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New Use Agreements

When music recorded under one AFM agreement is used in another medium (let’s say, an album track is used in a commercial,) there are provisions that dictate how the musicians on the original recording get repaid. 

This is called “New Use” and, generally, a musician on the original recording should be paid as if they were called to a recording session to create content in the new medium. A musician on a sound recording that’s used in a commercial should be paid for the usage as if they were called to perform a commercial recording session. 

There are some exceptions to this rule, through negotiations with different industries. When sound recordings are licensed at a lower licensing fee, the AFM (more accurately, its affiliated funds) collects a percentage of the license fee instead of a full New Use. 

The provisions for use of Sound Recording product are discussed at length here. 

Songs being utilized in commercials will always require a full New Use payment. Songs utilized in films that are above the percentage provisions in the SRLA will require a specific wage be paid, as bargained in the film agreements. Music from one motion picture being used in a different motion picture is subject to the clip use terms in the film agreements. Outside of these examples, a full New Use is likely required. 

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