A Punters Guide to Music Business Copyright . . . By Director Wayne Hall

May 31, 2007

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During the past few months we’ve received quite a few enquiries about public performance licenses relating to the use of music. I suspect that these queries are mainly driven by tariff reviews recently introduced by APRA; regardless, I thought it worthwhile I put together a “punters guide” to music licensing. Please keep in mind that this is not meant to be definitive. We recommend that you always consult the respective association representatives or their websites. Hopefully, though, it may help demystify this area a little for you.

When you record (or dub) a music track or clip for business use, you require two dubbing licenses – one from the AMCOS (representing the composer) and the other from ARIA (representing the owner of the recording). SBA holds licenses with both these bodies and remits to them copyright fees on a quarterly basis, accompanied with playlists. Without going into detail, there is a lot of administrative work involved with this reporting process – from clearing tracks through to furnishing song information. The associations then on-remit these fees to the relevant owners (predominantly artists and labels) based on the playlist information.

In practice, this means that if you are using SBA programs in your business, you are using product cleared for this use.

When you play recorded music in public, you require two licenses – one from APRA (AMCOS’s big brother which licenses the composition) and one from PPCA (ARIA’s sister association which licenses on behalf of the owner of the recording). Interestingly, the telephone on hold environment is considered a public performance area with it’s own tariff structure, separate to the more obvious physical business areas (like an office, pub, or retail space). Interestingly, playing original artist music from the same source into a business’s physical environment and it’s telephone on hold environment is considered to be two separate actions ie a full license (ie no discount) is required for each. I point this out because it is one of the most frequently asked questions I receive.

When a music video is played, an APRA license is required (for the composition) but two PPCA licenses are required – one for the audio recording and one for the vision component, because the owner – usually the record company, has created two pieces of property - the clip AND the recording of the song. Consequently, if clips are played without sound, an APRA license is not required…. but the PPCA license associated with the clip is. A little confused? You can check these and other tariffs out at www.apra.com.au and www.ppca.com.au            
It is worth mentioning MIPI at the point, which is the Music Piracy Investigation Unit set up by AMCOS & ARIA  to investigate and charge parties who use music illegally. MIPI is becoming a lot more active in the business music industry, something we welcome.

So, in summary the licensing matrix looks like this:

Dubbing (recording):     AMCOS & ARIA           
Public Performance:      APRA & PPCA
Piracy investigations:    MIPI

My general advice is that it is worth spending a few minutes at each of the sites getting your head around their roles and tariff regimes, and equally worthwhile assessing your licensing exposure. Don’t hesitate to seek advice from and build relationships with the associations themselves – they are there providing a service which connects users and suppliers. I have been involved in reviews in which businesses have saved many thousands of dollars annually as a result of reviewing and adjusting their music strategy.

Finally, as you begin to understand these licenses, you also begin to see why Paul McCartney, Elton John and other prolific songwriters are so wealthy. Not only have they made lots of money from performances and the sale of their songs, but as composers they receive ongoing payments from the performance of their songs on radio and by others.

The lesson for artists? Write your own songs and maintain ownership of the composition and, if you can, the recording.

SBA has constructive relationships with these associations; it is in a position to assist you to assess and manage your public performance license fees, and in certain instances can collect and remit on your behalf. Don’t hesitate to contact us if you require more information.


Wayne Hall
Director

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