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[accordion title=”Why do I need a PCAM agreement and why is the small-print not editable?” is_open=”yes”]
Commissioned music in advertising in the UK has been regulated by PCAM (The Society for Producers and Composers of Applied Music) since 1982. PCAM, together with the IPA (Institute of Practitioners in Advertising) developed a standard agreement to maintain fair business practice between composers (Producers of music) and commissioners (eg: advertising agencies). It is a professionally drafted legal template and thus it is protected from unauthorised modification. It is universally accepted by the UK advertising industry and an increasing number of agencies overseas when commissioning UK composers. It ensures that both Producers and commissioners are treated failry and their interests protected realistically.
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[accordion title=”My client wants an exclusive, unlimited, non-royalty bearing licence to use a track wherever they want, for as long as they want. Is this possible?” is_open=”no”]
No. This kind of licence is virtually unheard of in the UK as it is not strictly possible. All rights in original compositions are automatically assigned by the composer, by law, to PRS for Music in order that they may monitor performances of the work globally and collect, on the composers behalf, all ensuing royalties from relevant territories. This system has been in operation for a hundred years (literally) for a good reason: royalties provide an essential income stream without which the music industry would struggle to function.
If a client, however, is intent on obtaining effective ownership of the work, the remuneration must be sizeable, as you can appreciate, to compensate for the potential loss of income arising not only during the life of an advertising campaign but, by law, any royalties arising from secondary exploitation of the work up to 70 years after the composer’s death. This kind of agreement, therefore, is very much an exception to the rule: rare examples have allegedly attracted fees in the region of £250k.
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[accordion title=”Will the clients be lumbered with paying public performance royalties?” is_open=”no”]
Clients are NEVER liable for performance royalties. It is solely the responsibility of broadcasters and/or service providers.
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[accordion title=”Why is the ‘Life of Recording’ only 3 years? The clients want to be able to use the recording in perpetuity.” is_open=”no”]
They may do so if the musicians are paid an all-ancillary buyout at the time of recording. The copyright in the music itself, however, will still need to be negotiated for a specific period at a time.
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[accordion title=”The clients will not agree to the use of a musicologist in Clause 10 of the Terms and Conditions of the PCAM agreement. They say the composer warrants that the work is original work and indemnifies them against all damages. Is that not true?” is_open=”no”]
Yes. The composer (or ‘Producer’ of the track) warrants that the work is original and indemnifies the clients/agency accordingly. However, it also establishes that should there be any doubt or dispute over the work’s originality (however dubious it might seem) a musicologist will be hired for an independent opinion, the cost being split by the Music Producer and commissioner. This is a sensible course of action and, indeed, a pre-requisite in a court of law. However, it is solely the responsibility of the Music Producer to act upon the musicologist’s findings, if so required, and thereby honour the warranty already provided.
It is a fact of life that acts of plagiarism or passing-off can occur despite best endeavours to avoid them and the potential repercussions are alarming. PCAM recommends that all its members have professional indemnity insurance to protect them in such circumstances.
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