GOING BIONIC: DISTRIBUTING INDEPENDENT FILMS INTERNATIONALLY – SECURING MUSIC RIGHT
 							This past August 5th, I did something surprisingly fun: watched my high school friends Robert and Wendy’s 14 year-old son Ben lead his band Supercharge  through an amazingly commercial thirty-minute set at the famed “Whisky A  Go-Go” on the Sunset Strip in West Hollywood. What was originally a  plan to catch up with old friends, turned out to be a musical orgy for  my ears and eyes. Supercharge,  is a Springfield, Missouri based rock band comprised of four boys, ages  12-14. They have already played north of 100 live shows, and are  currently preparing to compete in the finals of the South Coast Battle of the Bands in San Juan Capistrano on October 9th.  They are also playing the famed Cavern Club in Liverpool, England on  October 22. These kids are good, real good, and I have no doubt they’ll  be migrating to a radio dial near you soon.
Watching Supercharge reminded me how important it is for independent filmmakers to discover hot new bands for their feature film soundtracks, since licensing popular songs is often times pricier than the entire budget of the indie feature. Thus, today I’m going to give you tips on how to negotiate for the music to your film with new, unproven musical performers. We will also briefly cover how to license popular songs, although that tactic has more to do with having enough money to pay for the songs and less to do with your strategy.
Negotiate Prices Early On
One of the costliest mistakes any filmmaker can make is to not lock down  a final price for the music early on. “Let me just put your music in my  film and we’ll work out the details later” is an incredibly risky and  abundantly stupid move, since the fate of your film’s distribution will  rest in the hands of the music rights holder.  Regardless of how great  of friends you are with the musical talent, you need to know exactly how  much their music is going to cost you. Besides, if your film flops,  they will still want to see some money. However, if your film becomes a  festival darling, the musical artists can hold your distribution  hostage, until you pay the amount they desire. Lastly, in the event the  musician/band grows popular before your film get distribution, you  simply won’t be able to afford to keep their music in your film, unless  you can wrangle a studio or investor to pay for their newly minted  price. Thus, knowing your ceiling price is crucial to lock down early.
“Free” Is Not A Secure Option
In the event that a band wants to give you their music for free, don’t  let them. “Free” means that if the band/performer becomes wildly  popular, they can legally argue that you don’t have rights to their  material because you didn’t pay for it. Thus, a better move would be to  pay them up front, even a meager amount like $1, (actually write them a  check for $1), and to give them a deferred payment upon the distribution  of the film. Just know exactly that deferred fee will be.
Protect The Upside For The Musical Talent
Let’s be honest here. Any band, even a new one, isn’t going to get a  warm fuzzy feeling over giving you their creativity for $1. Thus, should  they chose to honor you by gracing your film with their music for less  money than a pack of gum, you should honor them by lacing  “performance-based incentives” into their contract. Meaning, they will  see bonuses based on how well the film does. These bonuses are “in  addition to,” and not “instead of” whatever fees are promised for the  use of songs.
Negotiate Festival Rights Early
This applies to popular music from established artists. Film festival  rights tend to be far cheaper (free in some cases) than the rights to a  popular song in a widely distributed film. Thus, negotiate the “film  festival rights,” and at the same time, negotiate the final price for  the songs upon distribution.
Remember, it’s always cheaper to negotiate something when your film is an unknown commodity. Once your film gets into Cannes, Sundance, Berlin or Toronto, your price for the music upon distribution will multiply in cost, because your film will be seen as one that will rake in the money. Whether your film pays off your debt and buys you a house or not, the cost of the music in your film should never be based on an assumed perception of what is going to happen.
Never Bank On A Song Or Artist Making Your Film Work 
While I certainly hope you get every piece of music you desire, you  should never risk the validity of your film’s story on a song or artist.  Doing so, will a) make all music costs extremely expensive (since the  artist will know you need their music to make your film work) and b)  your project will fall apart if they say “no.” Thus, your film should  stand on its own two celluloid feet, regardless of what music is  ultimately placed in the film.
Use The Student Film Angle Whenever Applicable
Simply put, student films get the best deals, because they come with the  inherent assumption that nobody will ever actually see them. Thus, if  you, or anyone on you above-the-line team (director, writer, producer  etc.) is a current student, you should use the student discount for  music, because you know you’ll be using it to rent your equipment.
Use Music Clearing Houses For Popular Music
Music clearinghouses have deep relationships with music publishers, and  their ability to negotiate the price of a popular song is far greater  than yours. Several factors go into the cost of putting a popular song  into your film. These include, how much of the song you wish to use, if  you need the original recording, and how many times you need to use the  song in your film. Clearinghouses have such information on file for  similar songs in countless films and television shows, so they will have  a precedence to negotiate a good price for you.
Don’t Rely on “Fair Use” To Save You From Licensing Music
“Fair Use” is a gray area that is often times misunderstood by  filmmakers. Just because you only need a piece of a song for your film,  doesn’t entirely excuse you from having to buy the song. While in some  cases your use of the song may be completely legal, that status doesn’t  stop the millionaire musical icon from suing you for using their song  without permission.
Even if you are in the right, the angry artist will still take you to  court, which will cost a hell of a lot more than it would have to just  pay for the licensing of the song. Furthermore, such an incident will  arrest the distribution of your film, until the legal matter over the  music is solved. Thus, before you hide behind the “fair use” shield,  make sure you speak to an entertainment attorney with experience in  music publishing.
That’s what I’ve got for you today. I hope each and every one of you  has an amazing Labor Day Weekend, and of course, I thank you for lending  me your eyes. See you next Tuesday!
