Help with the basics of music licensing/royalties

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I have a friend who is a high school teacher...he asked me to tell him about music licensing because his students were curious about how it worked. I don't know much except for a few basics I have picked up on this board. I know I don't pay because I only do private events but that stores, night clubs etc pay ascap or bmi or whatever...but that's about it.

I'm wondering if someone would mind taking 5 minutes to give me a basic primer on how it works...some specifics on how you pay and why and is it based on income or square footage or what have you?

I will share your explanation(s) with my friend so he can discuss it with his students.
 
RUN AARON RUN!!!!! ;)

I'll just say the area is as gray as the paint on the USS Missouri.
 
Absolutely agree with Jacob!

This is a very contentious area, and you wouldn't be able to read the titles in 5 minutes. There are sooo many laws (and lawyers) involved, and lawsuits pending -- that there is no simple way to describe how it all works.

Private and public become a complete blur, depending on circumstances, those in attendance, etc.


So basically, since there is so much involved (and at stake), you will get a differing opinion from anyone you ask. It is decided in court.
 
I don't work for either, but from my understanding the venue needs to be licensed in order for them to offer any type of music/video entertainment.
 
From my understanding, music licensing is getting permission to use the song in a public performance, movie, tv show etc.

For example, let's say you are making a movie. Just because you bought the cd doesn't give you the license to use the song any way you wish. Buying the cd gives you personal rights to listen to the song. You must obtain the rights to use that song in that movie.

For DJs, rather than having each DJ obtain the rights to each song, they require the venue to obtain the license to use the songs at their venue.


Royalties are fees paid to the performer, the publisher, and the writer of that song for the sale of the song and the use of it.

I'm sure i'm over simplifying it...and may be mistaken, but thats the general idea as far as I understand it.
 
I understand it's confusing but I would think that anyone who works at bars and clubs regularly might be able to string together 2-3 sentences that communicate the basic concept.

Ok, just a quickie based upon many years of trying to understand this mess of laws:

Essentially, the way it is supposed to work, is that in a venue open to the public (bar, restaurant, et. al.), the venue proprietor is supposed to pay the fees to ASCAP, BMI and SESAC, for the performance rights.

Performance rights can be defined differently, e.g. is a song being performed as a cover by a band, or is the actual original title being played by a DJ, or maybe it's an automated jukebox playing a cover version.

That's the most simple part :sqerr:


In a private setting, most DJs assume they can play anything.

If Joe across the street walks through the lobby of the venue where you are playing as a DJ, and can hear the music -- is it then private, or public? Who pays the fees?



So, if I were to stand up before a group of students, and try to explain how this all works, I would say:


It is one of the most complicated things on the planet, and each instance is treated differently by the courts, based upon the circumstances at a given event and/or place.

It is probably safe to assume, that a DJ will not get busted at a bar or wedding -- small potatoes. Even though they are probably violating some silly law, or terms of music licensing. Same thing with a band.

The venue might be sued though, if they haven't paid their protection money.



Trust me -- I wouldn't really want to get up in front of a crowd, and try to explain that whole mess :)
 
Trying to teach the Djs here downunder is even worse

they all think they are invincible and will never get caught
wait till they do I will just laugh at them and say
"well you cant say that you wasnt told already on how to!"
 
Covering a few basics shouldn't be hard to accomplish. The laws as they're written are still the laws, even though they're constantly being challenged and reviewed.

Doc Jacob listed some links that will help. Drax has a grasp on it as well. :)
 
Contrary to popular belief and opinion, already stated here and on other boards ad naseum, there IS no "gray area" at all.

1. The venue that is open to the public at any time is required in the US to take care of those licensing requirements, regardless of whether or not any particular event held there in question is public or private.

2. The most commonly referenced or supposed "gray area" is the distinction between "public" and "private" events, and it is not gray at all. The definition of each and what constitutes each is very clearly stated in about two short sentences in US Copyright law, and is easily accessible to anyone with an internet connection and two-cents worth of brains!

(okay, so that last part may be asking a bit too much!)

:sqcool:
 
Contrary to popular belief and opinion, already stated here and on other boards ad naseum, there IS no "gray area" at all.

1. The venue that is open to the public at any time is required in the US to take care of those licensing requirements, regardless of whether or not any particular event held there in question is public or private.

2. The most commonly referenced or supposed "gray area" is the distinction between "public" and "private" events, and it is not gray at all. The definition of each and what constitutes each is very clearly stated in about two short sentences in US Copyright law, and is easily accessible to anyone with an internet connection and two-cents worth of brains!

(okay, so that last part may be asking a bit too much!)

:sqcool:


In theory, that sounds great -- reality is usually different than theory though...

I assume you are speaking of this section:


To perform or display a work “publicly” means —

(1) to perform or display it at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered; or

(2) to transmit or otherwise communicate a performance or display of the work to a place specified by clause (1) or to the public, by means of any device or process, whether the members of the public capable of receiving the performance or display receive it in the same place or in separate places and at the same time or at different times.

So, define the bolded terms...

The definitions within the definitions are not clearly defined, and are completely open to interpretation by a court.

Hence -- a gray area (alright, call it shaded if you like :)).
 
Note the term "substantial" in Rick's post above.

I'd like to see any court of law define "substantial" as a hard number. ;)
 
I don't work for either, but from my understanding the venue needs to be licensed in order for them to offer any type of music/video entertainment.

In Canada all ballrooms, bars, resturaunts, shopping malls, etc have to be licensed under Socan. The venue is wholly responsible for this license.

Now where it gets complicated is what kind of event you are running. For example if you are a marching band in a parade the organizers are supposed to pay $8.78 per band with a minimum fee of $32.55 per day. A bar would py depending on the type of entertainment, capacity, and legnth of time in operation.

I know this isn't helping you Aaron but I just wanted to show our country is as screwed up as yours

Just for a laugh take a look at the Socan tarrifs

https://www.socan.ca/jsp/en/pub/music_users/tariffs.jsp