Direct Licensing Policy
Issues to consider when establishing your Direct Licensing Policies and Procedures
N.B. This template is high level only – each PPCA licensor must decide for itself what particular direct licensing policy and procedure it wishes to adopt.
1. Direct Licensing Policy
We recommend you consider the following issues when developing guidelines about your direct licensing policy, and cover the following points:
• State whether or not you license public performance and/or transmission rights in protected sound recordings directly and, if so, in what circumstances (e.g., minimum contract and terms, minimum size of business etc). If the policy rules out direct licensing, we would suggest that the reason for doing so is also specified (e.g., in the case of very small licensors, the unjustifiable cost involved in administering direct licences).
• What direct licences are available?
Do you offer licences for public performance and transmission rights?
Do you offer licences for sound recordings and music videos?
Do you offer any standard licences or are the terms and conditions of all direct licences worked out on a case-by-case basis?
Do you offer blanket licences and/or licences for particular tracks or particular genres?
What are the different types of usage that can be licensed? If you are prepared to licence background music in a retail setting, for example, you should consider the implications of the number of potential licence applicants.
Do different fees apply depending on the type of usage or any other factors? What is the period for each licence offered?
Are there minimum fees payable and/or administration fees payable regardless of the nature of the licence?
• Spell out that the direct licences you offer are non-exclusive. You may wish also to say that an option open to prospective licensees is to obtain a PPCA collective licence, while making it clear that it is for the licensee to choose which licensing route they want to take.
You may wish to also include a statement to the effect that your licence applies to protected sound recordings and to give some basic guidance on the question of what is or is not a protected sound recording under Australian copyright law. For example, you may wish to adapt the guidance given about this issue on the PPCA website (see FAQ titled ‘What does my PPCA blanket licence cover?’ located at http://www.ppca.com.au/music-users-/faq/#what-does-the-ppca-blanket-licence-cover-.
2. Direct Licensing Procedure
The conditions of the authorisations require PPCA licensors to publish guidelines about not only their direct licensing policy but also the procedure that applies where someone wants to make an enquiry about the possibility of obtaining a licence directly from the copyright holder.
We recommend your guidelines on direct licensing procedures cover the following:
1. Give a basic overview of the process of enquiring about or applying for a licence directly. What steps need to be taken by the applicant and by you? Give some idea of likely turnaround time after receipt of an enquiry or application. Will a draft licensing agreement be sent to an applicant after an application is accepted or is there a need to discuss the terms and conditions and to reach an agreement in principle before an agreement is sent out?
2. Indicate the relevant enquiry/application form that needs to be completed and sent to you. Indicate how prospective licensees can get a copy of the form. Give the contact details of the person to whom the form should be sent.
3. The enquiry/application form should cover all direct licences you offer and the information needed to assess an application for each type of licence and to decide on the terms and conditions of the licence that you are willing to offer. The types of licence set out on the form should include an “Other” category. If the enquiry/application form is complex it may be advisable to give some basic guidance as to the information required.
4. If you have a standard licensing agreement and/or standard fee schedules, indicate how a prospective licensee can get a copy.
5. You may wish to refer to further relevant material on licensing, including the material available on the PPCA and APRA websites.
The guidelines on direct licensing policy and procedure are to be made readily available on your website, if you have one. If you do not have a website, the guidelines should be set out on an information sheet and made available upon request.