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Q: karaoke songs ( Answered,   0 Comments )
Question  
Subject: karaoke songs
Category: Arts and Entertainment > Music
Asked by: gscotts-ga
List Price: $20.00
Posted: 13 Aug 2003 10:15 PDT
Expires: 12 Sep 2003 10:15 PDT
Question ID: 244273
How does the money flow in the Karaoke business?  To be clear, I wish
to start with the money paid for a retail disc or for a performance in
a bar, then trace it down to the sums payable to the music publisher
and to the owner/creator of the master recording embodied in the disc.

Request for Question Clarification by politicalguru-ga on 27 Aug 2003 04:29 PDT
Where, in which country?

Clarification of Question by gscotts-ga on 27 Aug 2003 23:56 PDT
Both the composer and the owner of the recording are US citizens
dealing with a US copyrighted work.  I would want to have an
understanding of the flow of money trailing back from worldwide
licenses of the rights.  Assume the song is an extremely well-known
work, desirable for karaoke usage worldwide.
Answer  
Subject: Re: karaoke songs
Answered By: politicalguru-ga on 12 Sep 2003 06:35 PDT
 
Dear G Scott, 

Karaoke CDGs and other mediums are usually protected by copyright laws
(there are some pieces, of course, which are not protected. You could
choose the status of a piece at <www.copyright.gov>. In other words -
if you use only songs that are not protected, like many Christmas
carols, gospel songs, and classical music tunes - you might be on the
clear). That means, that if you produce a karaoke CDG and use it for
commercial means, you might be violating copyright.

So, if you buy a CDG, and use it on a private karaoke machine at home,
with friends, this is no different than playing again and again any CD
or DVD that you've bought: by purchasing this item, you've already
paid the royalties to the rights' owners.

Now, how does the chain go? 

The Karaoke Anti-Piracy Agency describes it pretty clearly: 

A karaoke piece is copyrighted (except in certain cases, like
something entirely created by yourself, etc.). Playing this music in
public requires license as well as payment to the copyright owner.

The artist (songwriter) is usually the rights holder, except in cases
where they sold their rights away. The publishers protect their rights
on their music. The fees themselves are collected by one of two
organisations (see bellow), and transferred to the rights' owners. The
percentage (exact sum) of the songwriter is different from case to
case: it depends upon the specific contract they have with the
publisher of the music.

They do it through organisations that collect the monies from those
interested in using the intellectual material in question (in this
case - the Karaoke tunes/performance). These organisations, The
American Society of Composers, Authors and Publishers (ASCAP) and
Broadcast Music, Inc. (BMI), also licence businesses wishing to play /
perform music.

In the case of venues that have a KJ (Karaoke Jockey), or a karaoke
machine: "Any bar or club that plays any kind of music whether it be a
jukebox, live band, radio or Karaoke host must pay a fee for the use
of music in a public place. If the club has no music then the KJ or
club owner must work out a deal as to who is going to pay the fees for
the license of the bar or club." (Canadian Alliance for Karaoke
Entertainment, "Licensing Agencies"
<http://www.dogandponysound.com/whoswhoincopyright.htm>).

There are several types of possible licences: 
"- Blanket license for most buildings and fixed installations of music
playback equipment where there is a commercial use.

- Per Event/Use for one time shows or events. 
- Reporting, Audits, and Monitoring which is generally used in the
radio and broadcast industries.
Songwriters affiliate with one of these organizations to collect
performance money. These groups do not collect for the sale of any
product." (Source: "Karaoke Anti-Piracy Agency", "It All Begins with a
Song" <http://www.karaokeantipiracyagency.com/info-law.html#info>).

It doesn't end there. Every commercial play or broadcast of a song
requires payment of "mechanical rights": "a flat fee called the
Statutory Rate set by the Copyright Royal Tribunal (US Government)
that sets the rate (currently at .075 per song per copy) for every
time a song is “mechanically fixed” in a medium ( i.e. CD, CD+G,
records, cassettes, video tapes, etc.)." (ibid). Copyrights for the
lyrics must also be paid to the rights holder, and again, unlike the
mechanical rights, are not set, but depend on the artist. Be aware,
that some artists are highly priced, or refuse to let their songs be
played in karaoke. If we get back to the specific copyrights on a
karaoke piece, it will also include the synchronisation rights on the
material.

To sum up: 

KJ/Club/Private Person ---> paying royalties by purchasing the CDG. 
KJ/Private person compiling a new piece, must, of course, arrange
payment for all rights involved - artist, lyrics, etc. - with
BMI/ASCAP.

Club (venue that plays in public) ---> Karaoke Manufacturer + License
to play karaoke in public (BMI/ASCAP) /// Karaoke Manufacturer --->
synchronisation rights, lyrics rights and song copyrights to
publishers (through BMI/ASCAP) and through them, to artists.


Further Reading
===============
The Complete Copyright Act, Title 17: http://www.copyright.gov/title17

The Digital Millennium Copyright Act (Acrobat PDF):
http://www.loc.gov/copyright/legislation/hr2281.pdf

KAPA - Karaoke Anti-Piracy Agency
http://www.karaokeantipiracyagency.com/

Karaoke Universe - a discussion group on all that is Karaoke
<http://groups.yahoo.com/group/karaokeuniverse/>. In particular,
please note the explanation here: Moonrider Karaoke "Re: [Karaoke
Universe] Thanks! and another question"
<http://groups.yahoo.com/group/karaokeuniverse/message/1480>; and
(same author) "Re: ASCAP/BMI...licenses"
<http://groups.yahoo.com/group/karaokeuniverse/message/930>.

Karaoke Scene <http://www.karaokescene.com/> and specifically their
forum <http://www.karaokescene.com/forum/viewforum.php?f=1>.


Search Terms
============
karaoke copyright ASCAP royalties 
karaoke copyright licensing royalties 
karaoke copyright RIAA royalties 
karaoke copyright BMI royalties
karaoke "copyright laws" royalties 
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I hope this answered your question. Please contact me if you need
clarifications on this answer, before you tip/rate it.
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