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Creative Lawyers for Creative Business

December 2004

"Sign or don't work"

Last week, BAC&S, the British Academy of Composers and Songwriters, which is an organisation representing songwriters, media composers and classical composers, filed a complaint to the OFT, the Office of Fair Trading. The complaint was regarding the onerous actions of production companies and TV broadcasters, in only offering commissions if the composers would sign their publishing rights away to a company associated with the commissioning party. There are claims that these contracts are destroying their potential income stream. By signing over their publishing rights, a creator's income stream from royalties, when the music is performed or broadcast in another context, is being depleted by as much as 35%.

Briffa Comment:
Film and television represents an important creative and commercial opportunity for UK songwriters, composers, artists and music publishers. Television companies and film production companies usually pay composers and songwriters who compose music especially commissioned, a fee upfront. In the case of pre-existing music, they are paid a synchronisation fee. The creators also earn royalties when that music is used in the cinema, on the television or on other media. These royalties are collected on their behalf by collecting societies in the country of use and payment is made to them under reciprocal agreements with similar bodies worldwide. The Performing Right Society (PRS) collects public performance royalties when the music is performed, for example, in cinema or on radio or TV in the UK. The Mechanical-Copyright Protection Society (MCPS) collects royalties, which are earned when soundtracks are sold on CD or the film is released on video or DVD. Further significant income may also be generated if the music is also used in a commercial.

It would seem that some of those responsible for commissioning works are seen as abusing their positions by entertaining a somewhat coercive and anti-competitive approach. This practice involves the commissioning party having tighter controls over and placing more restrictions on, the creator. The composers and songwriters are in a difficult position, in other words, they must sign or they can't make a livelihood. Their ultimate success and importance on the international stage contributes to Britain's position as a major exporter of music but yet the creators themselves believe that they are being undervalued which could have a stultifying effect on diversity and creativity in the future and thus the British market. It is difficult to sit out a practice that has become the norm, but not impossible. A fair, reasonable, workable and profitable balance needs to be struck.

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