Posted on 15th Jun 2018
Written by Jeffrey Brabec & Todd Brabec
User generated content, or UGC, presents unique issues, because non-pro users frequently post what they want and obviously do not seek out licenses for the music they may use. Early on, in the history of Internet video — which is to say, in the history of YouTube — such unlicensed uses often went undetected. If these uses were detected, they resulted in a take down notice from the rights holder.
User generated content presented a Hobson’s choice, since it meant either tolerating infringement or potentially outraging users. Ultimately, YouTube developed automated detection software, plus a clever, innovative third solution offered by other websites: monetizing user content with advertising and sharing a portion of the ad revenue with the rights holders.
The compensation depends on whether the commercially released master recording or only the composition itself is used. If the original master is used, the publisher, on behalf of itself and the songwriter, will receive fifteen percent of the net advertising revenue related to the particular UGC video, and the master recording owner (generally the record company) will receive thirty five percent with YouTube retaining the remainder. Otherwise, the publisher will receive fifty percent, which can be reduced to thirty five percent if YouTube elects to pay the UGC creator a portion of the revenue.
Platforms and media do, and will invariably change, with some becoming more valuable and others less so. The changes will sometimes be quick and dramatic, and in other cases, gradual and perhaps almost imperceptible. As the business changes and new ways of listening to and experiencing music are introduced, so do the contracts. The melodies of the future are unknowable, but the tune is unmistakable. As long as people continue to love music, music licensing will thrive both creatively and monetarily.
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Written by Jeff Brabec & Todd Brabec The Performance Right, one of six primary rights of copyright under the U.S. Copyright Act of 1976, gives the owner of a copyrighted musical composition the exclusive right, with certain exceptions and limitations, to perform the work publicly. What this means is that in practically every type of situation where music is being performed, a [...]
By Todd Brabec & Jeff Brabec Royalties,which are paid to music publishers by record companies for the sale of audio physical product (e.g., CDs, Vinyl) and permanent digital downloads (e.g., iTunes) are called “mechanical royalties.”This term also encompasses royalties paid by digital music services for such diverse uses as interactive streams, subscription based non- permanent downloads and locker services. These mechanical rates are [...]
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‘Music gives a soul to the universe, wings to the mind, flight to the imagination, and life to everything.’ PlatoMusic is something that has intrinsic and unique meaning to everyone, regardless of their social status, their nationality, gender, age or bank balance. Music forms the backdrop to our lives and as humans we [...]