Licensing Content and Distribution for Virtual Business Activities, Entertainment and Events

This shift affects all types of businesses—these issues and licensing requirements are not limited to online concerts, or even to the entertainment industry. To the contrary, licensing issues need to be considered and addressed by a variety of businesses that are finding new ways to deliver content to their workforces, customers, and clients. With many businesses forging ahead, virtual hiring and orientation become vital for the new remote workforce and virtual training programs are becoming standard for both new and existing employees. Those programs, which had predominantly been held in-person, are going virtual, with live video presentations and on-demand programs.

Similarly, many businesses that have endured COVID-related slowdowns are taking advantage of their knowledge and expertise by producing webinars and consulting programs for both existing and potential customers and clients. Virtual networking and other social events offered by businesses are also becoming common. To enhance audience engagement, such programs often include audio, video and still-image clips, many of which originate from third parties or are created by independent contractors. Businesses using third-party content in this way need to consider any relevant third-party rights and in many cases acquire multiple licenses from the copyright holders. Similar issues arise in the context of virtual company parties or client events, where audio and video recordings may be played, or where companies may present live or recorded remote performances.

Of course, the entertainment industry has been highly impacted by this transition. With respect to music, for example, concert promoters, performance venues, and artists are turning to virtual concerts as a way of maintaining audiences. Recent performances like the World Health Organization’s “One World: Together At Home” global special illustrate the potential complexities where multiple performers of multiple works, each with their own potentially complex rights-ownership structures, performed to audiences online and broadcast on major television networks worldwide. Depending on the type of content and the specific distribution channels, these kinds of performances typically require a variety of specific licenses. For example, presenting a live-streamed concert would require several types of music licenses—such as for the underlying songs and possible recordings—and publicity rights of those depicted must also be licensed. Similarly, presenting recorded footage of past concerts, whether streamed or offered on demand, will often require new licenses, in addition to those that were obtained at the time of the concert. Live in-person performances with simultaneous live-streams may require yet another slate of licenses, and additional concerns will come into play where virtual concerts are shown and promoted on social media platforms.

The closing of theaters has accelerated many motion pictures to being broadcast on channels of various kinds and to streaming services and has moved many live theater performances onto virtual platforms. These shifts require that new types of licenses be considered and often obtained, and existing licenses must be reviewed and often need to be modified. Radio stations and programs that are now expanding into webcasting will require additional licenses to cover recordings and interviews that are broadcast online. Similarly, producers and distributors participating in the proliferation of podcasts should be careful to consider what rights are involved with their content and what licenses are needed, and to obtain appropriate licenses for interviews, music, and other third-party content included in or played on their programs.

Although the purpose of copyright law is to promote creativity and the proliferation of new works, the copyright scheme protects creators against unauthorized use of their creative works. Right of publicity laws protect people from unauthorized commercial use of their name, image, likeness, voice or other elements of their persona. If you will be creating new content that includes anything you do not own or implicates any other third-party rights, or if you are distributing any such content on any new media or platforms, always consider whether you have the appropriate licenses for the kind of content you are distributing and for the distribution channel you are using. The risks of not properly addressing third-party rights are high, and the consequences of not getting it right can be difficult, time-consuming and expensive.

Pillsbury is closely monitoring and analyzing the global legal, economic, policy and industry impacts of COVID-19. For our latest insights, visit our COVID-19 and Economic Impact Resource Center.