Music/Stock Footage Clearances for Festivals & TV?

B

BA1385

Hi there,

I'm putting together a budget for an independent documentary I'm producing and have some questions regarding clearances.

My intended distribution plan is film festivals and hopefully subsequent TV broadcast.

In regard to making an offer with the copyright holders of music and stock footage that I intend to use, would it be sufficient at this stage to purchase "festival rights" only and then expect a potential broadcaster to cover TV rights in the eventuality of selling the film? Or perhaps purchase TV rights myself if a TV deal rears its head? Alternatively would it be best to purchase all rights/territories in perpetuity myself preemptively?

I won't require too much stock footage (probably around three 10 second clips, all taken from the same source) - if anyone can suggest what might be the most cost effective method of purchasing this I'd be very grateful to hear.

Thanks if you can help and please let me know if I can provide any additional info...
 
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I noticed nobody had answered your question here...probably because it is a tricky one. It really depends on what you are licensing. It is also very dependent on your budget. First, it really helps if you are operating under a limited liability company. If you are an individual trying to secure rights personally for your film, it will be a big red flag. In fact, you probably won't even get a return email from most of the places you are contacting. Most legitimate broadcasters and distributors won't deal with an individual, so get that LLC set up - it will be required when you get Errors and Omissions Insurance and also when you license the film for broadcast - might as well have that company holding the rights from the start.

As far as pricing, I've licensed music and clips between FREE and $10,000. When you contact the rights holder be honest about your budget. They will likely have a different set of pricing dependent on use that they can forward you. If broadcast is a 'hope' for the future then ask for a festival rate to be paid now and another rate to be paid if broadcast is secured. Be specific about broadcast (local, regional, national, international). You don't want to pay for international rights if you only secure a $500 license on local TV. Sometimes the best you can hope for is that it will be negotiated 'in good faith'.

When you are dealing with Legal Departments for rights holders, they will de-personalize the process and make you feel like you are being a pain in the ass. Don't let it get to you. Keep working with them until they tell you to get lost or you get something you are comfortable with.

best of luck. I am working on launching a resource that will answer these types of questions - by both indie filmmakers and lawyers.

https://www.facebook.com/chainoftitle
 
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ChainOfTitle said:
I noticed nobody had answered your question here...probably because it is a tricky one. It really depends on what you are licensing. It is also very dependent on your budget. First, it really helps if you are operating under a limited liability company. If you are an individual trying to secure rights personally for your film, it will be a big red flag. In fact, you probably won't even get a return email from most of the places you are contacting. Most legitimate broadcasters and distributors won't deal with an individual, so get that LLC set up - it will be required when you get Errors and Omissions Insurance and also when you license the film for broadcast - might as well have that company holding the rights from the start.

As far as pricing, I've licensed music and clips between FREE and $10,000. When you contact the rights holder be honest about your budget. They will likely have a different set of pricing dependent on use that they can forward you. If broadcast is a 'hope' for the future then ask for a festival rate to be paid now and another rate to be paid if broadcast is secured. Be specific about broadcast (local, regional, national, international). You don't want to pay for international rights if you only secure a $500 license on local TV. Sometimes the best you can hope for is that it will be negotiated 'in good faith'.

When you are dealing with Legal Departments for rights holders, they will de-personalize the process and make you feel like you are being a pain in the ass. Don't let it get to you. Keep working with them until they tell you to get lost or you get something you are comfortable with.

best of luck. I am working on launching a resource that will answer these types of questions - by both indie filmmakers and lawyers.

https://www.facebook.com/chainoftitle
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Thanks very much for the information!

FYI the bulk of the music that I want to license is published by very small (to larger) independent labels. There are however some tracks published by former indies that have subsequently become subsidiaries of majors.

My production company is currently registered as a Limited Company in the UK. I'm slightly confused as to whether this is the UK of equivalent of an LLC? I have read (on UK websites) that formation of an LLC is very expensive - so am wondering if it is really necessary for my needs and is basically mandatory for selling to a TV broadcaster? Unless of course I'm mistaken about the terminology...

Thanks again!
 
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ChainOfTitle said:
LLC is standard for a film production in the US. In Canada a limited company is fine as an LLC is not a flow through vehicle for taxes - I believe it may be the same in the UK. You should be fine with your Limited Company. Best of luck!

https://www.facebook.com/chainoftitle
Click to expand...

Thanks!

I have another licensing based conundrum which I would be very grateful if you could shine a light on...

I'm currently preparing the film's Kickstarter's project and intend to use a song for the trailer whose publishing rights are now owned by a major (however the artist is obscure and the label hasn't reissued any of his material - the film is based on him).

Self-funding the film has bankrupted me and I will be relying on the Kickstarter funds to complete it. I am reticent to negotiate licensing the track for the Kickstarter video as it may not be financially possible for me to procure the rights at this stage. Furthermore, I'm worried that using it without permission would invoke a lawsuit/removal of the project.

From researching Kickstarter projects it looks like there is frequent and explicit use of unlicensed copyright material (although Kickstarter claims this is not permissible) and I'm wondering how seriously anyone takes a copyright breach on there or if it is just tacitly accepted as a platform from which funds can be generated in order to pay for licenses??

Any thoughts would be greatly appreciated!
 
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