• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Understanding Licensing and Royalties

Extracts from this document...

Introduction

UA2 Understanding Licensing and Royalties Let's say you are reading Rolling Stone magazine, and you find an article about an ad campaign that Phillips has launched. The ads feature the Beatles hit "Getting Better" with a voiceover from the lead singer of the band Gomez. In the article you read this: "But according to the licensing expert, the company no doubt "paid a fortune" for the Beatles hit: an estimated $1 million. The source suspects Gomez made no more than $100,000." This ad campaign is using the Beatles song as the theme music. It is also using the voice of the lead singer of the band named Gomez laid on top of the Beatles original. The speculation is that Philips paid $1 million to use the song, and that Philips paid the band Gomez $100,000. This is the world of music licensing -- a world where the rights to use music are bought and sold every day. This world is most obvious to us in a case like the one described in this example. A popular song that everyone knows gets embedded in a TV commercial or a popular movie. It turns out, however, that music licensing is something that happens constantly, all around us. When you listen to music on the radio, that music is licensed. When you hear music in a restaurant, that music is licensed too. In this essay, you will have the chance to learn about all the different forms that music licensing can take. ...read more.

Middle

However, the songwriter can, in essence, establish whatever royalty rate they like. It is up to the artist to agree to that rate or not. As well as this, the songwriter might insist that the royalty is paid up front - i.e. if the artist wants to make 300 CDs and sell them for �10 each then the mechanical royalty can be calculated and the songwriter can invoice the artist before the CDs are manufactured. The benefit to the songwriter is - they won't have the potential credit problems of ensuring royalties are paid?once sales are made. Let's look at a test case. Say an artist - Steve - wants to record two of their own songs and two songs by other songwriter friends of his. Steve would request permission from them to record their individual songs and establish a royalty rate. One friend - Joe - might want the "industry rate" of 5.6% of RRP. But Joe's close friend Dave is happy with 2.5% of RRP. Steve then records the four songs and presses 300 CDs. Over a series of live shows he sells 260 of them for an average of �10 each (he is not GST registered). The royalties are then paid out as follows: As there are four songs on the CD; each song receives a quarter share of the?appropriate royalty base.? Joe receives 1/4 x 5.6% x 260 x �10 = �36.40 per song? ...read more.

Conclusion

It is now more common for contracts to include a catch-all phrase such as "...any and all media now known or hereafter invented when addressing to scope of the synch license" This phrase, or similar language, is used by attorneys and production companies to keep up with and anticipate technological developments. Thus, uses in such newer technologies as laser optical disc, compact disc video, or live audio and video streaming, can be accounted for even if not specifically anticipated when negotiating the original synch license. PRS was mentioned earlier in this essay in regards to royalties and copyright. But what is PRS and what do they actually do? Formed as the MCPS-PRS Alliance in 1997 with the PRS for Music brand adopted in 2009, the organization brings together two royalty collection societies; MCPS and PRS. They exist to collect and pay royalties to their members when their music is exploited in one of a number of ways - when it is recorded onto any format and distributed to the public, performed or played in public, broadcast or made publicly available online. Similarly to MCPS-PRS is the Phonographic Performance Ltd. Through its licensing, PPL allows hundreds of UK radio and television stations, other broadcasters and internet radio stations to legally use sound recordings and music videos in their transmissions. Similarly PPL's public performance licences allow thousands of clubs, shops, pubs, restaurants, bars and other music users across the UK to play sound recordings and music videos in public. Sam Harrison 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Music section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Music essays

  1. Marked by a teacher

    The Beatles

    4 star(s)

    It was around this time, that John Lennon began to search for himself. He began using any means that he thought might help him connect. This era was marked by the Beatles visits to the Maharishi Mahesh Yogi, and the beginning of heavy drug use 3.

  2. Music Song Analysis

    A B A B A A A B A B A A D A A A A A A A A G G G G H H H H H H H H H H H The drums can not always be heard clearly when playing with the guitar but

  1. An Evaluation of the Marketing Strategy of Nestl Yorkie Chocolate Bars.

    This means that the second shop's position is slightly better because you will spot the bar quicker and usually if you can't see a particular chocolate bar on a shelf you are likely to give up and buy a different bar, so the position is absolutely key.

  2. What is the nature of employment in the music industry?

    Call in and tell them you are starting up in business. They will discuss your financial situation and how they can help. You would have to give them business plans, estimated cash flow forecasts and day books, all this is so that the bank knows that you are going to be making enough money for you to pay them back.

  1. Music Technology Sequencing Coursework Log

    These are illustrated in the following screenshot. 4. I believe that my finished sequence functions well as a musical performance for several reasons. Aside from the accurate input of notes which were a basic requirement for the piece to sound like the real thing, the primary features of the piece which make it sound musical are the dynamics

  2. Blade runner - film review.

    She subsequently runs into the crowd. Zhora then runs out onto the street and into the distance with Deckard following behind like a predator chasing after its prey. At this time he raises his gun and fires but misses. The camera angle then shifts from Deckard, to a side shot of Zhora running down the street

  1. French Flute Music between 1935 and 1955: Varèse, Messiaen and Jolivet

    This is due to the extended technique that Var�se includes in the music. Within the footnote it is explained that the notes marked + are to be played softly, hitting the keys at the same time to produce a percussive effect.

  2. The Importance of licensing and royalties in the music industry

    For example, The Beatles song ?Help!? holds the title as the song that has been recorded the most. Well over two thousand artists have recorded versions of it. Each time a new recording is made, the artists and recording companies have to pay a royalty.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work