Tip of the Month for Canadian Songwriters

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To my CANADIAN songwriting friends, here’s a helpful tip from SOCAN, Canada’s performing rights organization….

What is copyright?

Copyright is a bundle of rights granted by law to creators of original work. The public performance & communication right, which SOCAN administers on behalf of its members, is only one of these rights. In Canada, the copyright in a musical work exists for the life of the creator(s) plus 50 years after the death of the last surviving creator.

Why is copyright important?

Copyright protects specific forms of intellectual property, which are creative endeavours that can be protected under the law.

Does SOCAN copyright my songs?

No, SOCAN cannot copyright your songs for you. In actuality, copyright is automatically granted as soon as an original work is fixed into a tangible form. This means that as soon as you write it down, record it, make it into a computer file or fix it in any other way, it is your copyright. However, in order to protect your copyright, registering your claim to legally document ownership is best. Registration of copyright is useful if you ever need to prove that the work is indeed your own copyright- protected property.

How do I formally register my copyright ownership in Canada?

Contact one of the following or visit their website for further information:

Canadian Intellectual Property Office (CIPO)

www.cipo.gc.ca

Songwriters Association of Canada (members only)

www.songwriters.ca

SPACQ – The Society of Authors and Composers in Quebec

www.spacq.qc.ca

SARTEC (members and non-members) for French language copyrights

www.sartec.qc.ca

Or contact the U.S. Library of Congress

www.loc.gov/copyright.com

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Copyright Made Simple

I frequently receive questions from young songwriters regarding the US Copyright Law.  “How do I ‘copyright’ my song?“, “What if someone steals my song?“, etc.   Most of these questions come from unfamiliarity with the law and/or with common industry practices.  In this blog post, I will attempt to answer those questions and provide a simple understanding of the law, as it pertains to your songs.

imagesFirst of all, if you are a songwriter keep in mind that the US Copyright Law is what makes it possible for you to actually earn a living with your songs.  Copyright has always been important, but is of particular importance today in an age of file sharing, disc burning, streaming and illegal web downloads.  Songwriters and publishers alike should make it a priority to make others aware of copyright law.  Get involved with organizations like ASCAP, BMI, SESAC, NSAI and others and join the fight to protect your rights as a songwriter.

Note:  I just learned from my staff that today is, Talk Like A Pirate Day at Krispy Kreme Doughnuts.  Unfortunately, it would seem that every day for the last 10 years has been “Act Like A Pirate Day” all over the world, as a new generation of music users is in a habit of stealing music rather than buying it.

WHAT IS COPYRIGHT?

The “copyright” in a musical work is an exclusive legal right given to the originator of the musical work.   If you write a song, then you own the copyright to the song, unless or until you formally assign the copyright to another entity.  There are actually 5 rights wrapped up in the copyright.  We often call this a “bundle of rights”.  The bundle of rights for musical compositions is described as follows:

1)  the right to reproduce copies of the work (print, recorded, etc.) 

2)  the right to prepare derivative works from the original,

3)  the right to distribute copies of the work,

4)  the right to publicly perform the work,

5)  the right to publicly display the work

If you hold the copyright in and to a work, then you have the exclusive right to do these 5 things with your work, or to authorize others to do the same.

COPYRIGHT IS AUTOMATIC

There is a common misconception that registration of a work with the US Copyright Office is what establishes copyright.  In fact, many misinformed songwriters call this registration process, “copyrighting” a work.   However, registration of your copyright is simply a way to document the work and your authorship of the work with the Library of Congress.  It does not establish copyright.

Under the current Copyright Law, a work is automatically protected by copyright from the moment it is created.  It is considered to be created at the time it is “fixed” in a tangible form (i.e. chords and lyrics hand-written on a piece of paper or a voice recording of the song on your iPhone would both be considered “fixed”).   In other words, as soon as you document the song in a tangible form, then the work is protected.  There is no need to publish the work, nor register it with the US Copyright Office, for the work to be protected.  And you may immediately attach a notice of copyright to inform others that the copyright belongs to you.

LICENSING

When someone wishes to use a musical compositions in one of the 5 ways listed above (i.e. reproduce copies, prepare  derivative works, distribute copies, publicly perform or publicly display), then they must obtain permission from the work’s copyright owner.  The copyright owner, negotiates and issues a license for such use of his/her song.  Although there are some standard industry rates and practices, in most cases, the copyright owner can actually say “yes” or “no” to any use and can charge whatever fee he or she may desire to get for such use.  There are exceptions to this rule (primarily with regard to audio recordings after the first use), which is outlined below.

The 4 most common types of licenses include:

  • Mechanical License –  for audio recordings.   The royalty rate is set by law for such uses and permission cannot be denied, except for the very first recording of the song.  However, if the user does not follow specific guidelines in obtaining such permission, permission may be denied or a greater fee may be charged.
  • Print License – for any type of printed music or lyric (physical or digital).   Permission may be granted or denied by the copyright owner at will.  Royalty rates and fees are set by each individual copyright owner, although there are standard industry practices.
  • Synchronization License – for synchronizing a music composition with visual images (i.e. film, video, television, multi-media, etc.)   Permission may be granted or denied by the copyright owner at will.  Royalty rates and fees are negotiated between licensee and each individual copyright owner.
  • Performance License – for public performance of a song (i.e. live performance, radio broadcast, television broadcast, digital streams, etc.)   Copyright owners most often use a licensing agent such as ASCAP, BMI or SESAC (performing rights societies) to represent this right and to license / collect fees for the copyright owner.  Performing Rights Organizations seek to license all radio and television networks, digital and satellite networks, internet broadcasters and live venues such as hotels, bars, concert halls, etc. on behalf of the copyright owner.

For more detailed information on Copyright, see this circular from the Library of Congress.

CDs Are Dead. Well, almost.

Four or five years ago I spent hours up-loading all my Christmas CDs onto my computer (purchasing a few new digital downloads as well) and creating multiple unique Christmas Playlists in iTunes.  I bought a nice set of stereo speakers for my iMac and used that computer as my primary listening device.  I also secured the proper cable so that I could listen to Playlists through my home entertainment system, using my phone.  But because I did not have an auxiliary connection in my car, I continued to play CDs there.  It was a bit of a bother to keep so many CDs in my car and a hassle to switch them out so often.  But that was my first step into the digital music age of listening.

PandoraThis year has been very different for me however; and I suspect, different for many other music consumers.  With the rising popularity of Pandora, Spotify and similar internet radio or music streaming services, my Christmas playlist has expanded exponentially this year.  I’ve played maybe 2 Christmas CDs, but I’ve listened to more Christmas music than ever before, thanks to Pandora.  Touch the Spotify or Pandora app on your phone and type in any artist, style or song, you can imagine, and like magic, you’re immediately listening.  No more trips to the store to shop for CDs.  No more browsing Amazon.com to order CDs that will be shipped to your door.  No more searching the iTunes Store and paying 99 cents to download song after song. It’s a different day for sure!

According to Strategy Analytics’ latest “Global Recorded Music Forecast”, it is predicted that digital music sales in  the U.S. will for the first time exceed physical sales for the year 2012.   Download purchases have been on the rise and physical CD sales on the decline.  That will continue.  But that’s not all.  Streaming is growing faster than digital sales are growing!  The IFPI estimates that the number of users paying to subscribe to a music service leapt by 65 per cent in 2011 to 13.4 million worldwide.  Not only do I personally believe that the CD will be close to dead within 7 years, but I believe streaming of songs will overtake song downloads by that time as well.

So what does that mean for us as music creators?  If we earn our living only from the sales of music, then we need to be thinking right now about new income streams (other than sales) that might be available to us from consumers of our music.  Certainly, live concerts have been a large income stream for the music industry over the last several decades.  It’s interesting to note how many artists have placed a new focus on this stream as of late.  Not only have concert ticket prices continued to rise in a depressed economy, but I would guess the number of concerts coming to your area in the last couple of years has almost doubled.  That’s exciting for the music consumer.  Music fans are buying the tickets and the artists are making a living again.  As music sales have declined, older artists have hit the road again, seeking that live concert stream of income.  I’ve personally enjoyed several concerts in the last few years from bands that I thought I’d never get to see again!

Another stream of income that we will find ourselves depending on more and more is license revenue.  Owners of song copyrights have always made their living from license income.  But in today’s new music market, master recording owners are also seeking licensed uses of their masters more than ever.  These may take the form of television ads, video game uses, professional sporting event uses, film trailers, movie uses, television show uses and even merchandise licensing (toys, games, etc.).   Of course, now that more content owners are pitching for these uses, placements are more difficult.  And license rates may tend to come down as the music pool increases.

Streaming services such as those mentioned earlier (Spotify, Pandora, YouTube, etc.) also pay license fees for the music used.  Although there seems to be continuous legal battles and arguments over license rates for such services (the services feel they pay too much, the content owners feel they pay too little), at least we all agree that some kind of license fee is being, and will continue to be, paid.

Experts say that although less music may be sold this year than say, ten years ago, still more music is being “consumed” than ever before.  That has certainly been the case for me personally, especially as I have been listening to Christmas music this year.  In doing so, I’m discovering new recordings that I may have never come across browsing through the rack at Target, or at the long-gone local record store.  The real question however, is whether or not I will actually go purchase those new songs that I’m enjoying, or will I simply continue to listen to them through a streaming service.  That argument continues within the music industry and only time will tell the complete story.  But from what I’ve seen so far, the younger generation is listening without buying.

So, as I enjoy more Christmas songs this year than ever before, I certainly ponder the gift of God’s only son, which we celebrate during this season.  But I also ponder these questions that will affect our livelihoods.  As I make New Year’s resolutions, I will also be making plans to open up new streams of revenue that can be derived from my music content.

What’s A Music Publisher?

In today’s music industry, the music publisher (or music publishing company) is responsible for managing, protecting, and exploiting song copyrights, in an effort to generate maximum royalty revenue for each composition.   By way of a publishing contract,  a songwriter  “assigns” the copyright in and to their composition(s), to a publishing company.  In return, the publishing company finds royalty generating opportunities for the songs, negotiates and issues licenses for such uses world-wide, collects royalties from those uses, and distributes royalties to the songwriter.  It’s to the benefit of a professional songwriter to engage a music publisher to work on his behalf, unless the writer is confident he can do all of these duties himself.

Professional songwriters usually have a relationship with a publishing company defined by a publishing contract.  These contracts can cover a specific group of existing songs, songs that will be written by the songwriter going forward, or both.  With regard to songs that have not yet been written, most publishing contracts define a period of time in which a songwriter will be “exclusive” to the publisher.  This means that each and every song written by the songwriter during the term of the contract, will be published by the music publisher.  Songs signed under contract by a music publisher will generally be  published for the life of the copyright in each song, giving the publisher ongoing financial incentive to secure the type of uses that can generate significant long-term revenue for each song and increase song popularity, thus producing further uses down the road.  Publishers often provide the exclusive songwriter with substantial advances against future income, to encourage the songwriter to commit a majority of his time to writing songs, rather than to working other jobs.  In return for all of its responsibilities, the publishing company receives a percentage of the royalty income generated from the songs, which is typically 50%, but can vary for different kinds of royalties.

A common misconception today among the general public is that a music publisher’s job is simply to print music.  This is because the term “music publisher”, originated with publishers of sheet music, as printed music was the primary commercial use of musical compositions in the late 19th century.  Since that time however, a variety of commercial opportunities have emerged, generating dozens of income types for song copyrights – from the advent of recordings, radio, television, film/video, gaming and digital technology.  Therefore, today companies known as “music publishers” are primarily in the business of exploiting and licensing song copyrights to third parties who use the songs commercially.  They are usually no longer in the business of actually producing printed music themselves.  Instead, they license their songs to “print music publishers” who specialize in the business of creating sheet music, songbooks, band music, choral works, etc.

The copyrights owned and administered by publishing companies are one of the most important forms of intellectual property in the music industry, and can be quite lucrative simply because a single song may be recorded, printed, performed and used in many different ways, by many different artists, over many decades, generating royalties at every turn.  Publishing companies play a central role in managing this vital asset.

Types of Song Royalties:

There are several types of royalties for the use of song copyrights, some of which we’ve touched on in previous posts: mechanical royalties derive from the sale of recorded music, such as CDs or digital downloads. These royalties are paid to publishers by record companies (or through their agencies or administrators such as the Harry Fox Agency).  Performance royalties are collected by performing rights organizations such as SESAC, BMI, ASCAP or PRS and are paid by radio stations, television networks, hotels, bars and others who broadcast recorded music.  Synchronization royalties are required when a composition is used in timed-relation with visual images, such as television shows, videos or films.  In Christian music, songs used by churches or ministry organizations in various forms like recordings, printed music, power-point files, videos and more, are often collected by Christian Copyright Licensing International (CCLI).  Publishers negotiate contracts with specific licensing/collection agents or issue direct licenses for all of these types of uses.  They also negotiate contracts with international sub-publishers to license and collect royalties in countries outside of their immediate territory.   All of these royalties, except for possibly domestic performing rights royalties, typically pass through the hands of the music publisher before they reach the songwriter.

Publishers also work to link up new songs by songwriters with suitable recording artists to record them and they place writers’ songs in other media such as movie soundtracks, commercials and video games.  They “pitch” songs to print publishers and promote songs directly to churches for use in worship services.  Publishers also typically handle copyright registration and ownership matters for the composer.