Synchronization Licenses

As featured in: Performing Songwriter Issue #19, July/August 1996 Visit performingsongwriter.com to order back issues or subscribe.

By Neil Gillis

SYNCH DEFINITION

Just think about how many times a week you tune into some form of visual media: you might turn your television set on, you might go to a movie theater to catch the newest release, you might drop the latest CD-ROM into your CD-ROM drive on your home computer and interact with a program designed to help educate you about 18th Century Vienna, you might go to the local video store and rent your favorite old film, and, finally, you might watch and listen to the new laser disc release of your favorite artist in concert. I’m sure I forgot a number of things, but I think you get the point. The ability to tap into a variety of visual media has become commonplace. From a Copyright Owner’s perspective, this is a wonderful happenstance in that a common link between all of these forms of visual media is the use of music in the media’s presentation. The permissions process involved in properly obtaining the right to use this music is called “Synchronization Licensing” and it will be the topic for discussion. Let me preface our discussion by stating that this is a very detailed process and it is also very subjective in that different people have different views of the issues, especially in regard to fee structures. Therefore, take from this whatever basic information you can and then be aware that your situation may need to be further defined by the actual project you’re trying to license. While the fee structure (money, money, money!) Is very critical and we’ll get to that in a bit, let’s first go over the things you need to understand which will enable you to determine the proper fee. For the sake of space constraint of this particular article, let’s assume we’re only discussing existing songs and their use in motion pictures (the considerations remain somewhat constant depending upon the media under discussion, however, the fee’s vary widely).

Considerations

When you’re a licensing person at a publishing company or you’re wearing your licensing hat as the owner of your own copyrights and you receive a call from a music clearance person at a production company which intends to use one or more of your songs in their production, there are a number of issues you need to consider when formulating your fee structure. Let’s first deal with the ones which might mean the most to you.

The scope of the intended use should be one of your first considerations. You’ll want to know whether the use will be one of the following: an on-camera vocal performance, a vocal background, an instrumental background, a theme, used under the opening and or closing credits, a visual performance by a band playing the song in the background of a scene or possibly some other special use not mentioned here. Logic prevails here in your pricing in that you would obviously want to charge more for an on-camera performance by an actor than you would if the song was being used in the background of a scene. There are no set standards of what should be charged. However, the scope is a vital determining factor in calculating the fee structure.

The duration of the use and whether there will be multiple uses are also vital as logic would presume that more uses equals more money. This is correct in theory, but not necessarily so when you factor in the scope. Two background uses may not equate in total dollars versus the money you might get for an ending credit theme. Again, logic prevails. The term and territory of the license are also vital issues to consider. Again, logic prevails in that it will probably cost more for a longer term and a more extensive territory than it would for a more limited territory. For “standard” uses in motion pictures, the term is normally for perpetuity (life of the copyright) and the territory for the world.

The intended song’s value (both creatively and economically) and also the writer or publisher involved who you represent are also key determining factors. The song being requested may be a standard which has had many uses and is a “signature” song. A use for that song may be a bit more costly than a use for an album cut of a song by a band whose time may have come and past, for instance. While you would try to get the best price for that band cut, from the example, you’re working with less leverage to charge more. In terms of the writer or publisher involved, you sometimes are either contractually or just policy driven in terms of your pricing, based upon the wishes of the parties you represent. Just as these people may be very “restrictive” in terms of how their song is used, they would be equally protective of getting the right price or meeting their pricing standards.

Finally, there are some other issues you need to consider. Is exclusivity involved? Will there be a Iyric change or translation into a foreign language? Will the production company want to use a number of songs you publish? What is the budget for the film? Will the picture be a dramatization of the events described in the Iyric of the song? Regardless of your personal approach In structuring the fee, the issues mentioned, at some point, must play in your thought process.

Fee Ranges

This is the most subjective part of the licensing process because if ten people have dealt with the considerations I’ve previously mentioned, they may come up with ten different fees. This is also due to the “intangibles” like intuition, business experience and simply “deal maker” types of abilities—all of which you hope your licensing person possesses (if you’re a one person shop, that licensing person is you). So with all of this in mind, here are some very broad fee ranges which might apply to motion picture usages. (These fees would be based upon the most generic of terms - please use your discretion.)

BACKGROUND- possibly $12 -15,000 on the low end and possibly $35 - 40,000 on the high end.

VISUAL/VOCAL - possibly $25,000 on the low end and $40 - 45,000 on the high end.

OPENING OR CLOSING CREDITS - Possibly $35 - 40,000 on the low end and $50,000 on the high end.

MAIN TITLE USE - Possibly $50,000 on the low end and just plain negotiable on the high end.

In Summary

The reason behind going over the volume of background considerations is defined by the fact that “negotiable” does not mean “just take a guess!” As the music business folks at the production companies get to know you and your style of negotiation and fee structuring, if you’re within the limits of normal business practice, they’ll become more comfortable in accepting your proposals. Nothing’s ever a given, but an atmosphere of comfort is helpful. Also, if you’re smart about what you’re doing, you’ll talk to other copyright owners and maybe get approximations of what their fee ranges are so that you can determine whether or not you’re in the proper ballpark. The ultimate goal is to be protective of your copyright and realize a license fee you can live with without making the user feel as if they’ve over paid. As I’ve mentioned throughout this discussion, logic prevails. Until next time, write well and prosper!