jblake at eskimo.com
Sun Jan 14 18:40:30 EST 2007
Audun Myhra Bergwitz wrote:
> Wouldn't one solve the problems with NC by rather having a commercial
> license based on percentages?
a) What constitutes "revenue"?
b) What is the percentage based upon?
Lets say a radio station plays a song with this type of clause, with the
percentage set at 50%. Before the song is played, the station airs a
thirty second commercial which it charged $500 for. After the song is
played, it airs another commercial for which it battered $500 of product
from an office supply store. During the course of the day, the station
has $25,000 in billings for commercials, and $75,000 in bartered
services and goods. How much does the radio station owe in royalty
payments for the song that was played?
> but if you make any money by the use you owe me X % of that in royalties (RY).
I should introduce you to some Hollywood accountants. I doubt that there
is any other group on the planet that can show a billion dollar plus
loss on a movie that generated $10,000,000,000 in gross revenue from
primary, secondary, and tertiary market sales.
> non-commercial would be anything where there's royalties=0?
Most current royalty payments are flat rate. If you use the work, you
pay "$x.xx" for the use of the work for a period of "y" days. For
example, expect to pay $10,000 for a six second clip of a ring tone of,
say, _hey, Jude_, for a period of one year from either the initial
public screening, or initial release a movie. For the video, you pay an
additional $30,000 for public distribution for two years. [BTW, DVD
distribution requires yet another royalty payment.] If, after that
period, you want to re-release either the movie, or the video, you pay
an additional $10,000 for one year.
With a royalty payment of "x%", the movie director can include the
material, confident that s/he will never have to pay royalties on it,
because the movie is unlikely to show either a gross or a net profit.
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