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legal issues with selling recordings

Recently, I was asked by our high school band director to record a regional honor band and honor orchestra on sound equipment that my choral department owns.  My intention is not to make a profit but to sell CDs to cover our cost of printing the jewel case inserts and buying the CDs and the jewel cases.  The recording turned out very nicely, and there are a lot of requests for the CD.  I wonder if I could use this as a fundraiser for my choral program. 
 
If recording companies can be hired to record All-State choirs, local festivals, and other concerts, why would I not be able to do the same as a fundraiser for my choir program?  Since I also have a "popular music and sound recording" class could I use this as a practical teaching and learning tool in the field for those students as well as helping to fund the program? 
 
What are your thoughts?
Scott Wickham
Lafayette, CO 
 
 
Replies (4): Threaded | Chronological
on November 18, 2009 10:55am
You absolutely can record your concerts, Scott, and you can sell them to anyone you want to.  You just have to pay the appropriate royalties to the copyright holders.
 
Mechanical rights involve a compulsory license in the U.S., and the royalty rate is set by statute, so everybody has to charge the same amount (currently 9.1 cents per song, per recording).  The easiest way to get the license in place is on the website for The Harry Fox Agency (www.songfile.com). With their page, the entire process happens online, bills to your credit card, and you're good to go.  There are two disadvantages, however.  First, the site charges the ridiculously high fee of $15 per song - a real barrier if you're dealing with only a few dozen recordings.  Secondly, there are several publishers - particularly of choral music - who are not represented by Harry Fox.
 
To avoid these two situations, you can request the licenses directly through the publishers.  Since I've been doing this for about ten years, I have contact information for the rights administrators at most of the choral publishing houses.  Feel free to drop a line to me (ttropp(a)u.northwestern.edu) if you need help.  Otherwise, visit each publisher's web site and find their copyright links.
 
Good luck!
 
Tom Tropp
SoundByte Studios
Northwestern University
on November 18, 2009 11:06am
You titled this "legal issues" but didn't really ask any legal questions. As Tom mentions, the legal end is pretty straightforward. They can't deny you a mechanical license if you serve appropriate notice and pay the statutory fee. Typically the mechanical license costs around $1 for each CD made, so take that into account in your pricing.
 
As for whether it's practical as a fundraiser, which is what you seem to be asking, I'd guess you wouldn't really clear that much income from it. It's up to you whether a couple hundred bucks is worth the effort. I like the idea of involving your sound recording class, though -- it gives them a concrete, real project to work on rather than something artificial.
 
There's also a possible political problem in selling a recording of the band and orchestra to benefit your choir program -- it's not clear from your message whether you're talking about that or making a new recording of your choirs -- I wouldn't do this without having the band director on board.
on November 18, 2009 7:33pm
Scott,
 
Tom and Allen are both correct. But you wondered whether you could use CDs for fundraising. My own experience suggests that the best answer is "maybe."
 
My university show group, once I got it organized and things running smoothly, started making an annual album. (LPs in the early '80s; the LPs and cassettes; then cassettes only one year; then cassettes and CDs, once the per-unit price of CDs--which was ridiculous when there was high demand and not much competition--came down to a reasonable level.) We would have our recording sessions (in a professional studio) in November, send our master tapes and artwork off before Christmas, and have our new album in time for our spring touring season.
 
We basically used them as souvenir albums, selling them at concert appearances. My goal was to make enough income from them to fund the following year's recording and manufacturing costs, and we managed to do that very well. But raising excess funds? No. Never happened, and in my opinion not very likely to happen.
 
One factor is what you will charge. My students always approached it from the point of view of "what would they be willing to pay." That's obviously not a realistic business strategy, because you have to cover the amortized cost of recording and production before you can start looking at profit. We found a happy medium.
 
Tom's disgust with the Harry Fox Agency charging a minimum fee (equal to a minimum number of units manufactured and distributed) is sort of ill founded. First, it used to be a lot more. Second, they instituted the minimum fee in order to pay for the cost of opening a new account. After all THEY'RE running a business, too. Of course you can contact individual publishers (assuming that they are the copyright owners), as Tom suggests, but I'd suggest planning a year ahead because it will take time, and in the end more publishers than not will send you to Harry Fox anyway, because THEY don't want the expense and bother of opening an account for you!
 
And of course for the younger generation, even the concept of an album--or of buying an album--is pretty old fashioned, since they've gotten used to downloading individual songs that they want, not taking someone else's idea of what they should buy. Which could actually reduce your manufacturing cost, if all you wanted to do was to produce downloadable MP3s instead of physical albums.
 
All the best,
 
John
 
 
on February 15, 2010 5:12pm
We produce a Holiday Cd every year.  We do it all in-house.  I plan a few months in advance, check Songfile on Harry Fox to make sure its easily covered and then go.  If  a piece isn't listed in Songfile and I really want to do it, I then contact the publisher and handle it the old fashioned way, if its too much work, I find a different piece that is on Songfile.
It used to be a real hassle to do so, but Harry Fox is a breeze online now.  With credit card in hand, I can get the requests done for a 15 song CD in less than a half-hour online.  They are processed and I get the final confirmation within a day or two.  Harry Fox has also updated their policy to allow for a minimum of 25?50? Cds to be handled online, it used to be 250 (I think).  So at .09 a song (approx) and 15 songs, unless they are truly in the public domain and free to record, you can handle the mechanical royalties for approx $1.50/Cd or less.
We've also invested in a CD printer (Primera Bravo II) no more stickers!, a CD duplicator (Microboards) and purchase printable CDs and jewel cases in bulk. 
We record in October/November and distribute in December.  I also use an online printer for inserts and tray liners that produces wonderul and professional looking products.  Purchases were all made out of profits.
It costs us about $3/Cd and we sell them for $10.  70% profit on a product that students are proud of is a whole lot better than pizzas and candy!
I moderate at recording.org as well as direct high school choir, and I have recording background, but it sounds like in your case, the recording issue is settled.  If that's the case, the business aspect is actually quite easy.
Depending on the number of students involved, we've sold as many as 1500 units, that's 15k gross or 12k net, not a bad gig at all.
 
Good Luck
 
Phil
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