Licensing's Crucial Role in The Global Music Industry

Music, a universal language that bridges cultures and generations, is integral to our lives. From the catchy pop anthems of Taylor Swift and Harry Styles to the electrifying beats of BLACKPINK and the groundbreaking sound of the phenomenal boy group SB19 to the soulful melodies of local artists like Zack Tabudlo and Ben&Ben, music has the power to move, inspire, and connect us.

Yet, behind every chart-topping hit and every local band's gig at a neighborhood bar lies a complex network of creators and stakeholders. Producers, recording artists, and record labels all play a vital role in bringing music to our ears. Ensuring that these individuals are fairly compensated for their work is where music licensing comes into play.

Fair play

At its core, music licensing is the process of granting permission to use copyrighted music in various settings. Whether it's a radio station broadcasting the latest hits, a restaurant creating a relaxing ambiance with background music, or a filmmaker choosing the perfect soundtrack for a scene, music licensing ensures that the creators of that music are recognized and rewarded for their efforts.

Organizations like the Philippines Recorded Music Rights Inc. (PRM) are at the forefront of this endeavor. PRM acts as a bridge between music users and rights holders, collecting licensing fees from businesses and establishments that use music publicly. These fees are then distributed as royalties to the artists, composers, and labels who own the rights to the music.

As Enzo Valdez, Managing Director of UMG Philippines, aptly pointed out, "Music has shaped Philippine culture for the past few decades. PRM ensures that producers and performers get compensated for the public performance of their recordings. This initiative will help foster a healthier ecosystem for these parties to continue creating music as well as inspire the future generations."

Atty. Ricardo Blancaflor, Chairman of PRM, emphasized, "A proper license is not only for peace of mind but also protection for the future; it is like giving your heirs insurance." PRM marked a significant milestone in this mission with its Distribution Party last July 19, 2024. The event not only celebrated the achievements of artists but also highlighted the importance of music licensing in ensuring a thriving music ecosystem.

A global conversation with local impact

The importance of music licensing extends far beyond the borders of the Philippines. It's a global conversation with significant local impact. When artists are fairly compensated for their work, it creates a ripple effect throughout the music industry. It enables them to invest in their craft and produce more music. Music licensing helps protect the intellectual property rights of artists, ensuring that their work is not exploited or used without permission. This fosters an environment of respect and creativity, where artists can feel confident that their contributions will be valued.

In an era where streaming services and digital platforms have revolutionized how we consume music, the role of music licensing is more crucial than ever. By ensuring that artists receive a fair share of the revenue generated from their music, we can support a thriving and sustainable music industry that benefits creators and fans alike.

Lead photos from SONY Music