VO-BB - 20 YEARS OLD!

Ed Gambill · Posted: Thu May 10, 2012 12:12 pm Post subject: Work for Hire a.k.a. Buy Out

When it comes to voice recording is there any widely used method for calculating the value of WFH.

From the US Copyright Office “For … a work made for hire, the copyright endures for a term of 95 years from the year of its first publication or a term of 120 years from the year of its creation, whichever expires first.

That a mighty long time.
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ballenberg · Posted: Thu May 10, 2012 1:59 pm Post subject:

Base rate x 4 cycles per year x 120 years

So, for example for a buyout of a local radio spot, at say $150.
One year usage= $ 600
Buyout= $72,000

Silly, right?

Or, the client can buy the usage they need instead of forcing unnecessary and talent-unfriendly buyouts.

Ed Gambill · Posted: Thu May 10, 2012 2:45 pm Post subject:

Thanks

It's a starting point. But take the 95 yrs. Reason is the the work, in this case a commercial, will be broadcasted and that constitutes a publishing.

The 120 only applies if it is recorded and never publicly exhibited.

I don't know why there are two time periods.
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ballenberg · Posted: Thu May 10, 2012 5:41 pm Post subject:

Hmm, not sure I made my point.

Ed Gambill · Posted: Thu May 10, 2012 7:05 pm Post subject:

Then maybe I did not make mine. Either way it may be a pointless question.
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ballenberg · Posted: Fri May 11, 2012 3:03 am Post subject:

I'll clarify--And I'll say that this isn't directed to Ed, but I'm rather just putting this out there. Ed, please see below. Anyway I'm taking my example to a facetious place because WFH, which could be construed to be the same as an in-perpetuity buyout, is usually a bad thing for many if not all of us.

Disclaimer: I've done it and I'm sorry when I have.

A local advertiser in my example doesn't want to pay 70K for their plumbing supply store spot--they just don't want to mess around with payments , so they request/cajole/push/terrorize the talent into an all-rights buyout. But how long do they really plan to run the spot--a year, two, maybe three. But not likely 10, 20, 50 years. So offer a favorable package price, and say, two-year renewal price, but keep control of your work and don't give away all rights to the usage . So often, it will come back to bite you. Take it from someone who's been bitten. Ouch.

To Ed's question, if a buyout has to be done, the number 4X-5X the one year usage rate seems a common compromise.

Ed Gambill · Posted: Fri May 11, 2012 6:01 am Post subject:

It seems that many have read this post and you are the only one so fare to reply. I do appreciate your replies.

My question was to find out what if anything others felt was a reasonable formula for calculating Work For Hire pricing.

A work for hire is the purchase of the Intellectual Property in perpetuity in this case an audio recording.

I have been on both sides of the fence, as a producer of video programs and as the owner of a cable advertising insertion company.

An Intellectual Property that is commissioned does not transfer the copyright. I don’t ever recall doing a WFH so figuring the value is a puzzle for me.

The 13 week broadcast period may be two short for some and maybe a license for one year might be a better interim step. After all few commercials have relevance for much more than a year.
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