CCS PRESENTS

Solve the Puzzle of Copyrights:

SIX STEPS TO LEARNING HOW TO DO MUSIC RIGHT

BY SUSAN FONTAINE GODWIN

 SOLVE THE PUZZLE OF COPYRIGHTS: TABLE OF CONTENTS
SIX STEPS TO LEARNING
HOW TO DO MUSIC RIGHT Letter From The Author

Chapter 1 - The “Why” Behind Honoring Copyrights

Chapter 2 - Basic Building Blocks

Chapter 3 - Religious Service Exemption and the Fair

Use Doctrine

Chapter 4 - The Beauty of Blanket Licenses for Church

Chapter 5 - Planning and Budgeting for Copyright

BY SUSAN FONTAINE GODWIN Compliance

Chapter 6 - Churches in the Business of Creativity

Summary

©2015 Susan Fontaine Godwin. All rights reserved. You may make copies of this
Contact us: 1-855-576-5837 or info@christiancopyrightsolutions.com publication for use by your church or ministry staff. You may not make copies for other
organizations, but can refer them to The Copyright Coach where they can download a
Follow us: Twitter: @doingmusicright   l   Facebook: Christian Copyright Solutions free copy.

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LETTER FROM THE AUTHOR
THANK YOU FOR DOWNLOADING “SOLVE THE PUZZLE
OF COPYRIGHTS: SIX STEPS TO LEARNING HOW TO
DO MUSIC RIGHT.”
I am Susan Fontaine Godwin, the founder and
CVO of Christian Copyright Solutions. I am also
an adjunct professor at the University of
Mobile, where I teach “Survey of Copyrights
and Intellectual Property Law” within the
Worship Leadership program.
I am genuinely passionate about my vocation
or calling—to simplify copyrights for the
Christian community. But when I tell people
what I do, there’s usually an immediate visceral reaction…they break
eye contact, drop their heads and look for the nearest exit. I’m not
offended and I really understand, because copyrights can be very
puzzling, complex and often overwhelming. I’ve devoted myself for 30
years to developing ways to unpack and explain copyrights in ways
that church leaders can understand.
I truly appreciate your commitment to honoring copyrights and for
taking time to learn more about how the U.S. Copyright Law impacts
your church or ministry activities.
I understand how confusing copyright issues can be for church
leaders, especially with the abundance of creativity and innovation in
worship and creative arts. New and accessible technology tools are
facilitating an explosion of expressive ways to proclaim God’s Word,
especially through audio, media and internet productions. The result
is increased use of copyrighted material, and so it’s more important
than ever to know how to avoid copyright infringement and risk of
fines.
That’s exactly why I developed this College-Level Copyright
Curriculum in a six-chapter eBook, “Solve the Puzzle of Copyrights: Six
Steps to Learning How to Do Music Right,” as well as a six part video
webinar series. As a teacher, I understand that everyone has different
learning modalities, and it’s important to provide material in various
formats so that you and your staff can learn and go at your own
pace.
Simply follow the topics detailed in each chapter in sequential order,
and you’ll establish a solid foundation for success. Each chapter
identifies the objectives of the material and what you will learn. Now,
let’s get started.
My thanks to the entire CCS staff for all their efforts in making this
eBook become a reality.
The information contained herein is for informational purposes only, and is not legal
advice or a substitute for legal counsel. This publication provides information on
copyrights. You may want to obtain legal advice for your church that pertains to specific
uses of copyrights in your church or ministry.

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 CHAPTER 1

THE “WHY” BEHIND

HONORING COPYRIGHTS

It’s important to start our learning

process with a foundational question.
Why is it important to understand
copyright issues, and how can it affect
your church's life of worship and
ministry?
Why is it important for the Church to honor copyrights?
In this chapter, we address seven key reasons for becoming copyright
compliant. You will learn the rationale for compliance from several
perspectives, including legal, scriptural, ethical, witnessing and
supporting songwriters.
When I teach at church conferences and talk to pastors and worship
leaders, I hear a common chord...copyright compliance is one of the
most enigmatic and puzzling issues facing church worship leaders
and ministries today. There are a myriad of questions that can often
be confusing and overwhelming.
Many Christian leaders have a vague sense of guilt when they're
burning CD copies, emailing MP3 files, or making photocopies of an
octavo or songbook, but they often think, "Gosh, we're a non-profit
organization, we're doing God's work, and who's going to know
anyway?"
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So, what's the big deal? Why is it important to understand copyright
issues, and how can it affect your church's life of worship and
ministry?   To the point...why is it important for the Church to honor
copyrights?
Here are some of the most common reasons I hear from church
leaders to honor copyrights:
1. To avoid the risk and liability of lawsuits and fines;
2. To obey the laws of the land (the U.S. Constitution protects
copyrighted works as intellectual property);
3. To be a good witness to our communities;
4. To abide by scripture guidelines (Romans 8);
5. To honor and support authors and artists.
6. To help GIVE MUSIC LIFE and be a part of supporting
songwriters and creatives.
7. God blesses us with a fresh outpouring of new songs and
creative works.
When church leaders or decision makers establish the commitment to
BECOMING copyright compliant, it’s essential that they communicate
the why, or the reason, behind copyright policies and procedures. It
can really help in involving your teams and ministries in a unified
approach to honoring copyrights. One of the keys is understanding
that BECOMING copyright compliant is a PROCESS and it takes time
and a unified effort.
The best place for churches to start supporting copyright compliance
in worship is education, information and training regarding how the
U.S. Copyright Law affects their ministries and the simplest ways to be
compliant.
Let’s look at some of the common reasons to honor copyrights.
REASON #1: AVOID RISK OF LIABILITY OF LAWSUITS AND HIGH
FINES
Copyright compliance helps your church avoid lawsuits, fines and
large punitive fees. Copyright non-compliance can lead to a civil
lawsuit against your church or ministry. Pastors, elders and others in
leadership could be held personally liable. Courts can impose stiff
fines, and authors and publishers could require large, retroactive fees
for the unauthorized use of their works. It’s vital for church leaders to
have knowledge of all the types of works that can be copyrighted,
because of the increasing use of a variety of creative works and the
growing risk of liabilities.
I’m surprised at how often we’re asked if any churches have been
SUED for copyright infringement, or whether or not churches are
caught infringing copyrights. On the other hand, this is an important
issue from the perspective of an Executive Pastor or Administrator.
The REALITY is that churches and ministries have been sued and there
were some very high profile lawsuits against at least two churches just
three years ago that involved alleged illegal use of songs in
synchronizing music to videos, as well as streaming music on the
church’s websites. One of the lawsuits settled for $3 million. The action
was taken by a small secular publisher, and they didn’t really care that
they were suing a church.
Copyright infringement penalties can be severe, up to $150,000 for
each infringement. There are many occasions when churches are
sued or legal action is taken, but they choose to settle out of court
with fines or financial penalties paid and nobody's the wiser. As a
result, I believe it's all the more important to let churches know about
specific situations where churches have been sued, because we want
them to understand the serious reality of potential legal
consequences.
For example, I recently spoke with a ministry filmmaker who was in the
midst of trying to clean up a “licensing mess” for an earlier project
that may prove to be very costly. A ministry may, in fact, be sued, or
they may end up having to pay very high royalty fees to obtain
licensing for a product after it has been been released. Either way, it’s
important for churches and ministries to understand the potential
consequences of not obtaining proper licensing before using
copyrighted material, whether it involves lawsuits and fines, or
payment of high royalty fees.
One of the earliest landmark lawsuits involving a church was F.E.L.
Publications, Ltd. v. Catholic Bishop of Chicago for copying lyrics and
music from copyrighted hymnals and songbooks. It resulted in a
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verdict of $190,400 in actual damages, $2 million compensatory
damages, and $1 million in punitive damages. The compensatory
and punitive damages amounts were later reduced by an appeal
ruling, but the case demonstrated the risks for liability that
churches face if they do not operate with copyright compliance
policies. (Richard R. Hammar’s Essential Guide to Copyright Law for
Churches provides a very detailed account regarding the court
case.)

There are also copyright owners that look for illegal publication of
their copyrighted works and then send “cease and desist” letters
indicating that they could SUE, while informing the website owner
that they could avoid a lawsuit by paying a hefty fine. I’ve heard of
one literary work owner that has used this tactic to settle for a
$7,500 fine.

REASON #2: HONOR THE LAW OF THE LAND

“Copyright literally means the right to copy. The term has come to
mean that body of exclusive rights granted by statute to authors
for protection of their writing. It includes the exclusive right to
make and publish copies of the copyrighted work, to make other
versions of work, and, with certain limitations, to make recording of
the work and to perform the work in public,” according to
definitions at http://www.copyright.gov/help/faq/definitions.html.

The rights described in our United States Copyright Act derive from
the United States Constitution which, in Article 1, Section 8, Clause
8, grants our citizens special protection: “to promote the progress
of science and useful arts, by securing for limited times to authors
and inventors the exclusive right to their respective writings and
discoveries.”   Consequently, those who create “original works of
authorship fixed in any tangible medium of expression” have,

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according to the Copyright Act [Section 102], created works subject
to Copyright protection.
It’s a very basic right in our legal system to PROTECT THE PROPERTY
of our citizens. Even though copyrights are an intangible or
intellectual property, they are still owned by someone and the rights
of the property owner are protected. One of the few EXEMPTIONS in
the Copyright Law is specific to religious organizations, like churches
and ministries.
U.S Copyright Law (section 110[3]) states that, churches, and any non-
profit religious organization, do not have to get permission to
perform or play music (or a non-dramatic literary work) during a
religious service at a place of worship or other religious assembly. This
is often referred to as the Religious Service Exemption.  Beyond this
exemption, however, churches MUST secure licensing for almost any
activity and manner in which they use copyrighted materials.
Your church’s compliance will ensure that you avoid the many
negative implications of a legal dispute over copyrights.
REASON #3: ABIDE BY SCRIPTURAL GUIDELINES
My students at the University of Mobile have provided some
wonderful scriptural insights that support honoring copyright owners.
Here are just a few of the statements my students have made
regarding scripture references:
“Romans 13:1-2 tells us that we are all under the authority of the
government, because all authority is God’s authority. Since there is a
U.S. law that protects the rights of authors and artists, copying,
performing or playing their works is breaking the law.”
“Exodus 20:15 (KJV). The eighth commandment tells us ‘You shall not
steal.’ Since copyrighted works are someone’s property, when we
copy them or use them without permission, we are stealing their
property.”
“Hebrews 13:17b. (NIV) ‘...so that their work will be a joy and not a
burden.’ This is not merely about profiting the artists. It is about
blessing and bringing prosperity to people who present their gifts and
talents of time and creativity to present songs and creative works and
seeds sown into the future of the church.”
“Matthew 7:12. (NASB) ‘In everything, therefore, treat people in the
same way you want them treat you, for this is the Law and the
Prophets.’ Most people, if they create a product, want to be paid
when others use their product.”
I’m always amazed at different scriptures that my students connect
with the “WHY” of honoring copyrights. You can probably think of
many other scriptures that relate specifically to the reason it’s
important for copyright compliance.
REASON #4: LET YOUR LIGHT SHINE or WITNESS TO YOUR
COMMUNITY
As we are often reminded, how we live our lives is the most important
way we can share the Gospel. Church leaders and activities are often
under the microscope of our Post-Modern culture, and we are
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expected to set an example and be a beacon of light as the City on Throughout centuries prior to the Copyright Law, musicians and
the Hill. We can’t get away with the axiom of “Everyone else makes artists have traveled a bumpy road striving to find means to support
copies of song files and share them with their friends.” their vocations. Few have flourished and many have garnered very
little income for their work, some dying in poverty.
Philippians 1:27 (NIV) says, “Whatever happens, conduct yourselves in
a manner worthy of the Gospel of Christ.” One of my students wrote: There was a tremendous creative outpouring unleashed in certain
European cities and countries during the Renaissance period (14th -
“This includes not just our religious life, but also our
16th century) in a cultural economic environment that was void of
personal and business affairs. The church marketplace
Copyright Law but promoted by patrons, like the Church, the Pope
ought to be a shining example of excellence above and
and prominent families, like the Medicis.
beyond what any secular market should be able to do. This
is only achieved when the attitude behind the church’s
conduct is rooted in not what is easiest...but rather, what is
right.”

Most churches have a website today...it’s a wonderful tool for

communication and reaching beyond your church walls. It makes
your church more VISIBLE and more VULNERABLE. Any use of
copyrighted material on your website can be seen by anyone finding
your site. Unfortunately, there are companies whose sole mission is to
find infringers online and threaten lawsuits, but offer to settle out of
court for high penalties and fees.

REASON #5: HONOR AND SUPPORT SONGWRITERS AND CREATIVES

I believe the higher vision and greater purpose for HONORING

COPYRIGHTS is the calling the Church has to support songwriters and
authors of creative works. There are heated debates in today’s
culture about whether or not the Copyright Law strangles creativity or
rewards originality...enriches a few people or provides the backbone
of our knowledge economy. No matter which side you’re on, one
thing is clear, songwriters must have regular income in order to
devote themselves wholehearted to their vocation...making music.

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Today’s cultural economic environment is quite different, but
musicians continue to develop and derive their income from multiple
sources. There is a unique relationship and opportunity, however,
between today’s Christian community and songwriters. There is a
direct pipeline or conduit of steady revenue that is flowing from the
Church to songwriters because of music companies and innovative
annual blanket licenses that have been developed by businesses with
a heart for worship and music ministries.
REASON #6: HELP GIVE MUSIC LIFE
When I first started working in the Christian music industry in the
1980’s, worship songwriters ALL had day jobs. Some were fortunate
enough to have church music minister positions, but many were
carpenters, software programmers and sales reps. I didn’t know one
worship songwriter who derived their livelihood from writing music...it
was a passion that they kindled at night or whenever they could find
time.
When unit sales for popular worship recordings skyrocketed in the
mid-1980’s, song royalty payments became a surprising source of
income for some writers. I distinctly remember a phone call with the
author of “GIVE THANKS”. Through tears he explained how grateful
he was to receive a recent royalty check, because it literally put food
on the table and paid for repairs to his family’s only car. Henry Smith’s
song later rose to #1 on the CCLI charts, and continued to bless his
family.
As worship recording royalties grew and the CCLI Church License
began to take hold in churches, consistent revenue streams
encouraged some writers to take the plunge and devote themselves
wholeheartedly to their calling. Great art does not happen
accidentally. When music flourishes there is a cultural economic
terrain in which songwriters thrive. The next time you buy a church
music license, like CCS's PERFORMmusic License, or pay an invoice for
music rights, you may want to take another look at the transaction
you’re making. It’s a tremendous opportunity to support songwriters,
who in turn will bless your church with new worship songs that
proclaim the Gospel, touching and transforming hearts. Churches
play a vital role in GIVING MUSIC LIFE.
REASON #7: FRESH OUTPOURING OF CREATIVE WORKS
I believe with all my heart that God has such a greater and more
magnificent purpose for the Church to “honor copyrights” than we
can possibly imagine. Because He is the Creator and we are created
in His image and therefor designed to be creative, He wants to pour
out a rich blessing of new and anointed songs and creative
expressions.
I believe that when we honor what God honors, He
delights in blessing us.
Luke 6:38 (NASB) says, “Give, and it will be given
to you. They will pour into your lap a good
measure-pressed down, shaken together,
and running over. For by your standard of
measure it will be measured to you in
return.”
Malachi 3:10 (ESV) says, “Bring the full tithe
into the storehouse, that there may be food
in my house. And thereby put me to the test,
says the Lord of hosts, if I will not open the
windows of heaven for you and pour down for
you a blessing until there is no more need.”
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CHAPTER 2

BASIC
BUILDING BLOCKS

Before diving deep into complex

copyrights questions, it’s essential to
understand the fundamental principles
of U.S. Copyright Law and how they
impact your ministry.
This chapter focuses on helping you establish a solid foundation for
copyright compliance. After reading “Basic Building Blocks,” you will
have a firm grasp on how to 1) define a copyright, 2) identify what
works of authorship can be copyrighted, and 3) the exclusive rights of
the copyright owner. We will also discuss the Religious Service
Exemption and church blanket licenses.
Church and ministry leaders have a heightened awareness of
potential risks and liability for copyright infringement. Copyright issues
can be complex and confusing, especially with today’s abundance of
creativity and innovation in worship and creative arts. New and
accessible technology tools are facilitating an explosion in ways to
proclaim God’s Word, especially through audio, media and internet
productions. So, it’s more important than ever for churches to
establish a solid basic foundation for church activities and copyright
compliance.
You probably already believe it’s a matter of good stewardship for
church leaders to have an overview of the fundamentals of U.S.
Copyright Law and how it impacts your ministry. In this chapter we
focus on helping you establish a solid foundation for copyright
compliance.
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To begin, Christian leaders need to have a firm grasp on three basic
building blocks:
1. What is a copyright, and what works and rights does the U.S.
Copyright Law protect?
2. What are the creative works that can be copyrighted?
3. What are the exclusive rights of copyright owners and how do
they impact the church’s use of copyrighted material?
These three building blocks greatly impact your understanding of
what blanket licenses you need and what they cover, and when you
will need to obtain individual licenses from the copyright owner.
What the U.S. Constitution says about Copyrights
U.S. Copyright Law originates in Article 1, Section 8 of the U.S.
Constitution, which grants Congress the power to “…promote the
progress of science and useful arts, by securing for limited times to
authors and inventors the exclusive right to their respective writings
and discoveries.“
The Founders must have considered this fairly important as this
section comes in between ones that grant Congress the right to coin
money and regulate immigration and ones that grant the power to
declare war and raise armies.
excellence of content created is diminished. The purpose of copyright
law is to make certain that creators of artistic works are
compensated for their efforts, because if they are not, fewer artistic
works will be created, to the detriment of the public.
Second, the clause stipulates “for limited times,” signifying that
copyright protection is to be for a fixed period of time with an end
date.
What exactly is a Copyright or Intellectual Property?
The definition of a copyright is: “Copyright literally means the right to
copy. The term has come to mean that body of exclusive rights
granted by statute to authors for protection of their writing. It
includes the exclusive right to make and publish copies of the
copyrighted work, to make other versions of work, and, with
certain limitations, to make recording of the work and to
perform the work in public,” according to the U.S.
Copyright Office.
Intellectual property refers to intangible
properties that are protected under the U.S.
Copyright, Patent, and Trademark Laws
outlined in Article 1, Section 8. It is
someone’s property.

There are actually two important points of information in Article 1,

Section 8.

First, the intent of the clause is spelled out up front – “to promote the
progress of science and useful arts”. So, although many people think
that copyright was created to make entertainment companies rich, it
was actually created to facilitate the creation of new creative works.
If there is no compensation for creating content, the volume and

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A copyright is a particular kind of property right. It’s often difficult for
folks to grasp the fact that a copyrighted work is someone’s property,
because it is an intangible or intellectual property, rather than
physical property, like a house. There are many similarities, however,
between a copyright, like a song, and a house.
I can sell my house and I can sell my song. For example, when Michael
Jackson bought several hundred Beatles songs for $47 million dollars.
I can own part of a house and I can own part of a song. Co-authors
of a song have joint ownership of that song. I can lease out my house
and I can lease out use of my song. For example, I can license a
website to use my song for a set time period. Like a house, you can
inherit a song from a favorite aunt or donate a song to your
church.
It is possible to face criminal charges for copyright
infringement. Intentionally infringing copyright to make
money is illegal and is commonly known as piracy. It’s
unlikely that you will be engaging in piracy in the course of
your ministry.
On the other hand, copyright infringement
by your church or ministry can absolutely
lead to a civil lawsuit against your
church or ministry. A church can be sued
for its own “official” activities, such as
when staff members put copyrighted
works on the church website without
permission. A church can also be sued
for copyright infringements committed by
its staff while on the job, meaning the
church can be sued for infringements
that it is unaware of.
In most cases, the first action a copyright owner takes against an
infringer is to send a letter demanding compensation. And in most
cases, the matter is settled out of court. Sometimes the cases do go
to court. In one landmark case, a Chicago church was forced to pay
hundreds of thousands of dollars in damages for illegally copying
large amounts of sheet music.
The Eight Types of Copyrightable Works
So, what can be copyrighted? Section 102 of the Copyright Act
defines “works of authorship” to include:
Literary works – Words captured as a book, periodical, poem,
essay, spoken work (i.e. speeches), etc. including non-
dramatic textual works with or without illustrations. They
may be published or unpublished. Computer programs
and databases also are considered literary works. Plays,
dramas, and screenplays are not in the literary works
category. (Even puzzles like Sudoku and Crosswords).
Music – Music including any accompanying words,
lyrics, notes, and composition in some published
format. Musical works include both original
compositions and original arrangements or other
new versions of earlier compositions to which new
copyrightable authorship has been added.
Choreography / Dance / Pantomime -
Choreography is the composition and
arrangement of dance movements and patterns
usually intended to be accompanied by music. As
distinct from choreography, pantomime is the art
of imitating or acting out situations, characters, or
other events.
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Drama – The play itself including dialog, stage direction, etc. The
Drama copyright may also include the musical score. Individual
musical numbers may also be copyrighted as a Music copyright.
Dramatic works such as plays, screenplays, and radio or television
scripts are works intended to be performed. Dramatic works usually
include spoken text, plot, and directions for action.
Visual Arts – Pictorial, graphic, or sculptural works, including 2-
dimensional and 3-dimensional works of fine, graphic, and applied
art. Examples include: photos, visual images, maps, illustrations,
cartoons, maps, sculptures, etc.
Audiovisual - Video / Films – Series of related visual images that
impart an impression of motion, which may or may not be
accompanied by sound.
Sound Recordings – Aural reproduction of some material (which may
or may not itself be copyrighted). They are works that result from the
fixation of a series of musical, spoken, or other sounds, but not
including the sounds accompanying a motion picture or other
audiovisual work. For example, Michael W. Smith’s recording of Paul
Baloche and Lenny LeBlanc’s “Above All” would be a Sound Recording
copyright and the actual composition would be a Music copyright; in
this case, the Sound Recording is owned and copyrighted by one
company, and the Music is owned and copyrighted by a different
publishing company.
Architecture – An original design of a building embodied in any
tangible medium of expression, including a building, architectural
plans, or drawings.
It’s vital for church leaders to have knowledge of all the types of
works that can be copyrighted, because today’s media-oriented and
sensory rich churches use a wide variety of copyrighted works. Fifteen
years ago, churches primarily reproduced and used music (only one
of the eight copyrightable works), but today more innovation and
creativity results in churches using just about every type of work listed
above.
The Six Exclusive Rights of Copyright Holders
To understand copyright law and how it impacts your ministry, you
need to recognize the six rights that are exclusive to owners of the
copyrighted works outlined above.
These rights apply to all works that can be copyrighted. If you want
to engage in any of the activities that are the exclusive right of a
work’s owner, you need to get permission to do so.
Reproduction - Only the owner of a copyrighted work is allowed to
reproduce or copy that work. Examples include:photocopying lyrics,
making rehearsal track CDs, creating a digital copy of a video.
Making Derivative Works - Only the owner of a copyrighted work is
allowed to create new works that are
“based” on a pre-existing work. U.S.
copyright law describes this derivative
work as: “a work based upon one or
more preexisting works, such as a
translation, musical arrangement,
dramatization, fictionalization, motion
picture version, sound recording, art
reproduction, abridgment,
condensation, or any other form in
which a work may be recast,
transformed, or adapted.” Examples
include: arrangements of songs,
adaptations of plays into movies.
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Distribution - Only the owner of that work make can make that work
available to the public by sale, rental, lease, lending or gifting. There
is a “first sale” doctrine that limits the work’s owner’s control to the
“first sale” of a copy. This means that if you buy a CD, you are allowed
to then re-sell that CD without getting the permission of the work’s
owner.
Examples include: giving out CDs of worship service, making a video
podcast of worship services to be distributed for download on the
Internet.
Performance -The owner of a work controls if and when that work will
be performed publicly. U.S. Copyright Law defines a public
performance as:
An instance of music being performed “in a place open to the public
or at any place where a substantial number of persons outside of a
normal circle of a family and its social acquaintances is gathered.”
That is the legal definition and most church performances, with the
exception during of a religious service, fit the criteria. Public
performances extend to more than just in-person performances.
Playing music on TV, radio and the internet also are under the control
of the work’s owner. Examples include: performing a song at a
concert, music played at church social events, on-hold music.
relatively new right that was added in “The Digital Performance Right
in Sound Recordings Act of 1995″. Examples include: streaming a
digital sound recording featured in a worship services, Internet radio.
Requirements for Copyrighting Works of Authorship
What are the requirements for copyright protection of a work of
authorship?
• The work must be original and exhibit minimal creativity.
• It must be fixed in a tangible medium of expression (a form that
can preserve the work so that it can be read back or heard,
either directly or with the aid of a machine; e.g., an audio digital
file, CD, or lead sheet).
After March 1, 1989 works no longer require a copyright notice (© or
the word copyright, the author’s name and the year of publication).
Copyright registration is also no longer required. However, it is wise to
affix a copyright notice to works so that the owner of the copyright
can be easily identified.

Public Display -The owner of a work controls if and when that work
will be displayed publicly. This right is similar to the performance right
but it is for visual works such as photos or videos. The criteria for a
public display are the same as those for public performances detailed
above. Examples include: hanging photos in an office building,
displaying a photograph on an overhead during a worship service.

Digital Recording Performance - The owner of a sound recording

controls if and when that work will be transmitted digitally. This is a
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Here is a list of what can NOT be copyrighted:
• Works not fixed in a tangible medium of expression. For
example, speeches that are not recorded or written down, music
that has not been recorded or published.
• Ideas, procedures, methods, systems, processes, concepts,
principles, discoveries, or devices. For example, an idea for a
story is not copyrightable, but the first chapter of a novel written
down is copyrightable.
• Titles, names, short phrases and slogans; it’s possible to protect
these by trademark law, but not copyright. For example, the title
of a song is not copyrightable.
• Works consisting entirely of information that is common property
with no original authorship. For example, a telephone directory
or standard calendar.
Now that you understand the rights of the copyright owners, let's look
at a very special exception. The Religious Service Exemption (RSE) is a
vital exemption for religious organizations. It is the only special
treatment that churches and ministries receive under Copyright Law,
but it is often misunderstood by many church leaders. It does not
apply to all types of copyrights (remember, there are eight) nor
exclusive rights (there are six).
The Religious Service Exemption (Section 110[3]) provides an
exemption for:
“performances of nondramatic literary or musical work.” whether
secular or Christian, “and also performances of “dramatico-musical
works of a religious nature,” (such as Jesus Christ Superstar,) “or
display of a work, in the course of services at a place of worship or
other religious assembly.”
This only applies to the “performance” and “display” rights, which are
only two of the six rights of the copyright owner. It also only applies to
three types of copyrights, namely literary works (nondramatic),
musical works and dramatico-musical works. All of the other types of
copyrights outlined above do not come under the exemption.
It’s important to understand what is not included, so that you are
aware of what licensing for copyright types and rights is still required.
For example, you are not required to obtain licensing for the right to
perform (the right) music (the copyright type) during a worship
service. However, you are required to get licensing for right to
reproduce (the right) music (the copyright type) that will be used
during a service.
17
We will go into much more detail about the exemption and Fair Use in
Chapter 3.
The RSE does not include videos or films (an audiovisual copyright),
so licensing is required if you want to show or play them in services.
The exemption also does not cover recordings of services or the
retransmission of services over TV, radio or the internet. The
exemption only covers the on-site service, so unfortunately, it does
not apply to your webcasting or streaming efforts.
Once you have a firm grasp on these Basic Building Blocks, you can
begin to lay a solid foundation for your church’s copyright policies
and procedures outlining how to legally use copyrighted material.
You can then have confidence and security in knowing what blanket
licenses you need and what copyrights and exclusive rights are
covered in each one.
What is a blanket license?
There are a number of church blanket licenses and sometimes folks
are confused about what licenses they need and don’t need. Once
again, understanding the Basic Building Blocks will help you
determine what blanket licenses you need, and precisely what types
of copyrights and what exclusive rights are covered by each license.
Blanket licenses provide churches with the simplest and most
affordable method to stay copyright compliant. These licenses allow
different uses and cover different types of copyrighted works. A
blanket license allows licensees to use a catalog of copyrighted works
for one annual fee. Several blanket licenses have been created to
meet the needs of churches and ministries, and most churches need
more than one of these licenses.
Why so many blanket licenses?
Churches and Ministries are actually very fortunate to have several
blanket licenses that cover specific “exclusive rights” and catalogs of
copyrights. These licenses provide a mosaic of coverage, with very
little overlap between their coverages. The first step in determining
which of these licenses to purchase is understanding what they cover
and what they do not cover.
One of the most important ways you can understand what blanket
licenses you need and what they cover is to break it down into three
main elements:
• What type of copyright do they cover – music, sound recordings,
videos, etc?
• What type of exclusive right do they cover – performance,
reproduction, etc?
• What catalog of the copyright do they include?
We will address these elements and cover each blanket license in
greater detail in Chapter 4. We also offer several Fact Sheets that
provide further details on what’s covered in how to obtain licensing
for a variety of church activities and blanket license coverage at
www.TheCopyrightCoach.com.
18
CHAPTER 3

RELIGIOUS SERVICES EXEMPTION

AND THE FAIR USE DOCTRINE

There are important limitations or

exceptions, often called “exemptions,”
to the U.S. Copyright Law, which allow
for copyrighted works to be used
without a license from the copyright
owner.
In this chapter, we will take a close look at the Religious Service
Exemption (RSE) and the Fair Use doctrine as they relate to church
and ministry activities. You will learn what types of copyrights and
exclusive rights are covered in the RSE, and what is not considered
exempt. We will also unpack the four key factors that judges use to
rule on whether or not a copyright use is considered Fair Use. We
feature attorney Brock Shinen’s excellent teaching on application of
Fair Use, which provides examples of church activities that may or
may not qualify for Fair Use.
The Religious Service Exemption of the U.S. Copyright Law (Section
110[3]) is probably the most important part of the law for churches,
but it also can be very confusing for church leaders to understand
20
and identify what it covers and what it does not include. Does it
include all types of copyrighted works or just a few? What rights are
covered in the exemption? Does is exempt churches from getting
licenses from copyright owners for any and all activities? These are
just a few questions we hear frequently from church leaders.
The exemptions states the following are not infringements:
“...performance of a non-dramatic literary or musical work or of a
dramatico-musical work of a religious nature or display of a work, in
the course of services at a place of worship or other religious
assembly” shall not constitute infringement of copyright.
Notice that the language is very specific when it defines the location
and setting where the exemption applies.
“To be exempted...a performance or display must be ‘in the course of
services,’ thus excluding activities at a place of worship that are
social, educational, fundraising, or entertainment purposes.“ From the
House of Representatives on the Copyright Act 1976 Report.
Breaking Down The Religious Service Exemption:
1. Types of copyrights: Only musical works (music
and lyrics) and non-dramatic literary works (like
poems, prose, short stories, books, periodicals)
are exempt.
2.
Types of rights: Only "public performance" and
"public display of the works” are covered.
3.
Location and setting: “During the course of
services at a place of worship or other religious
assembly” is specified.
As long as services are being conducted at a religious service
gathering, the exemption would apply even if they are held in “non-
religious” venues such as an auditorium, stadium or theater. The
exemption excludes performance activities at a place of worship that
are for social, educational, fundraising or entertainment purposes.
In other words, you do not have to get permission from the copyright
owner or pay royalties to perform music or display the lyrics of a work
in a religious service, BUT you do need permission to make legal
copies of lyrics (the reproduction RIGHT). This exemption applies to
the “performance” and “display” rights, which are only two of the six
rights of the copyright owner.
The RSE allows you to play or PERFORM (the right) MUSIC (the type of
copyright), and this includes playing recordings of music from any
format.
What The Religious Service Exemption Does NOT Cover?
The exemption does not apply to the exclusive rights of the copyright
owner to:
• Reproduce a copyrighted work
• Distribute the work
• Make a derivative work
• Perform a digital sound recording
Refer to Chapter 2 for more details about copyrighted works and the
owner’s bundle of exclusive rights.
The Federal court has observed that the RSE is “a narrow exception to
copyright protection,” and that the Copyright Act narrowly limits the
privilege accorded religious uses to performance of a literary or
musical work...or display of a work. The unauthorized distribution and
copying of literary or music “falls outside of that narrow exception to
the copyright protection.”
Some Specific Examples of Activities Not Covered
The exemption does not apply to music being performed or played
outside a religious service for activities such as concerts, aerobics and
dance classes, youth and children's programs, social events,
fundraisers, coffee shops, or music-on-hold. A performance license is
21
required and a simple solution is provided with CCS's one-stop Use. We are especially grateful to feature teaching on Fair Use by
PERFORMmusic License, which covers more than 19 million Christian Brock Shinen, Esq., who addresses the application of Fair Use below.
and secular songs from ASCAP, BMI and SESAC.

It also does not apply to the copying of religious music, since copying
© 2012 Brock Shinen, Esq. You can contact him at
is not a performance or display. The exemption also does not apply
MakeItHappen@BrockShinen.com. Reprint Permission:
to recording music played or performed during a service, because
brock@shinenlaw.com
recording or “reproducing” music is not a performance or display
right. Most of us would like a simple answer. Am I permitted to use three
minutes of a feature film in our church’s
What About Videos and Films?
multimedia production? Can I quote
The exemption does not cover videos or films, which are classified as three paragraphs from a famous book
audiovisual works and one of eight works of authorship that can be and incorporate them into a sermon?
copyrighted. Performance licensing is required if you want to show Can I download a picture from the
them in your services or anywhere in your church facilities. Blanket Internet and use it on the church’s
licensing to show videos is available from CVLI for many film website? As much as any of us would
producers. enjoy a "yes" or "no" to any of these
questions, the plain language of the
The RSE also does not cover recordings of services or the
Copyright Act is extremely instructive
retransmission of services over TV, radio or the Internet. The
and apparently often ignored. By using
exemption only covers the on-site service, so unfortunately, it does
a few simple tools to understand the "Fair Use" doctrine, virtually
not apply to your webcasting efforts. Blanket licensing for streaming
anyone can have enough information at their disposal to make a
music performed by your church musicians and singers is available
sound decision.
from WORSHIPcast License, which covers 19 million songs.
Preliminary Questions -
Straight Forward Application of the Fair Use Doctrine (If there is
such a thing) Before you venture into your Fair Use analysis, you must ask yourself
two questions: 1) is the work I desire to use subject to copyright
Unfortunately, the Fair Use doctrine of the U.S. Copyright Law is not as
protection; and 2) did I obtain my copy of the work from a legal
clear, or black and white, as the Religious Service Exemption. It’s a
source and in a lawful manner. If you answered “yes” to both of these
much more complex area of the law and, in fact, can only be
questions, you can move on to your Fair Use analysis. If you answered
determined by a federal court ruling. I usually recommend obtaining
“no” to either one, Fair Use analysis may be inappropriate.
legal counsel for specific uses that could potentially qualify as Fair

22
For example, let's say you want to use a passage from a book written
in 1784 in your sermon written in 2013. Since that book would now be
in the public domain, Fair Use analysis isn't necessary. The copyright in
that book is now "owned" by the public, meaning essentially, you are
permitted to copy, quote and otherwise use it at will. [Note: That
doesn't necessarily mean you can copy it and attempt to pass it off
as your own original work...but that's a whole different story].
If, on the other hand, the work is subject to copyright protection, but
you obtained it from an illegal source, Fair Use may not apply (even if
your use is without a doubt "fair"). Moreover, the topic of how you
obtained your copy is becoming increasingly important in the digital
age. That means that if you rented a DVD, decrypted it to make your
own copy, then used a portion of your copy (that would otherwise
clearly amount to Fair Use) you may still be liable for infringement.
This is a much-debated topic, however, and is not yet fully resolved. In
the meantime, make sure you obtain your copy of the copyrighted
work legally and in a lawful manner.
One caveat to keep in mind relates to licenses that apply to
copyrighted materials, such as VHS tapes rented from your local
video store or library. When you start the video, you invariably see a
message stating that the movie is for home use only and may not be
copied, distributed, etc. While this is true in a literal sense, the Fair Use
doctrine still applies, meaning that you may copy parts of the video if
your use comports with the Fair Use doctrine. Note the difference
between copying a portion of a VHS tape (which does not have copy
protection controls) and copying a DVD (which has copy protection
controls or “CSS”). Once you have determined that Fair Use may
apply to your use, you can begin your Fair Use analysis.
The Statutory Criteria -
At the outset, you should know that the owner of a copyright is
granted certain exclusive rights, namely, the rights to copy, distribute,
perform, display and make derivative works of the original work.
Without the Fair Use doctrine, virtually all copying would be unlawful.
Congress created the Fair Use doctrine, however, to allow people and
institutions to exercise the rights of a copyright owner for the
purposes of criticism, comment, news reporting, teaching, scholarship
or research. As you might guess, the exception was probably carved
out to enable news organizations and education institutions to use
copyrighted material for the benefit of the public. The Fair Use
doctrine, however, has grown well beyond its original purpose and
now plays a significant role in other venues and industries.
In view of the purpose of the Fair Use doctrine, the Copyright Act sets
forth four criteria for determining whether a use is “fair” and thus
exempt from infringing the exclusive rights of the copyright owner:
1. the purpose of the use (including whether the use is
commercial);
2. the nature of the copyrighted work;
3. the amount and substantiality of the portion
used; and
4. the effect on the market of the original.
To better understand the relationship between
the four factors, we will address them one-by-
one.
23
The Purpose of the Use
You should always evaluate the real reason why you are using a part
of a copyrighted work. If it is simply to exploit its commercial value or
to avoid generating your own original work, then the courts will likely
view your use as infringing. In addition, if your use is purely
commercial in nature, the courts tend to find that the use is infringing.
Note that whether the use is commercial or not is not determinative;
rather, it is a significant factor considered by the court. On the other
hand, if your use is truly to comment on or criticize an existing work
and is not for profit, this factor will weigh heavily in your favor.
The Nature of the Copyrighted Work
If an original work embodies mostly facts, the possibility that your use
will be non-infringing increases. If, on the other hand, it is composed
entirely of fictional expressions, more protection may be afforded.
Likewise, if the original work is at the height of its commercial value,
and part of that value relates to the fact that copies of the original
are limited, your use is more likely to be infringing. This factor in the
Fair Use analysis may be difficult to understand, but do not bypass it.
The Amount and Substantiality of the Use
If you copy all of an original work, you are likely infringing. If you copy
only a small portion, you are much safer. To say, however, that there is
a hard-and-fast rule as to the amount of an original you can use
without violating the copyright owner’s exclusive rights is without
merit. Under the right circumstances, thirty seconds or two notes of a
song may infringe an original; one picture from a book may infringe
the whole; even a few frames from an entire film may be infringing.
The reason for this is simple: the portion you copy may be the most
important portion of the original. An example of this took place when
an Internet website began selling a handful of still frames from a full
motion picture, without the consent of the copyright owner. The
website did not sell the entire film. The website owners were sued for
copyright infringement and argued the Fair Use applied; the court
found the website owners liable for copyright infringement. The court,
of course, considered the commercial nature of their use. It also
considered, however, the fact that the still frames were probably the
most valuable aspect of the film, since they could potentially
generate more revenue than the film itself. This is a perfect example
of why you should not rely on a belief that a concrete rule applies to
this factor.
24
In evaluating your use, honesty is the best practice. Consider if the
parts of the original you wish to use are the essence of the original
work, even if only a small part. If the three notes of a song you want
to include in your own song are readily recognized from the original
work, then you may have used too much. If, on the other hand, you
are only using a small portion of an original work, and that portion is
not the “heart” of the original, then this factor will probably weigh in
your favor.
The Effect On the Market
Simple and to the point: Does your use of the portions of the original
work affect the market for the original? If so, the odds are against
you. If not, the odds are in your favor. This is relatively straightforward
in the sense that you can evaluate from a common sense perspective
whether your use will have any impact on the market for the original.
If people will stop buying the original because of your use of parts of
the original, the effect on the market of the original is negative and
you will likely be infringing. If, on the other hand, despite your use,
people will continue to purchase the original, the effect on the
market for the original is not injured, and your use is probably fair.
There is one caveat here worth pointing out: simply because your use
may decrease sales of the original work is not the determining factor.
Rather, it’s whether your use supplants the market for the original, i.e.,
your work becomes a replacement for the original work.
Summary
Now that you have some tools to assist you in determining whether or
not a use will be deemed “fair” without the copyright owner’s
permission, think about the following examples:
You are the pastor of a large church. You just read a great book on
living with purpose and would like to copy large portions of it for
inclusion in your church’s newsletter. You instruct your secretary to
make 1,000 copies of 35 pages of the best parts of the book.
Result: Probably an infringement.
Reason: Although the use is not commercial, you are copying
substantial amounts of text from an original work that may result in
lost sales to the owner of the copyright in the book, since your
congregation may view your newsletter as the “cliff notes” and forego
purchasing the book. Your purpose is to avoid creating your own
original work and instead use without compensation a work created
by someone else. You have copied much more than would be
necessary to convey the thoughts and ideas you are trying to convey.
Your purpose is improper, the nature of the original is presumably
fiction, you copied a substantial amount, and the congregation may
not purchase the book.
You are the worship pastor of your church. While driving along the
highway, you hear a song entitled, “In This World,” on the radio.
Although the song is clearly a secular song and was played on a
secular station, you think you could change the words a bit and make
it a “redemptive” song. You plan to write all new words for the verses,
but plan to use the melody and the first line of the chorus, which
reads, “In this world, there’s only one thing I need.” Since the song is
about a man needing cigarettes and a bottle of alcohol, you think it
would be great to rewrite the song to focus on how Jesus is the only
thing we need. And, in keeping with the spirit of the original song,
rather than go through the verses and talk about all the sins that
keep you from living right, you will talk about how Jesus empowers us
to overcome our sin. You write the song, and it turns out it’s a hit. You
decide to record it and sell it for $15.00 at huge conference in the
summer.
25
Result: Probably not an infringement. example, you are copying entire songs, which will certainly result in
lost sales to the owners of the songs.
Reason: Your purpose is most likely to comment on and/or criticize
the original by showing how opposite life can be with Jesus in it You are the editor of your church’s website. You have found some
(which is in striking contrast to the original song). You only use great photos on the Internet, and would like to include a few of them
enough of the song to conjure up thoughts of the original, but you on the church’s website and in an electronic newsletter to be emailed
quickly use your own creativity to tell your story. Your use has become to your congregation. The newsletter is free (although you have to
commercial, but you are not merely attempting to ride on the success subscribe to receive it) and you will give proper credit to the
of the original. Your use is unlikely to affect the market for the original photographers in the newsletter and on the website. In fact, you will
(other than from a purely Christian perspective, in hoping that people include a notice on the website that specifically states that the
might go out and by your song as an evangelistic means – and photos are copyrighted by someone else.
forego purchasing the original in the process), particularly since it is
Result: Probably an infringement, but depends on a number of factors.
unlikely that the people buying your song would also be in the market
for the original. Even if they were, however, it is conceivable that they Reason: With respect to the website, you are taking entire photos and
would still purchase the original, since yours doesn’t replace it as copying and displaying them without permission. Your copying and
much as it comments on it. display are not for comment, criticism, etc. Rather, you are posting
them simply because you believe that are great photos. Since a
You are the director of music for a church. You have written down the
member of your congregation can
names of ten songs you love and
now print off the pictures on his/
would like to record on a CD to be
her home printer, the market for
released by your church. Rather
those photos is diminished,
than record them live, you are
notwithstanding your church’s non-
going to simply “burn” each of the
commercial use. In addition,
songs onto a single CD. The church
although you are not selling the
is non- profit, and you will only be
electronic newsletter, courts often
selling them for cost.
conclude in similar situations that
Result: Probably an infringement. your purpose is commercial in
nature, since the use of
R e a s o n : Yo u r p u r p o s e i s
copyrighted works will likely
commercial (even though you are
increase the value of your church
a non-profit entity and even
(perhaps by increased
though you are not making any
m e m b e r s h i p /g i v i n g ) – t h e
money). Also, as in the first
commercial nature is indirect. You
26
have also copied entire photos, making the amount copied
substantial. On the other hand, if your purpose is to comment on or
criticize the photos, then you are closer to a Fair Use. The photos are
presumably a small portion of your article, preventing them from
being the “heart” of your work. You giving proper credit does not help
you, since you may still infringe even having given credit. In short, this
is a tough call, and would depend on the nature of the article and
the actual impact on the originals.
Here's a very common misunderstanding: "If I get one of the licenses I
don’t need to get any of the others." The truth is that the basic church
licenses we cover in Chapter 4 rarely overlap their copyright
coverage. With the exception of two streaming licenses, each license
covers a different type and collection of copyrights and/or rights or
activities. In many cases, churches need all of the available blanket
licenses. In Chapter 4, we will look at the five basic types of blanket
licenses currently available and explain the differences among them.

© 2012 Brock Shinen, Esq. You can contact him at Author’s Note: We thank Mr. Shinen for his comprehensive contribution
MakeItHappen@BrockShinen.com. Reprint Permission: on the Fair Use doctrine.
brock@shinenlaw.com

What Do We Do About Everything Else?

A blanket license provides pre-approved authorization for you to use

a particular group of copyrights for very specific uses or rights. All the
blanket licenses are based on an annual fee. You can use the
copyrights covered in the license's program during the term of your
license. If you do not pay and renew after one year, your right to use
the copyrights is terminated. Some licenses require detailed reporting
on the copyrights you use during the year; some licenses require no
reporting. Each blanket license outlines exactly what you can do in
the license's terms and conditions. Each of these blanket licenses
represents a solution that was created by copyright owners and a
third party in order to simplify legal use of copyrighted material by
the Christian community.

In general, there is little to no duplication between the uses covered

by the various licenses. The coverage provided by your blanket
licenses, can be viewed as a mosaic of coverage, in which the edges
touch but do not overlap.

27
CHAPTER 4

THE BEAUTY
OF BLANKET
LICENSES FOR CHURCH

There are multiple copyright

blanket licenses designed to
simplify legal copyright use for
churches and ministries.
In the mid-1980’s when I worked at Integrity Media, I used to get
phone calls from pastors and worship assistants who would say, “I was
at the copier machine making copies of sheet music, when the Holy
Spirit convicted me and told me I was stealing someone’s music. What
do I need to do get permission and the proper licensing?”
Unfortunately, at that time I had to tell church leaders that they
would have to research and find each individual song owner, submit
a license request (by fax or snail mail) and often wait weeks or
months before they would get instructions, pay a royalty fee and
receive a license.
Today, there are multiple copyright blanket licenses designed to
simplify legal copyright use for churches and ministries. In this chapter,
you will learn how to create a mosaic of blanket licenses to easily and
immediately cover the majority of copyright use in your activities. You
will understand how to analyze each blanket license, identify what
copyright types and catalogs are covered and what exclusive rights
are authorized in each license.
I love visiting churches and talking with worship leaders, media
directors and executive pastors
about their copyright questions and
challenges, but sometimes there’s
quite a bit of frustration.
“Too often we hear about what we
can’t do when it comes to copyrights.
I’d like to hear more about what we
can do.”
This was the lament of one of our
church media leaders a few years
ago. I listened to his frustration, really
a cry for help that’s echoed by many
church leaders, and I realized I needed to shift my copyright training
by focusing on what churches CAN DO with the right solutions. The
easiest and most powerful “CAN DO” tool for your church or ministry
is the use of copyright blanket licenses. But many church leaders are
confused about what the various blanket licenses cover and do not
cover.
With a little clarification, I think you'll see that these licenses make it
simple and easy for you to understand what you can do legally
without the hassle of requesting licenses on a case-by-case basis.
Blanket licenses save your organization huge amounts of time,
resources and money. They really free the church to focus on
enhancing the congregation's programs and worship experience. In
this chapter, we will break down each license, to help you maximize
the coverage that each one provides.
What Is a Blanket License?
The term “blanket license” is used to indicate that copyright owners
have granted permission to use their catalogs of copyrighted works in
situations where issuing individual licenses would be cumbersome and
impractical.
In the Christian community, a blanket license provides pre-approved
authorization for your church or ministry to use a particular group of
copyrights for very specific uses or rights. In most cases, a group of
copyright owners and a third party have developed a licensing
solution to simplify legal use of copyrights and assure royalty
payments are disbursed to the correct copyright owners.
Most of the blanket licenses are based on an annual fee. You can use
the copyrights covered in the license program during the term of your
license. If you do not pay and renew after one year, your right to use
the copyrights is terminated. Some licenses require detailed reporting
29
on copyright titles used; some licenses require no reporting. Each
blanket license outlines exactly what you are authorized to do in the
license agreement’s terms and conditions.
The key to maximizing the beauty of BLANKET LICENSES is five-fold:
1. Plan and Budget
2. Identify Your Activities
3. Identify Types of Copyrights and Exclusive Rights
4. Understand Exemptions
5. Create a Mosaic of Coverage
Analyzing, budgeting and planning are the keys to creating a mosaic
of blanket licenses. This allows your staff and ministries to optimize
pre-approved licensing that covers a broad spectrum of copyright
uses. We will go into much more detail about planning in Chapter 5.
You may wonder why there are so many different blanket licenses. I
often hear, “It sure would be nice if we could just get one license to
cover everything we want to do...and do it legally.” While I agree, it’s
impossible at this time because different agencies or groups
administer various rights; e.g. the U.S. Performance Rights
Organizations (PROs) manage “performance rights” only on behalf of
music publishers.
In addition, because there are eight different types of copyrights
(e.g., music vs. audiovisual), the rights to the various copyrights are
owned and controlled by a variety of companies or groups. Churches
and ministries are very fortunate, as there are far more simple blanket
license options for the Christian community than in the secular music
rights arena.
What You Need to Know About a Blanket License
We’ve seen how to unpack the keys to the Religious Service
Exemption, so let’s follow the same system and break down the 5 KEY
ELEMENTS that you need to identify in order to optimize all the
Blanket Licenses. You need to understand the following:
1. Type of Copyright covered (music, audiovisual, literary, etc.)
2. Type of Exclusive Right covered (reproduction, performance,
derivative, etc.)
3. Specific Catalog or Group of Copyrights covered
4. Specific Uses allowed
5. Terms and Fees
These five elements can be used as a FILTER when you’re analyzing
certain blanket licenses to see if specific activities are covered, and
planning your budget for annual copyright coverage.
30
First, you need to know what type of copyright the blanket license How Did Blanket Licenses Develop?
covers. As we learned in Chapter 2, there are eight different types of
It all started in the mid-1980’s with one blanket license of Christian
creative works that can be copyrighted:
worship songs, which authorized some common congregational
1. Music singing REPRODUCTION and limited DERIVATIVE rights. As worship and
creative arts ministries have become more creative and innovative
2. Sound recordings
over the past 20 years, other types of copyrights and uses have
3. Literary works emerged as potential copyright infringement hazards. As a result,
new blanket licenses have been developed to provide various
4. Audiovisual
solutions for multiple activities.
5. Visual arts
In general, there is no duplication or overlap between the uses
6. Drama covered by the various licenses. The coverage provided by your
blanket licenses can be viewed as a mosaic of coverage, in which the
7. Choreography, Dance and Pantomime
edges touch but do not overlap.
8. Architecture

Second, you need to know what exclusive right(s) is covered by the

blanket license. In review, here are the six exclusive rights:

1. Reproduction

2. Performance

3. Distribution

4. Derivative

5. Display

6. Performance of digital sound recordings.

It's important to identify the type of copyright authorized for use

under the blanket license, and the specific ways you can use it, or the
rights that are included. For example, if the license only allows you to
REPRODUCE or copy music, it does not also include the right to
PERFORM or play music.

31
Here's a very common misunderstanding: "If I get one of the licenses, I
don’t need to get any of the others.” The truth is that the basic
licenses we're going to learn about do not overlap their copyright
coverage. Each license covers a different type and collection of
copyrights and/or rights or activities. In many cases, churches need
most of the available blanket licenses.
PLEASE NOTE: It is very important to always check the source for
information about each blanket license. Each company has a very
good website and FAQs online, as well as customer support, and you
should check with them about the terms and conditions of their
license. We have provided links to each company’s website in the
license descriptions that follow.

We’ll look at the five basic types of blanket licenses and explain the We'll start with all of the licenses that grant rights for use of MUSIC.
differences among them. We'll cut through the confusion and clarify
what you can and cannot do. You'll then be able to maximize the
rights and uses authorized by each license and feel confident and
secure about how to make the most of your licenses. Here is a list of
the current best known licenses, categorized according to their
primary purpose:

1. Church/Ministry Performance Licensing

• PERFORMmusic License by CCS

2. Internet Streaming Licensing

• WORSHIPcast License by CCS

• Church Streaming and Podcast License by CCLI
3. Reproduction Licensing

• Church Copyright License by CCLI

• LicenSing Online The first category of license is PERFORMANCE licensing.
• OneLicense
1. Church/Ministry Performance Licensing
4. Church Rehearsal Licensing

• Rehearsal License by CCLI The most foundational action your church should take towards
copyright compliance is securing performance licensing. Performance
5. Video Performance Licensing licensing is required for churches and ministries playing or performing
• Church Video License by CCLI copyrighted music in routine ministry activities, as well as special
events, onsite in their organization’s facilities and campuses.

32
PERFORMmusic License by CCS

Type of Copyright: Music

Type of Right: Performance (Onsite)

Catalog size: 19 million Christian, secular and seasonal songs from the
catalogs of ASCAP, BMI and SESAC (the U.S. Performance Rights
Organizations).

CCS’s PERFORMmusic License allows churches to legally perform and

play recorded music outside of religious services.

CCS’s PERFORMmusic License DOES grant the rights to play or

perform:

• Music before or after service

• Music at concerts (no admission charge)
The second category of license is for INTERNET STREAMING of MUSIC.
• On-hold music
2. Internet Streaming Licensing
• Music in bookstores and coffee shops
Many churches and ministries want to feature their performances of
• Music in aerobics and exercise classes
music on their websites. The Religious Service Exemption does not
• Music in seminars and conferences apply to a digital public performance of music—such as the
streaming of music on a website—and requires you to obtain a
• Music at social functions
performance license from the song copyright owners.
• Music at VBS and youth events
WORSHIPcast License by CCS

Type of Copyright: Music

CCS’s PERFORMmusic License DOES NOT grant the rights to:
Type of Right: Streaming Performance (Online)
• Charge admission fees (additional license is available)
Catalog size: 19 million Christian, secular and seasonal songs from the
• Retransmit performances on radio, TV or Internet
catalogs of ASCAP, BMI and SESAC (the U.S. Performance Rights
Organizations).

33
CCS’s WORSHIPcast License DOES grant the rights to: • Stream or podcast copyrighted master recordings

• Webcast live performances of music • Stream or podcast songs not in catalog, including all secular
songs
• Webcast archived performances of music
• Charge for access to services • Charge for access to streams or podcasts

CCS’s WORSHIPcast License DOES NOT grant the rights to: • Use any copyrighted material besides songs

• Make performances available for download The third license category is for REPRODUCTION of MUSIC for church
congregational singing.
• Webcast third party recordings
3. Reproduction Licensing
• Webcast copyrighted works other than songs
Church Streaming and Podcast License by CCLI There are a several options available for reproduction licensing for
congregational singing in churches. One of the key areas to consider
Type of Copyright: Music before purchasing a reproduction license is identifying the song
Type of Right: Reproduction (plus limited Derivative) catalog each one covers. You may want to purchase one or more of
the licenses for comprehensive song coverage.
Catalog size: Over 300,000 worship songs
The Church Streaming and Podcast License by CCLI requires an
active Church Copyright License by CCLI. This license grants the
additional rights needed for churches to stream and podcast songs in
the CCLI catalog online.

CCLI’s Church Streaming and Podcast License DOES grant the rights
to:

• Stream your performances of catalog songs in worship services

• Podcast your performances of catalog songs in worship services
CCLI’s Church Streaming and Podcast License DOES NOT grant the
rights to:

• Stream or podcast your performances other than worship

services

34
Church Copyright License by CCLI CCLI’s Church Copyright License DOES NOT grant the rights to:

Type of Copyright: Music • Photocopy or duplicate any choral sheet music (octavos),
cantatas, musicals, handbell music, keyboard arrangements,
Type of Right: Reproduction (limited Derivative)
vocal solos or instrumental works
Catalog size: Over 300,000 worship songs
• Distribute licensed printed materials outside the jurisdiction of
The Church Copyright License by CCLI grants rights for the reprinting Church use
of lyrics in congregational singing aids, limited CD and DVD
reproduction of a worship service, and where no published version is • Rent or sale licensed printed materials
available – the arrangement and translation of songs.
• Reproduce or make practice or rehearsal tracks
CCLI’s Church Copyright License DOES grant the rights to:
• Perform songs outside of worship services
• Print songs in bulletins, liturgies, programs, and song sheets*
• Feature music or lyrics online
• Print songs in bound or unbound songbooks compiled by the
LicenSing Online
Church*
Type of Copyright: Music
• Make overhead transparencies, slides, or to utilize electronic
storage and retrieval methods for the visual projection of songs Type of Right: Reproduction (limited Derivative)

• Print customized vocal and/or instrumental arrangements of
songs, where no published version is available*
• Translate songs into another language where no published
version is available
Catalog size: Over 100,000 songs
The LicenSing Online License allows reproduction of songs for
congregational singing. LicenSing Online features a greater variety of
liturgical music than most other lyric reproduction licenses.

• Record songs in church worship services by either audio or

audio-visual means*

*Note: The quantity of copies and recordings that may be created is

limited based on the “Church Size” of the licensee. For additional
information on the limitations, church responsibilities, and additional
restrictions on rights granted, please refer to the Church Copyright
License terms of agreement provided by CCLI.

35
LicenSing Online DOES grant the rights to:
• Use catalog songs, hymns, lyrics for congregational singing
LicenSing Online DOES NOT grant the rights to:
• Record your performances
The next category of license covers REHEARSAL licensing for
reproducing or copying SOUND RECORDINGS for church worship
team rehearsal purposes.
4. Rehearsal Licensing

• Reproduce or copy sound recordings

• Make translations of songs

• Use of any copyrighted material besides songs

OneLicense

Type of Copyright: Music

Type of Right: Reproduction (limited Derivative)
Catalog size: 62 publishers
Rehearsal License by CCLI
OneLicense allows churches to make copies of songs for
congregational singing. OneLicense includes many publishers which Type of Copyright: Sound Recording
provide liturgical music. Type of Right: Reproduction (for rehearsal purposes only)
OneLicense DOES grant the rights to: Catalog size: 188 approved labels

• Use catalog songs, hymns, lyrics for congregational singing
• Record worship services for the home-bound
• Podcast your performance and create practice tracks
OneLicense DOES NOT grant the rights to:
• Reproduce or copy sound recordings
The CCLI Rehearse License allows worship leaders and church music
directors to legally provide rehearsal copies of commercial audio
recordings to their musicians via email, flash drives or on worship
planning websites. The copies are intended for rehearsal purposes
only and are not intended to remain as permanent copies for
personal collections.

• Make translations of songs

• Use of any copyrighted material besides songs

36
CCLI’s Rehearse License DOES grant the rights to:
• Burn CDs from commercial CD recordings
• Burn CDs from digital downloads
• Upload recordings for listening via web-based Worship Planning
software
• Email digital files to worship team
CCLI’s Rehearse License DOES NOT grant the rights to:
• Download songs from free streaming services
• Provide recordings to musicians for their personal use
• Share recordings with non-members of the church choir, church
band, or church vocalists
Our last type of license is for VIDEO Performance for the
AUDIOVISUAL type of copyright, or films and videos.
5. Video Performance Licensing
Many churches show videos and films for a variety of activities,
including sermon illustrations, Sunday school classes, youth groups
and movie nights. Licensing is required in order to legally show any
copyrighted film or video.
Church Video License by CVLI
Type of Copyright: Audiovisual or Film
Type of Right: Performance
Catalog size: over 650 producers
The Church Video License by CVLI allows churches to show
(PERFORM) approved films and videos for specific uses. The catalog
includes Christian and secular films and videos.
CVLI’s Church Video License DOES grant the rights to:
• Show videos to illustrate sermon points
• Show videos in Sunday schools and youth groups
• Show videos for teaching and training in classes
• Host special event movie nights
• Show whole videos or select portions
CVLI’s Church Video License DOES NOT grant the rights to:
• Reproduce videos
• Synchronize video to another medium
• Charge admission or advertise titles
• Retransmit on TV or internet
37
On the next two pages you will find a Copyright Checklist to help
ensure you are covered. You can download the full Church Blanket
Licenses fact sheet with this checklist here - http://
www.thecopyrightcoach.com/resources/

38
39
CHAPTER 5

PLANNING AND
BUDGETING
FOR COPYRIGHT
COMPLIANCE

Church and ministry leaders excel

at planning activities, programs
and events, but copyright
clearances are often not
included in their plans.
Honoring copyrights and avoiding the risks of infringement takes
intention, planning and preparation. Becoming copyright compliant is
a process, and it usually takes time to turn the ship and get everyone
on board. Following the guidelines of our tested P.L.A.N. four-part
strategy, you will be able to develop practices that help your
organization become copyright compliant. In this chapter, you will
learn how to plan and budget for copyright licensing, implement
policies and procedures for your church or ministry staff and educate,
train and direct your employees or team members on copyright
issues.
If you’ve recently finished obtaining licenses for one of your church’s
special holiday programs, like Christmas or Easter, you understand
just how complex, confusing and time consuming it can be. Now is the
perfect time to create YOUR PLAN for copyright compliance. I like to
use a simple acronym, P.L.A.N. as a guideline for planning.
The right formula for compliance starts with your organization’s
leaders implementing POLICIES, PROCEDURES and PLANNING for
employees and ministry departments. It’s important to note that
copyright compliance is a process, and it takes time to turn the ship. It
does need to start from the top down to set the bar for compliance
so the senior leaders and staff can reach the goal of honoring
copyrights together.
One of the important foundational elements for copyright
compliance is implementing Employee contracts and handbooks that
address specific areas of copyright compliance. It is the responsibility
of all employees to not use copyrighted material without obtaining
permission.
Be sure that you document your policies, so that all staff members
and volunteers understand the requirements. Take a step back and
get the full picture of what copyrights you may be using each year.
Since various departments or ministries may use copyrighted
materials throughout the year in different ways, team leaders should
be held responsible for adhering to the church’s policies.
Here are three important keys to success:
1. Top Down Policies - Communication of changes in policies and
procedures from the top down regarding commitment to
honoring copyrights.
2. Given Authority - Designate an authority to say “Yeah” or “Nay”
on the use of copyrights and what procedures need to take
place.
3. Centralized Control - Implement a check-off system or
procedure for obtaining approval of copyright use.
41
In the late 1990’s, I worked with a well-known mega church, compliance and creativity. This must be internally communicated
consulting to help them obtain all the necessary permissions and from the top down.
licenses. It felt like they took one step forward and two back towards
Clear communication is critical regarding how to determine whether
their goal. I often talked to five or more different staff members and
or not a copyright use is covered by a blanket license, or if it requires
found their efforts were hit and miss, at best. I recommended that
additional clearances. Depending on the size of your church, the
they assign one person on staff (not a volunteer) to coordinate all of
communication may be within departments. Or if you’re a smaller
their licensing and approvals. They made great progress once a
church, you may have a more centralized means of reviewing and
single coordinator was established.
approving copyright uses. You can download a FREE "Church
Consider appointing a copyright gatekeeper on your staff to approve Copyright Policy Sample Outline" at The Copyright Coach.
any use of copyrighted material and determine whether or not
Planning - Budgets and Operations
clearances can be obtained on time. The churches that have the
greatest success in becoming copyright compliant have someone on Projected copyright licensing costs for major productions should be
staff who acts as a gatekeeper when it comes to legally using incorporated into annual budgets. Reviewing possible uses of
copyrighted material. It helps a great deal if you incorporate copyrighted works in your special holiday programs and projects
copyright clearance planning into your creative team’s planning requires that you understand what creative works can be copyrighted
process. If you have someone on staff who wears “copyright glasses” and protected under U.S.
or is the copyright Copyright Law. Refer to
gatekeeper, commit to him or Chapter 2 to review what can
her being present at all be copyrighted and the
planning meetings so they exclusive rights of the
can raise awareness, identify copyright owner.
potential problems, answer
questions, etc. Make sure By far, the easiest, simplest
that each person on the and most affordable way to
team is accountable for plan ahead for compliance, is
identifying material they want to leverage available blanket
to use and provide source licenses. We focused on
information. blanket licenses in detail in
Chapter 3. You can also
The gatekeeper is NOT A download our Blanket
WET BLANKET to creativity, Licenses FACT SHEET, to share
but a blessing to encourage with your church leadership.

42
Make sure you have all the annual blanket licenses that will give you Here are sequential steps to obtaining individual permissions::
coverage for various copyrights and uses without requiring you to get
1. Research and identify all copyrighted material that will be used
individual permissions. Most of these licenses’s annual fees are based
in the production. As your creative worship team submits ideas
on the size of your congregation, and you can budget for the fees
and materials, require that they include complete copyright
accordingly. It’s important to understand what types of copyrights
information: full title, author, source, lyrics, product details with
are covered with each license and the specific rights that are
UPC# (CD, Musical or Songbook, Website, a book, etc.),
included. Wherever you can, obtain blanket licenses when they apply
copyright notice, publishers and administrators.
to your copyright needs. Some of your copyright usage may be
included in one of the many blanket licenses available for churches. 2. Identify and note all of the possible reproductions of
copyrighted material for your production. Will it include any of
PREPARE - Project Lists
the following:
What about copyright uses or activities that are outside the scope of
• Audio recording (CD, MP3)
any blanket license, such as synchronizing a song and sound
recording in the background of a memory video? You’ll need to • Video recording (DVD)
obtain a license from the song owner (sometimes there are multiple
owners or co-publishers) and the record label. It’s important to get in • Custom arrangements
the habit of collecting information from the start. Each of your staff
• Rehearsal Trax
members, and even volunteers, should be aware of copyright use in
their area of responsibility. They should be able to provide you with • Use of master recordings (a record label’s recording of
the information you need to stay compliant. Information about your the song) for CDs or accompaniment tracks
copyrights may be needed for requesting individual licenses from
• Use of master recordings on video
copyright owners, or for reporting your copyright usage in a blanket
license agreement. Use this process to prepare for licensing:

• Have each team member provides a list of copyrighted works

that might be used.

• Identify the source and owner of each work.

• Determine if usage is exempt or covered by a blanket license.

• If no blanket license is available, obtain permissions from

owners.

43
 • Photocopies of a songbook or musicals
• Custom arrangements made for orchestra, choir or ensemble
• Will you sell tickets to the event? If so, you may need a
performance license in order to do so.
• Multi-media image presentation. Will you
reproduce copyrighted visual images or
photos, and will they be included in a
video?
• Literary. Will the production
include drama or literary quotes,
which may require clearances?
• Will the production be
broadcast on TV or Radio or
streamed Online?
3. Compile a list of all copyrighted
material and projected uses or
reproductions.
4. Define all details regarding the
production, including project title,
performance dates, number of units of
each medium to be reproduced, selling
prices for each reproduction, etc.
5. Submit your license requests to copyright owners at least 3
months prior to performance or release dates.
As I’ve mentioned earlier, be sure that those in charge of worship and
creative arts planning are instructed to incorporate copyright
licensing and permissions into their process.
LEARN - Information Resources
Remember that outside the Religious Service Exemption, playing and
performing music in a public setting ONLINE and ONSITE require
performance licensing.
Professional Help
It’s wise for church leaders to obtain
professional copyright help when guidance
and advice is necessary in determining the
best customized plan for your
organization’s copyright compliance.
Here are three recommended
resources:
Copyright Consultants - Onsite
consulting for training, evaluation
and assessment. CCS can provide
this service upon request.
Intellectual Property Attorneys - We
featured an article on the Fair Use
doctrine with Brock Shinen, Esq. in
Chapter 3. Mr. Shinen has comprehensive
experience in intellectual property and
entertainment law, works with several churches,
and ministries and music companies. It is wise to
obtain legal advice regarding specific situations and
activities.
44
THE COPYRIGHT COACH - An ONLINE COACH that equips you with • Utilize online licensed chord charts services.
education and training to help your organization become copyright
compliant by providing simple, downloadable and FREE educational • Remember to review the Terms and Conditions of each service
you utilize.
and training materials. It features a wealth of FREE downloadable
Fact Sheets, videos and webinars, as well as blog articles on current • DON’T WAIT UNTIL LAST MINUTE
topics.
If you wait until the last minute to try to get an individual license, you
ALLOW TIME - To Obtain Licenses can hit a lot of roadblocks; this is when churches get into trouble.
Some song owners have user-friendly online licensing platforms, but
I probably heard some muffled laughs through the internet...we
even then it may take longer than you’d like. Other song owners and
understand how difficult obtaining individual permissions can be with
administrators handle licensing through fax or mail...yes, I know it’s
weekly services and activities and last minute changes, and that’s why
hard to believe in this digital age. You should allow 6-8 weeks to
BLANKET LICENSES and policies and procedures are so important.
obtain licenses from Christian publishers, and 3-4 months for secular
Budgeting for licenses and royalties is also vital. If you can’t get
companies. You may encounter DENIALS for certain types of license
permission in time, this could be a great opportunity for greater
uses, like master recordings or synchronization with video. Some
creativity with your team...perhaps someone takes the photo of what
music publishers and labels may have to get approval from artists,
you want to express, writes a song, or produces a short film. In talking
producers and co-publishers, which can delay license issuance.
recently with my students at the University of Mobile about this
question, they felt that more churches are taking this approach. For your convenience, we have
created an easy and accessible
Products and Inclusive Rights
Royalty Estimator by product
Licensing may not be necessary if the rights you need are included in type that can be downloaded at
your initial purchase. Here are some products and ways that you The Copyright Coach. This will
could reduce licensing needs for your team. help tremendously in your
budgeting process.
• Purchase collections, practice tracks, etc. for each musician or
singer.

• Purchase skits and dramas allowing performance, taping, and

other rights.

• Budget for copies of materials for all members.

• Utilize church planning apps which may include some rights to

copy music.
45
NEVER ASSUME - Without Permission
Lastly, you should never assume you can use copyrighted material
without permission. Be sure you obtain permission BEFORE
reproducing copyrighted material. Making this assumption can prove
costly to churches resulting in high copyright infringement fees and
fines, even legal suits. Two churches were recently sued (one for
$300,000 and one for $3,000,000) for copyright infringement. This
action raised church leaders' awareness of potential risks and liability
for copyright infringement today in churches and ministries.
If Blanket Licenses are not available for your specific uses, and
purchasing individual products for all of your needs is not a feasible
option – you will need to request permission directly from the
copyright’s owner.
Common Copyright Infringements
If you’re posting copyrighted material on your website you are very
vulnerable to copyright owners and agencies looking for potential
infringement. Certain activities represent higher potential risk. There
are also copyright owners that look for illegal publication of their
copyrighted works and send “cease and desist” letters indicating that
the copyright owner could SUE, but instead the website owner could
avoid a lawsuit by paying a hefty fine. I have heard of one literary
work owner that uses this tactic and settles for a $7,500 fee.
46
 CHAPTER 6

CHURCHES IN THE
BUSINESS OF
CREATIVITY

There is an exciting and refreshing trend in

the Christian music industry. Many
churches and ministries are venturing into
the business of creativity, in particular
music publishing and record labels.
It makes sense in many ways, because talented songwriters, musicians
and artists are nurtured, encouraged and trained in the midst of
Christian communities. In this chapter, we will outline five important
steps to determine whether or not you are prepared to start a music
business. You will learn about the four roles of a music publisher and
what constitutes a “work made for hire.” We will also cover how to
find professional resources to help you manage songs and
recordings.
There have been seismic shifts in the music and entertainment
industry landscape (including the Christian realm) over the past 10
years. There appears a chasm between the business model of the
90's and early millennium and the future, which is still evolving.
Christian music publishers and record labels are struggling to curb
piracy and find a viable model that will lift them out of a sinking and
declining ecosystem. Songwriters and artists are discovering new
channels of distribution and promotion online. Unless you’re a “Star”
writer or artist, there can be many disadvantages in signing with a big
company. At the same time, many “creatives” (songwriters, recording
artists, authors, filmmakers, and visual artists) are no longer
necessarily looking to large publishing and recording companies for
financial support and a place to call home.
48
Sounds rather ominous...but what’s that on the horizon? Could it be a
flourishing environment for creativity and innovation...a safe and
nurturing community...a new renaissance of the arts in the church
emerging once again?
A few years ago I consulted with a church launching a music
publishing company and record label. I must admit that I was
skeptical about churches getting into the business of music, because
one of the biggest hurdles they face is recognizing that it is in fact a
business, and a very complex one at that.
Whether you are a church, ministry or small business thinking of
getting into the publishing and/or record business, carefully consider
what you can offer a promising new songwriter or artist that will set
you apart.
While working with creative artists for more three decades, I’ve
learned there are at least three elements that will help them thrive:
1. A trusted team member who provides structure, organization
and a strong business acumen;
2. An environment that cultivates and promotes creativity, and
3. A place called home—a safe harbor that offers nurturing,
accountability, care and a sense of belonging.
The third element is often times the toughest, and this is what a
church or ministry publisher can provide if they do it right. I have seen
many artists in search of a creative home in their business relationship
with a Christian music company only to be bruised with
disappointment. Often their disenchantment was due to unrealistic
expectations, rather than broken promises by the company, but it
reveals a vital requirement that artists need if they are to flourish.
Most “creatives” are weak in the areas of business and organization.
Many know they need help but don’t know where to find or even look
for it. For those lucky enough to have spouses with these attributes
the answer may reside under their own roof where hopefully trust is
not an issue. But most creatives look elsewhere and trust is usually the
underlying concern.
With the state of the entertainment industry, churches can offer
artists:
• A trusted partner with structure and organization
• An environment cultivating creativity
• A place to call home
10 years ago, an Indie hoped and prayed he or she could sign with a
major publisher and record label that would then own their songs
and handle all the details of promoting, protecting and collecting
their artistry and works. One of the problems was that the label
owned everything, and each artist or writer was assigned a “priority
rating” depending on their gross revenue. Many artists and writers
never received the attention and care they expected.
When we look at the overall landscape of the music industry, Indie
music is the only growing segment, including churches. In 2007, indies
controlled 25.8 percent of the music business, behind Universal Music
Group’s 28.8 percent share. By June 30, 2013 indies — a universe that
includes Taylor Swift, Jason Aldean, Bon Iver and Mumford & Sons —
leapfrogged Universal by growing its market share to 34.5 percent,
according to Nielsen SoundScan.
Back to the church that I consulted and visited onsite. I was surprised
when I discovered how much research and study their church
leadership team had already invested in developing a songwriter/
49
publishing model. They had obtained solid legal counsel, talked with
successful church publishers analyzed various agreements, reviewed
licenses and read several books on publishing. The more we explored
songwriter relationships, royalty percentages, recordings and the role
of a publisher, the more impressed I was with the model they were
developing. At first, I questioned some of their deviation from the
Christian music industry standards. However, as I listened, I found my
old assumptions and preconceived notions crumbling.
Here are five practical steps for you if your church is thinking about
entering into the world of a creative business:
1. Your leadership team should give careful and prayerful
consideration.
2. Determine whether the church or your employees will own the
works they create.
The first type of work for hire is “a work prepared by an employee
within the scope of his or her employment.”
The second type of work for hire is “a work specially ordered or
commissioned for use as a contribution to a collective work, as a part
of a motion picture or other audiovisual work, as a translation, as a
supplementary work, as a compilation, as an instructional text, as a
test, as answer material for a test, or as an atlas, if the parties
expressly agree in a written instrument signed by them that the work
shall be considered a work made for hire.”
So the first work for hire is created by employees and in this case, the
employer is deemed the author and owner of the work.
The second work for hire is created by a contractor, and in this case
the person or organization who hired that contractor is deemed the
author and owner of the work.

3. Identify business models or churches that provide a good In the first case, in which the work is created by an employee, there
example to follow. are two key terms “employee” and “scope of employment.”

4. Confirm that this is in line with your church's calling and vision.

5. Count the cost – This business requires full commitment and

resources.

Work For Hire

One important question that church leaders and staff members need
to consider is whether or not certain creative works may be defined
as "works made for hire." This is one of the more complicated areas of
U.S. Copyright Law, and I recommend consulting with an attorney
and tax adviser regarding your specific situation. However, the
following information may help you prepare for that conversation.

The U.S. Copyright Act defines two kinds of work for hire:

50
According to the courts, the definition of “employee” is pretty broad Before assigning your works to a publisher, you should consider the
in regards to this clause. There are a number of criteria that are used following:
to judge this. But in general, if the creator of a work is compensated
by the church, they are an employee for these purposes. • What do you as the songwriter gain?

The second key term is “the scope of employment”. One factor • What if you publish your own songs?
considered in “the scope of employment” includes whether the • What should you expect from a publisher?
creation of a work is part of the standard responsibilities for which the
employee was hired. For example, pastors are expected to write • Who gets what percentage and why?
sermons as part of their official responsibilities. Another factor is The Business of Publishing
whether a work was created using church resources such as
equipment, supplies, office space and paid time. For example, if a It's important to understand that the primary responsibilities or roles
media director, employed by the church, is taking photos at a church of a publisher are to:
event using a camera owned by the church, those photos would be
NURTURE
owned by the church.
PROMOTE
It is important that church leaders communicate clearly with their
staff members regarding their policy on who owns a creative work. An PROTECT and
employee agreement should explain what types of works the church
may consider works made for hire. COLLECT and DISBURSE royalties

Although there may be many types of creative works that a church Role #1 is TO NURTURE, train, encourage and nourish (or feed) the
could own and manage (sermons, literary work, drama, videos, films, gifts and talents of a creative artist by:
etc.), for our purposes, we will focus on the business of music and how • Helping the artists
a song publishing operates. These principles may also apply to other develop their gifts.
creative works.
• Tr a i n i n g a n d p r o v i d i n g
Why assign your song to a publisher? discipline for the artist.
An ideal partnership would be like a marriage, where both • Feeding and nourishing
participants bring equal portions to the table. to encourage growth.

• Providing safe place for

creativity to flourish.

51
Role #2 is the responsibility TO PROMOTE and advance the use of the
song through as many channels and means possible, extend and
expand the life of the song and maximize royalty revenues for the
songwriter and publisher. It also includes development of the songs.
Music businesses must have an established system to create products,
distribute effectively and promote copyrights to other third party
channels. Today there are innovative and constantly evolving means
or channels of promotion, but here are just some:
• Social media promotion
• Online distribution
• TV and radio advertising
• Recordings, television, and motion picture uses
• Generate interest in songs through special projects
• Promoting Church use
Role #3 is TO PROTECT by safeguarding the copyright, defending the
integrity of the song and ensuring correct copyright information is
provided to distributors. This includes:
• Register songs.
• Review, draft and authorize contracts.
• Negotiate and issue licenses for authorized song uses.
• Pursue and correct copyright infringements.
• Initiate and administer any necessary legal action.
• Prevent unauthorized uses of the song.
• Research and evaluate copyright law developments.
Role #4 is TO COLLECT the appropriate and accurate royalty
earnings in an efficient and timely manner. This includes auditing and
monitoring licenses that have been issued and making sure royalties
are paid accurately and on time.
Payments are typically reported quarterly or semiannually, depending
on the songwriter/publisher agreement. A customized copyright
administration database is often required to accurately and precisely
process royalty payments.
How to Set Up Music Publishing
How do you get started as a Publisher? Start by developing a solid
business plan. For details on how to get start, download the FREE
"Basic Steps to Publishing" Fact at The Copyright Coach.
As you develop and organize your publishing company, you may
require professional help from an attorney, accountant or
administrator, but here are some basic guidelines and simple steps
you can follow to get the ball rolling.
Set up a music publishing business in accordance with the local laws
of the state, city and/or country in which you reside. This may be as
simple as establishing a sole proprietorship with a “doing business
as” (dba) company name by obtaining a business license and setting
up a bank account under the business name. You may choose to
establish an LLC (limited liability company) or “S” corporation, which
will be more complicated and may require the services of an
accountant and/or attorney. If you want to set it up under a non-
profit 501-C, you may do so, but once again there are tax and legal
considerations in how you decide to structure it.
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Here are some key steps to getting started:
• Identify required staffing, budgetary needs, short-term and
long-term goals
• Employ professional consultants and attorneys
• Register with Performance Rights Organizations (PROs) and
agencies. You must submit several potential catalog names for
review and approval by your PRO, before you can determine
your song catalog name.
• New opportunities to self published literature and distribute on
Kindle, iBook and NoiseTrade.
• Hosting online service - media (visuals and videos) like
YouTube channels.
• Finding home for distribution and promotion through major
Christian labels.
• New demand for churches to publish their own songs and
music projects.

• Determine whether the publishing company will be a division

of the church or separate?

• Determine who will handle the management of your

copyrights. You may consider outsourcing it to an
administrator or company like CCS, which can handle all
copyright registrations and licensing with the INDIEadmin
Service.

As you can see, there is a great deal of administrative, accounting

and detail work involved in being a publisher and record label.

This is a really exciting time of opportunities. Here are some key

trends for churches.

• New BLANKET LICENSE opportunities for churches and

songwriters.

• New opportunities to self publish and get music online through

social network outlets and subscription based services, like
Song DISCovery, PraiseCharts, Indie Extreme - iTunes and
Amazon (TuneCore)

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SUMMARY
Once you have read CHAPTERS 1-6 of
Solve the Puzzle of Copyrights: Six Steps to
Learning How to Do Music Right, you are
fully equipped to help your organization
become copyright compliant and maintain
copyright policies and procedures.
You can stay fresh on how copyrights impact your church or ministry,
by reviewing and discussing each chapter with your colleagues and
team (See Steps 1 - 6 on the next few pages).

Our team would love to hear from you with any comments, input or
ideas you may have about how we can excel in our vision to be the
ONLINE COACH that equips you with Education and Training to help
your organization become copyright compliant. You can send
comments to susan@christiancooyrightsolutions.com.

STEP 1 - Why Honor Copyrights

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Why is it important for your church or ministry to honor copyrights? STEP 2 - Basic Building Blocks

List the three Basic Building Blocks to understanding copyrights.

Cite specific scriptures that support the “why” in honoring copyrights.

What eights works of authorship (or types) can be copyrighted?

What kinds of risks are there if you infringe someone’s copyright?

What are the six exclusive rights of the copyright owner?

How can your organization help financially support songwriters and

artists?
What cannot be copyrighted?

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STEP 3 - Exemptions and Limitations STEP 4 - Church Blanket Licenses

How does the Religious Service Exemption impact churches What is a blanket license?
and religious organizations?

What types of copyrights are included in the Exemption?

List 5 key elements you need to identify to understand what a
particular blanket license covers?

What exclusive rights does the Exemption covered?

What location and setting is required for the Exemption to apply? Is there one license that will cover any and all of your copyright
activities?

What are the four factors of the Fair Use doctrine?

How are annual blanket license fees structured?

What is the only way you can know for sure if something qualifies
as Fair Use?

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STEP 5 - Planning for Copyright Compliance STEP 6 - Churches in Business of Creativity

What is a Copyright Gatekeeper? List 5 practical steps to take before entering into the music business?

How can you budget for copyright compliance? What are the 4 roles or responsibilities of a music publisher?

What does the acronym P.L.A.N. stand for? What are the criteria for a Work Made For Hire?

Why is it critical to not wait until the last minute to get Where do you need to begin if you’re going to start a music
copyright permission? publishing company?

Where are churches and ministries most vulnerable? Why?

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