The Basis of Music Licensing — Economic Rights
Music licensing rests on the economic rights defined by the Law on Copyright. The author or other holder of copyright has the exclusive right to use the work in any manner — the right to carry out, permit or prohibit the reproduction of the work, its distribution, importation, public display, public performance, public transmission — first or repeated, by wire or wireless communication in such a way that the work is accessible to any person at a time and place chosen by that person — as well as translation and adaptation. For music, the public performance and public transmission rights are the most significant: a concert, a radio broadcast, a television broadcast and a streaming platform are different manners of use whose permission is granted by licence. The author or right holder also has the right to receive a royalty for any use of the work. Note, too, the exhaustion rule: the first sale of a copy of the work in Georgia by the author or with his consent exhausts the author's right to the further distribution of that copy within the country — a rule that concerns the market of physical copies and defines the field of licensing precisely.
Performers' and Phonogram Rights
The use of music is not exhausted by the author's right alone: the performer has personal and economic rights in the performance — the right to the name, protection of the performance from distortion, and the right to use the performance in any form, including the receipt of a royalty. Therefore the commercial use of recorded music requires the licensing of several rights simultaneously — the consent of the author, the performer and the producer of the phonogram must be secured together. A special rule applies to performances made in the course of employment: the performer keeps the right to the name, while the exclusive right of use belongs to the person with whom the performer has an employment relationship, unless the contract provides otherwise — for the employer this means that the right is his, but only by default.
The Royalty and Collective Management
The amount of the royalty, and its accounting and payment procedure, are determined by a contract concluded between the author, the other copyright holder or the collective management organization, on the one hand, and the user, on the other. In the case of cable retransmission, the amount is determined only by a contract between the organization and the user. Where the organization and the user do not agree, the royalty is determined by a commission created by order of the chairperson of Sakpatenti; every user is obliged to pay the organization the royalty according to the tariff established by that commission. The commission's decision may be appealed in court within 2 months of its adoption, but the appeal does not suspend its operation — until the court decision enters into legal force, the royalty is paid at the commission's tariff. Collective management itself is strictly organized: the collective management organization is a nonprofit legal person accredited by Sakpatenti, and the management of one right or one category of rights must be carried out by only one such organization.
Conditions and Limitations
The rights of use may be restricted by the contract — by territory, term and manner of use; the right to every manner of use not directly provided for in the contract remains with the author. The law also contemplates limitations of economic rights, on condition that such limitations do not impede the normal use of the work and do not unreasonably prejudice the author's legitimate interests — this boundary regulates both the licence negotiation and the assessment of any limitation.
To summarize: music licensing means managing several rights at once. The author or other copyright holder holds the exclusive right of use — from reproduction to public transmission — and the right to a royalty; the performer holds the rights to the name, protection of the performance and use, including the royalty. The royalty is determined by contract, and failing agreement by the tariff of the Sakpatenti commission, appealable within 2 months without suspensive effect. Every manner of use not provided for in the contract remains with the author.
Frequently Asked Questions
Below we answer the questions most frequently asked on this topic.
Which rights are licensed for music?
Reproduction, distribution, public performance, public transmission, translation and adaptation — the author's rights, together with the performers' and phonogram producers' rights.
How is the royalty determined?
By contract; failing agreement — by a commission created by order of the chairperson of Sakpatenti.
May the commission's decision be appealed?
Yes — in court, within 2 months; the appeal does not suspend its operation.
What remains with the author?
The right to every manner of use not directly provided for in the contract.
Who manages rights collectively?
A nonprofit organization accredited by Sakpatenti; the management of one right or category of rights belongs to a single organization.
How We Help on Legal.ge
Music licensing requires simultaneously managing the author's, performer's and phonogram rights and knowing the tariffs. On Legal.ge you can consult an intellectual-property advocate who will prepare the licence, assess the royalty grounds and represent you in tariff disputes. Submit a request on the site and get qualified assistance — with verification of the lawfulness of every episode of service and planning of the corresponding procedural step.