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What are the main sources of income of the songwriter?

 

 The main sources of income of the songwriter are:


a) Records


In exchange of the right to use a song on the records, the Record Company pay royalties to the song’s copyright holder. The Songwriter’s copyrights for the sales of records are named „mechanicals”. The mechanicals are collect and distribute by the Collection Societaties impowered by songwriter.
In Romania, usually, the Record Company pays the mecanicals direct to the holder of copyright (songwriters or Publishers) in base of the mechanical license Agreement. The Songwriter’s mechanicals are fix as a percentage, regulated by law, from the dealer price of the records, whatever would be the supports (CD, caseta, disc, mp3, etc.). For 2007, the Record Companies have to pay 10% of dealer price, as mechanicals.
Traditionally, mechanicals are an important source of income for copyright holder, such as the Publishing will be interested to authorised many Record Companies to reproduce one of his listed composition on the records and to distribute theese Records (cover).
The Record Companies authorised to make covers has to pay mechanicals, too.


b) Internet


For Internet use of a composition (videostreaming, downloading), users need the authorisation of the copyright holder.
In Romania, UCMR-ADA issued an Internet blanket license in exchange of a fee. The license fee for free streaming is 300 lei anually. For the commercial streaming or commercial downloads the monthly license fee is 10% from the lord income of the users, but not less of 0,3 lei per any song streamed or download.


c)  Film sountrack/Advertising


 For use of a sing in Film, Advertising or other audiovisual works, production company of this audiovisual works has to obtain a license from the copyright holders, in exchange of a fee. In Romania, UCMR-ADA issued the synch license, too. The fee vary in base of type of audiovisual work (commercial, educational, etc), popularity of the song, duration of usage, percentage of compositon on all audiovisual work, etc. This type of copyright are named syncronisation rights.


d) Public Performance


 Any public performance of a song, whether on record or live, including radio or tv broadcasting, can be done in base of a non-exclusive blanket licence issued by UCMR-ADA or directly by the copyright holder. The monthly licence fee vary from users to users: radios, television stations, cable operators, restaurants, discos.


e) Ring tones


 In Romania, you can use a song like ring tones after you have obtain a non-exclusive authorisation from UCMR-ADA or directly from the copyright holder.
For issuing the authorization for ring tones, UCMR-ADA collect a monthly royalty of 10% from the lord income of the users, but not less 0,3 lei per song download. If the ring tones are performed publicly free, the users have to pay a flat-fee of 0,3 lei per song download to the UCMR-ADA.


f) Print


The print royalties results from the distribution of music sheets.


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If the songwriter has an Publishing Agreement, the royalties shall be divided between Songwriter and Publisher according to the terms.