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Licensing music on the Internet

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Currently, our resources on the Internet in any way which used songs can be divided into two main groups:

Интернет1

 

Any service belongs to the first or second group, based on one of three methods of content delivery:

Интернет3

 

We are ready to cooperate in any kind of use of our content, but in our activities, we adhere to the following basic principles:

1. Content should not be free

2. Availability transparent reporting on the use of

3. Timely payment for the rights granted

Distribution of income

Due to the fact that we start from the principle of ” content can not be free “, it is assumed that the user pays for the opportunity to get music as a file or as a whole for access to the service . Licensee shall make payments to all holders on the basis of contracts . The average royalty for all intellectual property rights ( copyright and related ) is 50-85 % of the income received by Licensor . High enough spread royalty due to the fact that at the moment are quite different royalty rates for entitlements catalogs and directories Western works of Russian repertoire, which is primarily due to the transfer majors model previously proven in the west, in this case the royalties related rights are 60-70 %, and royalties for copyright – 12-15%. Russian Rights holders also loyal , as practice shows royalties for all kinds of rights is 50-60% .

Guaranteed or advance payments

In order to protect themselves from unscrupulous Licensors Rights holders often enter or advance payments guaranteed . In this case, the licensor must more clearly plan their activities to work with resource and does not apply to create resources as a ” toy .” Mostly, this measure is aimed at cutting off the casual gamer and proved time-consuming activities , monitoring , notification of changes controlled shares , activities related to verification reports, which can total hundreds of thousands of tracks .

Reporting

Accountability is a necessary condition of the contract and provides a special form of providing information on the use of the compositions , which received the right to Licensor . Typically, reports are submitted quarterly. Please note that the statements should be provided in a fairly short time , as well as that for the delay or incorrectness of the information provided sufficiently high penalties . Some complexity , which , in our opinion , is not essential for IT-companies are different requirement to Rightsholders reporting forms .

Thus , the Licensee in the planning phase of the resource should be possible to store all the required information about the songs that in a fairly short time required to generate reports DMCA .

Also the formation of off-line quarterly reporting requirement unchanged Franchisor is to provide Licensor access on-line reporting on the use of content. The main purpose of this requirement – it is checking the correctness of billing Licensor , and receive instant sections on the use of the selected criteria .
Licensing works on the Internet , contact the Department of Digital Distribution .

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