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Royalty free libraries

Posted: Mon Sep 15, 2008 3:26 pm
by jude3
Hi all,I was wondering if anyone of you experienced people could answer how a music composer like us would make money from a royalty free library?If the users of those libraries buy the track once and can use it forever, then if they happen to buy your track then other than the one time fee they might pay there would be no royalties right?You would have to have a crap load of tunes in a crap load of libraries to make any decent money right?I'm not trying to be negative, I am just wondering if there is something I am not understanding here. That's all.

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 3:32 pm
by bwrenhewmach
I believe you will still get your songwriting royalty.

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 3:35 pm
by daniel481
Yeah, you can still get performance royalties IF whoever buys it happens to place it in something that then airs on TV. That's a big if, though, and the one time fee the pay to use your song is generally way less than a normal license fee. So you're right, you'd have to have a huge number out there to make any actual money, way more than in standard libraries.HTH,Dan

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 3:45 pm
by jude3
Sept 15, 2008, 6:32pm, bwrenhewmach wrote:I believe you will still get your songwriting royalty.I have seen a contract of one of those companies and that does not appear to be the case. Maybe they vary from one company to another. Besides, why would it be called royalty free if it's not royalty free?

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 4:00 pm
by suzdoyle
I have songs in about 35 music libraries, some of which are royalty free. I get paid from outright sales of a song (e.g. for personal use, as a ring tone, etc.), just as anyone would get paid for their song when someone buys it from iTunes or on an album.The next level is getting an up-front licensing fee, in which someone pays a higher amount of money for the right to use your song in a production. This can range anywhere from $28 (for a non-profit or student film project) up into the hundreds (for movies/ DVDs and commercials), depending on how big of a project the song is being licensed for). So, even in most royalty free libraries, a composer gets the up-front licensing fee for a higher use (broadcast or professional production) project-- but in addiction also gets back-end broadcast royalties (in most cases), which are based on cue sheets filed either by the production company or the music library on behalf of the composer and the production company licensing the composer's song.If I'm understanding it correctly, the "use forever for one fee" thing usually applies to lower end uses.Hope this helps!SuzP.S. For very clear, user friendly info on royalties/ permissions/ legal aspects of the music biz, I highly recommend Joy Butler's "Musician's Guide through the Legal Jungle" and "Permission Seekers' guide Through the Legal Jungle":http://www.guidethroughthelegaljungleblog.com/

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 4:00 pm
by mazz
What they mean by royalty free, I believe, is royalty free to the user (the production company). They pay no or low license fees (typically only the cost of the library or the CD) and then are not liable for paying any further royalties (fees) back to the library for any future uses.The confusion comes in when you talk about Performance Royalties which are paid by the PROs (ASCAP, BMI, etc.). The PROs collect license fees from end users, typically broadcasters, concert halls, clubs, etc. The production companies that use your music are also supposed to file cue sheets with the PROs for anything they do that will eventually end up having a "performance", which probably means some sort of broadcast. Once the cue sheet hits the PRO, they somehow figure out how much to pay you out of the pool of money they collect from their licensees (which are not production companies, the people that use our music). The royalty free library could still be the publisher of your music (and probably will be) which means that they get 50% of any performance royalties (the publisher's share) and you get 50% of the royalties (the writer's share).Hopefully that helps clear it up. Mazz

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 4:14 pm
by jude3
Sept 15, 2008, 7:00pm, suzdoyle wrote: If I'm understanding it correctly, the "use forever for one fee" thing usually applies to lower end uses.Well, yes I am only talking about those kind of companies and not royalties in general. When you say "lower end", I am not sure what you mean. Many of these companies say in their websites that people use their music in commercials, radio and TV. So where is the low end?

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 4:20 pm
by jude3
Sept 15, 2008, 7:00pm, mazz wrote: The confusion comes in when you talk about Performance Royalties which are paid by the PROs (ASCAP, BMI, etc.). MazzOk. So if they use our music in, let's say a TV commercial, or radio add, then is that not a performance?These companies as I understand them claim music purchased through them could be used for that purpose royalty free.

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 4:50 pm
by jude3
Here is an actual contract from a royalty free library. I have omitted thier names as not to get in any kind of trouble:1. .............(licensor), does hereby grant to Joeʼs Productions. (licensee), the non-exclusive right to mechanically reproduce and/or synchronize to film, video, web, or audio productions,the musical compositions contained within the LIBRARY ......whose exclusive rights and/or copyrights are held and controlled inwhole by .......(the) MusicLibrary.2. Licensee recognizes that this non-exclusive mechanical and synchronization license shall be limited to the lifetime of thelicensee.3. The rights and license granted hereunder may not be assigned or transferred, either affirmatively or by operation of law,without the written consent of .....the Music Library.4. This license does not include the right to use the musical compositions of the.........Music Library as performance orforeground music. The licensee has only the right to use the musical compositions of the .........music library asaccompaniment to, or set in synchronization with, another form of media (i.e. video, narration, slide presentations, etc.), andnot as a "performance" piece unto itself. The right to reproduce and/or resell the musical compositions of the ........MusicLibrary as performance or foreground music unto themselves is also prohibited. A separate "performance" license may beobtained by contacting ......Music Library directly.5. All rights not specifically granted to licensee are reserved by.......Music Library.6. .............Music Librarywarrant only that we have the legal right to grant this license and this license is given and accepted without other warranty orrecourse. The total liability of ............Music Library under each license is limited in any event to that part of the consideration paid to ...............Music Library by the licensee.7. This agreement may not be modified orally and shall not be binding or effective unless and until it is signed by both parties

Re: Royalty free libraries

Posted: Mon Sep 15, 2008 5:40 pm
by slideboardouts
What Mazz said Generally I think that when a library says that they are "royalty free" they mean that they don't do needle drop licensing. In needle drop, every time the song is played the user has to pay the library a fee. With royalty free libraries, the user pays one usage fee and can use it as many times as they want. Royalties from performing rights organizations apply in both situations.-Steve