assemble its list, just in case:
June 3, 2009

Dividing Music Income

iStock_000006478742XSmall.jpgDear Rich: I have read your book, Music Law: How to Run Your Band's Businessbut there is an issue that still confuses me. My bandmates and I are at a loss as to how to divvy up the various possible income streams (MP3 sales, CD sales, TV sync license fees, and royalties, etc.). I am the sole songwriter in the band. We record music and are trying to market it through various means (online and brick and mortar). If there is no record company to take a share of sales income, how, generally, is that income split up? What about songwriter royalties and publisher's royalties? What about SoundExchange royalties? Who gets a cut when we sell something?  Any help you can give would be greatly appreciated. I'm so glad you asked. One simple way to look at things is to divide up the revenue sources into two groups: music publisher/songwriter income and band (or non-songwriter) income. Your band has a few choices for dealing with songwriter income (as discussed in the book). The main decision is whether the songwriter keeps it all, or divides it among band members -- for example, you can create a music publishing entity and split that income based on an agreed-upon percentage, perhaps rewarding the songwriters with a higher share of the pot. As for band (non-songwriter) income, that's usually split equally after deducting expenses and payments to the usual suspects (manager, tour manager, agent, etc.) In the new edition of Music Law, I'm going to break  down the sources of music income into more detail.  Since that won't be out until August 2009, the Dear Rich staff has prepared this table that summarizes the common income sources based on whether it is songwriter or non-songwriter income.

Type of Income

Source

Live Performance

Payment to band from club owner or booking agent.

CD Sales

Payment to band, either: direct payment (if sold from website  or at shows); store payment (if consignment); distributor payment (if you have a distribution deal); or record company payment (if you are signed).

Payment by record company to music publisher/songwriters for mechanical license fee (per unit).

Digital Downloads

Payment to band either: direct payment (if sold from your website); or distributor payment (if you have a distribution deal).

Payment by record company to music publisher/songwriters for a mechanical license fee per download.

AM/FM Over-the-Air Radio Play

Payment to music publisher/songwriters from performing Rights Societies (ASCAP, BMI, SESAC).

Webcast or Satellite Station Play

Payment to music publisher/songwriters from performing Rights Societies (ASCAP, BMI, SESAC).

Payment to band (or sound recording owner if you have a record company) from SoundExchange. 

Movie/TV Soundtrack

Payment to band from movie/TV production company for master use license; additional payment(s) if sound track recording is released.

Payment to music publisher/songwriters from movie/TV production company for sync license; payment from performing rights societies (ASCAP, BMI, SESAC) to music publisher/songwriters when television show is broadcast or movie is shown; payment to music/publisher/songwriters if soundtrack sold as DVD or CD soundtrack for mechanical license fee (per unit).

Endorsements/Corporate Sponsorships

Payment (or other compensation) to band from corporate sponsor.

Advertisement Featuring Song

Similar to movie/TV payments with additional twists if song is used in nontraditional ways (free downloads, etc.).

Subscription Sales

Direct payment to band; or, if managed by third-party  distributor, treated like digital downloads.

Video Game Featuring Song

Treated like movie/TV soundtrack payments.

Ringtones

Payment to band/record company by ringtone distributor for master use license fee.

Payments to the music publisher/songwriter by ringtone distributor for mechanical royalties (per unit); additional payment made by ASCAP or BMI to the music/publisher songwriters.

AdSense or Affiliate Payment

Payment to band from online company (Google, Amazon, etc.) for ads or links that appear at band-related sites.



June 1, 2009

Using Music from iTunes at a Website

Thumbnail image for Thumbnail image for itunes7-bluenote.jpgDear Rich: Can I use a piece of music that was downloaded from iTunes for a website I have? Is that legal? If not, how do I make it legal without costing an arm and a leg? I'm so glad you asked. The Dear Rich staff is not sure what an arm and a leg costs and the idea of valuing it and comparing it to a music license is confusing and disturbing since (1) valuation of loss of limbs is so difficult, (2) the valuation may be artificially tied to an insurance calculation, and (3) the valuation would be tripled if the loss involved substantial pain and suffering

Ahh... right, your question. The iTunes terms of service does not permit you to use downloaded music at your website (considered a "public performance" under copyright law). You can obtain a website license from ASCAP (around $300 minimum) or from BMI (less than $300, but dependent on traffic and revenue from your site). Of course, you can only license BMI artists from BMI and ASCAP artists from ASCAP. Each site lists their repertoire. Although it is risky (and you would still be subject to legal action) some sites bypass the permissions process. This may succeed if you stay below the legal radar of music publishers -- for example, by only playing the music at a low-trafficked noncommercial website, and by not offering downloads or any other tagged references to music that's playing.
May 29, 2009

Bands, LLCs, and Income Taxes

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Dear Rich: My band is thinking about forming an LLC and we've been told that one of the reasons to do it is to save on income taxes. This is the first year we're together and we're making a lot of money with corporate gigs so we're looking for any way at all to cut down on taxes. Will an LLC save us money at tax time? I'm so glad you asked. The short answer to your question is, "Probably not." Of course, nobody on the Dear Rich staff is an accountant so we can't be positive about your situation, blah, blah, blah. (Check with your accountant.). But with an odd exception, LLCs are taxed the same way as partnerships and they take the same deductions. So it's hard to see how you will save any dinero on April 15.
musicmoney8.jpgNot only that, some states, like California, have hefty annual LLC fees. Here's an excerpt from my Music Law book that goes into more detail on the subject. 
May 28, 2009

Start a Music Label (or Not)?

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Dear Rich: Our band is putting out its first CD and we are considering creating a record label to release it. What do you think? What's involved in creating a record label? Do we need a lawyer? I'm so glad you asked. You don't need a lawyer to form a record label and there's not that much involved in creating one, as I'll explain below. The bigger question is why are you doing it. One reason artists create labels is that they feel it gives some legitimacy to their release -- as if to say to the world, "see, somebody has signed us." If that's your prime motivator, don't bother. Your fans won't care and anyone in the music industry will be able to discern that you've just created a fictitious label for your release. However, if you're serious about building a small business around a series of releases (including other artists), then it might make sense to create a label. 
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Most importantly, and of greatest concern is money. Who will pay for the pressings and artwork? How will you finance promotion? Are you borrowing money to start up? Or are you seeking investments? Will you pay for recording costs? Can you afford to keep going when distributors are late paying you (or worse, go belly up)? All of these things are worth considering before you launch your music mini-empire. (Here's a quick lesson (PDF) on the flow of money in the music business!) If you're still eager to move forward, you'll need a name for your label and you'll want to make sure no other music or entertainment services are using a similar name. (In a future blog entry, we're going to explain how to perform basic trademark searches at the USPTO.) Next, if you're not familiar with basic business startup information, you might want to get a primer. That's because you may need to figure out your business form -- partnership, LLC, corporation -- and file a fictitious business name with your county clerk. You'll need to open a bank account and use an accounting system -- either an Excel Spreadsheet or Quickbooks should do. You may want to affiliate with an independent music distributor (here's a list by state) which may prove challenging, unless you have an artist that is already selling well. And you will need agreements for the distributor, for consignments, and for your artists (including your band). Digital copies of all these agreements are included in my book Music Law, and the Dear Rich staff reports that there other helpful resources for starting a label on the web. One of the more popular books on the subject is Start and Run Your Own Record Label.
May 27, 2009

Investigating Potential Music Royalty Ripoffs

Thumbnail image for OldGuitar.jpgDear Rich: My Dad is a musician who played on some records in the 1970s that  still get played on the radio. I'd like to help him investigate any money he is owed for these old recordings. How do I go about it? I'm so glad you asked. The short answer is that you may have to hire someone to help you with your investigation. According to the Dear Rich staff, determining whether your Dad is owed money depends on several factors. These include: (1) whether your Dad contributed to songwriting, in which case he may be due money from a music publisher or a performing rights society, (2) whether your Dad performed as a union musician on sessions, and (3) whether your Dad signed recording agreements with record labels as a featured artist (or member of a band).

musicmoney5.jpgYou can review some of this information on your own. For example, societies such as HFA, BMI or ASCAP should be able to verify whether your Dad is listed as a songwriter.  If your Dad was a union musician, he may be entitled to payments from the Sound Recording Special Payments Fund. If your Dad signed recording or management agreements, you need to review them to determine how payments are to be made (and to see whether they expired). You may also need to track the change in ownership of the record labels as the business has been in turmoil during the past 15 years. (And, finally, there are Sound Exchange payments from digital broadcasting as discussed in a previous entry.) Ultimately, you may need to hire an attorney who specializes in tracking down payments or hire one of the companies that specialize in these types of investigations (although we have not tried their services and cannot vouch for them).

May 26, 2009

Getting Paid from Webcasts and Satellite Radio

Thumbnail image for gps_satellite_nasa_art-iif.jpgDear Rich: Someone heard our band's music on Sirius (the satellite radio station). Do we get paid for this? What do we do? I'm so glad you asked. The short answer is that the band's songwriters (and music publisher if you have one) will get a payment from ASCAP or BMI (the performing rights socieities), and the band should get a payment from Sound Exchange for performance of the recording. In order to receive these payments, you will need to sign up with the relative services, as I'll explain below.

If your band hasn't decided how it will treat songwriter income, you'll need to work that out. Then the songwriters (and publisher) must sign up with ASCAP or BMI, register the songs, and wait by the mailbox (or bank, if you choose direct deposit). But unlike over-the-air radio frequency performances (AM and FM radio), a webcast or satellite radio station also pays a royalty fee to the artist. That payment is collected and paid by SoundExchange.  (You should download the paperwork from their website and register as a featured artist.) 

musicmoney4.jpgYou can find out whether SoundExchange is holding money for you by checking the list of unregistered artists . If you don't see your band here, then Sound Exchange is not currently holding a check for you. 
May 25, 2009

How Do You Get Music on iTunes (and Avoid Illegal Downloads)?

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Dear Rich: My daughter's band just made a CD and it's great. They sell the CD at schools and at their shows. But how do they get their CD into places like iTunes where it gets downloaded, and how do you make sure that it isn't illegally downloaded? Will copyrighting the CD help? What do they do about songs they didn't write?  I'm so glad you asked. The short answers to your questions are (1) to get it on iTunes, you need to affiliate with a distributor (which we'll describe below), (2) once the CD has been released, there's no way to prevent illegal downloads, (3) registering the songs or the recordings with the Copyright Office may help if you later file a lawsuit, and (4) you can pay for a license to cover other people's songs.

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In order to make your music available on iTunes and at other download spots such as Rhapsody and Amazon MP3, you'll need to affiliate with an online distributor who will take a portion of the proceeds. This article explains the basics for joining with one of these distributors (our favorite is CD Baby). If your band is covering songs by other artists you should also pay for a mechanical download license from HFA. The basics are explained in my book Music Law. Considering that 95% of the music that's downloaded is illegal, you'll need a full-time legal staff (no, the Dear Rich staff is not available) to prevent illegal downloads. Your daughter and her band have copyrights in the recording, and whoever wrote the songs has a separate musical works copyright. Registration isn't required but will help once your daughter's band goes big time (and you need to chase the bad guys).
May 1, 2009

Whale Rider: Making a Musical Without Permission

whalerider_poster_us_large.jpgDear Rich: I am a music and drama director for a tiny K-8 private school in California. Every other year, we put on an all-school musical for parents, friends and families. I often have trouble finding musicals that work for our age group -- most musicals are written for high school-aged kids or older -- so I would like to write my own. Currently, I'm interested in adapting the movie/novel "Whale Rider" for our kids. If I don't publish it, and don't charge for tickets to the show, how much material, if any, can I use from the movie and/or book for our play? Thanks! I'm so glad you asked. You'll be violating copyright law if you don't obtain permission. It doesn't matter that you are not charging and won't publish the final work. Those may be mitigating factors if you're sued, and they may influence a fair use defense, but they won't prevent your actions from infringing the performance and derivative rights of the copyright owner. Since you'll have to take the major characters, plot, and dialogue elements if you wish to conjure up the original, whatever you take will likely amount to an infringement. Asking for permission seems challenging and you would need to determine who to ask -- the novelist, the publisher (who may have acquired those rights), the movie company, or a third party. If the movie differed materially from the book -- and you used those movie-specific elements -- then you'd likely need more than one permission. So, from a legal point of view, it looks like a lot of hassle (and little chance of success). That said, you could attempt to contact author Witi Ihimaera, explain your situation, and seek his blessings/permission (assuming he still possesses those rights).

All that legal stuff aside, the Dear Rich staff would really like to see you make this musical. It seems like a sweet idea and could be very rewarding. So what's a music director in a tiny K-8 school supposed to do? It reminds me of the time my mother called a big music publisher lawyer and asked for permission to perform a song at a nonprofit benefit. The lawyer's response: "As far as I'm concerned, I never got this call." In other words, when a copyrighted tree falls in the forest, sometimes nobody hears it. That appears to be the approach taken by some musical directors.

It would be unwise and unprofessional to advise you to go ahead without permission. However, should you choose to assume the risk -- and it does involve some risk -- you can lower the odds of seeing lawyers on opening night by doing the following:
  • consider using only material from the book (to reduce the chances of the movie company coming after you)
  • indicate on promotional material that the program has not been authorized by the author (it won't prevent a lawsuit but at least you're not misleading consumers)
  • follow the steps you mentioned as those are all mitigating factors -- that is, don't charge admission, don't publish the musical, and don't distribute video or audio copies, and
  • make sure that the administration at your school is aware of your course of action (CYA).
Unless the author or someone from the movie company reads the Dear Rich blog (Hello!) it's unlikely that your efforts will be the subject of a cease and desist letter. If you do receive one, don't blow it off; respond immediately and halt production until a resolution occurs. Finally, have a backup musical ready, just in case.
April 21, 2009

Song Recording in South Africa

SouthAfrica.gifDear Rich: I am in South Africa (where the copyright act is 21 pages of legal jargon) and my husband and I are looking at recording a Christmas CD of tracks like Have Yourself a Merry Little Christmas, The Christmas Song, Let It Snow, Winter Wonderland, along with public domain carols such as Silent Night, etc. We will probably not even do more that 300 units and we would like to go about it the right way. What would the copyright issues be on non-public domain songs and where does one even begin looking? I'm so glad you asked. Although our blog focuses on U.S. law, the Dear Rich staff is happy to look into international rules (even if it does take three months to answer your query!). In South Africa, as in the U.S., any reproductions of songs on physical media (like CDs) requires that you obtain a compulsory mechanical license. The amount you pay per CD is set by the South African government. The easiest way to get the license appears to be using this form (PDF) which is processed by SAMRO (South African Music Rights Organization). You can find more South African musical resources here
April 13, 2009

Re-Selling iPods With Pre-Loaded Licensed Content

ipod.jpgDear Rich: I have a question. If I license audio or video content, can I load an iPod with that licensed content and resell it? I'm so glad you asked. The short answer is that it depends what you mean by "licensed content." When you buy the Iron Man movie from the iTunes store, you're really licensing it, and you can't resell that type of "licensed content" on your iPod. But if you enter into a license agreement with the owners of Iron Man that specifically permits reproduction and resale on the iPod, then, yes, you can resell that type of licensed content. Similarly, if your band wanted to sell iPods pre-loaded with its music and videos, that shouldn't be an issue (assuming your band owns all rights to its content). But beware starting one of the many business that engage in selling pre-loaded iPods. According to the Dear Rich staff, this is one of the cloudier issues of copyright law and there is no case law that directly answers your question. Note that companies that rip user-owned DVDs to pre-loaded iPods have faced the wrath of the MPAA. Also, as we noted in a previous post, when reselling iPods, you should avoid any implication that you are a licensed Apple reseller or in any way affiliated with Apple.
March 19, 2009

Can a Co-Writer License at Less Than Market Value?

musiciansl.jpgDear Rich: If two songwriters collaborate and co-own their copyright in a song, can one writer issue a license for the whole song (assuming she accounts to the other for her share)? What if the other writer believes that the song was licensed for less than the prevailing market rate for that use? Can that writer sue the co-writer for destroying the value of the copyright? I'm so glad you asked. As to your first question, the co-owners share the legal rights to the song (assuming there is no agreement to the contrary). As joint copyright owners, each writer can separately grant permission (a license) for someone to use the song, provided that each writer shares the income with the others. Although each co-owner is entitled to receive money from the song, this doesn't mean that the two writers have to share money from the song equally. One writer may receive 30% of the income and the other may earn 70%. Each writer's share is usually based on the value of their contribution. This is a matter that is agreed on by the two writers. If the writers do not agree and the issue turns into a lawsuit, then a court will decide on the value of each writer's contribution. Courts often start with the presumption that all songwriters contributed equally.

As to your second question -- whether one writer can sue the other for licensing the song at less than market value -- we believe that it will be difficult to successfully assert this claim. Copyright expert Melville Nimmer reportedly argued that a co-owner has a duty not to "waste" a copyright. (This concept is borrowed from real property law in which a life tenant has a duty not to injure or waste the property.) However, our nation's leading copyright expert does not believe that a co-owner can assert this kind of claim. Even if you could make such a claim, keep in mind that you will have a heavy burden demonstrating that the value of the copyright has been depleted.

The Dear Rich staff believes there may be one caveat to these rules and that is if one songwriter licenses the first use of a song without the consent of the co-writer. Although copyright law does not explicitly require all writers to consent to the first recording, we believe that this approach is required because after the first recording, this first use triggers the rights of others to record the song under compulsory license rules.

(P.S. Here are some additional tips for songwriters.)

March 12, 2009

Punk Rock Video Rights

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Dear Rich: My friends and I have some old video footage we took from punk and new wave bands from the early 1990s. Some of these are local Bay Area artists and some are national artists. We never got release forms from the artists, but they knew they were being filmed and didn't demand anything. Could we release these videos for profit? What about releasing them on YouTube? What about making a documentary? I'm so glad you asked. We assume that you have videotaped musical performances, in which case you could have problems with all of the uses you propose. It's true that you (or whoever took the videos) owns the copyright to the video. But the artists (or the artists' publishers) control the rights to reproduce the music. You need what's referred to as a sync right -- which is the right to match visuals to a musical performance. (Sample sync rights forms are included in the book Getting Permission). As for the non-musical footage that you shot, you probably are free to use that for documentary and YouTube purposes. The fact that the artists knew they were being filmed does not provide you with any rights, although a lawyer might try to argue that the failure to object implied consent. Based on the Dear Rich staff's personal observations, individual posting of unauthorized music videos at YouTube doesn't have dire consequences other than disabling of your YouTube account. However, you should assume -- as with all infringing uses -- that the more you profit, the more likely you will get hassled.