UPPM Composers To Benefit from ASCAP to SESAC Move of Works

Dear Composers,

We are extremely pleased to share some exciting news with you. As the publisher of the works you composed for the Universal Music Production Music catalogs, we are always actively looking for ways to bring greater value to our music. Towards that end, we wanted to bring to your attention an exciting new arrangement that we have entered into regarding the works you wrote for the Universal Music Production Music catalogs.

As of April 1, 2016, we will be moving the works in the subject catalog from ASCAP to SESAC. This change will give SESAC the right to issue performing rights licenses for these works in the United States (following the expiration of any “licenses in effect” which may exist at ASCAP). We are quite confident this new arrangement with SESAC will ultimately result in higher aggregate royalties for our writers.

This new deal with SESAC only relates to the subject catalogs mentioned above and, for the avoidance of doubt, you should be aware that this will not affect your membership or affiliation with ASCAP. In fact, payment relating to these works for ex-USA performances (to the extent received) and so-called “licenses in effect” will continue to be paid to you directly by ASCAP. After April 1, 2016, SESAC will be responsible for reporting and paying royalties for these catalog works for all new licenses entered into by them.

We continue to have a close relationship with ASCAP, which continues to license performing rights for many thousands of musical compositions that we publish.

Thank you again for your contributions to the Universal Music Production Music library. We are very happy to share with you as many of the details of this arrangement as you or your representatives would like. Should you have any questions, please feel free to contact either of the following:

UPPM Composer Relations
Jackson Abbeduto
Jackson.Abbeduto@umusic.com
(310) 235-4981

SESAC Writer / Publisher Relations
Sam Kling
skling@sesac.com
(323) 937-3722

Thank you,
Gary Gross, President, UPPM Worldwide

FREQUENTLY ASKED QUESTIONS: ASCAP TO SESAC MOVE FOR UPPM WORKS

1. Q: Why did UPPM do this?

A: Universal Music Publishing Group (UMPG) and its production music arm, Universal Publishing Production Music (inclusive of Killer Tracks, FirstCom, and MasterSource) are always looking for ways to make more money for their songwriters and for themselves. In this case, UMPG and UPPM negotiated a deal with SESAC where, all totaled, we expect that UPPM's ASCAP songwriters will receive approximately 20% more than they had previously received from ASCAP for performances occurring in the U.S. Please remember, as always, royalties may vary with an individual writer since the number of performances and placements ultimately determine the amount each writer receives each payment period.

2. Q: Is there anything I need to do to effectuate this change?

A: No, all necessary payment information will be given to SESAC so that they can account to you directly. As such, you do not need to contact SESAC or provide them with any additional information. However, if you would like to speak to a representative from SESAC, please feel free to reach out to Sam Kling (SESAC Writer Relations) at skling@sesac.com.

3. Q: Who will pay me my writer’s share of performance?

A: There are a few scenarios:

• For pre-April 1, 2016 US performances: ASCAP will continue to make payments directly to you.
• For US performances after April 1, 2016:
o For new works (i.e. works registered after April 1, 2016): SESAC will make payments directly to you.
o For existing works (i.e. works registered before April 1, 2016): SESAC will make payments directly to you, unless these performances are subject to an ASCAP “license-in-effect” (see question 9 below).

• For ex-US performances: ASCAP will continue to collect from the applicable PRO in the territory of performance and make payments directly to you.

4. Q: Is it possible for me to continue to receive payments directly from ASCAP for US performances not subject to “licenses-in-effect”?

A: UPPM wants you to be paid in any manner with which you are comfortable. However, if you would prefer to be paid by ASCAP for works licensed by SESAC in the US, ASCAP would need to approve such an arrangement. As such, you will need to contact your representative in the ASCAP Membership Services department for more information.

5. Q: How will this impact my membership with ASCAP?

A: This arrangement does not affect your ASCAP membership or affiliation. You will remain an ASCAP writer unless and until you ultimately decide to make a change. Your performing rights organization affiliation in the USA continues to be your own decision.

6. Q: Will I retain access to my online portal on ASCAP’s website? Will my works remain listed in ASCAP’s ACE database?

A: Yes, as an ASCAP writer, you will be able to access your ASCAP online account just as you always have. Your list of works in ASCAP’s ACE database will also not be affected by this arrangement. Please note that if any of your works are missing from ACE, ASCAP has been notified and has advised us that such works will be restored. Please feel free to contact your representative in the ASCAP Membership Services department if you have any further questions about the ACE database.

7. Q: What happens to my non-UPPM works?

A: This transaction will not affect your non-UPPM works (if any). For such works, you will continue to be accounted to in the same manner as you have historically.

8. Q: What about new compositions I deliver to UPPM?

A: The delivery and song submission process will not change. UMPG / UPPM will handle all necessary registrations and PRO notifications as we have in the past. You will not need to take any action concerning song delivery to any PROs.

9. Q: When will I start to receive royalties from SESAC for US performances?

A: ASCAP will continue to make payments for 4Q2015 and 1Q2016 performances, as well as for “licenses-in-effect.” As a result, until the “licenses-in-effect” expire, the majority of your royalties will continue to be paid by ASCAP. Payment from SESAC will not commence until the various “licenses-in-effect” expire and SESAC is able to negotiate new licenses. As a result, payments from SESAC will likely not commence until approximately June of 2017.

10. Q: What are “licenses-in-effect”?

A: Licenses have been negotiated by ASCAP in the normal course prior to April 1, 2016 for performances occurring within the United States. A number of those licenses will remain “in-effect” beyond April 1, 2016. These “licenses-in-effect” have varying end dates. When those licenses ultimately expire, SESAC will be free to license our works.

11. Q: When do “licenses-in-effect” expire?

A: We aren’t permitted to release this information. As such, please feel free to contact your representative in the ASCAP Membership Services department for more details.

12. Q: If I am already a SESAC member, do I also get the benefit of your new deal?

A: The transaction does not affect current SESAC members; however, our understanding is that current SESAC members are already receiving similar benefit.