Basics of Music Licensing for Content Businesses in New York and Elsewhere
The first rule of music licensing for any audio visual content is that there are TWO licenses at play, not one. The second rule to remember is that there are TWO copyrights at play, not one. This is the biggest stumbling block for any content creator business (a producer, a video house, an ad or PR agency).
The two copyrights that I am talking about are 1) the copyright held by the composer of a song or track (i.e., the lyrics, melody, etc.); and 2) the copyright in the actual sound recording of that song (i.e., the singer’s actual vocals backed by music; the easiest way to think about this as a copyright in the actual track as you hear it.)
For a content creator to use the song in the audio visual work (a film, ad, corporate video, etc.), he or she will usually have to get a license for both copyrights.
SYNCH AND MASTER LICENSES
The two licenses have un-intuitive names: 1) a MASTER USE LICENSE; and 2) a SYNCHRONIZATION (SYNCH FOR SHORT) LICENSE. The key difference is that the synchronization license grants rights to use the underlying composition, while the master use license relates grants rights to use the actual sound recording.
The master use licenses grants the licensee the right to use a sound recording in a production. Hence the term “master”, you are licensing the right to use that particular sound recording of a given song.
A synch license grants the right to use a song (again, we’re talking about lyrics and melody, not the performance of the song) in a specific timed relation to an audio visual work. Hence the term “synch”, because you are cueing the music at a certain point against a certain scene or sequence.
USE OF COVER SONGS
Remember, using music almost always requires a synchronization license since the composition almost always is an integral part of the music. On the flipside, using of the actual sound recording by a specific artist requires a master use license. So the takeaway here is that two licenses for two related rights may lead a content creator to opt for only one license, if he or she is not concerned with using a popular version of that song.
A common approach in advertising is to lower costs by using only a synch license of the composition and then having a lesser known artist “cover” the song. That way, a more expensive master use license from a famous artist may be avoided.
CLEARED FOR MUSIC CLEARANCE
People in these industries often refer to “Music clearance.” that is the process of determining what permission is needed to make use of any music. This usually involves a multi-step approach: 1) finding and determining the owner(s) of the music; 2) contacting the owner(s); 3) negotiating the best license; and 4) entering into a written license agreement. Getting a clearance is essentially getting the rights and licenses discussed above.
Typically attorneys and music supervisors handle music clearance. The license fees involved can vary drastically, but are usually a function of certain key factors: (owner(s), popularity of the work, the nature of the requested use). Through it may be costly; not getting these rights ahead of time can result in severe penalties and grief. If you are not sure about a license, it’s better to swap out the track and try something else, before the piece goes to market.
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