Forums > Queen - General Discussion > Royalties - how does that work?

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carboengine user not visiting Queenzone.com

Royalty: 1283 posts
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Posted: 24 Dec 05, 13:05 Edit this post Reply to this post Reply with Quote

Is anyone here in the radio broadcasting business, or do you know how this works? Recently I heard that any song played on USA radio stations has to pay royalties. Well, duh, this isn't news, but how does this work? It sounds like a bookkeeping nightmare to me. Are royalty checks sent to one big royalty company with some kind of list of songs that were played, and then the royalty company sorts it out and pays out wherever the royalties are supposed to go? How much would be paid for royalties each time Bo Rhap is played? Is each song paid the same? Are royalty amounts increased across the board annually? Is there a government agency that regulates/oversees/monitors this? I used to be a member at a local cable tv station, and I made my own videos using their equipment. They had a lot of music genres you could use on your videos, and I think they paid a flat yearly fee to someone. I suppose the fee amount depended on the size of the cable station operation. ???


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TRS-Romania user not visiting Queenzone.com

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Posted: 24 Dec 05, 14:11 Edit this post Reply to this post Reply with Quote

source http://www.ascap.com/about/payment/international.html

Every country has it's own ASCAP (in Holland its called Buma Stemra for instance)

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An important source of performance income for our members are royalties earned in foreign countries. ASCAP has agreements with foreign societies representing virtually every country that has laws protecting copyright. These societies are similar to ASCAP and we cooperate with them in a number of ways to ensure our members receive royalties from performances of their works in foreign territories. Through these agreements, they license the works of our members in their territories and we license the works of their members in the U.S.

ASCAPis the most effective U.S. performing right organization in collecting foreign royalties. We have the longest standing relationships with foreign societies and the deepest understanding of how they do business. When ASCAP works are performed in a foreign country, that country's performing right society collects the license fees from the local music users. The foreign society then forwards the royalties earned to ASCAP for distribution to our members whose works were performed. Each foreign society tracks performances in its own territories.

Outkast

An important part of our role is to ensure that societies around the world have all the information and documentation they need about the works in ASCAP's repertory to properly identify and pay on performances. In some territories, ASCAP also monitors certain types of performances to ensure proper crediting of our members works. For example, in Austria, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom, where American television programs are frequently broadcast, usually with foreign language titles, ASCAP collects its own performance information to help identify the use of ASCAP music. ASCAP is the only US society to have an International Monitoring Unit (IMU) that utilizes an innovative database technology (EZ-Maxx&#trade;) to verify the accuracy of television and cinema performance statements received from affiliated foreign societies.

Royalties earned from foreign territories vary depending on each country's use of American music, local copyright laws and the types of uses licensed, the fees collected from local music users, etc. Each foreign society pays ASCAP for use of our members' music on varying payment schedules depending on their own distribution policies.

Ludacris

Our revenues from foreign territories have steadily increased as the result of our efforts and the growing prominence of American music abroad. We also want our members to receive their money from abroad as quickly as possible, which is why we make four foreign distributions: in February, May, August and November. ASCAP members also have an opportunity to take advantage of a foreign tax credit as a result of enhanced year-end reporting of earnings. Since the new reporting began several years ago, this has translated into potential tax savings for members of millions of dollars in any given tax year.

ASCAP has a full-service membership office in London that provides a wealth of functions for ASCAP members who live, travel or have business abroad. ASCAP also plays a prominent role in CISAC, which is the international confederation of performing rights organizations. ASCAP's President and Chairman of the Board, Marilyn Bergman, served two terms as President of CISAC, and ASCAP's CEO, John LoFrumento, is a member of the CISAC Executive Bureau.

ASCAP's team of international professionals is committed to continuing to increase foreign revenues and providing the highest level of service to ASCAP members. In addition, as new territories enter the world economic market, ASCAP is the first to pursue relationships with them and provide technical assistance to ensure that the use of the ASCAP repertory is licensed and protected.

TRS-Romania user not visiting Queenzone.com

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Posted: 24 Dec 05, 14:12 Edit this post Reply to this post Reply with Quote

ROYALTY CALCULATION

Generally, royalties for a single musical work, in any surveyed medium, are the product of this calculation:

Use Weight X Licensee Weight X "Follow the Dollar"
Factor X Time of Day
Weight X General Licensing
Allocation
+
Radio Feature Premium Credits
(for radio performances only where applicable)
+
TV Premium Credits
(for performances in highly rated series, where applicable)
=
Credits


USE WEIGHT
The factor, or value, attached to each type of performance, such as theme, underscoring, promotional.
X
LICENSEE WEIGHT
This factor reflects the license fee paid by a station (or group of stations) and the number of hours included in the appropriate survey. The licensee weight is also referred to as the "hook-up" weight with respect to network television, reflecting the number of stations carrying a broadcast. Other surveyed media - such as TOP 200, live concerts tours, symphonic and chamber concerts, web sites, background music services, airlines, circuses, and ice shows - are also assigned 'weights' based on license fees paid to ASCAP.
X
"FOLLOW THE DOLLAR" FACTOR
This factor ensures that the license fees that ASCAP receives from any medium are paid to writers and publishers for performances on that medium. In other words, the money received from radio is paid out for radio performances, etc
X
TIME OF DAY WEIGHT (if applicable)
On television, the value of a performance can vary depending on the time of day; for example, whether it takes place in prime time or in the middle of the night.
X
GENERAL LICENSING ALLOCATION
Fees collected from non-broadcast, non-surveyed licensees (bars, hotels, restaurants and the like) are applied to broadcast feature performances on radio and all performances on television, which serve as a proxy for distribution purposes.
+
RADIO FEATURE PREMIUM CREDITS (for radio performances only, where applicable)
Songs that earn certain threshold numbers of radio feature credits in a quarter receive additional credits in that quarter.
+
TV PREMIUM CREDITS (for TV performances only, where applicable)
Theme, underscore and feature performances in highly rated network and local TV series earn additional credits as TV Premium payments.
=
CREDITS

CREDITS X SHARE X CREDIT VALUE = $ ROYALTY

When all of these factors are computed, we arrive at the number of total performance CREDITS. After establishing the number of credits generated by a performance, the next step is to allocate these credits among all of the writers and publishers of the work based on the SHARE each should receive. ASCAP is advised of the correct shares to be paid when members submit Title Registrations. For example, if two co-writers of a song share royalties equally, each will receive 50% of the total credits. The final step is to multiply credits by the appropriate CREDIT VALUE to arrive at the ROYALTY payment.

carboengine user not visiting Queenzone.com

Royalty: 1283 posts
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Posted: 28 Dec 05, 11:17 Edit this post Reply to this post Reply with Quote

TRS-Romania wrote:

ROYALTY CALCULATION

Generally, royalties for a single musical work, in any surveyed medium, are the product of this calculation:

Use Weight X Licensee Weight X "Follow the Dollar"
Factor X Time of Day
Weight X General Licensing
Allocation
+
Radio Feature Premium Credits
(for radio performances only where applicable)
+
TV Premium Credits
(for performances in highly rated series, where applicable)
=
Credits


USE WEIGHT
The factor, or value, attached to each type of performance, such as theme, underscoring, promotional.
X
LICENSEE WEIGHT
This factor reflects the license fee paid by a station (or group of stations) and the number of hours included in the appropriate survey. The licensee weight is also referred to as the "hook-up" weight with respect to network television, reflecting the number of stations carrying a broadcast. Other surveyed media - such as TOP 200, live concerts tours, symphonic and chamber concerts, web sites, background music services, airlines, circuses, and ice shows - are also assigned 'weights' based on license fees paid to ASCAP.
X
"FOLLOW THE DOLLAR" FACTOR
This factor ensures that the license fees that ASCAP receives from any medium are paid to writers and publishers for performances on that medium. In other words, the money received from radio is paid out for radio performances, etc
X
TIME OF DAY WEIGHT (if applicable)
On television, the value of a performance can vary depending on the time of day; for example, whether it takes place in prime time or in the middle of the night.
X
GENERAL LICENSING ALLOCATION
Fees collected from non-broadcast, non-surveyed licensees (bars, hotels, restaurants and the like) are applied to broadcast feature performances on radio and all performances on television, which serve as a proxy for distribution purposes.
+
RADIO FEATURE PREMIUM CREDITS (for radio performances only, where applicable)
Songs that earn certain threshold numbers of radio feature credits in a quarter receive additional credits in that quarter.
+
TV PREMIUM CREDITS (for TV performances only, where applicable)
Theme, underscore and feature performances in highly rated network and local TV series earn additional credits as TV Premium payments.
=
CREDITS

CREDITS X SHARE X CREDIT VALUE = $ ROYALTY

When all of these factors are computed, we arrive at the number of total performance CREDITS. After establishing the number of credits generated by a performance, the next step is to allocate these credits among all of the writers and publishers of the work based on the SHARE each should receive. ASCAP is advised of the correct shares to be paid when members submit Title Registrations. For example, if two co-writers of a song share royalties equally, each will receive 50% of the total credits. The final step is to multiply credits by the appropriate CREDIT VALUE to arrive at the ROYALTY payment.


Thank you very much for the comprehensive information!!!


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