Find out what copyright controls are exploited and who issues the licence or licences for each key use of music.
So, let’s put all of our top five music copyright facts together and explain how things work with each of the key uses of music. What does the user of music need to do to make use of music legally? What does the music maker need to do to make sure they get properly paid?
For each use of music we need to ask five questions:
01: Are both song and recording rights being exploited?
02: Which controls of the copyright are being exploited?
03: Who owns the copyright?
04: Which business partner is managing the copyright in this scenario?
05: Are the performers due any equitable remuneration?
Based on the answers to these questions we can identify how the rights and royalties will flow.
You’ll notice that in this section we talk about money flowing to publishers and labels. If a writer or artist isn’t working with a publisher or label (or similar companies), they would get this money.
RADIO
Which copyrights?
SONG + RECORDING
Which controls?
COMMUNICATION
Which business partners?
Collective licensing applies – so PRS and PPL.
Is Performer ER due?
Yes
Rights+Royalty Flow
• The radio station gets licences from PRS and PPL.
• PRS pays 50% of money to publisher and 50% to writer.
• PPL pays 50% of money to copyright owner and 50% to performers.
LIVE MUSIC
Which copyrights?
SONG
Which controls?
PERFORMANCE
Which business partners?
Collective licensing applies – so PRS.
Is Performer ER due?
N/A
Rights+Royalty Flow
• Venue or concert promoter gets a licence from PRS.
• PRS pays 50% of money to publisher and 50% to writer.
PUBS/CLUBS/SHOPS/ETC
Which copyrights?
SONG + RECORDING
Which controls?
PERFORMANCE
Which business partners?
Collective licensing applies – so PRS and PPL.
Is Performer ER due?
Yes
Rights+Royalty Flow
• Pub, club, shop, cafe etc gets a single licence – called TheMusicLicence – from a joint venture run by PRS and PPL. This JV then passes the money onto PRS and PPL.
• PRS pays 50% of money to publisher and 50% to writer.
• PPL pays 50% of money to copyright owner and 50% to performers.
CD/VINYL
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + DISTRIBUTION
Which business partners?
Direct and collective licensing – so MCPS and label/distributor.
Is Performer ER due?
No
Rights+Royalty Flow
• Label would usually press the discs itself exploiting its own recording rights. Retailers sell the discs and pass the money back to the label, which would then share that with the artist.
• Label also gets a licence from MCPS covering the song rights. MCPS passes this money onto the publisher which shares that money with the songwriter.
MUSIC DOWNLOADS
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + MAKING AVAILABLE
Which business partners?
It depends on repertoire – MCPS/PRS or publisher and label/distributor.
Is Performer ER due?
No
Rights+Royalty Flow
• The download store licenses recordings from both labels and distributors which share any income with each track’s main artist.
• Songs maybe licensed via MCPS/ PRS or the publisher (depends on repertoire). Either way, each song’s writer still gets part of their share of the money from PRS and the other part from MCPS or their publisher.
ON-DEMAND STREAM
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + MAKING AVAILABLE
Which business partners?
It depends on repertoire – MCPS/PRS or publisher and label/distributor.
Is Performer ER due?
No
Rights+Royalty Flow
• The streaming service licenses recordings from both labels and distributors which share any income with each track’s main artist.
• Songs maybe licensed via MCPS/ PRS or the publisher (depends on repertoire). Either way, each song’s writer still gets part of their share of the money from PRS and the other part from MCPS or their publisher.
TV
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + COMMUNICATION
Which business partners?
Collective licensing applies – so MCPS/PRS and PPL.
Is Performer ER due?
Yes
Rights+Royalty Flow
• TV network and/or producer gets licences from MCPS, PRS and PPL.
• MCPS passes money onto the publisher which shares it with the songwriter. PRS pays 50% to publisher and 50% to the songwriter
PPL pays 50% of money to copyright owner and 50% to performers.
• If the music is altered permission may be required for that “adaptation”.
MOVIE IN CINEMA
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + PERFORMANCE
Which business partners?
Direct and collective licensing – so publisher and PRS and label/distributor.
Is Performer ER due?
No
Rights+Royalty Flow
• Movie studio would license recording rights (all controls) from the label, which would share money with artist.
• Studio would license reproduction element of song from the publisher. Cinema would license the performance with PRS. Publisher shares money with writer. PRS shares money with publisher and writer.
• If the music is altered permission may be required for that “adaptation”.
ADVERT ON TV
Which copyrights?
SONG + RECORDING
Which controls?
REPRODUCTION + COMMUNICATION
Which business partners?
Direct and collective licensing – so publisher and PRS and label/distributor.
Is Performer ER due?
No
Rights+Royalty Flow
• Brand would license recording rights (all controls) from the label, which would share money with artist.
• Brand would license reproduction element of song from the publisher. The TV network would license the communication with PRS. Publisher shares money with writer. PRS shares money with publisher and writer.
• If the music is altered permission may be required for that “adaptation”.
LYRICS & SCORE
Which copyrights?
SONG
Which controls?
REPRODUCTION + DISTRIBUTION
Which business partners?
Direct licensing – so publisher.
Is Performer ER due?
N/A
Rights+Royalty Flow
• Whoever wants to utilise the lyrics or musical score (whether to print books OR to use them as part of an online service) will get a licence from the publisher.
• The publisher will then share this income with the songwriter.
Whenever a new kind of music service or experience comes along, the music industry has to work out how it will license that service or experience and how everyone will get paid.
That may include deciding whether to license the service or experience through direct deals or the collective licensing system.
The industry also needs to decide which controls are being exploited. That is not mere semantics, because it can impact on who does the deal and whether or not Performer ER is paid.
It is worth noting that the wider music industry doesn’t always agree on the answers to these questions! For example, a debate continues within the music community as to how digital services are licensed and digital royalties shared out.
What share of any money each label and publisher pays each artist and songwriter depends on each record and publishing deal. The share may differ according to how music is used. This creates another challenge when new services come along – if those deals don’t mention those new services, how does the label or publisher know what to pay?
