Grand Right Licensing and Rental Fees: James M. Kendrick, Esq
Grand Right Licensing and Rental Fees: James M. Kendrick, Esq
Grand Right Licensing and Rental Fees: James M. Kendrick, Esq
E-mail: [email protected]
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Licensing Grand Rights
• Dramatic performances are not licensed by the performing rights societies (ASCAP,
BMI, SESAC).
• Instead, dramatic performances are licensed by the copyright owner, usually either a
commercial music publisher or a self-published composer. Some composers use
agents for this licensing.
• A license of dramatic rights (known as “grand rights”), includes the following
elements:
• Grand right fees are normally based on a percentage of box office receipts.
• For Broadway works, the normal fee under the Dramatists’ Guild Approved
Production Contract is 6% of gross box office fees. This is apportioned 2% to the
music, 2% to the lyrics and 2% to the book.
• Larger opera houses will pay a percentage of box office fee. The percentage may
vary from the APC norm based on the work and the company.
• Smaller opera companies, universities and most ballet companies will not pay a
percentage. For these groups, a flat fee should be charged.
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Percentage of Box Office Calculation
Actual yield will be dependent on attendance and mix of prices of tickets actually
purchased
*Note: the actual percentage of box office is determined by negotiation in each case.
*Note: the actual percentage of box office is determined by negotiation in each case.
• Companies will often seek a reduction from the straight “percentage of box office”
equivalent flat fee because they do not expect to sell out every performance.
Whether or not to reduce a flat fee because of less than expected 100% attendance
is a decision for each individual licensor.
• If this comes up, it would be reasonable for the music copyright owner to suggest to
the company that they agree to a true percentage of box office deal. That way, if
attendance is off, the company and the owner will share the reduction
proportionately.
Multi-Work Programs
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Special Note for Ballets
Therefore, the total royalty per performance: $200 ($600 x .33) (before any
adjustment for expected less than full attendance)
• Now, let us assume that the choreographer is not affiliated with the company:
–Total royalty per performance: $200
–Part of total creative package attributable to music: 50%
Therefore, the royalty actually charged by the music copyright owner to the ballet
company would be $100 ($200 x 50%)
Please note that the above allocation of 50% music/50% choreography is for illustrative
purposes only. It does not represent any agreed industry standard. Each situation must be
considered individually.
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Rental Fees for Grand Right Performances
• Note that rental fees for grand right performances may be charged in addition to the
grand right licensing fee.
• Alternatively, they can be included in the fee.
• One commonly-used guideline is that the rental fee should be approximately half of
the grand right license fee. However, this is entirely within the discretion of the
copyright owner.
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