Licensing Companies – What to look for and what to avoid
This past week, I had a number of artists ask me about potential music licensing deals that they had on the table. The common concern was whether or not the deal they were being offered was legit. This is something that could be discussed in great detail on a case by case basis, but I thought I would give a few brief bullet points on some things to considerbefore getting involved with a licensing company.
Are they a licensing company or a music library? – The lines can be a bit blurry here, but a general distinction between the two is that a licensing company will pitch individual tracks, where a music library might supply clients with a searchable hard drive of music with thousands of tracks. In general, a licensing company will get higher fees.
What rights are they asking for? – At a minimum, you have to grant a licensing company the right to represent your music, but there can be varying levels of artist involvement for each placement they negotiate. Some contracts are pre-cleared(Meaning they don’t have to get the artist to sign off on each individual placement), and others give the artist the right of refusal before the deal goes through. Most indie artist will encounter pre-cleared contracts. Another thing to look for is if it’s exclusive or non-exclusive.