Using the Harry Fox Agency
By Just Plain Folks Mentor Valerie DeLaCruz
In 1998, I released a CD that centered on the theme of "friends." Researching BMI and ASCAP databases for songs with "friend" in the title yielded a treasure trove of popular favorites with which we all identify, such as "You've Got a Friend," "That's What Friends Are For," and "Thank You for Being a Friend." In order to manufacture my CDs for sale, I needed to get a mechanical license from the person or entity that controlled the usage of these songs, the publisher. Once a song has been published, recorded and released for sale, the publisher MUST grant a license to you if you pay the statutory rate (currently 7.55 cents per song under 5 minutes). This is called a compulsory license. The Harry Fox Agency is a clearinghouse for most of the publishers in the United States. This is the place to start when seeking a license. If they do not represent a song, they will notify you. For example, I licensed "Bridge Over Troubled Water" directly from Paul Simon Publishing, but all of the other ten compositions were licensed through Harry Fox. There is an initial minimum "advance licensing payment" on 500 copies of your recording, or $37.75 payable on 500 CDs printed/issued. You are then responsible to report your sales every quarter to account for anything over this amount, and pay the license fees due. Harry Fox then distributes your license fee to the appropriate publisher, less the agency's commission of 4.5%.
The following information is from the Harry Fox Agency's website(www.harryfox.com), and explains about the agency, its services and current fees relative to mechanical licensing:
The Harry Fox Agency, Inc. (HFA) was established in 1927 by NMPA (National Music Publishers' Association) to provide an information source, clearinghouse and monitoring service for licensing musical copyrights. For seventy years, HFA has provided efficient and convenient service for publisher clients and for a broad spectrum of music users. The Agency now represents more than 22,000 American music publishers and licenses a large percentage of the uses of music in the United States on records, tapes, CDs and imported phonorecords. It also licenses music on a worldwide basis on behalf of its publisher principals for use in films, commercials, television programs, and all other types of audiovisual media. HFA provides the following services in the United States on behalf of its publisher principals: ·
Licensing of copyrighted musical compositions for use on commercial records, tapes, CDs and computer chips to be distributed to the public for private use. ·
Worldwide licensing of copyrighted musical compositions for use in audio/visual works including motion pictures, broadcast and cable television programs, CD videos and home videograms.
Licensing for use in TV and radio commercial advertising.
Licensing of musical compositions in recordings for other than private use, such as background music, in-flight music, computer chips, syndicated radio services, MIDI, karaoke and multimedia.
Licensing of musical compositions in recordings made outside of the US and imported into this country for sale.
Collection and distribution of royalties derived from the uses of copyrighted musical compositions pursuant to the licenses issued.
Auditing of the books and records of licensees utilizing copyrighted musical compositions pursuant to the licenses issued, as well as the identification of unlicensed product.
Statutory Royalty Rates Effective January 1, 2000
For the period January 1, 2000 to December 31, 2001 the statutory mechanical royalty rate is as follows:
7.55 Cents for songs 5 minutes or less - or - 1.45 Cents per minute or fraction there of for all songs over 5 minutes.*
* For example:
5:01 to 6:00 = $.087 (6 X $.0145 = $.087)
6:01 to 7:00 = $.1015 (7 X $.0145 = $.1015)
7:01 to 8:00 = $.116 (8 X $.0145 = $.116)
Future Statutory Royalty Rates
For the period 01/01/02 to 12/31/03
8.00 Cents for songs 5 Minutes or less or 1.55 Cents per minute or fraction thereof for songs over 5 Minutes
For the period 01/01/04 to 12/31/05
8.50 Cents for songs 5 Minutes or less or 1.65 Cents per minute or fraction thereof for songs over 5 Minutes
For the period 01/01/06 to 12/31/07
9.10 Cents for songs 5 Minutes or less or 1.75 Cents per minute or fraction thereof for songs over 5 Minutes
(Editor Note: There is an important point to be made on this topic. If you negotiate with the owner of these copyright's or Harry Fox, it is possible to obtain a lower rate to record the songs. The rates listed here are the maximum you must pay to record someone else's composition. It often pays to negotiate the rate down, especially if you are doing a large run of CD's where the copyright owner is going to make a large sum if you use their work. They are not required to negotiate, but then again, you are not required to include their work on your CD either. Often major labels will ask copyright owners to reduce their rates to be included on one of their artists releases. It pays to work with people!)
Mechanical Licensing
Under the United States Copyright Act, the right to use copyrighted, non-dramatic musical works in the making of phonorecords for distribution to the public for private use is the exclusive right of the copyright owner. However, the Act provides that once a copyright owner has recorded and distributed such a work to the US public or permitted another to do so, a compulsory mechanical license is available to anyone else who wants to record and distribute the work in the US upon the payment of license fees at the statutory "compulsory" rate as set forth in Section 115 of the Act.
The current royalty rate as of January 1, 2000 is 7.55 cents per use for compositions that are 5 minutes or less; for songs over 5 minutes, the rate is 1.45 cents per minute or fraction thereof of playing time, whichever is greater. It should be noted that a mechanical license does not include the right to reproduce an already existing sound recording. That is a separate right, which must be procured from the copyright owner of such sound recording. (Editor Note: This means the SR Copyright as compared to the PA Copyright.)
HFA issues mechanical licenses that are valid for products manufactured and distributed in the USA (including its territories and possessions) only.
Mechanical licenses are available only to US manufacturers or importers with US addresses.
Note: A mechanical license does not include lyric reprinting or sheet music print rights. For these rights, you must contact the publisher(s) directly.
You may obtain forms to request a mechanical license from the Harry Fox Agency on-line, or call them at 212-370-5330 in NY, 323-466-3861 in Los Angeles,
and 615-242-4173 in Nashville.
Valerie DeLaCruz is a signed recording artist and award winning songwriter, and is one of the original Just Plain Folks Mentors. Visit her site at www.valeriedelacruz.com or her mentor page at the jpfolks.com website to read previous articles.
