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DVD Sales
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Over a year’s time it could add up. Here is what MPEG LA had to say about some
questions I had.1) “Are duplicators supposed to have this license?”
Response: Yes, they are.
2) “Does a cable access facility that makes DVD copies of shows need the
license?”Response: Yes.
3) “Does any one making duplications and original DVDs need the
license?”Response: Yes, if they create MPEG-2 Packaged Medium (e.g., CD, DVD
discs containing MPEG-2 video) for anything other than their own home or
personal use, then they would benefit from the coverage of the MPEG-2
License in Section 2.4 for MPEG-2 Packaged Medium and would be
responsible for applicable royalties for the MPEG-2 video on each disc.4) “Is the royalty paid thru the purchase of blank DVDs?”
Response: No, it paid by the party creating the discs with MPEG-2 video
content on them (see 3 above).As a general matter, patent holders have the right to place a royalty at
any point in the product chain, and in the case of our MPEG-2 License,
it is our current policy to hold replicators/duplicators responsible for
taking the License and paying applicable royalties for the MPEG-2
Packaged Medium they create. But, if a replicator chooses not to
comply, they thereby thrust the responsibility onto its customers and
the patent holders will have no choice but to hold the customers
responsible for payment.“Under the MPEG-2 Patent Portfolio License the party that offers MPEG-2
Royalty Products (Section 1.25) for Sale (Section 1.30) to the end user
is responsible for royalties on the various categories of end product
(in hardware or software) sold or placed into the stream of
distribution.”Scenario #1: I create the DVD for client, I send to duplicator, I
deliver to client (reseller).Scenario #2: I create the DVD for client, I deliver to client
(reseller). Client sends to duplicator. Duplicator delivers copies to
client.Who should be the licensee?
Also what about schools or government intuitions that offer DVDs of the
graduation or other events?“In the scenarios you describe above, MPEG LA would look to
the party duplicating the discs to be licensed and pay the applicable
royalties. But, to the extent that party does not meet its obligations,
all other parties in the product chain have infringement liability and
can be held responsible for the applicable royalties.”KB
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[David Roth Weiss] ” I better not find out you’re producing their DVDs next week.” Send me their info and I’ll ask them not to tell you anything.
The above price is a wholesale price for clients when they need to resell to recoup their money.
We have a 9 disc duplicator system and our Bravo Pro printer does runs of 50 pieces. In 40 minutes, my $10 per hour helper can burn and print 50 copies at a cost of $ .70 each or $35. 50 x $3.50 is $175 for a gross profit of $130.
Our normal price is $5 to $7.50 depending on how clueless the client is. (Hope they’re not reading this)
Actually, the Bravo Pro printer takes about 100 seconds to print the face of a disc so it takes a bit under an hour and a half to print 50 discs.
Thin jewel cases are about $ .18 so there goes my bottom line. All shot to hell.
Send us your dub orders. Of course, as soon as I know who your clients are, we’ll offer to do better production work for less money and then we’ll end up losing your business because you won’t have any. Crap. It’s just a vicious circle isn’t it?
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
Sony EX-1 on the way. -
However, it’s a sporting event and the music becomes a very debatable topic. It’s kinda like basketball and baseball games, or national skating competitions where they play music and then the music becomes part of the event and bla bla bla. It’s been done so long that it’s almost too late to do anything about it.
I’m not trying to justify anything, just stating the facts. Not looking to start another thread on music rights.
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
Sony EX-1 on the way. -
[Steve Wargo] “Of course, as soon as I know who your clients are, we’ll offer to do better production work for less money”
Ummm… Steve…
You may offer to do better production work, but of course it doesn’t get any better, so you’d have a tough time delivering.
Anyway, its my birthday Friday, so don’t steal all my clients.
Happy holidays!!!
David
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Business & Marketing, and Indie Film & Documentary forums.
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Kerry –
I got it, yes, we should all be very aware that the MPEG codec has royalties attached. So does the lyrics to the song “Happy Birthday”. And I am as concerned about my exposure to improper use of DVD duplication as I am to the unpaid royalties I owe when singing happy birthday at my son’s party. Both instances are only an issue when used in “Mass Media” – 300 copies of a high school graduation DVD (royalty’s due = $6.00) are not going to get the school board in trouble. If you’re pressing ten thousand DVDs and your duplicator isn’t paying the proper licensing fee, and MPEG LA deems fit to come after you as the distributor, you can feel free to sue the duplicator – fat lot of good it will due you – and then all the lawyers can buy a Benz for the new girlfriend. The licensing fees are only an issue with the actual duplicators who are pressing millions of disks a year. It is not practical for MPEG LA to go after anyone else. Especially a guy who is discussing pressing 40 DVDs for an event.
Herb Sevush
Zebra Productions -
[Steve Wargo] “It’s kinda like basketball and baseball games, or national skating competitions where they play music and then the music becomes part of the event”
It’s called “Incidental” recording and is legally acceptable, at least here in Canada.
– Don
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[Don Greening] ”
It’s called “Incidental” recording and is legally acceptable, at least here in Canada.”It’s not ‘incidental’ if they’re performing to it. An example of incidental music would be in a documentary scene where it’s part of the reality of the scene and not controlled as in a feature film.
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[Raymond Motion Pictures] “It’s not ‘incidental’ if they’re performing to it.”
Correct. But music playing in the background at a wedding is considered incidental recording. Again, this is here in Canada. What that is considered in other parts of the globe I have no idea.
– Don
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Happy Birthday
Merry Christmas
Happy New Year
Thanks for all the great posts this year. You’ve brought a lot to this forum.
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
Sony EX-1 on the way. -
Thanks Stevie!!!
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Business & Marketing, and Indie Film & Documentary forums.
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