Synchronisation Rights Agreement
Once the producer has applied to the copyright administrator (and in addition to the label when opting for a famous recording), the rights holder or administrator makes an offer, usually in exchange for a “single fee” (often called “Sync-Geb-hr” or “Front-End”).  Royalty negotiations generally concern the manner in which the work is used, the length of the segment, the fame of the Cues (whether as background music, the title during credits or other uses) and the general popularity and meaning of the song or recording. Another point of the negotiation is whether the synchronization license constitutes a “buyout” (i.e. whether the company that finally issues the production must pay a “backend” fee (Performance Royalty).  The rights to a composition or “song” that differs from the studio recording are most often managed by the publishing house representing the author/producer. A sound recording has two distinct copyrights:  The right to synchronize music in movies, TV programs, ads and video games can be a valuable additional revenue stream. “Synchronization rights” can also generate ads and improve an artist`s profile. A synchronization license is in place to ensure that payment to copyright holders is ensured when using their music. It is important that manufacturers understand the stakes of obtaining synchronization rights.
At least a small number of producers insert music into their productions without authorization, particularly for programs produced for private use or for distribution in smaller markets. This practice is contrary to copyright and also unnecessarily restricts the possibilities of exploitation of production. When a musician is hired to compose original music, the producer may own the work directly as part of a “Work-made-for-hire” agreement and does not have to compete with the synchronization rights separately. In such an agreement, the manufacturer may agree to pay a flat fee to the musician or publisher and/or to grant a royalty to the production. As a general rule, the musician or music publisher insists on retaining ownership of the work in full or in full and agrees to grant the producer only the synchronization rights for a specified fee, a royalty or an amount based on another formula.