Royalty Policy Manual | BMI.com
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`Last Updated 09.17.2014
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`Contents
`
`Royalty Introduction
`General Royalty Information
`U.S. Radio Royalties
`U.S. Television Royalties
`International Royalties
`Compulsory License Fees
`Internet Music & Mobile Entertainment
`Commercial Music Services
`Live Concert Royalties
`General Licensing Venues
`Miscellaneous Royalty Rules
`Member Services
`Contact Information
`
`(cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122) (cid:122)
`
`To BMI Songwriters, Composers, and Publishers:
`
`Our Royalty Policy Manual (or RPM) has been designed to compile in a convenient, easy-to-read
`format most of the information you want to know about the method by which your BMI royalties are
`calculated and distributed. We also have included information regarding registering your works
`(“songs”) and services available to you. We trust that you will find it useful and informative. Should you
`at any time have any questions about the information contained in this handbook, or need clarification,
`contact
`do not hesitate to
` your local BMI Writer/Publisher Relations office for assistance.
`
`General Royalty Information
`
`Registering Your Works
`
`BMI enters work registrations into its databases from one of two sources, (1) a BMI song registration
`form (formerly known as a clearance form) provided either electronically or on paper, or (2) a cue sheet
`which details all music written specifically for a film or television show, or other audio-visual work,
`typically prepared by the production company.
`
`All songs must be submitted to BMI via a BMI registration form in order to receive credit for certain
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`types of performances (e.g., all radio, commercial music services, commercial jingles and promotional
`announcements, live pop and classical concerts and Internet). Separate registrations need not be
`supplied to BMI for individual music cues (dramatic underscore) used in audio-visual programs. These
`will be automatically registered when the cue sheet is received and processed by BMI. You agree to
`notify BMI promptly if there are any errors or omissions contained in the registration information for
`your works or if the information, as it is set forth on the bmi.com website, is in any way inaccurate.
`
`A registration received from any songwriter, composer or publisher of a work will suffice to credit all
`participants. If the publisher submits a registration, the writer does not have to submit one as well, and
`vice-versa. However, we strongly encourage each co-publisher of a work to submit its own song
`registration form in order to assure that the work is entered into the publisher’s correct BMI account.
`BMI will enter the work into its database for the shares and participants indicated on the first
`registration received. If a later registration is received for the same work which conflicts with the earlier
`registration, we will notify the party submitting the later registration and request documentation or
`written confirmation from all affected participants in conformity with BMI’s conflicting registration rules
`before changing our records.
`
`In order for BMI to make payment on time for the public performance of your music, it is imperative that
`all registrations (both songs and cue sheets) be received as close to the performance date as possible.
`It is essential that you register all of your works in order that BMI can provide information about your
`entire catalogue to foreign performing rights organizations, and so that BMI may quickly and easily
`identify foreign royalties received on your behalf. Late registrations and cue sheets may cause
`royalties to be delayed and/or lost. It is your ultimate responsibility to make sure that work
`registrations and cue sheets are delivered to BMI in a timely fashion, even though you may rely upon
`others to provide them to BMI in the normal course of business. Also, you must affiliate with BMI prior
`to the time of the performance of your music in order to receive royalties. Late affiliations will cause
`royalties not to be paid.
`
`Samples, Medleys and Parodies
`
`BMI accepts for registration works which "sample" other works, provided all parties have agreed to the
`share percentages on the new work. These shares cannot exceed 200%. (See How Royalities Are
`Divided.) The percentages must be noted on the BMI registration form for the work and a copy of the
`sample license agreement must be provided to BMI upon request.
`
`Standard rates for a popular song will be paid. The same rules apply when two or more works are
`utilized in a single recording as a medley.
`
`A parody is a satirical imitation of a work. Permission from the owner of the copyright is generally
`required before commercial exploitation of a parody. BMI will credit the parody based upon the shares
`authorized by the publisher of the parodied work.
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`Spoken Word Material
`
`Spoken word material with a musical background will be registered only if the music is original (not
`based on a Public Domain work) and if a substantial part of the recording contains background music.
`A recording must be submitted with the registration form.
`
`Assignment of Works
`
`A BMI publisher may assign a work to another BMI publisher as of the calendar quarter in which BMI
`receives notice of the assignment. However, BMI will not accept such assignment until all outstanding
`financial obligations or liabilities to BMI of the assigning publisher are adjusted appropriately.
`
`Notwithstanding the foregoing, an assignment or transfer of control of a catalogue of works from one
`BMI publisher to another in connection with a sale, merger or otherwise will be subject to all of the
`terms and conditions of the agreement between BMI and the publisher whose works are sought to be
`assigned or transferred. For example, BMI will not recognize an assignment of works from one BMI
`publisher to another if the remainder of the term of the agreement between BMI and the publisher to
`which the assignment was made is shorter than remainder of the term of the agreement between BMI
`and the publisher which assigned the works. In such a case, BMI will maintain the assigned works in a
`special account of and pay any royalty earnings to the publisher to which the works were assigned. At
`the end of the term of the agreement between BMI and the assigning publisher, BMI will transfer the
`works to the catalogue of the publisher to whom the assignment was made upon its written request to
`BMI to do so.
`
`Withdrawal of Works
`
`A publisher who seeks to withdraw any of its works from its BMI catalogue other than on account of an
`assignment to another BMI publisher (see Assignment of Works) may do so only as of the end of the
`current term of its agreement with BMI, upon notice to BMI by registered or certified mail not more than
`six months or less than three months prior to the end of the current term. However, no such withdrawal
`will be accepted until all outstanding financial obligations or liabilities to BMI of the publisher are
`adjusted appropriately. In addition, the withdrawal of any such work by the publisher will not affect the
`right of BMI to continue to license the interest of any other participants in the work.
`
`Instrumental and Lyric Versions of the Same Work
`
`BMI cannot undertake to distinguish between lyric and instrumental performances of a work unless the
`two versions bear different titles. If the lyric and instrumental versions are known by different titles,
`performances of the instrumental version will be credited solely to the songwriter or composer and to
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`the publisher of the instrumental version unless BMI is notified by all parties involved of an agreement
`between them that the lyricist and the publisher of the lyric version are entitled to share in performance
`royalties of the instrumental version. Where the lyric and instrumental versions are known by the same
`title, the lyricist and the publisher of the lyric version will each be credited respectively with 100% of the
`applicable writer and publisher shares for all performances, unless BMI is notified by all participants of
`an agreement between them that the lyricist and the publisher of the lyric version are to be credited for
`a stated percentage of all performances.
`
`How Royalties are Divided
`
`BMI considers payments to songwriters or composers and to publishers as a single unit equal to 200%.
`Where there is the usual division of performance royalties between songwriters or composers and
`publishers, the total writers’ shares will be 100% (half of the available 200%), and the total publishers’
`shares will be the remaining 100%.
`
`Please note the following rules with respect to the division of the 200% royalty:
`
`(cid:122) The total publishers’ shares may not exceed 100%.
`(cid:122) If the agreement between the publishers and songwriters or composers provides for the
`songwriters or composers to receive more than 100%, the work should be registered with BMI
`indicating the percentages allocable to all songwriters or composers and all publishers so that the
`total is not more than 200%.
`(cid:122) Where no performing rights (or only partial performing rights) have been assigned to a publisher,
`the songwriters or composers will receive the entire 200% (or the balance of the entire 200%) in
`the same ratio as their respective writer shares. However, a songwriter or composer who has
`assigned to a publisher all or part of his or her proportionate rights in the publisher’s share shall not
`be entitled to receive any portion of the remainder of the publisher’s share allocable to his or her
`co-writer(s).
`
`If BMI is notified subsequent to the initial registration that rights have been assigned to a publisher,
`BMI will credit the publisher with the appropriate share for performances beginning with the quarter in
`which such notice is received. No Retroactive Adjustments Will Be Made.
`
`(Example: John and Mary wrote “Their Song” together. John signed a songwriter agreement with Music
`Publisher. Mary did not. When the work is registered with BMI, John will list his writer share as 50%,
`Mary will list her writer share as 100% (50% for her co-writer interest and 50% for her unassigned
`publisher interest) and Music Publisher will list its publisher share as 50% (for the publisher’s interest it
`obtained from John). If Mary later assigns her publisher interest to the same Music Publisher, Mary will
`notify BMI, her writer share will be reduced to 50% and Music Publisher will be paid 100% effective in
`the quarter that BMI received Mary’s notice.)
`
`Wherever royalty rates are indicated in this document, the
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`amount shown is the 200% royalty. In the typical case where all
`songwriters or composers have assigned their copyright in a
`work to publishers, half of the amount listed is paid to the
`songwriters or composers and half to the publishers.
`
`BMI operates on a non-profit-making basis. All available income is distributed, except for a modest
`reserve.
`
`Arrangements of Public Domain Works
`
`Copyrighted arrangements of works in the public domain (classical and popular) will be credited at 20%
`of the otherwise applicable rate of payment for popular songs for all performances, with the exception
`of the Live Classical Concert distribution, where no payment is made for performances of
`arrangements of public domain works.
`
`Payment for Uses in Unmonitored Sources
`
`BMI collects license fees from tens of thousands of music users including, but not limited to, radio
`stations, broadcast television, cable and satellite providers, hotels, restaurants, nightclubs, sports
`arenas, theme parks, airlines, jukeboxes, retail stores and digital media music users such as internet
`websites and ring-back tone providers. BMI strives to distribute license fees derived from specific users
`of music to the songwriters, composers and publishers whose music is performed by those users.
`However, in cases where performance data is not available or is incomplete for any of the sources
`from which BMI collects fees, BMI may distribute those fees against performances from a source or
`sources where sufficient data is available. At any time, we may add a distribution source that was
`previously unmonitored, or remove a distribution source that was previously monitored, if the
`availability of accurate performance data changes.
`
`Non-payment Sources
`
`No payment is currently made for the following types of performances in electronic media:
`
`(cid:122) Cue, bridge or background music on radio
`(cid:122) Partial performances of popular songs on radio
`(cid:122) Station IDs or public service announcements in any medium
`(cid:122) Promotional announcements on radio or on local broadcast, cable or satellite TV, except as
`otherwise indicated
`
`However, BMI may voluntarily introduce payments for these categories at any time, at rates to be
`determined by BMI.
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`Frequency of Royalty Payments
`
`BMI makes royalty distributions quarterly in January, March, June and September for all sources
`discussed in this document, with the exception of classical concerts and pay-per-view performances,
`which are paid once a year. We also may from time to time make special distributions should
`circumstances warrant. The distribution schedule is subject to change at BMI’s discretion.
`
`If the total amount of royalties earned from all sources in any quarterly distribution is less than $250.00,
`BMI will hold the amount earned in the affiliate’s account until subsequent quarterly earnings in that
`year bring the total to $250.00 or more, when the accumulated money will be paid. However, in no
`event will BMI hold any such accumulated royalties beyond the final distribution of the calendar year in
`which they otherwise would have been paid, provided that the royalties that have accumulated equal at
`least $25.00. Due to the cost of distributing negligible royalties, if the total amount of royalties earned
`from all sources in any calendar year is less than $25.00, no payment will be made and no royalty
`statement will be rendered.
`
`If an affiliate has enrolled for direct deposit or The Card, quarterly royalties of less than $2.00 will be
`accumulated and transferred to the specified bank account once the total reaches $2.00. No deposit
`will be made if the total amount of royalties earned from all sources in any calendar year is less than
`$2.00.
`
`U.S. Radio Royalties
`
`U.S. Radio Feature Performances
`
`BMI considers a radio feature performance of a popular song to be one that lasts 60 seconds or more
`and is the sole sound broadcast at the time of the performance.
`
`BMI makes separate payment for three categories of radio feature performances, based upon a
`sampling of stations licensed by BMI.
`
`(cid:122) COMMERCIAL RADIO
`(cid:122) CLASSICAL RADIO
`(cid:122) COLLEGE RADIO
`
`Commercial Radio
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`BMI uses performance monitoring data, continuously collected on a large percentage of all licensed
`commercial radio stations, to determine payable performances. This census information is factored to
`create a statistically reliable and highly accurate representation of feature performances on all
`commercial music format radio stations throughout the country.
`
`Royalties for performances of works in the BMI repertoire that occur on United States commercial radio
`stations will be paid according to the following rules:
`
`Royalty payments will be based upon the license fees that BMI collected from each individual station
`that performed a work. As a result, royalty payment rates will vary from quarter to quarter depending
`upon the amount of the license fees collected from stations that aired each work during that quarter. In
`addition, the rates may fluctuate from quarter to quarter depending upon the total dollar amount
`available for each quarter’s commercial radio distribution.
`
`In furtherance of BMI’s tradition of serving writers and publishers of all types of music, BMI’s long-
`standing goal — to support all affiliates with distribution methodologies that fairly value their creative
`efforts — has not changed. Accordingly, supplemental criteria may be used to establish an increased
`valuation for certain works performed on U.S. commercial radio stations. A small additional allocation
`from the amount available for distribution each quarter, which will include funds received by BMI from
`General Licensing and other income sources, may be used for this purpose. Such allocations will
`appear in the Hit Song Bonus column of the BMI royalty statement.
`
`Under the BMI radio payment system, each feature work, including those written for films and the
`theater, can become eligible for up to three distinct royalty payment components each quarter. They
`are called the CURRENT ACTIVITY PAYMENT, the HIT SONG BONUS and the STANDARDS
`BONUS.
`
`No payment is currently made for the following types of performances on non-census reporting
`stations:
`
`(cid:122) Cue, bridge or background music
`(cid:122) Partial performances of popular songs
`(cid:122) Station IDs or public service announcements
`(cid:122) Promotional announcements
`
`However, BMI may voluntarily introduce payments for these categories at any time, at rates to be
`determined by BMI.
`
`The Current Activity Payment
`
`All works in the BMI repertoire that are performed on radio will be eligible for a Current Activity
`Payment. BMI calculates a unique royalty rate for each work, which is based upon the license fees
`collected from stations that performed that work in combination with the number of times each work
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`aired on those stations. For example, if one of your works was performed on 200 radio stations during
`a quarter, its unique rate is calculated based upon the license fees collected by BMI from those 200
`stations. If another work in your catalogue was performed on 2,000 stations in the same quarter, that
`work’s rate will be different because it will be based upon the license fees collected from those 2,000
`stations. All works that were reported to BMI as having been performed on radio during a quarter,
`regardless of how many times each of the works was performed, are eligible for the Current Activity
`Payment. The substantial majority of the amount available for distribution each quarter will be used to
`make Current Activity Payments.
`
`The Hit Song Bonus
`
`Due to their overall current popularity, works that are classified as Hit Songs are eligible for additional
`royalties. Any work that is performed more than 95,000 times during a quarter is eligible for a Hit Song
`Bonus. BMI will allocate a portion of the amount available for distribution each quarter for commercial
`radio performances to the Hit Song Bonus, and each eligible work will receive a pro-rata portion of the
`Hit Song Bonus allocation according to the actual number of its current quarter’s performances. As a
`result, works with higher current quarter performance counts earn larger Hit Song Bonus royalties than
`those works with lower current quarter performance counts.
`
`The Standards Bonus
`
`Due to their sustained long-term presence on radio station playlists throughout the country, works that
`have been performed on United States commercial radio stations at least 2.5 million times since being
`released and have a minimal number of current quarter performances are classified as Standards and,
`as such, become eligible for the Standards Bonus. Works in this category share the Standards Bonus
`royalties in pro-rata fashion according to the actual number of cumulative historical commercial radio
`performances for each work in combination with its performances in the current quarter. Works with the
`higher combination of cumulative historical and current quarter commercial radio performance counts
`earn larger Standards Bonus royalties than those with the lower combinations of such performances.
`
`Short-Duration Detections
`
`BMI uses information provided by its proprietary pattern-recognition technology to report on and make
`royalty payments for short-duration detections performed on U.S. commercial radio stations monitored
`on a census basis 24/7.
`
`Short-duration detections represent performances of your songs that aired for less than 60 seconds.
`
`Royalty payments are based upon the license fees that BMI collects from each individual station that
`aired only part of a song. Royalties are allocated to short-duration detections in pro rata fashion
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`according to the total duration of those detections compared with the total duration of all detections of
`songs. As a result, royalty payment rates will vary from quarter to quarter depending upon the amount
`of the license fees collected from stations that aired each song during each quarter. In addition, the
`rates may fluctuate from quarter to quarter depending upon the total dollar amount available for each
`quarter’s commercial radio distribution. Short-duration detections do not increase your cumulative
`performance totals for full feature detections of your BMI songs and are not eligible to earn Hit Song
`Bonus royalties or Standards Bonus royalties.
`
`Classical Works
`
`There are special rules for classical works. A classical work is defined as a symphonic, chamber
`music, solo or other work originally written for classical concert or opera performance. If a local
`commercial radio feature performance is of a classical work, each performance will be paid at the
`minimum rate of 32 cents per minute total for all participants.
`
`College Radio
`
`Payment is made for feature performances of a song on radio stations that are affiliated with colleges
`and universities at a minimum rate of 6 cents total for all participants.
`
`Extended Play Work
`
`A work (other than a classical work) that exceeds 6 minutes in length as commercially recorded will
`receive double credit for a full radio broadcast performance. The Work Registration Form submitted to
`BMI for such work should be accompanied by a letter requesting the higher rate of payment, note the
`length of the recording and include a copy of the label or companion booklet page documenting that
`length.
`
`U.S. Television Royalties
`
`Types of Uses
`
`BMI categorizes broadcast television and cable television performances as listed below and derives a
`census of program information from music cue sheets and performance information provided to BMI by
`BMI television licensees, the TV Data Corporation, and other qualified sources.
`
`Feature Performance
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`A performance of a work which is the focus of audience attention at the time of the broadcast. These
`works properly are noted on the music cue sheet with one of the following codes:
`
`(cid:122) Visual Vocal (VV) - to be used when the vocalist is on camera singing the song
`(cid:122) Visual Instrumental (VI) - to be used when the instrumentalist is on camera performing the song
`
`Background Performance
`
`A performance of a work (or works) used as dramatic underscore to a scene where the music is not the
`focus of audience attention yet nonetheless is used to set the mood of the scene. These usually are
`works commissioned especially for a TV program or motion picture, or are library works selected by a
`program producer in lieu of specially commissioned music. These works generally are of a background
`instrumental nature and properly are noted on cue sheets with a use code of “BI.” A performance of a
`song where the lyrics are audible to the listening audience, even though there may be some dialogue
`in the foreground of the scene, is a background vocal performance and properly is noted on cue sheets
`as “BV”.
`
`Theme Performance
`
`A performance of a work that is regularly associated with a television program and identifies that
`program to the viewer when used as the opening and/or closing music. Theme credit is given only
`when a work is used in multiple episodes of a television program. Works, other than the theme as
`described above, used at the opening and/or closing of an individual episode of a series will be
`credited in accordance with their actual use (feature or background).
`
`Logo Performance
`
`A performance of music regularly accompanying the visual identification of a production company or
`program distributor.
`
`Paid Programming Performance
`
`Music performed in a long-form advertisement, the content of which often includes a product
`demonstration and invites direct consumer response.
`
`The rates for feature, background, theme and logo performances on Local Television are indicated on
`the rate table below. Music performed within paid programming will be paid at one-third of the
`otherwise applicable rate listed.
`
`Promotional Announcements
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`BMI pays for music used in promotional announcements aired on television on ABC, CBS, Fox, NBC
`and The CW. Payments are calculated based upon the time of day of the performance and the number
`of promotional announcements aired in a given quarter. Please note rates may vary from quarter to
`quarter depending on the number of promotional announcements aired in a given quarter. At this time,
`no payment is made for promotional announcements on any other medium.
`
`All Promo related questions may be submitted to
`
`promos@bmi.com
`
` .
`
`No payment is currently made for Station IDs or public service announcements. However, BMI may
`voluntarily introduce payments for these categories at any time, at rates to be determined by BMI.
`
`Commercial Jingles (Performances as of January 1, 2011)
`
`A commercial jingle is a work (either pre-existing or specifically written for an advertiser) used to
`advertise on television products and/or services for sale.
`
`BMI pays for all music compositions greater than five seconds for performances of commercial jingles
`on broadcast and cable networks, and local television in major markets. Payments are calculated
`based upon the time of day of the performances and the number of commercial jingles aired in a given
`quarter. Please note rates may vary from quarter to quarter depending on the number of commercials
`jingles eligible for payment in a given quarter and the time of day of the performance itself.
`
`To be eligible for payment for commercial jingle royalties, the proper documentation must be
`completed. Simply complete the Commercial Jingle Form which can be found on BMI.com. Although
`not required initially, BMI on occasion may require submission of additional documentation, such as a
`Sync License or Contract.
`
`All Commercial Jingle related questions may be submitted to
`
`cjingles@bmi.com
`
`For further assistance regarding promos or jingles, please contact Jackie Simmons in the BMI TV
`Operations Department at 10 Music Square East, Nashville, TN 37203, or by telephone at
`jsimmons@bmi.com
`615-401-5476
`. Email -
` .
`
`Network Television
`
`BMI currently licenses the ABC, CBS, NBC and Univision television networks under agreements where
`the fee to cover music used in network originating programming is paid for by the network instead of by
`the local TV station carrying the program. Performances of music on these networks are listed
`separately on your royalty statements.
`
`Two other television networks, Fox and The CW, are not currently licensed by BMI as networks but
`royalties for network programming are calculated using the same methodology as the licensed
`networks. The license fees associated with network performances of music in the programming carried
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`by Fox and The CW networks are paid by the individual local stations broadcasting the programs and
`are subject to Network Television royalty payment rules.
`
`For performances of music in the BMI repertoire that occur on the ABC, CBS, NBC, Fox, The CW and
`Univision television networks, royalties will be paid according to the following rules:
`Network Television royalty payments are based upon the network license fees that BMI collects from
`each network or station. Royalty payment rates will vary from quarter to quarter depending upon the
`amount of the license fees allocated to each quarter determined by using television audience
`measurement data provided by Nielsen Media Research. In addition, the rates may fluctuate from
`quarter to quarter depending upon the total performances of music in the BMI repertoire for each
`quarter’s TV Network Distribution.
`
`Under the BMI TV Network payment system, performances of music can become eligible for up to
`three distinct royalty payment components each quarter. They are called the CURRENT ACTIVITY
`PAYMENT, the SUPER USAGE PAYMENT and the THEME MUSIC BONUS.
`
`The Current Activity Payment
`
`All music in the BMI repertoire that is performed on licensed networks is eligible for a Current Activity
`Payment. BMI calculates a unique royalty rate for each performance, which is based upon the license
`fees available for the quarter in combination with the duration of the performance, the weighted royalty
`value for each usage type and television audience measurement data provided by Nielsen Media
`Research for each program aired on that network. For example, if your music was performed during a
`network program on Monday, October 6, 2008 at 9:00 PM, its unique rate is calculated using the
`television audience measurement data for that unique network program. The royalty values for all
`types of performances (theme, feature, background, underscore and logo) that were reported to BMI
`on network television program cue sheets are weighted by BMI with each type having a unique
`valuation. The substantial majority of the amount available for distribution each quarter is used to make
`Current Activity Payments.
`
`Super Usage Payment
`
`Due to their extended continuous duration, certain types of performances may qualify for a Super
`Usage Payment. Performances of songs (Background Vocal, Visual Instrumental and Visual Vocal
`usages) with a continuous duration of one minute or greater are designated as Super Usages. The
`royalty rate for these performances is higher than those of a feature performance with duration of less
`than one minute.
`
`Theme Music Bonus Payment
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`mhtml:file://C:\Users\DMB\Desktop\Royalty Policy Manual BMI_com.mht
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`11/20/2014
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`Royalty Policy Manual | BMI.com
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`Page 13 of 27
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`Due to the highly recognizable nature of network television theme music performances, certain theme
`music may qualify for a Theme Music Bonus Payment. Theme music with at least 2,000 quarterly
`network performances is eligible for the bonus payment. When a particular theme qualifies for the
`bonus payment, all other theme music associated with that program automatically qualifies for the
`bonus payment. BMI allocates a portion of the amount available for distribution each quarter for each
`licensed television network to the Theme Music Bonus, and each eligible performance receives a pro-
`rata portion of the Theme Music Bonus allocation according to the actual number of its quarterly
`performances. As a result, themes with higher current quarter performance counts earn larger Theme
`Music Bonus royalties than those themes with lower current quarter performance counts.
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`Local Television
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`Currently BMI licenses over 1100 local television stations on a “blanket” or “per-program” basis. A
`blanket licensee pays a single fee that covers the p