JPF Home Page Forums General Messages Industry Message Forum You Tube Video Royalties or Rights ?

Justice asked me an interesting question yesterday that I don't know the answer to. If someone makes a YouTube video (cover) of a song, what royalties or payment is due to the publisher / songwriters? ... and how does one make the payment ?

We are not thinking of doing this but it is an interesting question to me.

Tom

Tom,

Since the advent of MTV, videos are always considered promotion so no money is exchanged for that. Even the CMT or VH1 videos, you are not paid for anything that is broadcast. It is in all publishing contracts you sign. There is no money on video period. It is used to promote and advertise your product.

The only difference might be in something like what Ray Stevens did a few years ago, bundeled all his videos together and sold them as a DVD. In that case, it is just like a CD. He sold 19 million of them through late night television.
If you are in a television show, cable or major motion picture, there are contracts that apply to those. But nothing on promotional videos.

A friend of mine found this out the hard way recently when a camera phone video she did of a small child made it's way on to a Randy Houser video. She was the Nanny of the child. When it started being played all the time she thought she should be paid for it. Against the advice of myself and many others in the industry, she got a lawyer and tried to sue. She lost her job and her status in the town. Very sad.
But there is no money at all for video. Just a cost of doing business.

MAB

So Marc, do I understand that if someone makes a video of a song, say "White Horse" (by Taylor Swift), and posts it on YouTube, they don't have to pay her anything?

Tom

My understanding is, that YOUTUBE pays royalties to BMI/Gema and so on.... but the costumer does not have to pay anythng. So if you make a cover of a song YOU don´t have to pay anything.

Right now I am not too sure if it´s a violation of copyright if you make a video..but that´s an other question.

Tom,

I doubt it. To my knowledge no. People do it all the time. There are millions of videos done each week. If You tube is not collecting from the customer, I am not sure where they would be getting any money to pay out.
As I said, this has gone back to the days of MTV in the 80's. I have never known anyone to be paid for videos. Another one of the problems with the Net. When something is put out there, it is out there.

MAB

Marc, you are certainly correct that it is done all the time. I wonder why it is not a copyright violation.

Tom

Tom,

It probably is in some form or another. Copyright enforcement is another thing all together. There have been examples of people doing sex videos and other things to existing music. They shut one down, the people put up ten others in their place. With billions of videos, music, messages, etc. it is simply not possible to enforce.
You could always get a "cease and desist order" and shut them down but that would probably cost money, I am sure it costs money and would take time.
About 75% of the Internet is bogus with things like Identity theives flourishing. They recent stole the ID's of Ben Bernake, the treasury secretary. It is billions of dollars. I am sure someone doing a video to an existing song is of little subsequence and priorities.
There are tons of copyright violations going on all the time. Peer to peer file sharing has wrecked the industry and that shows no sign of stopping. So enforcement is simply not possible.
It is what we have all been dealing with for years, the general public is just dealing with it now.
But I would be willing to bet that there is some obscure law that would protect the violators. As I said, MTV, VHI, CMT, GAC,etc. any video show does not pay any royalties on video. It is considered promotion. Part of the giant cost in launching artists is the costs of production and promotion of videos. That has always been a huge expense with no way to get a return on that investment. They make it up in other ways.
If a label has a major star selling millions, that is what pays for the other dozens of artists that don't do anything.

MAB

Tom,

I missed a post. If it is someone like a Taylor Swift, she and SONY are going to have enormous legal enforcement arm to shut down anything put out. Most people don't have that. I was thinking you were talking about something with Justice. like everything, if you have a lot of money, you have a lot more credibility in dealing with things.

MAB

Tom,

I think that as long as you're not trying to sell anything or generate profit, then it falls under something called Fair Use.

It's not video, but think of something like the Grey Album, which Dangermouse didn't get sued for because he gave it away.

That's slowly starting to change, though. The videos themselves might not generate any royalties, but the opportunities for product placement are growing all the time.

The newest Lady Gaga video, for example, has more product placement in it than a commercial break during the Super Bowl.

Lady Gaga featuring Beyoncé - "Telephone"

If it is used in a major television or cable network, or motion pictures, outside of just a music video outlet there probably is money involved. But those companies often do pay for product placement, just like Hollywood movies.

MAB

FYI to all: The above are well intentioned opinions on this subjet, however do not assume the answers are accurate/correct for any legal purpose. I believe these issues are more complex than suggested above. When it comes to financial or legal issues (including royalties) only you own legal representation/consulation should factor into your decision making. No one above (nor myself) are qualified attorney's on these issues and there's a few comments above that I believe may be incorrect.

Brian

Very well said. And legal issues in this day and age change with amazing speed. Different laws are always floating through Congress, changes are happening continually, different techincal issues are being addressed. There are very few people that actually know, or can give a total answer.

MAB