Great series of questions Kenster! Legally, I can?t speak about any particular artist or their contracts. But, by using examples [and theoretical examples only], I?ll try to explain the legal labyrinth as best I can.
Q: ? let's use the Paul Frees estate for an example. Was his estate paid all at once for the use of his voice?
A: It depends on the artist?s contract. Some are paid as a ?buy-out? meaning they are paid once for unlimited use. That may also be determined by the project ? one project can be a ?buy-out? and another would require re-payment in full or a portion of for additional uses. Say, for example, Mr. Artist is a buy-out for all of his recordings used in ?A Big Pirate Ride? and the ?Spooky House?, but may require ?new-use? fees for his recordings for ?An Evening with Mr. Taft? and ?The Shrink Machine? as well as recordings (demos) that weren?t actually used in the final productions of any of the above. All the latter are possible instances of ?new-use? payments.
Q: On the opposite side, Did Thurl Ravenscroft receive royalties?
A: As mentioned above, some of an artists work could be ?buy-out? while some are ?Royalty Baring?.
Q: Is it different from artist to artist, or is Disney policy the same for all?
A: It?s all different ? from artist to artist as well as project to project.
Q: Has policy changed over time?
A: The policy is in constant flux, and subtle changes happen all the time. The primary changes happen with the development of new technologies. I should also point out that it?s not Disney?s Policy but that of AFTRA (American Federation of Radio and Television Artists), and the AFofM (American Federation of Muscians) that determine rates and what is fair compensation for services of the artists, while ASCAP (American Society of Composers, Authors, and Publishers), and BMI (Broadcast Music Inc.) protects the songwriters and composers.
Q: Are royalties old fashioned or difficult to keep up with?
A: Quite difficult as there really is no standard contract. There is a basic formula, but each situation, though somewhat similar, are unique unto themselves.
Q: Is a lump payment for past work the preferred way to go?
A: The lump some is preferred, in this instance, for the record label ? as the fees have already been paid. However, if the project is hugely successful and the artist was paid a minimum but acceptable fee, then the artist could be on the shorter end of the stick after all is said and done. Additional or ?new-use? fees often prohibit a project from happening particularly if it is older and a little more obscure than mainstream. Because in addition to the product costs itself, the label has to recoup the ?new-use? fees as well. There are also instances where a recording is done without the proviso that it may be released on a record. When that happens, the record label is responsible for repayment of the entire recording even though the artists and musicians were already paid. Example: Song B was recorded using Artist C with a full orchestra at a cost of $80,000. If it was not in the contract to release this recording on a CD, the record label has to pay that $80,000 again. Meaning that the artists and musicians received $160,000 for the one gig. This is to ensure that these artists aren?t being exploited and makes the end users clearly state what the final uses are. If the originators of the project don?t have all their ducks lined up, it could prohibit the CD release of the recording.
Q: Are there cases were the artists are not paid?
A: Sometimes an artist is on staff and their salary is considered fair and just payment. But this practice is rarely utilized anymore if at all.
Q: Jack Wagner used some of his records for BGM after all.
A: BGM is considered ?Atmosphere? and seeing that it is not ?for sale? falls under the same guidelines as radio stations. Radio stations pay ASCAP and BMI a flat rate and provide these organizations with a detailed list of what was aired. Record labels and the artists see radio play as promotions so they receive no financial compensation. However, if a record label were to take a song from a BGM loop and put it on an album, the owners of that piece ? both publishing and artists ? would expect to be compensated as the record label sells it and someone is profiting.
Q: I think the cases are many and unique.
A: You betcha!
Q: If Randy releases a vintage recording, are the artists or estates paid again?
A: If it is in their contract, yes. I do a lot of research to find out who is on a vintage album (as it?s not always part of the print) and make sure each artist, composer, and publisher is rightfully compensated. If we aren?t reasonably sure who is on the recording, we don?t release it until we do. It?s very important to me that these artists we?ve enjoyed for years should be compensated for the re-issue of these albums. This is what bothers me the most about ?bootlegging?. If you offer a recording for sale, you are obligated to fairly compensate those involved with making that recording in the first place. Anything else is not only unethical, but shows nothing but contempt and disrespect for those artists, composers, and musicians you supposedly admire.
There are more twists and turns in the process than I?ve mentioned, but I think this should give you a good idea of just what goes on.
Thanks for the great post!
Randy Thornton
