Find-A-Song: LICENSING FEE GUIDELINES

Please remember that ALL licensing fees are negotiable AND flexible in order to fit your particular project and budget. However, we do use certain industry guidelines to determine licensing fees. Below you will find some of the guidelines we will be using in negotiating your final licensing options.

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As a further reference, click the "calculator" icon to estimate the fee for your particular project. These are only general "estimates" but should give you an idea as to the parameters and costs involved.

Music CDs
Television Production
Commercial Home Video & DVD
Motion Pictures
Radio & TV Commercials
Video & Computer Games
Internet Flash Animation
Toys
On Hold Music
Miscellaneous

The standard mechanical rate as of 2006 is 9.1¢ per song per unit. This mainly applies to the use and/or recording of the original written musical material. For use of the original recording by the artists, 2 licenses are required. A license for the written composition AND a license for use of the "master recording." As a starting point you could simply use the standard mechanical rate and apply it to both licenses. So as a typical combined license may start around 18¢-20¢ per use.

Since most of the time our artists have rights over both the composition as well as the master recording, we will combine the two fees into one reduced rate depending on the projected number of units to be sold, the nature of the project and the length of the recording.

Per unit royalties are a great way to reduce product costs. We are in reality, partnering with you in the fact that we only make money if you make money. In some cases a small initial "affixing" fee may be charge usually in the $150-$500 range depending on the agreement.

Per unit royalties may be paid quarterly or biannually depending on the amount of sales generated throughout the year. It is standard that each payment be accompanied by an itemized list showing product titles and the products sales record. If needed, we can provide you with hard copy or online forms.

Typical fees range from 6¢ to 12¢ per units sold to be paid quarterly or biannually. Payment options include paying an "advance" for a set number of units with the option of renewing again at either the same set number or more or less units than of the original unit agreement. Payments may also be made after a number of units are sold OR when the amount due reaches a negotiated "plateau level. For example, when the fee owed reaches $500.

The choice to use an "advance" as your payment option has many advantages. Many people prefer not to hassle with the paperwork of calculating royalties especially if they are certain their lifetime sales will reach a particular plateau. For example, if your product typically sells no more than 25,000 over the lifetime of the products viability, then you could opt to pay an advance on that amount and be done. On the other hand, if you wish to cut down on initial production cost, you could opt for a lesser advance and then pay another advance when the initial license unit amount is reached in sales. For example, if you sell 25,000 eventually, you could pay only 5,000 for the first "run" of products and then wait until you've sold 5,000 and renew your license for another 5,000 units. Of course, the more units you pay for in advance, the more we discount the per unit cost.

Under certain circumstances, a one time "buyout" fee may be negotiated. These may include stipulations such as time limits or market restrictions. Reduced rates can also be obtained for CDs where more than one song from a particular artist or publisher may be used in a single project.

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Music CDs
Television (Series or Special)
Commercial Home Video & DVD
Motion Pictures
Radio & TV Commercials
Video & Computer Games
Internet Flash Animation
Toys
On Hold Music
Miscellaneous

Use of music and songs in a television series or special may contain many parameters. These parameters help us determine licensing fees. Like other companies we assign "points" to each specific parameter to arrive at a final fee. Below is a list of the items that will be considered along with an idea of how they will impact the final licensing fee.

Market or Territory: Whether the song will be used in a television series that is being broadcast locally or worldwide has a big impact on the fee range. Local or regional productions may range in the low hundreds whereas a national or worldwide production may range from as low as $500 to as much as $5,000 depending on it's use (i.e. Theme, Feature or Background) and the type of broadcast.
Type Of Broadcast: Unlike 20 years ago, nowadays there are numerous broadcast opportunities. Whether a song is being used for free TV broadcast, basic cable, pay-per-view, a regional PBS station or a worldwide PSA, all impact the fee range. As an example, use of a song as a feature in a regional children's show for a period of 3 years may range from $150-$500. The same song and usage for a worldwide weekly broadcast on basic cable may range from $1,000 to $3,500.

Usage Type: Usage falls into 3 main categories. Feature, theme and background.
- Feature: Song is used prominently in the show. Advancing the story line with little or no dialogue. Example, a child looking up at the stars while “Twinkle Twinkle Little Star” plays or a mother singing “Rock-A-Bye Baby” to here sleeping baby.
- Theme: Used as a opening or closing theme or during opening or closing credits. Also as a recurring theme for a character or situation. Example, “Rocky” type music plays when the movie opens or when the fighter enters the ring. Even though the song may be used more often in this situation, the fee is slightly reduced due to the performance rights the artists will receive either through ASCAP, BMI or other agency.
- Background: Mixed with sound effects and/or dialogue as part of an overall scene or situation. Example, music playing on a jukebox when a character enters a restaurant.
The top of the fee range is with the feature use with theme and background being assigned reduced points. Background use can reduce the rate as much 50% in some cases.
Term: How long the license extends will determine fees as well. Typical television terms are for 3 or 5 years at a time with options to renew at an increase of around 10% to 25% for the next 3 to 5 years.
Song Length: In some cases only part of the song may be needed. Use of a full length song will be assigned 1 whole point where use of only 30 seconds of the same song my earn a reduced rate of as much as 75%.

Other factors play a major role in whether the final fee is reduced or increased. How often the show is broadcast (i.e. daily, weekly or a one time special event). If the song may be included on a soundtrack in the future can reduce the rate significantly.

Syndication

Most of the time television productions will need to include syndication rights. Typically these are for a period of time from 5 years to as much as 10 years. It is not uncommon to be asked for a buyout life-of-copyright fee for syndication rights for all television broadcast rights. For free TV or basic cable syndication, rights may be the same as the original licensing fee with a 25% increase added. Buyout fees can be 3 to 4 times the original licensing fee for all worldwide broadcast rights ranging from $5,000 to $15,000 depending on the factors mentioned above.

Home Video Rights

Home video rights can be paid either through a "per unit sold" royalty (usually in the range of 6¢-12¢) or through a negotiated one time fee for unlimited sales. Buyout fees typically are the same as the syndication buyout rights ranging from 3 to 4 times the original licensing fees.

Summary

As we will continually remind you, the only way to determine the fee and payment option best for your project is to contact us with the details. Even though there are many factors in television use, we will be able to give you a basic fee very quickly!

Television & Radio Commercials

FILL-OUT THE LICENSING REQUEST FORM
OR
CALL FOR FEES 260-338-1414

Licensing fees for use of a song in videos and DVDs are mostly determined by projected sales or may be paid as a "per unit sold" royalty. Royalties range from 6¢ to 12¢ depending on the use of the song and whether the song will be used in it's entirety or just a few seconds. Reduced rates may be obtained when more than one song is being licensed. A small "advance" may be requested usually applied to the first 1,000-5,000 units sold.

Payment options besides a per unit sold royalty are numerous and flexible. Even though the payment may still be based on a "per unit" basis, fees may be paid in "advances" or according to a unit or money amount plateau. For example, an advance for 5,000 units with an option to renew for another 5,000 at a time. Sometimes a reduced rate my be negotiated on larger advances.

As with most projects, under certain circumstances, a one time "buyout" fee may be negotiated. These may include stipulations such as time limits or market restrictions. Call for details!

Video & Computer Games

Licensing for video games, computer games & software is much the same as commercial video. Either a per unit sold royalty can be applied OR an advance can be paid for a particular amount to be sold. The larger the amount "advanced" the more the per unit cost comes down. Per unit royalties are slightly less than video depending on it's use. (i.e. background or feature) Amounts range from 2¢ to 8¢ per unit depending on the budget and project sales.

Internet Flash Animation

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Even though songs for toys are becoming longer in length because of falling microchip prices, it is a special challenge to use a song produced for television or music CDs in a toy product because of the nature of the length required and the particular sound quality needed for a toy product. However, we offer licensing for all toy products and can also offer our studio services in editing the length of any song available in our database. In fact, the toy industry has long been one of our specialties. So much so that we have devoted an entire website to licensing songs & music specifically created for toy products.

www.songsfortoys.com

FILL-OUT THE LICENSING REQUEST FORM
OR
CALL FOR FEES 260-338-1414

Use of songs and music for the motion picture industry is based largely on the budget of the film being made. Other specifics to be considered include whether the song will be used during opening or closing credits as well as home video rights. Also, whether the music will be used in movie trailers and/or commercial advertisements. The overall fee is reduced if there is a guarantee that the song or music will be included on a soundtrack. Click the "calculator" to see estimate fees.

Miscellaneous

(Greeting Cards, Public Performances, etc.)

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Television & Radio Commercials

FILL-OUT THE LICENSING REQUEST FORM OR CALL FOR FEES 260-338-1414

Video & Computer Games

Internet Flash Animation

www.songsfortoys.com

FILL-OUT THE LICENSING REQUEST FORM OR CALL FOR FEES 260-338-1414

Miscellaneous

FILL-OUT THE LICENSING REQUEST FORM OR CALL FOR FEES 260-338-1414

FILL-OUT THE LICENSING REQUEST FORM
OR
CALL FOR FEES 260-338-1414

FILL-OUT THE LICENSING REQUEST FORM
OR
CALL FOR FEES 260-338-1414

FILL-OUT THE LICENSING REQUEST FORM
OR
CALL FOR FEES 260-338-1414