The issue with paying sync fees directly to the asset holder is that the asset holder may be incredibly difficult to locate.
That is the historical reason for the third party, and the escrow services to have evolved. Locating the rights holder can prove impossible and that means you may not be able to negotiate person to person.
I agree that if you can obtain a sync license without a third party service that this can be ideal. A sync license is negotiated per agreement as there is no statutory rate. This means the rate may be scaled by the asset holder and indeed, they may grant permission for just the cost of the paperwork if they like your project. They may also deny the use if they simply have no interest. It's up to them.
Anything is possible... but historically it has been very difficult to locate the asset holder without a service that is dedicated to the task.
The escrow services are providing a sketchy sort of band aid job... you can use an escrow service to demonstrate good faith as they rely on a Notice of Intent that supposedly puts the responsibility on the asset holders.
The asset holder is "obliged" to be aware of the NOI and respond with agreement or disagreement.
An issue to stay aware of is that the NOI is a "gesture"... and the outcome is simply being put off until later in the hopes that the asset holder will accept some payment rather than get frustrated when they learn that there is a NOI floating around that is addressed to them.
The point is... these services legally represent your interest with a NOI, BUT you may still be liable should an agreement not come to fruition. If the legal service is ineffective, or the escrow account goes bankrupt, then the NOI is just a piece of paper.
I wouldn't count on the NOI covering you if you use a song that the owner simply doesn't want you to use. If you want to rely on the NOI you may want to keep this in mind when choosing to mate music to picture.
If you've had a video editor cut music to a song and then you learn you have to yank the song... well, that gets expensive to patch that stuff up. It happens every day in the TV business where producers will jump the gun and start an edit without sync license and then learn the license is beyond the budget.
This is why the emergence of Rightsflow and Googles interest is noteworthy. If they start representing artists by providing sync management, Notice of Intent services etc. than the risks I mentioned above may be minimized. If Google gets Rightflow running they will probably build a reliable business and we don't have to worry that some entertainment lawyer may move to the Cayman islands with everyone's escrow account.
Rightsflow also has the possibility of becoming a bullying gorilla... an asset holder that disagrees with them is likely to be dwarfed by Google's capability to operate at the edge of, or outside the bounds of existing law.
It will be interesting to see how it all evolves and I am hoping that asset holders will welcome having a service that connects performers with publishers in a easy and affordable way.
You can't really market anything aggressively until you have all the rights covered. I'm looking forward to being able to do it without the current expense of paper work and quarterlies.
all the best,
mike
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