The Basics of Music Licensing in Canada for Artists and Labels

Music licensing might seem complex, but understanding it is essential for any artist or label operating in the music business in Canada today. We often encounter artists who aren't fully aware of what it is and why music licensing is crucial. Essentially, it enables you to legally use music that belongs to copyright owners and ensures others cannot use music without permission. This not only protects your creative work but also sets up a stream of revenue that is vital to your career.

As an entertainment law firm, we have guided a multitude of clients ranging from upcoming bands to established record labels through the detailed landscape of music licensing. Whether you aim to use a piece of music in a performance, broadcast it over the radio, or include it in digital content, understanding the right type of license you need is the first step. Each license serves a specific purpose. Knowing the differences can make a significant impact on how effectively you manage your music assets.

Music licensing doesn't just protect your rights; it respects the hard work and originality of all creators involved, providing a fair platform for every artist to thrive. In the ever-evolving music industry, keeping up with licensing requirements ensures you leverage opportunities without infringing on rights, making it a vital aspect of your artistic and business operations.

What is Music Licensing and Why is it Important?

At its core, music licensing is the process where the owner of a piece of music grants permission to another party to use that music under specific conditions. This might seem straightforward, but its implications for artists and labels are profound. For us in the legal field, protecting your music with the right licenses means ensuring that your creative output is not only respected, but also rewarded.

Licensing your music is crucial because it serves as a controlled gateway through which others can access your work. It helps prevent unauthorized use of your music, ensuring you receive financial compensation and credit for your creativity. More so, it extends your reach as an artist or label. Through various licensing agreements, your music can appear in films, advertisements, and other media, introducing your work to audiences you might not reach otherwise. The importance of music licensing in the digital age cannot be overstated—it's fundamental for maintaining control over how your work is shared and consumed globally.

Types of Music Licenses You Need to Know

Navigating the types of music licenses can be complex, but a basic understanding of them is essential for using music legally and profitably. Here's a breakdown of the primary licenses you might encounter:

1. Performance Licenses: These are necessary when music is played publicly, which includes, for example, radio broadcasts, live performances and streaming services. Performance rights organizations like SOCAN in Canada manage these rights and ensure that their members are compensated for public performances of their musical works.

2. Mechanical Licenses: If you’re reproducing and distributing music physically or digitally in formats like CDs or streaming, you'll need this license. In Canada, the CMRRA provides these licenses for reproduction rights.

3. Synchronization Licenses: When syncing music with visual media like movies, commercials, or video games, a synchronization, or "sync" license is required. These are negotiated directly with the rights holders, and terms can vary significantly based on usage.

4. Master Use Licenses: This license is needed along with a sync license if you are using a pre-recorded version of a song. It’s granted by the record label that owns the recording rights, or the artist, if they are independent and own these rights.

By understanding these licenses, you can better navigate the legal landscapes of the music industry, protect your artistic creations and explore new revenue opportunities effectively. 

Steps to Obtain a Music License in Canada

Securing a music license in Canada is a structured process to ensure your usage of music is lawful and supports the creators of the music. Each type of license serves a specific function and knowing when and where you need them is integral in using music within the confines of the law.

Understanding and following these steps closely can help avoid issues later on. First, clearly identify the type of music license you require, based on how the music will be used—whether it's for public performance, broadcasting, or synchronization in films or advertisements.

1. Determine the Scope of Use: How and where is the music to be used. This includes determining whether the music will be played in public settings, incorporated in broadcasts or synced in various audio-visual media.

2. Contact the Rights Holders: The next step is to contact the rights holders of the music, which may include songwriters, composers, performers, and record companies or copyright organizations. Often, the rights can be obtained from copyright collective societies that manage such rights on behalf of the copyright owners.

3. Negotiate the Terms: Once the appropriate rights holders are identified, as required, negotiate the terms of the license. This typically includes the duration of use, geographical area of use, and the fee involved particularly with synch and master use licenses.

4. Formalize the Agreement: After agreeing on terms, formalize the agreement with a written contract. This license will detail all terms, payments, and conditions agreed upon.

Each of these steps requires a firm understanding of both the legal framework governing music rights in Canada and the industry practices, which can be complex for individuals without specialized knowledge

Common Challenges and How to Overcome Them

Throughout the music licensing process, several challenges might arise, including identifying all rights holders, negotiating fair terms and ensuring compliance with Canadian copyright laws. To overcome these challenges, here’s what we recommend:

- Utilize Professional Services: Engaging with professionals who specialize in music rights licensing can simplify the complexities of the licensing process. These experts have in-depth knowledge of the legal aspects and can effectively negotiate on your behalf.

- Comprehensive Rights Check: Ensure a thorough check is conducted to identify all stakeholders and rights holders associated with the piece of music and recording of it. This minimizes the risk of copyright infringement.

- Clear Communication: Maintain clear and consistent communication with rights holders and collective societies to ensure all terms and conditions are understood and agreed upon by all parties.

These steps, though necessitating diligence and patience, are imperative to legally safeguard your use of music, ensuring that the relevant parties are compensated appropriately and that your project meets all legal compliances.

Final Thoughts

As we continue to navigate the complex landscape of music licensing, it is crucial to place a strong emphasis on the legal aspects of using copyrighted music. At Sanderson Entertainment Law, we are equipped to guide you through every step of obtaining a music license, ensuring compliance with laws and respect for artists' rights. Our dedication to supporting artists, musicians, and creative enterprises means that you have a trusted adviser for your entertainment law needs.

If you are seeking to simplify the music licensing process with professional and reliable legal support, contact our Canadian entertainment law firm today to ensure your creative endeavors are protected and successful.

The above article does not constitute legal advice. In any legal situation, skilled legal advice should be sought.

Understanding Copyrights for Canadian Musicians: What You Need to Know

Every musician should understand and value copyrights. Copyrights are exclusive rights acquired by authors of original works. It's what allows you, as a musician or other creative entity, to control the use of your songs and compositions. With these rights, you can decide who may reproduce, perform, or even record your work. Given the digital age's complexities and the ease with which multimedia can be shared and accessed online, understanding your copyrights is more important now than ever.

Each step from the creation of a song to its public release involves legal steps that, unless correctly handled, can lead to lost revenue or, worse, misappropriation of your artistic work. In this article, we break down copyright concepts in a way that is informative and easy to digest, ensuring you’re equipped to maximize the benefits of your creative outputs.

What Is Copyright and Why Is It Crucial for Musicians?

Copyrights are statutory rights granted under the Copyright Act that protects the original works of their authors, including musicians. When you create a piece of music, whether it is a melody, lyrics, or both, copyright automatically applies, granting you exclusive rights to use, reproduce, and distribute your work. This is not just about legal protection; it's about securing the value of what you create. For musicians, this means having control over how your songs are used and ensuring that you are compensated for your creations, whether they are played in public, reproduced in physical forms, or streamed online.

Having solid copyright protection is also crucial for negotiating deals with record labels, music publishers and other entities in the music industry. It allows you to enter discussions with confidence, knowing that your artistic assets are secured. Copyright ownership makes a significant impact regarding how lucrative these deals can be, affecting the sustainability and growth of your musical career. For musicians starting out, or independent artists managing their tracks, understanding and utilizing copyright is essential for not just safeguarding their work, but also in laying down the groundwork for professional growth and revenue generation.

Key Elements of Copyright Law for Music in Canada

Navigating copyright law within Canada involves understanding a few key elements that can directly impact your rights and benefits as a musician. Here are the main components every musician should know:

1. Automatic Protection: In Canada, your music is automatically protected by copyright from the moment of its creation, provided it is fixed in some form such as a demo recording, audio recording or lead sheet. This means you do not need to register your copyright to receive copyright protection. However, registering can serve as proof should legal validation be required.

2. Economic Rights: These rights allow you to benefit financially from your music through various avenues such as sales, performance rights and licenses for uses like streaming. Managing these rights effectively can significantly increase your income from music.

3. Duration of Copyright: In Canada, copyright on musical works lasts for 70 years following the last day of the calendar year in which the creator dies. This duration ensures that your music can continue to benefit you and your heirs for a considerable period.

By familiarizing yourself with these basics of copyright law, you can better navigate the complexities of the music industry in Canada, ensuring your work remains protected and you maximize the potential benefits arising from copyright ownership.

Steps to Register Your Music's Copyright in Canada

Registering your music's copyright might seem daunting, but we're here to streamline the process and ensure you have all the basic information at your fingertips. Although copyright protection is automatic once you create and fix the music in a tangible form, formally registering your work with the Canadian Intellectual Property Office (CIPO) provides solid legal evidence of your copyright claim, which can be crucial if there is a dispute.

First, ensure your music is original and fixed in some form, such as written down or recorded. Next, complete the registration application, which is available on the CIPO website. You will need to provide a copy of your music, either through a score or a recording and pay the registration fee. Once registered, you will receive a certificate of registration, which acts as a public record of your copyright ownership.

Common Misunderstandings About Music Copyrights and How to Avoid Them

Many musicians, especially those new to the industry, encounter several misconceptions about copyright law. Understanding these common errors can help you avoid pitfalls and better protect your creative works. For instance, some believe that merely emailing a copy of their music to themselves is enough to establish copyright. While this may demonstrate the date of creation, it does not provide comprehensive legal protection or rights enforcement as formal registration does or proof that you are the copyright owner to the music.

Another widespread misunderstanding is that one can use copyrighted music under the guise of "fair dealing" for any purpose. However, fair dealing is a complex defence. It does not allow blanket use of copyright protected works in commercial settings without proper licensing, especially in Canada, where the fair dealing rules apply differently than in other jurisdictions. Always consult with a professional when in doubt to ensure that you are utilizing copyrighted material legally and ethically.

Conclusion

Navigating through the intricacies of copyright law can provide a strong foundation for your career as a musician. With appropriate knowledge and actions, you can protect your musical works and ensure they continue to benefit you economically. Remember, understanding and enforcing your copyrights protects your artistic creations and respects the rights of other artists within the community.

If you're unsure about the specifics of copyright law or need assistance with any part of the registration process or defending your rights, consider reaching out to us at Sanderson Entertainment Law. We guide artists and advise on a broad spectrum of artists ranging from upcoming local bands to established international musicians through the nuanced pathways of copyright law. We are committed to helping artists like you, ensuring your creative output is protected and that you fully benefit from your talents. Connect with our legal team at Sanderson Entertainment Law today for guidance tailored to your unique legal artistic needs

Disclaimer: The above article does not constitute legal advice. In any legal situation, skilled legal advice should be sought.

Understanding Band and Management Deals: A Simple Guide

Band and management deals are crucial for musicians and bands aiming to succeed in the music industry. These agreements outline the relationship between the artist and their manager, detailing roles, responsibilities and financial arrangements. Understanding these deals can help you make informed decisions and protect your interestEntering into a management deal means that your manager will play a significant role in guiding your career. From handling promotions to negotiating contracts and managing your public image, a manager's influence is substantial. This is why it's essential to understand what these deals entail before committing to one.

By knowing the key components and steps to negotiate a fair deal, you can ensure that your contract with a manager benefits your musical journey. It's also important to be aware of common pitfalls that artists face in these deals to avoid potential problems. As you navigate the complexities of band and management deals, having clear knowledge and preparation will lead to a more successful and harmonious professional relationship.

What Are Band and Management Deals?

A band and management deal is a contract between a band (or solo artist) and a manager. This agreement outlines the responsibilities and expectations of both parties. It sets the framework for how the manager will help the band achieve its goals, including promoting music and negotiating contracts. The deal typically specifies the manager’s compensation and the length of the agreement.

These deals are vital for artists who want to focus on their creative work while having someone handle the business side. A dedicated manager can open doors, network with industry professionals, and provide career guidance, helping the band or artist reach a broader audience. However, it's crucial to understand the terms of the deal fully to ensure it’s mutually beneficial.

Key Components of a Band and Management Deal

When entering into a band and management deal, several key components should be clearly outlined to protect both parties' interests. Here are some essential elements to consider:

1. Roles and Responsibilities: Describe in detail what the manager is expected to do. This may include handling media relations, managing social media and negotiating contracts. Also clearly outline what tasks are outside the manager's scope.

2. Compensation: Specify how the manager will be paid. This is often a percentage of the band’s earnings, usually ranging from 10% to 20%. Be clear about what revenues are included in this percentage, such as live performances, merchandising, and recording deals.

3. Term and Termination: Define the length of the agreement and the conditions under which either party can terminate the deal. Common terms range from one to three years, with clauses that allow for early termination under certain conditions, such as breach of contract or failure to meet agreed-upon goals.

4. Exclusivity: Determine whether the agreement is exclusive. An exclusive deal means the manager is the only person managing the band, while a non-exclusive deal allows the band to work with other managers or agents.

5. Dispute Resolution: Include a clause that outlines how disputes will be resolved. This might involve mediation or arbitration processes before going to court.

6. Confidentiality: Ensure there is a confidentiality clause to protect sensitive information about each party’s business and personal matters from being disclosed.

Understanding and including these key components in a band and management deal can help establish a clear, functional and successful working relationship.

Steps to Negotiate a Fair Management Deal

Negotiating a fair management deal is essential for ensuring a beneficial relationship between the band or artist and their manager. Here are some steps to help guide you through the negotiation process:

1. Set Clear Goals: Before entering discussions, outline what you want to achieve with the manager. This includes financial targets, career milestones and specific tasks you expect the manager to do..

2. Do Your Homework: Research the manager’s background and track record. Understand their experience in the industry and how they have helped other artists succeed.

3. Discuss Compensation: Be clear about the financial terms. Ensure you understand how the manager’s commission will be calculated and what revenues it includes. Negotiate a percentage that is fair, given the experience and the level of service they will provide.

4. Outline Responsibilities: Clearly define the roles and responsibilities of both parties. Make sure the manager knows what is expected of them and what tasks may fall outside their scope.

5. Agree on Contract Terms: Discuss the length of the contract and terms for renewal or termination. Negotiate clauses that allow you to end the agreement if certain conditions are not met.

6. Seek Legal Advice: Always have a lawyer review the contract before signing. They can help you understand the legal jargon and ensure your interests are protected.

By following these steps, you can negotiate a management deal that aligns with your goals and provides a solid foundation for your career.

Common Pitfalls in Band and Management Deals and How to Avoid Them

Entering a band and management deal without adequate preparation can lead to common pitfalls. Here are some issues to watch for and tips on how to avoid them:

1. Vague Responsibilities: If the contract does not clearly define the manager’s duties, misunderstandings and disputes can arise. Ensure that all roles and tasks are explicitly stated in the agreement.

2. Unclear Financial Terms: Ambiguous compensation terms can lead to conflicts over money. Make sure the contract specifies exactly how the manager will be compensated and what revenues are included in their fee.

3. Lack of Exit Strategy: Without clear termination clauses, ending a contract can become difficult. Include terms that detail how and when either party can exit the agreement to avoid being stuck in an unproductive partnership.

4. Overlooking Exclusivity Clauses: Not understanding exclusivity can restrict your ability to work with other professionals. Clarify whether the deal is exclusive or non-exclusive and what that means for your career.

5. Ignoring Legal Review: Skipping a legal review can result in signing a contract that’s not in your favour. Always get a lawyer to review the agreement to ensure it protects your interests.

Avoiding these pitfalls means being thorough and proactive during the negotiation and drafting stages. A well-crafted contract helps establish a positive and productive working relationship.

Conclusion

Understanding and navigating band and management deals is crucial for any musician aiming for success. These deals set the stage for how your career is to be managed and help protect your interests. Knowing the key components, negotiation steps and potential pitfalls can create a beneficial relationship with your manager.

At Sanderson Entertainment Law, we guide musicians and artists through the complexities of band and management deals. Our expertise ensures that your agreements are commensurate and conducive to your career growth. Contact our Sanderson Entertainment Law today to help you thrive in the music industry.

Disclaimer: The above article does not constitute legal advice. In any legal situation, skilled legal advice should be sought.

C.R.E.A.T.I.N.G. - A copyright contract checklist

Originally published on the Artists’ Legal Advice Services (ALAS) website on September 7, 2020

ALAS was co-founded by Sanderson Entertainment Law’s lawyer, Paul Sanderson

By Paul Sanderson with Tony Duarte, Emmanuel Evdemon and Marian Hebb

The Origin of “C.R.E.A.T.I.N.G.”

The word checklist “C.R.E.A.T.I.N.G.” spontaneously sprang from a preparatory conference call prior to a seminar about licensing entitled “Playing Nice in the Sandbox”, held at the Duke of York Pub in Toronto several years ago. The event was an ALAS legal educational seminar about licensing that featured myself speaking about music licensing, Marian Hebb speaking about licensing in the book publishing field, Tony Duarte discussing licensing in relation to film law and Emmanuel Evdemon speaking about licensing in relation to video games.

I had come up with a made-up word that served as a checklist that used almost the same letters that now form the acronym CREATING. At the time, the word was a little jumbled and garbled, probably something closer to G.-R.-E.-A.-A.-T.-T.-I.-N.-C. I shared it with the other panelists. Tony asked what I meant. I said it was a word that I made up that signifies and outlines key points that should be considered before entering into a licence agreement. It was coined by me to serve as a short checklist.

Marian then responded by saying “Oh, you mean “C.-R.-E.-A.-T.-I.-N.-G.”. All four of us agreed. That’s how G.-R.-E.-A.-A.-T.-T.-I.-N.-C. became the word checklist C.R.E.A.T.I.N.G. and acronym CREATING.*

What does “C.R.E.A.T.I.N.G.” mean in relation to creators’ rights agreements?

1) The letter C stands for compensation for a grant of rights, which is usually a licence but may be an outright sale. (See paragraph 12 below on grant of rights.) Under a creator’s rights agreement with a producer, developer or publisher, this can be anything from nominal consideration of a dollar, credit or, more typically, monetary compensation in the form of a flat fee, a royalty percentage or share of net or gross receipts, or a combination of some or all of these forms of compensation, in return for the right to use or “exploit” the rights that are licensed or purchased. Further fees may be paid for repeat uses (see end of paragraph 4 below on residuals) and royalty percentages may escalate based on the number of sales.

2) The letter C also stands for copyright in a work or performance and for credit or attribution to an author or performer. It’s usually best for the creator to keep their copyright and to have a copyright notice in their own name on a publication or a production as well as a credit as author or performer, since giving up copyright takes away the creator’s right to authorize or, except as may be specified in a rights agreement, to control further uses of their work. But, even if a creator grants all of their rights of copyright to another person, likely to be a producer, developer or publisher, the creator retains “moral rights”, which include attribution rights. Waiving moral rights may deprive the creator of their right to a credit unless specifically provided for in the rights agreement. So a creator should always carefully consider any request either to transfer their copyright or to waive their moral rights.

3) The letter R stands for reserved rights. Often some rights in a work or performance are retained or “reserved” by the creator. For example, a literary agent will almost always reserve a book author’s translation, film, dramatization and interactive digital property rights in a novel or other work. An author representing themself to a book publisher should do so too in appropriate circumstances and reserve all rights not specifically granted to the publisher. A composer may reserve all rights to their music other than the right intended for immediate use by the licensee or purchaser. For example, licensing a piece of music for use in a single documentary film would not entitle the licensee to use the music in a video game, a web series or traditional television series.

4) The letter R also stands for reversion rights, sometimes referred to as revocation rights. Typical grounds for a creator wanting to revoke or revert rights and terminate an agreement entirely include failure to publish or produce a work, non-payment of an advance against royalties or of earned royalties, failure to provide an accounting, failure to allow an audit or failure to meet some other very important term of the agreement. Whether a reason for revoking or reverting all or certain rights in an agreement is sufficient is often disputed, especially if not actually specified in the agreement. For example, a rights agreement, whether a licence or sale of rights, may say that the author is entitled to revert film rights if a film production has not been completed within a specified number of years following the producer’s acquisition of the film rights to the author’s novel. Or, a book or video game publishing licence may say that the author may revert all rights to a work if it is not published within a specified time following the agreed publication date, or may revert all translation or version rights to their work, or perhaps just rights for a particular language or version, if not translated or versioned and published within a specified number of years of first publication of the work in English (for example, a Japanese translation or console version of a game based on their novel if no such translation or version of the game is published within, say, three years of first English-language publication) or, similarly, a licence may say that the author is entitled to revert all publication rights for any territory where copies of their work have not been released or distributed after a specified time. Failure to make payments is frequently specified as a circumstance permitting a creator to revoke or revert all rights and terminate the agreement – but likely to be included only if requested by the creator! Before entering a rights agreement, a creator should give careful consideration to specifying circumstances in which they might wish to revoke or revert certain rights or to terminate the agreement and reclaim all rights.

And the letter R may stand for residuals – a term that should not be forgotten if a creator is entitled to further payments as compensation for repeat performances or other uses.

5) The letter E stands for exclusive. Exclusivity means that the creator cannot license elsewhere the same rights that they have already granted under another rights agreement. Not all agreements are granted on an exclusive basis. Many are non-exclusive licences. For example, use of pre-existing master sound recordings and pre-existing music used in synchronization with visual images in film and television productions are typically non-exclusive. So are licences to quote excerpts from a book in other publications. If non-exclusive, the same rights can be granted to many licensees. On the other hand, for example, a choir or a football club will likely require exclusive use of a song composed for it, or an advertiser may request exclusive use of a few bars from pre-existing music or even of an entire work for advertising a particular product or class of products. However, for example, a car manufacturer may just want to be the only car manufacturer permitted to use a song, but is unconcerned if the song is used in a film. Whether a grant is exclusive or non-exclusive is a key consideration when a creator is looking at entering a licence agreement and usually greatly affects the amount of compensation to the creator.

6) The letter A stands for accounting. Since the compensation set out in many rights agreements is based on a royalty or share of net or gross receipts, the accounting clause is very important. It typically specifies what and when accounting statements are to be provided to the creator by the producer, publisher or other distributor, including how royalties or receipts are calculated, what period of time is covered, when payment will be made, and other relevant details.

7) The letter A also stands for audit. An audit refers to the right of the creator granting rights and receiving royalties or other payments to verify the accounting statements provided by the licensee or the purchaser by an inspection or examination of its relevant books and records, usually by a professional accountant and subject to other conditions. The cost of the audit is often contingent upon whether or not an error in accounting is discovered during the audit. This is another very important term of a rights agreement. (Typically, the matters in this paragraph 7 and in paragraph 6 above appear in the same clause of a licence or purchase agreement, but they are conceptually different.)

8) The letter T stands for the term of a licence or any other rights agreement including an option to purchase certain rights. The word “term” in this context is the duration of the rights agreement, typically lasting for a specified number of years, but sometimes as long as the rights are being used by a licensee or for the duration of copyright, and so an agreement may outlive the author of a work. The length of the term, like many of the other points highlighted in this checklist, is often negotiable.

9) The letter T also stands for territory, meaning the country or area where the licence is applicable and the licensed rights may be used. For example, a licence for publication of a work or for a performance could be on a Canada-only basis, for North America or for the entire world, or even the universe, depending on its type and scope.

10) The letter I stands for irrevocable. Some rights agreements, whether a licence or outright sale of rights, are entered into on an irrevocable basis, meaning the grantor of the rights cannot revoke or take them back. For example, master use licences for master sound recordings and synchronization licences for music in a film are customarily granted on an irrevocable basis, and that is a fundamental condition of such agreements. If a grant of rights is described as “irrevocable”, it may be appropriate for the agreement to also specify that the creator is entitled to sue for damages for breach of the terms of the agreement. Also, even a grant of rights described as “irrevocable” may be subject to “revocation” and may be reverted by the creator in specified circumstances, for example, failure to produce or publish a work. (See paragraph 4 above on reversion rights.)

11) The letter N stands for net. A creator should always view the word “net” in a rights agreement with intense scrutiny! Net of what? Sometimes a producer, publisher, or distributor is permitted to deduct so many expenses from its gross revenues that there is very little if anything left on which to base the creator’s royalty or share of profits.

12) The letter G is last, but is certainly not the least letter in the word checklist C.R.E.A.T.I.N.G. It stands for the grant of rights, which should be very carefully scrutinized by a creator. A grant may authorize anything from a narrow temporary non-exclusive use to a very broad long-term or permanent exclusive use. Under a licence, which is more akin to a rental than a sale of rights, the creator always retains a right to their property (though unable to exercise any right of copyright in it until expiry or other termination of an exclusive licence of all rights). An outright sale or other complete transfer of rights is often referred to as an “assignment” of rights. From a creator’s perspective, licensing is usually preferable to an assignment, and most rights agreements can be drafted as licences. A grant of rights can include a great many things including, broadly, the form, technology, manner of use, purpose, media and languages for which rights are granted and may be used. A grant of rights may capture future technology or formats for use of the rights granted, or attempt to capture rights unknown or even unimagined at the time of the agreement. The grant of rights can also specify restrictions on the grant. For example, if the grant is for the use of music in a film, is it restricted to use in that film only? Can the music be used in the trailers and advertising, marketing, or other promotional material for the film? Can that music be used in a sequel to the film or a video game based on the film? Can it be licensed by the creator to a different producer or publisher for a video game related or unrelated to the film? Such questions and many more are key issues that are part of negotiations regarding the scope of grants of rights in licences and other rights agreements.

The letters C.-R.-E.-A.-T.-I.-N.-G. have proven to be a very useful mini-checklist that I have used when teaching and working with creators and that any creator can use when considering the basics of what should be included when negotiating and entering into a licence or other agreement granting rights. The word checklist C.R.E.A.T.I.N.G. or acronym CREATING is easily remembered and can be applied to any licence or other rights agreement. It often is relevant and valuable when analyzing and negotiating the terms of almost any such agreement. It should be noted that terms, for example, “net receipts”, “net revenue”, “net profits” or “reversion” or “termination” rights, amongst the many terms used frequently in rights agreements, may be defined specifically in a particular agreement, though sometimes buried in a long paragraph or in a schedule to the agreement. All definitions should be reviewed carefully as they can substantially affect the interpretation of the agreement and the extent of the rights granted in the agreement. And, however clearly this article may explain the concepts represented by the letters forming this acronym, it is not, nor is it intended to be, an exhaustive discussion of all points that a creator needs to consider before signing a rights agreement. Ideally, in any given specific legal situation, legal advice should be obtained from a lawyer who practises law in the field in which the creator works.

Copyright © Paul Sanderson 2020

Paul Sanderson thanks Emmanuel Evdemon, Tony Duarte, Ken Thompson and Marian Hebb for their contributions and suggestions to this article and to Marian for her editorial assistance.

* Marian also coined both the names ALAS, which is a short form and acronym for Artists’ Legal Advice Services, operating since 1986 in Toronto and providing legal information, education and summary legal advice to all artists of all disciplines on a pro bono basis, and ALAC, which is a short form and acronym for Artists and Lawyers for the Advancement of Creativity, the federally incorporated not-for-profit corporation which co-ordinates ALAS.

ARTISTS’ LEGAL ADVICE SERVICES invites creators to use the acronym CREATING
as a reminder that the letters C.-R.-E.-A.-T.-I.-N.-G. form a useful checklist:

C stands for copyright, compensation and credit
R for reserved rights, revoke and revert – and missing a residual will hurt!
E is for exclusive, but non-exclusive is swell
A for accounting, and audit as well
T is for term, and territory too
I for irrevocable – do be careful of that!
N is for net, which could be a bad trap! 
G is for the grant of rights, don’t forget – since this checklist has no point without it!