Between the Lines – Making Sense of Music Licensing

The excitement of getting that first song placement can be clouded when the paperwork arrives. As intimidating as the paperwork may seem to be, understanding the forms, the terms and legalese can help you retain the joy of getting your song in a great project.

Let’s talk about song clearances, synch licenses and cue sheets.    “Clearing” a song is simply taking the appropriate steps to get permission to use that song in a film, TV show, commercial or video game.  That includes determining who owns the rights to the publishing and the recording; contacting them and negotiating a deal for the use of the song. As a songwriter, its important to remember that unless you are self-published, your publisher owns the composition, and the production will negotiate with them.  The master owner is usually a record company or a producer, but can be the artist or even the publisher if they financed the project and retained ownership.

During the clearance stage, you will usually receive a confirmation letter that outlines the general points of the deal and the amount of compensation that was agreed upon. These points will be spelled out in the license.

The term “synch” refers to any use of music set to a moving picture, and would thus be synchronized to the film.  However, in general usage, a Synch License is associated with clearance of the composition.  A Master Use License is associated with the recording or master. When one entity owns both portions, a producer may issue a Combined Synch/Master License.

Many producers and music supervisors prefer “one-stop shopping,” because they only have to deal with one entity to get a song cleared and licensed, which is a plus for indie artists who own both their publishing and masters.

Deciphering the license agreement.

First of all, “buy-out” does not mean that producer is “buying” your song, or even requesting any sort of ownership of your music.  A licensing agreement is just that, an agreement to license a piece of music for a particular project.  The production can only use your music in that project for the amount of time you agreed to and in the media formats that you OK’d. 

Term & Territory refers to the amount of time license is in affect and in which countries.  Most producers currently license in perpetuity (meaning forever) and most licenses cover the world.  Of course, when clearing big songs, a production may limit the term (Five years is common) or limit the territory (U.S. and Canada) because limiting the use will decrease the asking price for the song.

Media Format refers to the broadcast formats the program will be seen on.  In the past, most songs were cleared for only Free TV and Cable, but with the invent of numerous broadcast formats, most music is now cleared for “All Media” which includes the internet, mobile devices, DVD’s, etc.  As with term and territory, the extent of media covered affects the negotiated price of the song.

Popularity of the song or the artist also affects the asking price, so an unknown artist will usually be offered a much lower fee for the most possible rights. 

(simpsonsmusic500.com)

Lastly, don’t forget the cue sheet!  The production is required to provide performing rights societies with a cue sheet, or list of songs used in each project.  As a licensor, the production should also provide you with a copy of the cue sheet.  The cue sheet is invaluable in discussing royalty matters with your PRO (ASCAP, BMI, SESAC).