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mp3 authoring license for commercial hopes


hollsa

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apologies if this has been covered previously! a bit of background to my question: craig is hosting an upcoming webinar on mastering and i'm teetering on signing up (if it's not too late, that is!). in doing a bit of legwork, i've been looking at some of the features in sf 9 (he has a great tutorial on removing hiss in the latest eq, btw).

 

anyone care to share thoughts about what's involved with getting a license to use created mp3s for commercial gain? craig cautions in one article "that because the industry-standard Fraunhofer MP3 algorithm needs to be licensed, MP3 export capability may be optional at extra cost" and I noticed that sf vn. 9 does not provide the green light in that a license has to be purchased.

 

specifically, i'm in the early stages of converting 4-track cassette recordings for a friend into a daw for cleanup and further editing, with the goal of posting them on myspace but also to make them available for purchase. i'd appreciate hearing any pearls of wisdom!

 

(also, i can't believe i've been reading harmony-central's stuff for years now and this is my first post! gahh!)

 

thanks much!

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Thomson handles the commercial licensing for mp3 and the derivative formats.

 

They provide a FAQ over here. http://mp3licensing.com/help/#5

 

 

5) Do I need a license to distribute mp3, mp3PRO or mp3surround encoded content?


Yes. A license is needed for commercial (i.e., revenue-generating) use of mp3/mp3PRO in broadcast systems (terrestrial, satellite, cable and/or other distribution channels), streaming applications (via Internet, intranets and/or other networks), other content distribution systems (pay-audio or audio-on-demand applications and the like) or for use of mp3/mp3PRO on physical media (compact discs, digital versatile discs, semiconductor chips, hard drives, memory cards and the like).


However, no license is needed for private, non-commercial activities (e.g., home-entertainment, receiving broadcasts and creating a personal music library), not generating revenue or other consideration of any kind or for entities with associated annual gross revenue less than US$ 100 000.00.

 

 

As always - IANAL, get some guidance if you feel that you have some exposure. The linked page has links to royalty rates.

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My response was just to the "commercial use" claim.


Fraunhofer / Thomson still claims they are owed a commercial royalty regardless of the codec that is used to encode. Their claim is based on the decode technology.

 

 

But -- unless I've missed something -- they've yet to try to defend that claim, though they keep making it. Correction/update welcomed if I'm behind the times or mistaken.

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interesting points. lots to check into. not much online on the mechanics of selling, but i googled 'online music distribution' and got back 5,530,000 hits. sos magazine has a good article here http://www.soundonsound.com/sos/feb04/articles/onlinemusic.htm (but it's 3 years old and doesn't mention mp3 license issues). i'm probably overthinking this. in the end the logical thing to do will probably be to find a distributor who will handle the licensing rights anyway.

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But -- unless I've missed something -- they've yet to try to defend that claim, though they keep making it. Correction/update welcomed if I'm behind the times or mistaken.

 

 

I think they are kind of doing business by choosing their customers. I don't believe that they have mounted a real defense. They define their customers based upon who is able to pay the royalty and who can be squeezed by a suit or a threat of one.

 

I would believe that most entities don't pay. The marketing plan is basically a shakedown. If you have something to lose, you pay.

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