This is topic Paying .5% of gross to Music rights assoc. in forum Ground Level at Film-Tech Forum ARCHIVE.


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Posted by Kevin Baglow (Member # 721) on 05-29-2002, 07:59 AM:
 
In australia APRA (Australian Performing Rights Assoc.) asks for a % of box office for the music used in films. What other countrys have to pay that? On top of the usual 50+% to distributors. I thought music rights were paid for by the Film company.
 
Posted by Paul G. Thompson (Member # 655) on 05-29-2002, 09:37 AM:
 
That is the first time I ever heard that one happening......
 
Posted by Joe Beres (Member # 678) on 05-29-2002, 09:46 AM:
 
I could maybe understand them wanting some money for music played in the theater before and after any films, but I can't imagine the theater having to pay for music used in the films. In the US, technically, royalties should be paid for music played in a theaterbefore and after the show, but I would guess that very few theaters actually pay them. I would assume that theaters using any sort of music subscription service, movietunes for example, have those fees built into the subscription.
 
Posted by David Favel (Member # 1125) on 05-29-2002, 10:25 PM:
 
Yea, they sent me a letter saying the exact same thing.

Apparently films pay for/ask permission to use music.
This is their way of getting paid.

It all seems a bit suspect to me, however Hoyts pay them so I don't see how a wee guy like myself can stand up to them.
 


Posted by Kevin Baglow (Member # 721) on 05-29-2002, 10:55 PM:
 
It seams like they have ony bothered to approach a few of the indies. we must be the Unlucky ones
 
Posted by Scott Norwood (Member # 30) on 05-29-2002, 11:38 PM:
 
Thankfully, we don't have to deal with this in the US. The film producer has already (presumably) paid for the music rights for the movie and this includes the rights for the theatres to show the films and reproduce the music in them (as I understand things).

The only reason why a US theatre would want to purchase an ASCAP license would be if they wanted to play ASCAP-labelled non-sync music. Someone who has gone through the process will probably comment here, but I believe that they have flat-rate fees based on the size of the theatre.
 


Posted by Jerry Chase (Member # 660) on 05-29-2002, 11:49 PM:
 
Kevin, I smell a scam. Contact an attorney and get an opinion. If it is true, it might be time to lobby your government to outlaw the practice. It amounts to "double dipping" and a violation of the contract you sign for film rental.


 


Posted by Brad Haven (Member # 954) on 05-30-2002, 10:24 AM:
 
We pay APRA a yearly fee, which allows us to play any music on the premises, i forget how much?.
Kevin , do you pay that as well OR was this just so you can play each films soundtrack?.
I have not heard of this one before??.
If one cinema is being made to pay this, then all cinemas should!
 
Posted by Paul Cassidy (Member # 951) on 05-30-2002, 12:27 PM:
 
Yes they used to bother me with this and they had been trying the same with any public performance of music , in Take Away Food Stores even back ground music in Malls etc.maybe even Buskers

------------------
A KIWI eats,roots & Leaves.
 


Posted by Kevin Baglow (Member # 721) on 05-30-2002, 04:53 PM:
 
There are two groups
APRA, And the other one: PPCA who charges for all background music royaltys for any business
 
Posted by Mike Blakesley (Member # 26) on 05-31-2002, 11:28 AM:
 
Suposedly that is one purpose of the otherwise-useless MovieTunes...you can play those disks without incurring any royalty. So if you are getting hassled to get an ASCAP or BMI license, play Movietunes (until the heat's off, of course! )
 
Posted by Dick Vaughan (Member # 540) on 06-05-2002, 03:39 AM:
 
PRS, The Performing Rights Society, in the UK charge us an annual fee for the use of copyright music in the theatres and throughout the rest of the museum.

they also charge hairdressers ,shops, factories etc a fee for playing the radio in their salons,also copyright music "on hold" .
 


Posted by Dustin Mitchell (Member # 372) on 06-05-2002, 03:21 PM:
 
I'm a tad confused by the original post. Are you paying for the music that is part of the movie soundtrack, ie the stuff that is read off the film or the DTS discs and played with the movie, or are you paying for lobby and intermission music? If it is the later, yeah, at least by US law you've gotta pay. If it is the former-either you're being 'shaked down' or Australian copyright law is insanely screwed up. If the music is part of a movies sound you shouldn't have to pay a dime. The film company has presumably already payed this. Your booking contract gives you the right to play the movie-that includes picture and sound-in exchange for the fee you pay the distributor.

It sounds to me like the APRA is 'double dipping' as one poster put it.
 


Posted by Kevin Baglow (Member # 721) on 06-07-2002, 04:59 AM:
 
APRA wants a % of box office for the music used in the films that (I pay the distributors for). APRA say they will send a list of films that they don't represent the music rights for. They have never sent me a list though.
As written in a previous comment--Hoyts & (GREATER UNION) say that they pay APRA (AUSTRALIAN PERFORMING RIGHTS ASSOC.)so where do small indies stand?
 
Posted by Dustin Mitchell (Member # 372) on 06-08-2002, 01:27 AM:
 
Like I said before I have no idea how Australian copyright law works so I might be completely off here but that sounds like a load of BS (from the ARPA, not you). It makes absolutely no sense. Unless another Aussie contradicts (somehow I think this is likely) I'd recomend you contact a lawyer who specializes in copyright law and ask them for their advice.
 
Posted by Gordon McLeod (Member # 33) on 06-08-2002, 12:27 PM:
 
Actually they probably have the law behind them as performance rights organizations collect a fee and then divy it up to performers based usually on a percentage of playtimes on national radio
So a perfomer or composser who produced a piece that was not the top 10 hit may make nothing yet the music may get played a lot in other venues
In Canada currently a similar issue is being raised by two rival collection groups. The royalty to the film company only technically covers the playing of the music in the country of origin not locally
 
Posted by Richard C. Wolfe (Member # 431) on 06-10-2002, 04:46 PM:
 
There was a time many years ago when ASCAP here in the US sought to license motion picture theatres for the music used in the film themselves. However,it was fought and defeated by the exhibitors.

There is a current bill before congress,CRS-5,which is designed to change the way ASCAP licensing works. In that bill it mentions the litigation that stopped ASCAP from collecting from theatres for film soundtracks. I quote: "When ASCAP sought to license motion picture theater exhibitors, the exhibitors brought a successful antitrust action. District courts in ALDEN-ROCHELLE, Inc. v. ASCAP and M.WITMARK & SONS v. JENSEN held the blanket license violated the restraint of trade provisions of the antitrust laws and required ASCAP to grant "source" licenses to motion picture producers, which would extend to performances in motion picture theaters."

This of course only applies to the United States, but it is hard to believe that the same would not have resulted long before this in the rest of the civilized world.
 


Posted by Brad Haven (Member # 954) on 06-12-2002, 06:55 AM:
 
I went back and had a look at the contract we have, and it was APRA, we pay them a yearly fee to play music from their library (most commercially released music).
If the music in the film is part of their library, then you should (like we do) just pay, which entitles you to play any music on the premises. If the music in the films is not part of their library , then what business is it of theirs to charge you or tell you what you can do with it ?.
 
Posted by Kevin Baglow (Member # 721) on 06-24-2002, 06:45 AM:
 
Thanks for the help. And the valuable advise about the past US legal
history.
APRA's solicitors sent me a certified letter today demanding box office figures since I gave them last- five years ago (didn't know what i was doing at the time)
They said they are entitled to audit the figures and cancel the licence agreement if I dont give them accectable figures.
I might write back and ask what films they own the music rights to...will advise the outcome

 
Posted by Leo Enticknap (Member # 534) on 06-24-2002, 07:19 AM:
 
Dick: I didn't know you had to pay the PRS to play radios in public. If so then IMHO this is a complete ripoff and seems to me to be legally dubious. If I listen to a radio broadcast in my home or car I pay nothing. If I listen to the exact same broadcast in a public bar then money has to change hands. The copyright owner has already been paid by the radio station broadcasting the copyright recording. Making the receiving premises pay too sounds to me like trying to charge twice for the same service.

I can understand the principle of a PRS licence for things like juke boxes and non-sync in cinemas, because an exclusive service is being delivered to those premises, i.e. you are paying for the right to play specific recordings on specific premises at a specific time, which cannot be heard by anyone unless they are on those premises at that time. But a free-to-air broadcast can legally be heard by anyone, anywhere, and the right to make copyright material available in this way has already been paid for by the broadcaster.

The music rights issue must be a nightmare when distributing a film in many different countries, with potentially a different person or organisation controlling the copyright to each piece of music in each country...


 


Posted by Stan Gunn (Member # 554) on 06-26-2002, 04:36 PM:
 
When I had a small country cinema over 35 years ago you were required to have an A.P.R.A. LICENCE to reproduce a film sound track, or play any music at the venue.

When I went portable I was advised that the licence had to be changed to a traveling exhibitor licence, in my case it worked out cheaper as the estimated audiance was less than in a fixed cinema.

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Posted by Per Hauberg (Member # 529) on 06-26-2002, 06:14 PM:
 

Yeah - Film producers pay someone to wríte music, and we pay rent for the film. That ought to be enough - but it isn't. In DK, we pay one percent of BO, covering film music and use of copyrighted music in foyer, auditoria etc. -Cd's to be bought and payed for on side...
Worse: It's legal !!

Per
 


Posted by Bernard Tonks (Member # 809) on 06-27-2002, 05:33 AM:
 
Dick said:

quote:
PRS, The Performing Rights Society, in the UK charge us an annual fee for the use of copyright music in the theatres and throughout the rest of the museum.

they also charge hairdressers ,shops, factories etc a fee for playing the radio in their salons,also copyright music "on hold".


The PRS licence only covers film soundtracks. PPL, The Public Performing Licence, charge the annual fee for the use of copyright music elsewhere to the public including non-sync in theatres.

Before I closed my cinema, I was hounded twice by a third body, VPL, The Video Performing Licence, for a video music licence.

You could that say that UK cinemas are well and truly being ripped off.


 


Posted by Dustin Mitchell (Member # 372) on 06-28-2002, 08:59 PM:
 
I've already shown I don't know much about this, but it occurs to me you may not be required to pay a percent of the gross on all films. Things like Insomnia and Star Wars, whith all music composed for the movie, might not fall under this racket.
 
Posted by Kevin Baglow (Member # 721) on 10-04-2002, 07:06 AM:
 

It's taken APRA 3 months to respond to my reply to there demand. I asked for a list if films in which they own the music. I got was this responce:
BREECH OF FILM EXIBITORS (ANUAL) LICENCE
As you are aware APRA is the collecting society in Australia in respect of the performing rights of composers and music publishers. It represents more than 30,000 local members and also represents the members of overseas collecting socities that have reciprocal agreements with APRA
From APRAS correspondence you should also be aware that APRA is the owner of the copyright for such purposes in a large number of musical works by virtue of assignments from its local members and affiliation with overseas societies. (I DONT HAVE ANY SUCH CORROSPONDENCE)
APRA does not represent films-its owns the copyright for the relevent purpose in the musical works reproduced in films. The law in Australia & the United States differ significantly in relation to the public performance of musical works in cinemas.
Under clause 6.2 of your agreement, you must provide APRA with the details of the box office receipts for the Premeses on or before 1 October of each licence year.
We are instructed to demand that within 14 days of the date ofthis letter you return to us the box office information for years ending 97 to 01

This difference in law outside the US seems to be because no one has yet sood up to them (Wimps)
 


Posted by Paul G. Thompson (Member # 655) on 10-04-2002, 12:34 PM:
 
Run a bunch of screen ads with digital projectors and sound. That way, you'll get paid for it, and then you can laugh at those idiots who are trying to squeeze money out of your pocket. I understand some companys will even supply and maintain the equipment for you.


 


Posted by Kevin Baglow (Member # 721) on 10-04-2002, 09:18 PM:
 
I do that , we pay PPCA $40 a year to play music before the movie.
APRA wants .5 % of ticket sales on top of The Distributors getting there 55%
 
Posted by Lindsay Morris (Member # 1430) on 10-05-2002, 02:21 AM:
 
Kevin,

APRA actually want 0.55% of 60% of your gross door admissions.
I have just paid mine and I am looking at the account and how they calculate it.
They are a fairly intractable group to deal with as I had a few problems with incorrect names and addresses on our first few accounts and I had to become quite "cranky" with them before they managed to get off their backsides and ammend our details.
(Was getting snaky letters from them demanding payment when they had sent Invoices to wrong addresses etc)

They also have a very strange way of calculating the amounts as they do it in two chunks... possibly so to relieve the burden of the bill for bigger sites.
Most cinemas get two bills a year in Australia from APRA.

In our case running just 5 months I find it a bit tiresome to have to submit figures for for a period when we are not on screen.
I tried to get them to just give me one bill annually.... ha ha pigs might fly!

I reluctantly pay up as I consider that it is an IMPOST as we have no control over what music is supplied via the soundtrack but agree that we should pay to provide Non Sync music from CD's/tapes etc.
How do they "divvy" the spoils up if they have no idea who played what at what cinema... all a bit "nebulous" to me and the sceptic in me wonders IF the music makers actually EVER get any of this money collected.
What about if we just used a FM station for Non Sync and just played that???
Would APRA be double dipping if they tried to slug us for fees then as the FM station has to dutifully log EVERY track they play every day and submit details to most likely APRA to pay the copyright fee.
A mate of mine does a Jazz segment on a local FM station for a hour or so each week and it drives him crazy just doing all the paperwork for copyright purposes.
I guess that this is one of those little crosses we have to bear just running a small business as it seems that every time you turn about some other group has their hands in your back pocket.
 


Posted by Kevin Baglow (Member # 721) on 10-05-2002, 08:45 AM:
 
There are two groups. I don't mind paying the $40 a year for non- sinc music to the PHONAGRPHPIC PERFORMING RIGHTS ASSOCATION OF AUSTRALIA
The group in question is APRA who claim the music in the film. Maby we should be paying modeling fees to the extras in starwars 3 as well!!!


 


Posted by Mark Gulbrandsen (Member # 72) on 10-06-2002, 12:55 AM:
 
I know of several theatres that have recently been harassed by ASCAP. Its still best to bring in canned music for doing this legally. In two of these locations the ASCAP local person happened by these theatres on his way home from the office!!
Mark @ CLACO


 


Posted by Jacob Huber (Member # 1138) on 10-16-2002, 12:18 AM:
 
From ASCAP

In most countries outside the United States, motion picture theaters are required to pay performance royalties for music used in theatrically distributed films. These fees are collected by the local performing-rights society in each country (PRS in England, GEMA in Germany, JASRAC in Japan, SACEM in France, SOCAN in Canada, APRA in Australia, BUMA in the Netherlands, etc.) which, in turn, distribute royalties to the writers and publishers of music contained in the films distributed in their territories. The foreign societies will remit the writer's share of such monies directly to the performing rights society that a writer is a member of (i.e. ASCAP in the U.S.), which will then pay these theatrical performance royalties as a foreign distribution. In simple language, what this means is that, if you managed to get a song in a movie that is released outside the U.S., you'll get checks from your performing rights society that they in turn have received from the foreign performing rights organizations that collected the money for you in the first place. In contrast to the handling of writer royalties, the music publisher normally allows its representative in each foreign territory to directly collect its publisher royalty share in the local country.

Theater license fees vary by country and are usually a percentage of the theater's box office receipts. Because of the worldwide appeal of many motion pictures -- Titanic and Star Wars, to cite a couple of obvious examples -- it's not unusual for successful films to generate hundreds of thousands of dollars in theatrical performance royalties


So... it's on the side of APRA.
 


Posted by Frank Angel (Member # 248) on 10-18-2002, 02:38 AM:
 
Of course it would be. You would think that if a theatre books a film, everything is already paid up front by the producer (how can a producer use music that he hasn't paid for in the first place?). Since when does a film company sell you a picture that is encumbered and not free and clear? What about all the other rights that are involved with making a motion picture -- the actor's likeness rights -- does the theatre have to pay a percentage because it is showing the likeness of the actor? Perhaps the theatre should be made to pay a percentage so that the salaries of everyone who worked on the film can be paid after the fact. It is totally absurd, but not surprising. Why doesn't the royalty company just go to the studio and say, "Hey, you claim you made umpteen million dollars on this picture, therefore you owe us a royalty percentage of that money for the music you used in the film? At the very least, if your system is legitimately set up with royalties being collected AFTER the film is released, certainly you should only pay a percentage of your NET from the film. If you are get only 10% of the gate and the distrib is getting 90%, why should you pay a percentage of the full ticket price? -- let the distribution company pay the .05% on the 90% he takes with you paying a percentage only on what you make on the ticket price....your 10%. Anything less is quite unfair.

Even though in the US the royalty companies haven't yet adopted this absurd concept -- "pay for music used in the film" -- although I can just imagine the ASCAP guy drooling at the thought of such an arrangement -- here in the states ASCAP & BMI still try to extract every loose penny that might be rattling around in anyone's pocket. They want venues to pay a licensing fee (which we do) that is a blanket fee for the entire year; it allows us to play any music that they represent either prerecorded non-sync or performed by artists at our live shows. The fee is based on the number of seats and the number of performances we put on average in a year. Yet these royalty companies also hound the artists who perform music in our theatres to also pay a licensing fee for the very same music that we already paid for by virtue of our fee. A fee for the same piece of music is being collected twice.

They wanted to do the same with radio stations. The stations pay ASCAP and BMI royalties, then the royalty companies want to force the restaurant owner who plays a radio in his establishment to pay a royalty fee also. Again, the royalty companies are collecting twice. Or would like too -- I think a restaurant association successfully fought that battle and won.

This is nothing less than extortion and should be fought in court any place the royalty companies try to pull that kind of a shakedown; in the case of performers in venues like ours, they still are being harassed, so far to my knowledge -- the scam continues. It certainly would make a good class action suit for some aggressive law firm who wanted to fight it. The practice harms both the venue and the performer.

Frank


 


Posted by Kevin Baglow (Member # 721) on 04-08-2003, 04:22 AM:
 
LATEST DEVELOPMENTS: The first Australian music copyright royalties collector: The PPRAA (who were charging $30 a year- for what I thought was music played before the films)just wrote and said they had reached an agreement with the big theatre companys to charge AU$190 per screen (and to be increased by 5% a year) for the "use of copyright material in theatres"
That's on top of the second collecting group APRA -who claim to own .5% of office receipts (after film hire). APRA just sent me a certified letter threatening to take their claim to the Supreme court if i don't coff up. So Every one is stakeing a claim to the box office pie. The film companys booking advise states that they are granting a licence to sell tickets to there product. That should clear the film of further claims from any one elce.
Maby film hire terms in the US are higher than the rest of the world -to cover the music copyright. There must be a reason why the rest of the world caves in so easly to these peoples demands.
 
Posted by Per Hauberg (Member # 529) on 04-08-2003, 10:53 AM:
 
In Denmark, one % of years total admission goes to KODA, covering film soundtracks and non-sync everywhere in building.
In the same way, KODA charge us, when having live concerts and our neighbours, the Barber and the Cafeteria has to pay them for playing music - Also if it is just a portable radio in the kitchen. -If custumers in any way can hear music, You'll have to pay.

Per
 
Posted by John Spooner (Member # 1565) on 04-08-2003, 12:49 PM:
 
Dear Australian colleagues.
We had the same problem a few years back, where-in a rather hard looking lady (we think she did not like men) told us the same routine. So we simply played copyright free music for non-svnc. Also I understand a large Adelaide exhibitor did not play non-sync at all for some time.
As a member of the Union, I can forward this matter onto our local ATAEA rep. and obtain their opinion. Let me know your instructions as what to do.
Also the theatre managers on this forum should be able to refer this scam, let`s call it what it seems, to their Association.
 
Posted by Matt Hale (Member # 1518) on 04-08-2003, 07:38 PM:
 
There may not actually be double-dipping going on here. When a producer liscences a song for use in a movie, they have the option of buying global rights, or rights for certain areas i.e. North America only. If the movie is not expected to be a wide release they will usually go for the limited rights to save money. Then, of course, when the movie does get shipped overseas they should buy the additional rights. Unfortuneatly, by the time the movie gets overseas the company that produced it (in the legal entity sense) is long shut-down. The distributor should see that the rights are paid for, but of course they're not interested in paying anything more than they absolutely have to, so they leave it up to the exhibitor to pay.

The next logical step is for the exhibitor to offload these fees onto the patron, such as adding a 1% surcharge to each ticket... [Roll Eyes]

Also complicating matters is that for every song there are two sets of rights to buy: The publishing rights, and the rights to the specific recording used. These are not always owned by the same group. As an example, a movie that I am currently involved with is using Dean Martin's "That's Amore" We have bought the right to use the song, however the record company that owns Martin's recording of that song is asking too much money, so we have paid to have the song re-recorded by another singer. So now we own the rights to a recording of "That's Amore" but we still cant use our recording without paying the music publisher.

So APRA may have some legitimate claim that your theatre is playing music that has not been paid for, but I think their method of calculating what you "owe" them is definietly bogus. By demanding that you pay them a percentage off the top, they imply that none of the music in any of the shows has been paid for, and I scincerely doubt that is the case.
 
Posted by Kevin Baglow (Member # 721) on 04-12-2003, 01:43 AM:
 
APRA seems to be gettind desparate they have just written to the theatre owners association in australia MPEAQ. They now say that instead of charging .5% of Gross after film hire they would now like 1% of all ticket sales. Reasons quoted:The US doesent pay because rights are factored into synchronization licences. But oter European countys pay about 1% of GBO. Also Because music was on 66.68% of movie time on top 20 films. (I would have thought music scores were written and paid for by the producer- every thing elce is) Also because of Heavy investment by cinemas in sound equipment. and because Ticket prices have only risen at about half the rate of inflation. (total gross has risen of cource)
 
Posted by Dustin Mitchell (Member # 372) on 04-12-2003, 02:26 AM:
 
I am still curious about your obligation to pay when the film contains only original compositions.
 
Posted by Kevin Baglow (Member # 721) on 04-19-2003, 12:35 AM:
 
As far is I can work- out the answer to:
--------------------------------------------------------------
"why should various artists get a % of gross from music that was written and performed for the spacific film and paid for by the producer for world release"
--------------------------------------------------------------
is TUFF
 
Posted by Kevin Baglow (Member # 721) on 09-29-2003, 07:58 AM:
 
Got a letter by fax from APRA's solicitors a few days ago threatening to take me to the supreme court (OZ)if it didn't pay the percentage of box office as requested. The reason being that I screened three Australian films in which there are a few songs in which APRA represents the copy right holders.
I will reply with a cheque for payment of the requested percentage for thoose films , stating that I will corrospond with the distriburtors of those films to inform them that APRA says the haven't been paid for the specific songs in the films and that I have paid 'x " amuont in hire to APRA for the right to screen the film as licenced by the discributer. I will be very interested to see which films have music which hasn't been paid for --. Will keep u informed (got my body guards on standby)
 
Posted by Bruce Hansen (Member # 281) on 09-29-2003, 11:33 AM:
 
It sounds to me like you-all down-there need to start writing your government complaining loudly, to get this mess cleared up. Greed hurts everyone.
 
Posted by Jack Ondracek (Member # 1466) on 09-29-2003, 02:30 PM:
 
Here in the States, we can deduct specific local taxes from the grosses we report, considering that these taxes are "over" the actual admission we charge, and the film companies can't expect percentages on these amounts.

Perhaps, if the companies you're dealing with aren't paying the copyright fees, you can make a case for deducting those fees from the amounts that percentages are imposed on.

Seems a dangerous practice, actually. The idea that you're being required to pay performance fees makes a huge assumption that the studios are authorized to use the music in the first place. Don't they have to acquire these permissions in advance?
 
Posted by Martin Brooks (Member # 1269) on 09-29-2003, 07:43 PM:
 
Actually, I doubt very much that the film producers didn't pay licensing fees. I bet the rights agency is trying to double-dip. I don't know about OZ, but in the US, the MPAA, ASCAP or BMI cannot come after movie theaters for music that's played within a film.
 




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