Royalties. The Types and the collection agencies

Transcription

1 Royalties The Types and the collection agencies

2 Types of Royalties There are different types of royalties. Each is derived from a separate and distinct copyright.

3 Types of Royalties The four potential sources of royalty revenue in the music recording and publishing industry are: Mechanical Royalties Public Performance Royalties Synchronization Fees Print music income

4 Mechanical Royalties Mechanical Royalties arise from the Mechanical Licence. Originally when a recording was reproduced it was done mechanically, using mechanical piano rolls. This is the licence to reproduce copyrighted works on a sound recording. the recording of composed music on CDs, tape or digital format

5 Mechanical Royalties Writer/Publisher Mechanical Royalties Paid by the record company to the publisher/writer In the U.S.A set by Congress based on a statutory rate Recording artist mechanical royalties Between 8-25% of suggested PPD (published price to dealer whole sale unit price)

6 Mechanical Royalties In the UK the mechanical royalty rate is 6.5% of the retail price or 8.5% of the published price to dealer (PPD). In Europe the mechanical royalty rate paid to the publisher is about 6.5% on the PPD.

7 What is covered by mechanical royalties? Mechanical reproduction used to mean a physical product such as vinyl, cassette tape or CD, DAT, Minidisc. In the digital era music is delivered by other means, such as download of a computer file containing music onto an MP3 player or computer hard disk. This is treated as a physical reproduction as accepted in the EU and confirmed in the 2003 amendment to the 1988 Copyright Designs and Patents Act.

8 Collection Agencies for Mechanical royalties PRS for Music (UK) MCPS (Ireland) (via IMRO) HFA Harry Fox Agency (USA) SACEM (France) GEMA (Germany)

9 What can the MCPS licence? The MCPS issues licences on behalf of most UK publishers The MCPS can only licence the mechanical reproduction of a song if it is a straight cover (a faithful reproduction of the original by someone other than the original performers) If it is not a straight cover the MCPS does not have the authority to issue a licence permission has to be asked from the writers or publishers

10 Public Performance Royalties Public performance royalties are paid by music users for songs in the operation of their businesses and broadcasts based on the exclusive right to perform publicly copyrighted works. They are paid to songwriter/publisher

11 Performance Royalties PROs (Performing Rights organizations) collect royalties for songs they license IMRO (Irish Music Rights Organisation) SESAC (The Society for European Stage Authors and Composers) BMI (Broadcast Music, Inc.) ASCAP (American Society of Composers, Authors and Publishers) PRS for Music (UK) SIAE (Italy) GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte) (Germany)

12 Synchronization Fees They are paid by music users for synchronizing music with their visual images based on the exclusive right to reproduce and distribute copyrighted works and to prepare derivative works of copyrighted material. Due to composer/songwriter or publisher These are strictly contractual in nature and vary greatly in amount depending on the subjective importance of the music the mode of production the media used The royalty payable is that of mutual acceptance but is conditioned by industry practice.

13 Types of Royalties Print music income: paid by music printers for sheet music and folios based on the exclusive right to distribute copies of copyrighted material.

14 Music Publishing Organizations Music Publishers' Association of the United States (MPA)

15 Examples of Music Publishers Breitkopf & Härtel Universal Music Publishing Group EMI Publishing ATV Music (Michael Jackson s company which owned most of the Beatles copyrights)