Basics of Music Rights and Clearances

The Work: the subject of the copyright. (The song or composition)

Composer or Songwriter: The author(s) of a musical work. Upon conception of the

musical work the composer(s) owns the song entirely. Having ownership of a song
entirely means that one owns both the publisher’s and the writer’s share. A composer or
songwriter owns 100% of the writers share and 100% of the publishers share.

Writers Share (100%): Represents 50% of the songs property rights. This can not be
sold.

Publishers Share (100%): Represents the other 50% of the songs property rights. The
composer has the option to sell the publishers share.

Publisher: Company that initiates the creation of or buys (or leases) the publishers
share of various composers’ songs eventually building a catalog of music to be licensed
and sold within the terms of the publishing deal.

Performing Rights Organizations (PRO’s): ASCAP, BMI and SESAC exist to protect
the rights of composers and publishers and specifically to manage the distribution of
performance royalties generated by licenses from radio, television, live and Internet use.

Annual Blanket License: A license negotiated by a network, venue, corporation (etc)

and one of the three PRO’s granting the right to use songs under the condition that the
song usages are logged and reported according to the PRO’s satisfaction.

Synchronization (Sync) License: Once executed, affords you the right to synchronize
song with visual under the terms of the agreement.

Master Rights License: Once executed, affords you the right to use the “master
recording” of a song usually owned by the record label, producer, artists or original
composer. Often sync and master rights can be negotiated simultaneously in one license
if the original composer owns the recording being licensed.

Mechanical License: is a negotiated license between the publisher of a song and the
record or media company for the first time use or release of the composition. If one
reproduces a piece of recorded music to be distributed on any format (CD, DVD, vinyl,
audio cassette etc.) a mechanical license must be negotiated.

Compulsory License: is a mandatory mechanical license that is issued on behalf of the

copyright owners after the public release of the first recording of that composition.

Digital License: equivalent to the mechanical license and applies to music in digital
environments such as the Internet.
Statutory Rate: the computation of royalties derived from the license based upon a rate
set by law. The US Statutory Rate is currently 9.1 cents per 5 minutes of music and
1.75 cents for each additional minute or part thereof.