The Sound & Music Industry
Copyright, royalties, and licenses all deeply depend on each other. Without royalties, there would be no use for Copyright and licences. Without licenses, there would be no use for Copyright and royalties. Without Copyright, there would be no use for royalties and licenses.
Copyright
Copyright is one of the most important things to consider when writing a song. After all, you would not want someone else to steal your idea and make money out of it. Intellectual property (IP) and Copyright laws apply as soon as your idea is written down or recorded, this counts for both the lyrics and the instrumental parts. But of course, just a piece of paper with lyrics or composition on it will not be legitimate in court. There are two ways to legalise your copyright. One way is by sending it(via by registered post) to yourself in a sealed envelope. This way, if it turns out someone used your songs, you can prove that it was your idea by showing the envelope in court. It is important that the envelope is still sealed and the date stamp is clearly visible. Another way of securing your rights is by registering online. There are several websites that offer copyright registration, like 'http://www.songrite.co.uk'. This website offers a 'secure and ultra reliable copyright registration service'. In order to get this service you register for free membership and there are 'no strings attached'. However, you do pay for Copyright on your songs.
DRM (Digital Rights Management)is a form of copyright protection that people who sell music use to prevent illegal downloading or copying. For example, when a CD does not carry the CD logotype, which means it is not the original copy of the CD, it can not be played in all CD players or computers. The big record labels stopped using DRM because they realised that people can easily download a CD of the internet if they do not want to pay for it, so protecting the CDs turned out to be costing more money than they made.
As a songwriter you can also give away or sell your copyright to a publisher, singer or a record company. When you do this, you no longer own your song and you will not be able to make money from it.
My opinion is that it is better to send yourself a copy of your work than to do it through a website. First of all, I think it is safer as you own the copy yourself and you can look after it, where with a website it is stored on the Internet together with thousands of other songs. This does not seem totally reliable to me as there is a chance there could be problems with the website, or it's storage, and you could lose all of your work. Another reason is the money. It does not seem like a great deal of money, but when you are starting out, (like I am) or writing just for fun, it does not seem worth paying for Copyright. With the 'Poor Man's Copyright' method, you just pay for the mail, which is not as much as the price of Copyright via this website.
But whether you decide to Copyright your music through a website or via email, it is essential to do it. You may not know whether this song will be a massive hit, whether you might sell it to someone else, or record it yourself. If you do not have Copyright, there is no way to prove the song is yours. The music industry is very tough and revolves around money and no one will care about your rights if you have not secured them. If there was no Copyright system, writers would not be able to make money because someone could claim the song and no one would pay the actual writer
DRM (Digital Rights Management)is a form of copyright protection that people who sell music use to prevent illegal downloading or copying. For example, when a CD does not carry the CD logotype, which means it is not the original copy of the CD, it can not be played in all CD players or computers. The big record labels stopped using DRM because they realised that people can easily download a CD of the internet if they do not want to pay for it, so protecting the CDs turned out to be costing more money than they made.
As a songwriter you can also give away or sell your copyright to a publisher, singer or a record company. When you do this, you no longer own your song and you will not be able to make money from it.
My opinion is that it is better to send yourself a copy of your work than to do it through a website. First of all, I think it is safer as you own the copy yourself and you can look after it, where with a website it is stored on the Internet together with thousands of other songs. This does not seem totally reliable to me as there is a chance there could be problems with the website, or it's storage, and you could lose all of your work. Another reason is the money. It does not seem like a great deal of money, but when you are starting out, (like I am) or writing just for fun, it does not seem worth paying for Copyright. With the 'Poor Man's Copyright' method, you just pay for the mail, which is not as much as the price of Copyright via this website.
But whether you decide to Copyright your music through a website or via email, it is essential to do it. You may not know whether this song will be a massive hit, whether you might sell it to someone else, or record it yourself. If you do not have Copyright, there is no way to prove the song is yours. The music industry is very tough and revolves around money and no one will care about your rights if you have not secured them. If there was no Copyright system, writers would not be able to make money because someone could claim the song and no one would pay the actual writer
Royalties
When you have recorded your song and someone uses it in any way (for example: radio, TV, live performances, record sales for both physical and electronic formats etc.) you should receive the money you deserve. This money is referred to as 'royalties'. You can register your song with Collection Agencies who make sure you receive those royalties. There are three types of Collection Agencies in the UK:
When you have recorded your song and someone uses it in any way (for example: radio, TV, live performances, record sales for both physical and electronic formats etc.) you should receive the money you deserve. This money is referred to as 'royalties'. You can register your song with Collection Agencies who make sure you receive those royalties. There are three types of Collection Agencies in the UK:
-PRS (Performing Right Society)
The performing right society ensures a songwriter receives royalties for their track when it is publicly performed in venues,and broadcast by TV or Radio stations. Everyone who wants to use a track has to pay for a license with the Performing Right Society. You can not just join PRS for Music. They of course, want to make sure they can make money from your tracks too. That is why you apply to become a member and they examine your application. You pay a £50 administration fee, which will be refunded if they don't accept your application. Once they do accept your application, you are officially a member of the Performing Right Society for Music. This does not necessarily mean you will be paid, because the PRS takes the first £30 you make for operating costs, which are the costs that they have incurred on your behalf. The rest of the money goes to the songwriter. The original performers on the track do not receive any money from the PRS. In the case of a publisher who has a deal with the writer, there is a 50% writer minimum which means that the writer will not have less than 50% of the royalties. If there is no deal, there is a 50/50 policy for the writer and the publisher.
-MCPS (Mechanical Copyright Protection Society)
The performing right society ensures a songwriter receives royalties for their track when it is publicly performed in venues,and broadcast by TV or Radio stations. Everyone who wants to use a track has to pay for a license with the Performing Right Society. You can not just join PRS for Music. They of course, want to make sure they can make money from your tracks too. That is why you apply to become a member and they examine your application. You pay a £50 administration fee, which will be refunded if they don't accept your application. Once they do accept your application, you are officially a member of the Performing Right Society for Music. This does not necessarily mean you will be paid, because the PRS takes the first £30 you make for operating costs, which are the costs that they have incurred on your behalf. The rest of the money goes to the songwriter. The original performers on the track do not receive any money from the PRS. In the case of a publisher who has a deal with the writer, there is a 50% writer minimum which means that the writer will not have less than 50% of the royalties. If there is no deal, there is a 50/50 policy for the writer and the publisher.
-MCPS (Mechanical Copyright Protection Society)
As a member of MCPS, the copyright holder, who does not have to be the writer, receives royalties when his song is reproduced. Reproduced means the sale of records in shops or online, the use of a track in a film or video game, or when it is played on radio or TV (excluding live broadcast). The MCPS contacts and collects licence money from everyone who is involved in these reproductions, such as record companies, computer game designers and broadcasters. The MCPS then pays money to the publisher or the copyright holder for every reproduced track. You can join MCPS when your track is already released or used on a TV or radio programme,or a multimedia or audio-visual production. The joining fee is £50. As a member, you get 100% of your royalties for your track. So if the member is the writer, he gets all of the royalties, but if the member is the publisher, he gets them all. The publisher and the writer should have a deal which states how much each person receives. When you are a UK or Irish resident, you will be paid after a minimum of £30 in your account, to cover costs. A member living abroad will be paid after £60. If you do not earn this from one track, they will wait until you have exceeded that amount with different tracks. You do not receive royalties if you are a performer on the track.
-PPL (Phonographic Performance Limited)
-PPL (Phonographic Performance Limited)
If you are, for example a radio station, you need to get a license with PPL and PRS. PRS takes care of the writers and composers and PPL takes care of the musicians on the track. So similarly to PRS, PPL collects royalties from radio and TV broadcasters and public performances in venues. Sometimes session musicians sign a contract which states that they do not receive royalties, but a one-off payment. It is free to join PPL. If you are a performer signed to a record label, they will negotiate a percentage of the royalties. This is normally between 10 and 20 %, which has to be shared with all the band members. It is very important to read your contract thoroughly before signing, because they may try to keep as much money as possible. The same applies as a publisher, but their rate is more generous than a labels'.
You might think that signing with a label would be less lucrative because you would rather keep all the money yourself. However, there are a lot of expenses you would have to cover, such as rehearsal space, recording studios, publicity etc. Labels take care of all this for the artist, but you pay a price for it.
Licensing
PRS and PPL are the link between the writers/performers and the venues/broadcasters. The venues/broadcasters have to buy a licence with both PRS and PPL before they can play tracks that are signed to them. PRS and PPL collect this money and pay it to the writers/performers. When you buy a CD or download, you are only allowed to use it in domestic spaces, such as your home or at private parties.
A live broadcaster has to send their playlist to the PRS and PPL and set up a price which they will pay to the writers/performers. BBC radio is the only radio station that has a blanket license.
When a film wants to use a track, a license called Synchronisation Right has to be applied for. This money will go straight to the publisher.
A cover band should send their setlist to PRS when planning a live performance, so that the songwriters get their share.
My experience hearing stories from fellow musicians about the music industry is that, seeing it as a career is often frowned upon. Music is taken for granted and the hard work that goes into it is not appreciated as much as it should be. People do not want to pay for it and download it for free. Musicians are 'lucky' if they get paid for a gig, but people don't see the effort that goes into making their music. The years of studying an instrument, the days of writing and hours of practising and all the expenses for recording tracks, rehearsal rooms and travel.
This is why I think it is important for musicians to sign to collection agencies because it is already so hard to make money being a musician. You need the money that you have worked hard for, and collection agencies make sure that you receive it.
But there is little point in signing when you are just starting out and don't have a solid fan base, as no one will buy your songs. You may lose extra money on the joining fee and chances of being accepted is small. Unfortunately, it is almost impossible to make money as a new musician but the best advice is to take on as much unpaid work as you are offered, because it allows you to go create a fan base. If you refuse to do this, there are many other musicians who will. It might also be a good idea to sell your tracks at a cheap price or even for free, for the same reason. Once people get to know an artist and are ensured of good music, most of them are willing to pay money for it.
This is also why I think that venues and broadcasters should get their licenses and people should buy their CDs and downloads legally. They are not expensive in comparison to other things people spend money on, such as clothes and food, considering a CD will last you a lifetime. This will keep the music industry alive because if people buy less music, fewer musicians can continue doing their job and the industry will slowly fade. If there was no such thing as licensing and royalties, the music industry would completely collapse because there would be no money circulating and musicians would not be able to take care of themselves and would have to find other jobs.
Another reason to buy CDs is to support the record shops, because if people don't buy CDs there is no business and this would lead to unemployment.
You might think that signing with a label would be less lucrative because you would rather keep all the money yourself. However, there are a lot of expenses you would have to cover, such as rehearsal space, recording studios, publicity etc. Labels take care of all this for the artist, but you pay a price for it.
Licensing
PRS and PPL are the link between the writers/performers and the venues/broadcasters. The venues/broadcasters have to buy a licence with both PRS and PPL before they can play tracks that are signed to them. PRS and PPL collect this money and pay it to the writers/performers. When you buy a CD or download, you are only allowed to use it in domestic spaces, such as your home or at private parties.
A live broadcaster has to send their playlist to the PRS and PPL and set up a price which they will pay to the writers/performers. BBC radio is the only radio station that has a blanket license.
When a film wants to use a track, a license called Synchronisation Right has to be applied for. This money will go straight to the publisher.
A cover band should send their setlist to PRS when planning a live performance, so that the songwriters get their share.
My experience hearing stories from fellow musicians about the music industry is that, seeing it as a career is often frowned upon. Music is taken for granted and the hard work that goes into it is not appreciated as much as it should be. People do not want to pay for it and download it for free. Musicians are 'lucky' if they get paid for a gig, but people don't see the effort that goes into making their music. The years of studying an instrument, the days of writing and hours of practising and all the expenses for recording tracks, rehearsal rooms and travel.
This is why I think it is important for musicians to sign to collection agencies because it is already so hard to make money being a musician. You need the money that you have worked hard for, and collection agencies make sure that you receive it.
But there is little point in signing when you are just starting out and don't have a solid fan base, as no one will buy your songs. You may lose extra money on the joining fee and chances of being accepted is small. Unfortunately, it is almost impossible to make money as a new musician but the best advice is to take on as much unpaid work as you are offered, because it allows you to go create a fan base. If you refuse to do this, there are many other musicians who will. It might also be a good idea to sell your tracks at a cheap price or even for free, for the same reason. Once people get to know an artist and are ensured of good music, most of them are willing to pay money for it.
This is also why I think that venues and broadcasters should get their licenses and people should buy their CDs and downloads legally. They are not expensive in comparison to other things people spend money on, such as clothes and food, considering a CD will last you a lifetime. This will keep the music industry alive because if people buy less music, fewer musicians can continue doing their job and the industry will slowly fade. If there was no such thing as licensing and royalties, the music industry would completely collapse because there would be no money circulating and musicians would not be able to take care of themselves and would have to find other jobs.
Another reason to buy CDs is to support the record shops, because if people don't buy CDs there is no business and this would lead to unemployment.
Glossary:
Blanket License:
"A license issued by a PRS that authorizes the public performance of all the
songs in the society’s catalog. Paid annually, it allows a customer to perform
any of the works on the database of a particular PRS as many times as they
want without filing individual requests."
Copyright:
"the exclusive and assignable legal right, given to the originator for a fixed
number of years, to print, publish, perform, film, or record literary,
artistic, or musical material."
DRM:
"a class of technologies that are used by hardware
manufacturers, publishers,copyright holders, and individuals with the intent
to control the use of digital content and devices after sale"
Intellectual Property (IP):
"Intangible property that is the result of creativity, such as patents,
copyrights, etc.. "
License:
"Authorize the use, performance, or release of (something)."
Music publisher:
"In the music industry, a music publisher (or publishing company) is
responsible for ensuring the songwriters and composers receive payment when
their compositions are used commercially "
MCPS:
"MCPS (Mechanical-Copyright Protection Society Limited) collects royalties for
members when their music is reproduced."
PRS:
"PRS (Performing Right Society Limited) collects royalties for members when
their music is publicly performed."
PPL:
"PPL collects and distributes licence fees for the use of recorded music on
behalf of record companies and performers "
Record label:
"A record label is a brand and/or a trademark associated with the marketing of
music recordings and music videos."
Royalty:
"A royalty(sometimes, running royalties, or private sector taxes)is a usage
based payment made by one party(the "licensee")to another(the "licensor")for
the right to ongoing use of an asset, sometimes an intellectual property (IP)"
Sources:
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