Technically Legal

2 Comments on “Technically Legal Podcast: Episode 18”

1. Gordon Firemark says:

   October 10, 2009 at 3:11 pm

   Hi guys,

   Great episode, as always.

   I wanted to just mention, though, that in your discussion of ASCAP/BMI’s claims for performance royalties you confused a couple of points.

   You correctly stated that the current statutory rate for mechanical licenses is 9.1 cents per song (with some adjustment for long songs). However, this covers only the compulsory mechanical license for non controlled compositions. A “mechanical license” is for the mechanical reproduction of the composition in phonorecords only (i.e., the making of a recorded embodiment of the song and of distributing copies thereof, as with a CD, vinyl, tape, or digital music file)

   What ASCAP, BMI and other PROs (Performing Rights Societies) collect is a license fee for the public performance of the composition. So, when a song is played in a restaurant, night club, theatre, or on TV or radio, the songwriter(s) and music publisher(s) (through their affiliation with one of the PROs) receive a royalty separate and apart from the mechanical royalty.

   This license fee is often covered by some kind of blanket license agreement, and is typically MUCH smaller than 9.1 cents per performance.

   So, contrary to what was implied in your podcast, when ASCAP approaches Apple about the :30 second ‘previews’ in the iTunes store, they’re NOT necessarily looking for 9.1 cents per preview… likely something less.

   For what it’s worth, I think they’re misguided in seeking such a royalty at all… but wanted to clear up some possible confusion.

   Thanks for an informative podcast. Keep up the good work!
   • David O'Brien says:

     October 11, 2009 at 11:06 pm

     Absolutely correct, we botched that explanation on the show. Thanks for clarifying!