Using Pop Songs in Videos

My daughter (age 16) and her friends regularly make films and incorporate songs. How hard is it to get releases from established artists like the Rolling Stones, Hoobestank, Katy Perry etc,, particularly if the films are already done?It would be relatively difficult to obtain permission to use recorded pop songs on your daughter’s videos. There are two copyrights at issue and each requires permission. As we've discussed before, you would need a sync right from the music publishers (owners of the composition) and what's sometimes called a master use license from the record companies (owners of the sound recordings). We doubt whether it would be worth the time to go about attempting to do this, and even if you could get in contact, the fees would likely be prohibitive.
A different approach. Let’s start with another question: What does your daughter plan to do with these videos? If she wants to share them with friends and have limited private showings, there probably wouldn’t be an issue especially because the copyright owners would never learn of the use. If she intends to place the videos on YouTube, one of three things could happen: (1) nothing, (2) the song owner would issue a DMCA notice, in which case the video would be removed by YouTube (unless you fought over the issue based on a fair use claim -- see below), or (3) YouTube would flag the video, send you an email stating that it thinks you're using unauthorized music and then run ads along with the video (which is what happened when the Dear Rich Staff posted a video with one of its favorite 80’s pop songs). By the way, the person you can thank for the latter alternative is probably Stephanie Lenz who posted a 29-second YouTube video of her kids dancing to “Let’s Go Crazy” by Prince and then, by challenging the DMCA notice -- because the label failed to consider fair use -- she made it more difficult for labels to send out DMCA notices.

DISCOUNT AT LIMELIGHT.The folks at Limelight, the mechanical licensing utility, are offering a 15% discount on mechanical licenses. If you want to check it out, the company has a special discount code: THANKSRICH15. The 15% discount is good through the end of October, 2011 (and no, FTC, we don't get compensated.)

Can I Sample Johnny Cash Beat?

Dear Rich: So, I have a friend that sampled a beat with Johnny Cash. It's a hip hop beat and I asked if I could use it to rap to. I asked him about legalities which apparently he knows nothing about. He mentioned another guy was rapping to it also and making money and just to give him some credit and he'd be fine. I don't know how hard it is to get some kind of "cleared" status on the song, but my question is if there was a problem who would get it in trouble, the beat maker, or the singer? If the copyright owners learned of your use, both of you. Record labels and music publishers usually take the attitude, "Sue everyone. We'll sort it out later." If substantial revenue was generated by the unauthorized use, the person who earned that revenue would of course be the most "promising" target.
What are you doing wrong? Start with the premise that both of you are infringing: the beat maker made an unauthorized derivative sound recording and may have infringed the underlying composition. The singer would be providing an authorized performance and (if duplicating copies), unauthorized reproductions. Of course, whether anyone hears your sample, recognizes it, and bothers to pursue you is another matter. If you're simply using it to perform locally, or handing out some privately-pressed CDs, we think it's unlikely to cause a problem. But once it reaches a national stage and things go viral, things would likely change. (As you can imagine, it's tough for an independent artist to get sample clearance.) We've written an article explaining when clearance is needed, and another article explaining how to get sample clearance. We've also talked about sampling law in previous posts: check out the basic rules and some recent cases. Our Music Law book also describes the ins and outs of sample clearance with all the required forms and contracts.
He walked the line. BTW, Johnny Cash has been the subject of authorized hip hop remixes and unauthorized releases, as well.

Wants to Invest in a Band

Dear Rich: Myself and a partner are considering investing in a band. The band is pretty far along, playing 2000 seat venues, recording their first cd, and seemingly taking success very seriously. They need funds to go to the next level and we are comfortable getting involved. However, the zillions of music industry contracts/guides out there do not touch on contracts protecting an investor buying a percentage of the band's entire business. Can you steer me toward something like this? I am looking for specific contract templates, along with what-to-watch-out-for insight. Investing in a band is the same as investing in any other business (which is why you're probably not finding paperwork specifically geared to bands). So lets take a look at the three things required to invest in a business: (1) a formal business entity -- that is the band must be a partnership, LLC, or corporation (preferably one of the latter two), and (2) an agreement between the owners of the entity formalizing your investment (for example, a stock agreement), and (3) some knowledge of the industry in which you are investing.
LLC or corporation. We recommend that the band form an LLC or corporation because investors in those entities have limited liability. That way investors will be shielded if the band throws a TV out of their hotel window and it lands on someone's Ferrari. These entities are also better suited for making investments than a partnership. There are plenty of self help books and forms, and online programs that explain how to form and invest in LLCs and corporations, though our hearts are with the Nolo products (insert FTC disclaimer, here).
Why it matters that you learn about the industry. Every industry has its quirks and the music industry has more than most. You should take a basic primer in music copyrights and trademarks because the assets of the band are concentrated in those intangibles. You'll probably want the songwriters in the band to contribute their songwriting copyrights to the band entity. However, that's not something they're obligated to do. So, before you drop your money into the band's piggy bank, you should probably be sure that the assets placed into the entity, reflect the money-making features of the band. And of course, it's probably in everyone's best interests for you and your partner to have your own attorney and the band to have different representation. That will go a long way to prevent a post-breakup challenge to the agreement.

Compulsory Notice Questions for Ballet CD

Dear Rich: My boyfriend and I have recorded about 30 tracks to make a ballet class CD (my boyfriend is a pianist at the city ballet). All songs on the CD are movie songs and have been previously released to the public on a sound recording such as a CD or record. He initially learned the basic melodies from sheet music, then over the years enhanced the songs with his own progressions, harmonies, may have added a little jazz improv in some of them. Since the CD is for a ballet class, he adapted the length (shortened or extended) and tempo to fit ballet class exercises. My first question is: Based on what I described above, can I take the Notice of Intention to Obtain a Compulsory License route? My second question is: In three of the tracks, my boyfriend did something unconventional -- for example, in one of the three tracks, he played 16 measures of the theme from Charade, then he played 16 measures of Chim Chim Cher-ee from Mary Poppins. then he ended the track by playing the same 16 measures of Charade. Would these types of formats not meet the requirements for a compulsory license? My last question is: some of these songs were from musicals, but films of these musicals were made. Should I be concerned about the songs not meeting the "non-dramatic musical work" requirement? Sorry, your reference to Charade made us search our iTunes database for our Henry Mancini tracks. What a great movie composer. We have a friend who gives us obscure Henry Mancini recordings and as much as we love Pink Panther and stuff like that, he's is so much more than that -- for example, the tracks from the Peter Gunn TV show equaled and excelled the more well known theme music.
Right, you had a question(s). Yes, you can use the compulsory notice for music that includes some improv and personal progressions. It's true that major revisions to a song require permission, but practically, publishers don't really care about what you do between the grooves provided you pay the toll (9.1 cents per track).
As for your second question. If you're using two tunes on one track, you have a few choices: you can pay both publishers 9.1 cents (again, they won't care what you're doing); you can pay only for the dominant/primary tune that you're using and hope that the other publisher doesn't hear (or care) about your "quoting" of the melody. (The other publisher is unlikely to learn of it unless the title is included in the CD notes -- for example, "Track 5: Charade/Chim-Chim-cher-ee.") And finally, you can try to negotiate with both publishers for a lower rate (probably a waste of time unless you're a major label.) We think you're probably fine with the second choice.
And your third question. The compulsory license is for nondramatic uses so your use on a CD would qualify. A dramatic use would be if you wanted a license to perform the music publicly as part of a show.

Sampling: Comparing Beasties and George Clinton

Dear Rich: I am a music publisher and have a sampling question. How would you describe the essential difference between the opinion in Newton v. Diamond as compared with Bridgeport Music, Inc. v. Dimension Films? If Bridgeport had been decided first, would the judge in Newton be obligated to render a different decision? No, the Dear Rich Staff doesn't think so. The two decisions referred to are both sampling decisions but they actually address two different issues. Sampling music usually involves two copyrights: one for the songwriters (the musical composition); and the other for the arrangement, production and recording of the musical sounds (the sound recording copyright). The record company usually owns the latter, a music publisher usually owns the former.
Newton: A Lawsuit Over the Musical Composition. In Newton (the case involving the Beastie Boys' use of a James Newton flute sample), the Beasties paid for a license to use the sound recording, but they did not obtain a license to use Newton's underlying composition. When Newton sued, the court ruled that the borrowing of the composition was de minimis (too small to matter).
Bridgeport: A Lawsuit Over a Sound Recording. In Bridgeport (in which a film company used a George Clinton/Funkadelic song sample in a movie soundtrack), the defendants were sued solely over the failure to obtain the sound recording license. The court asked the same question as you, and answered as follows:

"[This case] raises the question of why one should, without infringing, be able to take three notes from a musical composition, for example, but not three notes by way of sampling from a sound recording. Why is there no de minimis taking or why should substantial similarity not enter the equation. Our first answer to this question is what we have earlier indicated. We think this result is dictated by the applicable statute. Second, even when a small part of a sound recording is sampled, the part taken is something of value. No further proof of that is necessary than the fact that the producer of the record or the artist on the record intentionally sampled because it would (1) save costs, or (2) add something to the new recording, or (3) both. For the sound recording copyright holder, it is not the "song" but the sounds that are fixed in the medium of his choice. When those sounds are sampled they are taken directly from that fixed medium. It is a physical taking rather than an intellectual one."

Mental, eh? Unfortunately for musicians the takeaway is that based on Newton and Bridgeport, all sampling of sound recordings requires permission, whereas some sampling of compositions is excusable. We can't say we agree.

Who Owns Copyright in Piano Arrangements?

Dear Rich: If a sheet music publisher wants to license my songs for a folio (a collection of all songs from an album), with the proviso that their particular, notated piano arrangements of my songs are being created as a work-made-for-hire for me, then can the sheet music publisher nevertheless claim copyright in the overall folio as a collection? Or to phrase my question a bit differently: Is the copyright in a collection a "derivative copyright," which I would have to expressly grant to the sheet music publisher? Speaking of sheet music, we recently downloaded sheet music from Appetite for Destruction by Guns N' Roses (the 11th best-selling album of all time) from Musicnotes.com. Wow, the world has come a long way. We can't prevent world hunger or predict earthquakes but we can get the guitar tabs for Welcome to the Jungle in a few keystrokes. Yea!
Right, you had a question. We're going to assume that you granted the sheet music publisher exclusive rights to publish the portfolio. In that case, the publisher (as exclusive licensee) is considered the “copyright owner” of that collection of sheet music and has the right to register the collection and to file an infringement action in court to stop a rival sheet music publisher who rips off the portfolio. In reality, the rights acquired by the copyright owner are narrow because the sheet music publisher doesn't own copyright in the songs or their arrangements -- that's yours. What the folio publisher owns is the equivalent of a "thin copyright" -- a work that contains limited copyrightable subject matter. The key to the publisher's ability to claim its copyright is that the license you granted is exclusive. A non-exclusive license won't cut it.
Do you have to expressly grant a derivative copyright? No, not exactly, but you do have to grant the exclusive license which automatically gives rise to the publisher's ability to register its rights and pursue thieves. The agreement may also modify the rights and relationships of the two parties. So, you could request that if the publisher is going to go after someone that you be notified immediately so that you can also pursue the infringers as well. You can also request to be asked to be named on any copyright filings and of course, once the license ends, all rights revert to you.