Licensing
11 August 2005
When a song (in any recorded form) is licensed for TV, film, games, ringtones. Even a small 10 second usage in a major TV show will result in a lot more money than you can make just selling the record.
There are two rights ("sides") that need to be licensed:
Some TV/film broadcasters seek to directly license your music for a one-time purchase price, bypassing the PRO. This could result in much less money in the long run, depending on how often its likely to get repeat broadcasts.
When a record is re-released on another label. This includes compilations, mix CDs, re-presses (of old out of print recordings), pressing in a different market (US vs Japanese vs European version). In the initial contract in independent music it is commonly stated that sublicensing will be split 50/50 after label costs. This means that the label might spend money to convince someone else to license something, and whatever money is generated will then be split 50/50.
- Master-use license
- The right to use the recording.
- Synchronization Rights
- The right to use the song (in any recorded form).
Direct Licensing
Some TV/film broadcasters seek to directly license your music for a one-time purchase price, bypassing the PRO. This could result in much less money in the long run, depending on how often its likely to get repeat broadcasts.
Sub-licensing
When a record is re-released on another label. This includes compilations, mix CDs, re-presses (of old out of print recordings), pressing in a different market (US vs Japanese vs European version). In the initial contract in independent music it is commonly stated that sublicensing will be split 50/50 after label costs. This means that the label might spend money to convince someone else to license something, and whatever money is generated will then be split 50/50.
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