How can you ensure your music is properly licensed for advertising and branding?

1 Know your rights

Before you license your music for any use, you need to understand what rights you have as the owner and creator of your music. There are two main types of rights that apply to music: copyright and performance rights. Copyright is the exclusive right to reproduce, distribute, perform, display, or create derivative works from your original work. Performance rights are the rights to collect royalties from public performances of your music, such as radio, TV, or live venues. You can retain or transfer these rights, in whole or in part, to others through contracts or agreements.

2 Choose your license type

When considering what type of license to choose for your music, there are a few options. An exclusive license grants the licensee sole and exclusive rights to use your music for a certain purpose, duration, and territory, and usually offers the highest compensation and control. However, it also comes with restrictions and obligations. A non-exclusive license allows you to license your music to others while retaining your own use of it, but it typically offers lower compensation and less control. A synchronization license is for when the licensee wants to use your music in synchronization with a visual medium, such as a film or advertisement. Finally, a mechanical license allows the licensee to reproduce and distribute your music in physical or digital formats, like CDs or downloads. Depending on the type of license you choose, you may need a separate master license if you are not the owner of the recording of your music.

3 Negotiate your terms

Once you have determined the type of license to offer or accept, it is important to negotiate the agreement terms with the licensee. Key terms to consider include the fee, royalties, duration, territory, and scope. The fee may be a flat rate, a percentage of revenue generated from the use of your music, or a combination of both. Royalties can be based on sales, streams, plays, or views of your music, or a fixed rate per unit or time. The duration may be perpetual, for a fixed term, or renewable. The territory can range from worldwide to local and the scope can be broad or narrow. You may also negotiate advance payments, minimum guarantees, audit rights, reporting obligations, withholding taxes, termination clauses, extensions, options, exclusivity, sub-licensing, distribution rights, limitations and restrictions.

4 Register your music

Once you have signed the license agreement, you should register your music with entities that will collect and distribute your royalties. This includes Performance Rights Organizations (PROs), such as ASCAP, BMI, SESAC, and SOCAN, which represent songwriters and publishers. You will need to assign them a unique code. Mechanical Rights Organizations (MROs) are also necessary for collecting and distributing royalties from mechanical reproductions of your music. The Harry Fox Agency, CMRRA, and Music Reports are some of the major MROs. Additionally, Sound Recording Rights Organizations (SRROs) should be registered to collect and distribute royalties from sound recordings of your music. SoundExchange, Re:Sound, and PPL are some of the major SRROs that represent performers and record labels. It is important to assign them a unique code as well.

5 Monitor your music

Finally, you need to monitor your music to make sure it is being used according to the license agreement and that you are receiving the correct payments and reports. Digital watermarking can help you detect unauthorized uses, prove infringement, or measure exposure. Content identification is a technology that analyzes your music and compares it to a database of registered works. It can help you identify where and how your music is being used, claim your rights, or manage your royalties. Royalty accounting is a process that calculates and verifies the amounts and sources of your royalties. It can help you ensure that you are receiving the correct payments, resolve disputes, or audit your licensees. Licensing your music for advertising and branding can be beneficial, but it requires caution. By following these steps, you can protect your music and get the best deal possible.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?