Before you explore some of the most common licenses in the music business, it is essential to understand what licensing is and how it works.
What is licensing?
In the music industry, licensing is the process of giving or getting permission to use a An original musical composition with or without lyrics., In the context of music, when a musical work is played live or on a sound recording., or Typically, the recorded performance of a musical work protected as a phonogram under copyright law. for a particular purpose.
Only A person or company that has Intellectual Property Rights in a musical work, performance or sound recording have the The rights to determine the terms and conditions under which a musical work, performance, or sound recording can be licensed or not for use. to authorize the use of their musical works, performances, and sound recordings.
A Collective Management Organization: An organization that acts collectively on behalf of the rights holders it represents and collects and pays remuneration to rights holders. can also grant licenses for certain uses, either when assigned by the rights holders or for Under copyright law, the right to have payment for the use of a musical work, sound recording, or performance under a statutory license..
By granting a license, normally in exchange for a fee, the The person or entity that grants a license to use copyrighted material, such as a musical work or sound recording. authorizes the The person or entity that obtains a license to use copyrighted material, such as a musical work or sound recording. to use musical works, performances, and sound recordings, while rights holders retain their rights.
All rights holders must agree with a particular use of the musical work or sound recording, which they can do by signing the same license or issuing separate licenses.
Image credit: Martin Fabricius Rasmussen