What is Music Licensing and How does it Work for You as the Songwriter?

by Robert Marshall

music (n.): an art of sound in time that express ideas and emotions

licensing (n.): formal permission from a governmental or other constituted authority to do something*

Music licensing is the licensed use of copyrighted music which serves to insure that the creators of the music are paid for their work. Every time you tune into a radio station, play your favorite CD or mp3, hear a song on TV or in the movies, watch a live show or even eat at a restaurant where music is played, you are witnessing the product of music licensing. A license, in this case, is “the right, granted by the copyright holder, for a given person or entity to broadcast, recreate, perform, or listen to a recorded copy of a copyrighted work.” ¹

When you buy a song, you own the format that the song is in, not the song itself. For example, if you buy a song from the iTunes store, you own the mp3. You can listen to it in car with friends, on your iPod or computer, and play it on your stereo. As long as it is for private use, you can do whatever you want with that recording.

Songwriters and performers have a vested interest in making money from their recordings. And in order to do that, their music must be licensed and copyrighted. If people want to buy their music, they must pay for the recording, and if companies want to use the music commercially, they must pay a licensing fee.

For any given song, the sound recording, the notes themselves, and the lyrics are owned by the copyright holders. The rights to these songs can be bought and sold to be used in commercials, movies, or played on the radio in the car and in restaurants. Several entities own different parts of the song and represent the people who helped create it:

• Labels- own the sound recording, as recorded in the studio; represents the performing artist(s)
• Publishers- work for songwriters and composers; usually the songwriter or composer is the copyright holder, and the publisher is the official business representative²

To use a song for any purpose other than personal enjoyment, you must obtain the public performance rights. Radio stations, companies using music in commercials, TV shows or movies, restaurants, marching bands, and even street musicians must own these to use the music. Considering the vast amount of music people consume daily, it would be almost impossible for publishers and labels to grant permission every time a song is played commercially. Companies like ASCAP (the American Society of Composers, Authors, and Publishers), BMI (Broadcast Music Incorporated), and SESAC (originally the Society of European Stage Authors and Composers) are license providers for entities that want to use a piece of copyrighted music for their purposes. These companies have a variety of forms available for anyone that wants to play a song publically. Depending on the number of people who hear that song at any given time, these companies must pay different fees. For instance, a small-town skating rink will pay much less to broadcast music than Apple will when it uses the Gorillaz’s “Feel Good, Inc.” in their commercial.

Performing or playing this music for others is considered broadcasting, and requires a separate license. Businesses that broadcast music from radio providers must have a license to do so, and in turn, the radio stations themselves must have a license to broadcast that music.

In addition to ASCAP, BMI, and SESAC, there are several other licensing opportunities available to artist on the web. Here are a few of the most popular:³

1. AttackTrax
2. Beatpick
3. BroadJam
4. GreenLightRights
5. LicenseQuote
6. Matchless Music
7. Minimum Noise
8. Music Dealers
9. Music Licensing Store
10. Musync
11. Placement Music
12. Pump Audio
13. Ricall Music Licensing
14. Sentric Music
15. Taxi

These websites provide placement for licensed songs in film, games, advertisements, websites, documentaries, etc. Licensing companies make money by selling synchronization rights and master rights. These companies, in turn, pay you for using/placing your song (assuming you own the copyright).

• Synchronization License- gives you the right to ‘sync’ the Composition with images in your production
• Master Use License- covers the same right as the sync license, except it applies to the Master, the sound recording itself – the actual recorded interpretation of the musical composition⁴

Remember: every licensing company works differently, so be sure to research accordingly to find the right fit for you!

*All definitions from Dictonary.com

. N.p., 13, Jan 2011. Web. 11 Nov 2011. <http://www.indieartistsalliance.com/2011/01/glossary-of-music-industry-terms/>.

. N.p., 22 Aug 2003. Web. 11 Nov 2011. <http://entertainment.howstuffworks.com/music-licensing.htm>.

. N.p., 29 Jun 2011. Web. 11 Nov 2011. <http://www.musicthinktank.com/blog/online-music-licensing-resources.html>.

. N.p., n.d. Web. 11 Nov 2011. <http://www.beatpick.com/intro/faq>.