The Business of Commercials!! 237has to be edited to 30 seconds), changing lyrics, and changing arrange-
ments are some of the rights requested by agencies from composers and
music publishers. Hire an experienced negotiator to negotiate synchroni-
zation and/or transcription licenses. Rights negotiations are complex and
require an expert negotiator.
Synchronization and/or transcription fees are paid in addition to
arranging and production fees paid to composers or music companies. Do
not agree to one fee. Try to negotiate the exclusive right to do all subse-
quent arrangements of your song/instrumental for any commercial or
commercial campaign using your music. This is a difficult concession to
obtain but is worth negotiating.
Society of European Stage Authors and Composers (SESAC)
SESAC, the smallest of the three performing-rights organizations, is the
only organization that is for profit. SESAC has a subdivision called SESAC
Latina, which collects performance income for Spanish-language music.
The following is a quotation from the SoundExchange website
(www.soundexchange.com):
SoundExchange is an independent, nonprofit performance rights orga-
nization that is designated by the U.S. Copyright Office to collect and dis-
tribute digital performance royalties for featured recording artists and
sound recording copyright owners (usually a record label) when their
sound recordings are performed on digital cable and satellite television
music, Internet and satellite radio (such as XM and Sirius). SoundEx-
change currently represents over 3,000 record labels and over 20,000 art-
ists. Its members include both signed and unsigned recording artists;
small, medium and large independent record companies; and major label
groups and artist-owned labels.
Managing a Music House
The following is an interview I conducted with John Russo, president of
Russo/Grantham Productions, a commercial music house in New York
City:
MZ: How does a young person start a music company?
Russo: Usually, it’s extremely difficult to just hang up a shingle
and declare yourself a music company and go out and solicit
business successfully. Our business is known for having per-
sonal relationships, and it’s very rare, if not impossible, to start
off cold not knowing anybody as a potential client and winning
business. Now, there are lots of different places to bring your
work and try to get started. Usually the smallest of advertising