Arranging Music Rights: How Does That Work Exactly?

The Essentials: Copyright & Neighboring Rights

With music, you always deal with two types of rights:

• Copyright includes the rights of the creators of the underlying musical work, such as the composer and lyricist or songwriter. You need their permission for both the publication (performance) and reproduction (recording) of the work.
• Neighboring rights pertain to the rights of performers (singers, musicians, performing artists) and the rights to the recording of a work, which often reside with a record company or 'label'.

The Role of Publishers and Labels

In addition to the original creators, the music publisher and the producer (the label) also play an important role.

Music copyright holders often choose to delegate the promotion, exploitation, and administration of their work to a music publisher (the ‘publisher’). To do so, the music publisher enters into publishing contracts (also called ‘publishing agreements’) with the composer/lyricist and thereby becomes a co-copyright holder.

The producer (the record label) enters into record contracts with performers and is responsible for (the exploitation of) the recording. The producer acts and shares in the neighboring rights tied to the recording of a musical work.

Sometimes, both rights reside with the same person (the composer is also the performer), which makes arranging easier. But often, it’s more complex. For example, consider the song "I Will Always Love You": the copyright resides with Dolly Parton (or her music publisher), but to use the specific recording by Whitney Houston, you must also contact the producer (the label) of Whitney Houston for the neighboring rights.

Collective Management in the Netherlands

Fortunately, much of the complexity of arranging rights is handled by so-called CMOs (collective management organizations). These are organizations where you can often directly obtain a license because they collaborate worldwide. 

In the Netherlands, they handle the following:

• BumaStemra manages the copyrights on music.
• Sena is the CMO for neighboring rights (performers/producers).
• Norma is the CMO for performing artists in audiovisual productions.

Practice: Arranging Licenses and What You Might Encounter

For online (re)use of existing music recordings, you need to arrange the reproduction and publication for each piece of music. The first step is usually to request licenses through BumaStemra.

But beware: BumaStemra primarily deals with copyrights and not with the neighboring rights of the performance. Since Sena and Norma have limited authority and no mandate for on-demand use, you will most likely need to arrange the neighboring rights directly with the rights holders and/or the label. Establishing this contact can take time—keep this in mind. 

What you need to arrange also depends on how you share the production online: streaming or on-demand, and via your own website or, for example, YouTube. Unfortunately, there is no ‘one size fits all’; you must assess what is needed on a case-by-case basis.

Streaming via Platforms

Sanne Lohof from Summer Dance Forever explains in the above film clip why they chose YouTube. The reason is that BumaStemra has agreements with platforms like Spotify, Apple Music, and YouTube regarding copyrights. As a result, you no longer need to obtain a license yourself for this. 

However, keep in mind: BumaStemra only covers the copyright aspect. Your streams may still be blocked, for instance, if the performing musicians or record labels do not grant permission for the neighboring rights. 

Also important: the above only applies if you use music as a background. If synchronization is involved (combining music and visuals, such as a music video or ballet performance), different, stricter rules apply. More information can be found, among other things, via BumaStemra’s licensing guide.

Applying for Licenses Yourself? Five Tips

If you need to handle part of the rights yourself with the rights holders (musicians, record companies), 

here are a few tips:

1. Create an overview of all music rights and the rights holders, along with their contact details.
2. Draft a good standard letter/email that includes all information about the production.
3. Plan ahead and take your time: arranging rights is complex and can take more than six months. Don’t wait until the last minute to start.
4. Have a backup plan: which music pieces could you use as alternatives if you don’t get the required permission? 
5. Consider Library/Stock Music: this is music specifically composed and recorded for audiovisual productions. Through BumaStemra, you can often use this at a standard rate.

This article was created with the cooperation of Bindu De Knock.