Bingo: that was an unauthorized derivative work, and Paramount had to settle by paying $20k to the publisher.
He told me one of their stars spontaneously made up different words while singing a pop song acapella, during a TV interview. I also have a friend who was head of music business at Paramount. knowing it would come out of their pockets and not mine. I never had to invoke it, but recall a couple of times where stations' lawyers suddenly got a lot friendlier when negotiating for "just this once" with a record company. It means that if the copyright owners come after me - which they can - and are successful, I can make the production pay the damages and legal fees. So my lawyer insisted on the indemnification sentence, and that the production supplies the music from their own library. That's wrong on so many counts: the license is only for the notes and words as written on paper, it only applies to their own station, a spot becomes an authorized derivative work, the recording is a separate copyright owned by the band or record company. They always insisted that the songs they gave me were covered by their ASCAP and BMI annual licenses. I used to do a lot of TV spots for radio stations around the country. What you really need is a clause indemnifying you against copyright actions for anything the production provides. Nothing can make Apple (or anyone other than the production) not sue you, if they want to. Ive tried clicking 'download purchased tones' in the settings menu. I can select them, I can play them, but they dont 'take' as the actual ringtone. I don't have anything in the contract that makes me responsable for the copyright I actually have the ringtones on my phone.
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