HTML Site::Resources:: Copyright InfoCenter:: Types of copyright license

Types of copyright license in the USA

If you want to use a musical work, video, sound recording or all three on a website, then you need licenses. Note the plural in there... we do not have a single 'license' in the USA, we have a collection. You usually need AT LEAST TWO, and sometimes up to five. No one agency handles them all, so you have to shop around. The laws differ slightly in other countries but the terms are the same.

Public Performance License : PPL

• Who gets paid? : The songwriters and music publisher.
• Who sells the license? : Performance Rights Organisations such as BMI, ASCAP, SESAC and PPL-UK.
• How much is it? : Fees depend on your proposed use, but are not very high.
• What's it for? : Public performances (gigs) and broadcasts of music, videos or TV shows.

The PPL is your permission to perform the work of a songwriter. You need a PPL if you play cover versions in your own band, if you use pre-recorded music or video footage at a venue or online, if you insert recorded music into a motion picture or if you use music within a stage play. A PPL must be obtained from the songwriters' agents in the country of the performance - so if you're on tour or you distribute online broadcasts to people outside the USA, you have to get licenses from every country in which the performance is 'seen'. If you stream music on your website, webcast or simulcast, you need a PPL.

Master Use License : MUL

• Who gets paid? : The producers of the sound or video recording, usually a record label.
• Who sells the license? : Directly from the record label or movie studio.
• How much is it? : Fees depend on your proposed use, and depend on how popular, recent and fashionable the music is, who originally sang it, and how many copies you intend to create.
• What's it for? : Distribution of copies of recorded music or video, such as by making compilation CDs, putting music or music videos online or using it within your own videos or motion pictures.

The MUL is your permission to use the actual recording made by a studio as part of your own work, or to distribute copies of that recording to the public. Fees vary a lot depending on how 'popular' the material is, and record labels can take many months to grant permission. They do not HAVE to say yes. You'll only need one MUL but it will be specific about what you can use the recording for, how many copies you can make, and so on. If you make music or video files available on your website in any form, you need a MUL.

Mechanical License : ML or 'Meccy'

• Who gets paid? : The songwriters and music publisher.
• Who sells the license? : Either direct from the songwriter, or via the Harry Fox Agency.
• How much is it? : Fees vary - see below.
• What's it for? : Recording and distributing a melody or lyrics written by someone else.

The ML is your permission to make a recording of someone's lyrics and melody. Under the terms of the first-recording rights, a songwriter can charge what they want for the FIRST recording, and indeed say no if they want to. Once one person has made a recording, then the songwriter HAS to say yes, and you can choose to pay them a fixed statutory fee instead of negotiating with them. To make a recording of a performance (by you or by someone else) or to distribute copies of one, you need a ML.

Synchronisation License : SL or 'Sync ticket'

• Who gets paid? : The songwriters and music publisher.
• Who sells the license? : Either direct from the songwriter, or via the Harry Fox Agency.
• How much is it? : Fees vary - see below.
• What's it for? : Using lyrics or a melody within a video or motion picture.

The sync ticket is your permission to make a video or motion picture and to incorporate music into that project. If you are using a commercially recorded music track (e.g. from a CD) you will also need master use licenses, but for any performance (showing) of the video you will also always need a PPL. Sync ticket fees work the same as for mechanical licenses, but negotiated sync tickets usually cost more. To make a music video, use music as incidental sound, or add music to broadcast TV, you need a sync ticket

Statutory License : 'webcasting license' - USA ONLY

• Who gets paid? : All the copyright owners
• Who sells the license? : From the RIAA via their SoundExchange Service.
• How much is it? : Fees are based on popularity of your webcast, duration and content.
• What's it for? : Non-interactive webcasting based in the USA.

The statutory license is a US-only concept - enshrined in sections 112 and 114 of the Copyright Act, they allow webcasters to pay fixed rates to one agency (the RIAA), who then ensure all the copyright holders for all the music played get their shares. It saves a webcaster having to deal with hundreds of record labels and songwriters, but it can ONLY be used for non-interactive webcasting (streams running as Web Radio stations). If the users can pause or control playback in any way, the license does not apply. Full details of fees, how to apply and what it will let you do are on the SoundExchange website. ALSO SEE THE 'NOU' BELOW!

Notice of Use : NOU or 'CARP Notice' - USA ONLY

• Who gets paid? : The Copyright Office, US Government.
• Who sells the license? : The Copyright Office, US Government
• How much is it? : $20
• What's it for? : Registering your intent to run a webcast service in the USA.

The NOU is another US-only concept but is very important. By filing one, you register your intent to use copyrighted material and so prevent legal proceedings against you for infringment, provided you pay your license fees like a good little chappy. It's the only form that you need to complete if you're webcasting on a statutory licence, and athough it can take many months to process, it's valid from the time you post it so you can start your webcast service right away.

A form can be downloaded HERE, and more information on how to complete it and where to send it is given HERE.

Compulsory License : 'CL' - USA ONLY

• Who gets paid? : Songwriters or music publishers
• Who sells the license? : Nobody. You serve notice on the songwriter and then pay them monthly royalty fees.
• How much is it? : Fees are set by US law, details from the Library of Congress.
• What's it for? : Making and distributing sound recordings in the USA for private use.

Set by Section 115 of the Copyright Act, this allows you to make recordings of musical works without the permission of the author, provided it is not the first recording of that work. To comply with the Act you must serve a legal notice on the copyright holder stating your intent to use Section 115, then pay them their due royalties in full every calendar month. If you fail to do either, you will be infringing copyright. The CL is for PRIVATE USE and so cannot be used to license music for background music systems, jukeboxes, broadcast or public address systems. It is currently accepted that publishing music on a website for download IS private use and so Section 115 applies. Webcasting or simulcating is NOT.

Full details on the CL system can be read HERE.