PERFORMING-RIGHT PAYMENTS
One of the greatest sources of income for songwriters and publishers is the money in royalty payments received from performing rights societies around the world. The performing right is one of the most important rights granted by a country's copyright laws. It is based on the concept that a writer's creation is a property right and that a license must be acquired by any user of music in order for that user to use [i.e. "perform"] a copyrighted musical work. When a song is played on the radio, on television, in a stadium, in a restaurant, over the Internet, etc., that is a "performance," and the radio or television station, stadium, etc., owes a royalty to the writer and publisher of the music.
Of the $3-billion-plus generated worldwide each year, the U.S. performing right organizations account for approximately $1 billion in collections, with writer- and publisher-owned ASCAP accounting for 55% of the total. These organizations negotiate license-fee agreements with the users of music (radio and TV stations, cable stations, concert halls, wired music services, airlines, etc.), which give the user the right to perform the music and lyrics of any member of these organizations. The license fees collected are then distributed to the writers and publishers whose works are performed in these various areas.
In the United States, the primary types of music use which generate performance royalties are feature performances (a "visual vocal" or "visual instrumental" -- i.e., a person shown singing or playing -- on TV, a radio performance of a song, etc.), background music on television series, specials, movies of the week and feature films, theme songs to TV series, TV logos and promos, advertising jingles, and copyrighted arrangements of public-domain compositions.
The value of each type of music use varies depending on which performing-right organization the writer and publisher belong to. Complicating matters further is the fact that two of the three organizations (ASCAP being the exception) change their payment rules without notice to their writers and publishers. Considering these numerous variables and nuances, it should be obvious that knowledge of the U.S. rules is absolutely essential for any creator, representative, or publisher.
It is truly amazing how much money can be made in the performing-rights area -- in fact, a fortune can be made from a single composition. For example, in just a few years, the #1 song of the year can generate a $2-million writer and publisher payout, the theme song from a successful TV series can generate more than $1.5 million over a 10-year period, and the background score of a top box-office film can generate well over $2 million in performance income during its copyright life (which is "Life Plus 70": it is protected for 70 after the last surviving author's death, after that, the copyright expires and the song becomes "public domain"). Although most writers never achieve this level of success, it's helpful to know what is possible at the top end.
Next: Television
Copyright © 2002 by Todd Brabec, Jeffrey Brabec. All Rights Reserved. Note: The figures and comments contained in this article are based upon the authors' experiences over the years with many specific situations. Ranges of fees, as well as comments, do vary based upon individual negotiations and situations. |
