Music licensing is one of those topics that makes filmmakers’ eyes glaze over, right up until it becomes a crisis. I’ve seen Australian films delayed, sued, and pulled from distribution because the music rights weren’t sorted properly. It’s boring until it isn’t, and then it’s very expensive.

Here’s what you need to know.

The Two Types of Music Rights

Every piece of recorded music involves two separate copyrights. The first is the composition copyright, which covers the underlying song, the melody, lyrics, and musical arrangement. This is typically owned by the songwriter or their publisher. The second is the sound recording copyright, which covers the specific recorded performance of that composition. This is typically owned by the record label or the performing artist.

To use a piece of existing music in your film, you need to clear both copyrights. Clearing the composition gives you a synchronisation licence (sync licence). Clearing the sound recording gives you a master use licence. You need both.

If you want to use a different recording of the same song, you only need a new master use licence. The sync licence applies to the composition regardless of which recording you use.

How Much Does It Cost

This is where it gets uncomfortable. Licensing fees for well-known songs can range from a few thousand dollars for an independent film to hundreds of thousands for a commercial feature. The fee depends on the profile of the song, the size and territory of the release, the prominence of the placement (background versus feature use), and the budget of the film.

For a micro-budget Australian film, even modest licensing fees can blow the budget. A single recognisable song might cost $5,000-$20,000 for festival and limited theatrical rights. That’s a significant proportion of a $100,000 production budget.

Indie labels and unsigned artists are generally more affordable and more willing to negotiate, but don’t assume any music is free. Even unsigned artists have rights, and you need their permission.

The Free Music Trap

Some filmmakers try to avoid licensing costs by using “royalty-free” music from library services. This can work for background use, but library music often sounds generic and can undermine the emotional impact of your film. Audiences can tell the difference between a film with thoughtfully curated music and one padded with stock tracks.

A better option for budget-conscious filmmakers is to commission an original score. An original composition created specifically for your film belongs to the production (assuming the contract is structured correctly), which eliminates ongoing licensing issues and gives your film a distinctive musical identity.

Several Australian composers specialise in film scoring for independent productions. The Australian Guild of Screen Composers can connect you with composers at various career stages and price points.

Clearing Music: The Practical Process

If you’ve decided to use existing music, start the clearance process early. Don’t wait until post-production. Music clearance can take weeks or months, and if the rights holders say no or the fee is too high, you need time to find alternatives.

Step one: identify who owns the rights. APRA AMCOS (the Australasian Performing Right Association) can help identify composition rights holders. The record label listed on the recording is your starting point for master rights.

Step two: submit a licence request. This should include details about the film (title, budget, genre, distribution plans), the proposed use (which scene, how long, background or featured), and the territories you need covered.

Step three: negotiate the fee. Be honest about your budget. Many rights holders will negotiate, especially for independent films. Some will offer reduced fees for festival-only rights, with options to extend to broader distribution later.

Step four: get it in writing. A verbal agreement is not a licence. You need signed licence agreements for both the sync and master rights before you can use the music.

Festival vs Commercial Rights

A useful cost-saving strategy is to licence music for festival use only at a lower fee, with an option to extend to commercial release later. This means you don’t pay commercial rates upfront for music that might only be heard at festivals. If the film secures distribution, you can then extend the licence at the agreed commercial rate.

This approach is common in independent film and most rights holders are familiar with it. Just make sure the option terms are specified in the initial agreement.

The APRA AMCOS Connection

If you’re screening your film in Australia, even at festivals, you’re technically required to have public performance coverage through APRA AMCOS. Most festival venues hold APRA AMCOS licences that cover screenings at the venue, but independent screenings at non-traditional venues may need separate coverage.

Your producer or entertainment lawyer should be across this, but it’s worth mentioning because it’s an obligation that sometimes gets overlooked by emerging filmmakers.

Final Advice

Budget for music from the start. Include music licensing as a line item in your production budget alongside every other post-production cost. If you can’t afford to licence the music you want, commission an original score or find affordable alternatives before you fall in love with a temp track that you’ll never be able to afford.

And please, please, sort your music rights before you submit to festivals. Discovering a clearance issue after your film is programmed at MIFF is a nightmare nobody needs.