Paul, our fictional music composer here, is one of a kind. "Show me the money" is a great thing to ask, but not all composers do that! I pray this blog will help music composers realize how much money they can lose when they don't ask that question.
There's another word for "money" in music copyright parlance. It's called royalties.
Because Paul has written a hit song, Paul shall see that royalties goes to his bank account in two ways: one-time and recurring.
- The one-time fee each music composer MUST know about is the synchronization fee. The amount is usually subject to negotiation between Paul or his representative (the licensor) and the user (the licensee).
- The recurring ones that each music composer MUST know about are mechanical reproduction fee and performance rights. Mechanical reproduction is a percent of sale, now pegged at 10% of wholesale price. Performance right is a more complicated topic. More on these in the succeeding posts.
When Paul submits his song, Mr. A-Producer will review the song, assess the merits and profitability of it. When Mr. A-Producer finds the numbers good, he will invest on that song.
What Mr. A-Producer will then do is engage a music performer and assemble musical instruments that will accompany the performer. There is therefore Paul's musical piece (music and lyrics) that will be recorded in sync with a selected set of musical instruments.
For that, Paul is entitled to a fee that allows Mr. A-Producer to record his song with the musical instruments. That fee is called synchronization license fee. This fee is in the vicinity of P15,000 to P20,000 per song (as of 2008) for musical albums. This is a one-time fee.
Paul may decide at another time to approach another producer (granting he's allowed to do so in his contract with Mr. A-Producer). Let's say Paul approaches Mr. B-Producer to record another rendition of the song. If Mr. B-Producer likes the song, he will also pay a synchronization license fee to Paul.
Get it?
TV, Film, radio and theater producers, who want to use Paul's song in their production will likewise pay a synchronization license fee to Paul. The amount is a matter of negotiation, depending on the extent of use within the production. But this can range between P100,000 to P500,000.
If the song is really a hit song, yeah, those figures are realistic. Is that money good? or good?
Take this trivia: the song "Happy Birthday" is copyrighted. It earns somewhere around $2 million a year.
Unbelievable? Check out these articles:
Who Owns the Song Happy Birthday?
http://www.wisegeek.com/who-owns-the-song-happy-birthday.htm
Happy Birthday, We'll Sue
http://www.snopes.com/music/songs/birthday.asp
Now you know that anyone who uses that song for commercial purposes have to pay the corresponding fees to Warner-Chappell. Nobody can just record that song and not pay synchronization license.
Wouldn't you want to be the composer of a song as popular and as timeless as Happy Birthday? Check again how Jessica Hill fought for the music copyright of her sisters Mildred and Patty Hill over that song. Would you do the same for your own songs?
Next: Mechanical Reproduction License
P.S. In the years I spent with a music licensing company in the Philippines, one of my most profound realizations is that no one in the country has taken serious effort to disseminate the definitions to Filipino composers. That mainly is the reason for a lot of confusion, unrealistic expectations and, well, corruption. Sorry to say that last one.
hi just wanted to ask where can i go to copyright my songs? its really important thank you
ReplyDeleteHi Red! This is a loooong overdue reply :) There have been questions like this elsewhere in the blog, but i don't mind saying it again here.
DeleteThe moment you create music, there are two things that I am aware of, that you can do to prove your ownership. You can do one or both of the following:
1. Register your song at the National Library
2. Send your own song to yourself via Registered Mail and never open it. Let the authorities open it, should you need to present it
Hi Red! This is a loooong overdue reply :) There have been questions like this elsewhere in the blog, but i don't mind saying it again here.
DeleteThe moment you create music, there are two things that I am aware of, that you can do to prove your ownership. You can do one or both of the following:
1. Register your song at the National Library
2. Send your own song to yourself via Registered Mail and never open it. Let the authorities open it, should you need to present it
Hi! I would like to ask if we have standard rates for mechanical reproduction license and print license in the Philippines or finofollow po natin ung USD .091 sa US. Naguguluhan po kasi ko..
ReplyDeleteThank you!
Hi! Thanks to the influx of technology and the emergence of new uses of music, the "standard" rates aren't as standard as we wish it to be. Still the US rates are a good reference, all because most publishers make a big chunk of their money there.
DeleteI suggest you talk to as many publishers as you can to find out what the prevailing rates are for the purpose you have in mind.
Hi,How much can a composer and owner of the original recording of a song or an instrumental music ask?(I mean myself), let's say someone would like to use it for a short film or video?..The song/Instrumental music is not particularly famous but a custom made music.
ReplyDeleteBest Regards,
Hi Jie, there is no standard for this. If it's going to be the theme song of the film, ask for an arm and a leg. If it's going to be a song in a small segment of the film then tone down a bit. The rate depends on the popularity of your song, if it's already a published song. If they ask you to create a song just for the film, that's another story - the rate would depend on your own reputation. Can't tell you benchmarks because there are a lot of variables. Use your gut.
DeleteHi, Sir Marvin Macatol.
ReplyDeleteI have just read your post about music licensing and I just want to consult what will be my actions:
I was tasked by our municipal mayor to revive the official hymn/march of our town. He also ordered to revise portions of the song since some of its lyrics depicting the sites/institutions formed were not up-to date (sites/institutions cited were only appropriate during the Marcos Regime). With respect to and authorization from the original composer (thru his daughter for the composer has been dead for so long), The musical notation, first stanza and the chorus were retained. My revision took place on the second stanza, the addition of a coda, the music flow from Stanza1-Chorus-Stanza2-Chorus to Stanza1-Stanza2-Chorus-Chorus-Coda, and the creation of a choral arrangment SATB (for the original was made in a unison/single-patterned note). The new lyrics and arrangement was sung again publicly (after more than 20 years) during the town's quadri-centennial founding anniversary. A year after, a newly-formed municipal band played their arrangement of the hymn (which I sang as they play). This year, they are creating an ordinance to mandate all educational institutions and government agencies (as well as encouraging private establishments and organizations) to include the singing of the hymn during flag ceremonies in the whole of the town.
I, on the other hand, would like to seek your help in determining the value of my contribution and the steps in assuring the rights of my work, and to be properly-known/recognized to all who will utilize my work, especially in the future. You can email me thru gplperalta17@gmail.com for a more direct mode of communication.
Thank you and have a blessed day.
Hi po! How do I get a mechanical and synchronization license? What process should I need to follow to get both. I have made original songs that i would like to share and I also want to do cover songs and post it on youtube... but before I pursue all these. I know I have to protect my original songs and follow the copyrights law to avoid any future mistakes.
ReplyDeleteGive me a licence
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHello, just want to ask how much does music licensing cost per song nowadays? we're planning on having an online event.
ReplyDeleteI am very thankful that I found this! Thank you so much for these infos! May God give your heart’s desire and bless you more! :)
ReplyDeleteHi Sir, how about piano arrangements. what kind of license does it need to legally sell the arrangement. thank you!
ReplyDeletehey Marvin, Thank you for shedding light on the vital aspect of synchronization licenses in music copyright. Your detailed explanation of how composers like Paul can monetize their works through one-time synchronization fees and recurring royalties is incredibly valuable for those navigating the music industry.
ReplyDeleteFor those interested to learn more on how to copyright their music, following article sheds some more light : The Most Detailed Guide on How to Copyright Music