Music Licensing

Entertainment Music Business

Legal authorization to use copyrighted music in various contexts.

Definition

Music licensing grants legal permission to use copyrighted music in specific ways. Different license types cover different uses—sync licenses for audiovisual media, mechanical licenses for reproductions, performance licenses for public performance, and master licenses for specific recordings.

Licensing involves both composition rights (controlled by publishers) and recording rights (controlled by labels or artists), often requiring negotiation with multiple parties for a single song.

Why It Matters

Understanding music licensing prevents costly legal issues while enabling legitimate music use. Brands, content creators, and businesses need licensed music for advertising, videos, events, and public spaces.

For artists and rights holders, licensing represents significant revenue opportunities beyond streaming and sales.

Examples in Practice

A brand's viral video using unlicensed music resulted in takedown and legal costs that exceeded what proper licensing would have cost, damaging the campaign's momentum.

An independent artist licensed their track for a commercial, earning more from that single sync deal than six months of streaming royalties.

A venue's PRO license audit revealed unlicensed music at their events, requiring back payment of performance royalties and ongoing licensing arrangements.

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