Copyright and Publishing in the Music Industry

Music Publishing

The business of acquiring, protecting, promoting, and exploiting musical compositions.

Copyright

Exclusive rights to creators of original works.

Copyright Holder

Typically, the songwriter(s) or composer(s).

Licensing

Leasing of rights associated with musical works.

Originality Requirement

Author's independent creative effort.

Duration of Copyright

Life of the author(s) plus 70 years.

Registration Process

Costs $45 per copyrighted item and is optional but offers benefits like evidence of ownership.

Rights of Copyright Holders

Includes reproduction, distribution, public performance, right to make a derivative work, and display right.

Infringement

Occurs when someone violates copyright by copying, distributing, performing, or adapting a work without permission.

Fair Use Doctrine

Legal principle allowing limited use of copyrighted material without permission under certain circumstances.

Copyright Act of 1976

Foundation of modern U.S. copyright law.

Digital Millennium Copyright Act (DMCA)

Addresses copyright issues in digital media.

Composition (Song)

Refers to the underlying musical composition, including melody, lyrics, and chord progressions.

Sound Recording (Master)

Refers to the fixation of a performance or interpretation of a song onto a tangible medium.

Mechanical Royalties

Payments for reproduction and distribution of musical compositions.

Calculation of Mechanical Royalties

Per-unit basis, statutory rates set by Copyright Royalty Board (CRB) and is currently per track or $20 for each minute of playing time, whichever is greater.

Collection and Administration of Mechanical Royalties

Managed by mechanical rights organizations such as the Mechanical Licensing Collective (MLC) and the Harry Fox Agency (HFA).

Performance Royalties

Earned from public performances collected by Performing Rights Organizations (PROS).

Synchronization Licensing

Licensing fees for use in visual media such as films, TV shows, commercials, video games, and online videos.

Print Music and Sheet Music Sales

Revenue from printed and digital sheet music sales.

Key Players in Music Publishing

Includes publishers and artists who acquire, manage, and exploit rights to musical compositions.

Major Music Publishers

Includes Universal Music Publishing Group, Sony/ATV Music Publishing, Warner and Chappell Music.

Major companies

Universal Music Publishing Group, Sony/ATV Music Publishing, Warner and Chappell Music.

Songwriters

Create musical compositions and retain copyright. Interpret and record musical compositions for public release.

Collecting Societies - Performing Rights Organizations (PROS)

Represent songwriters, composers, and publishers in collecting performance royalties.

PROs

License musical compositions for public performance on behalf of their members, covering radio, TV, streaming platforms, live concerts, and public venues.

Major PROs

ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music, Inc.), SESAC (formerly Society of European Stage Authors and Composers), and GMR (Global Music Rights).

Foreign PROS to Know

SOCAN in Canada; APRA in Australia; SACEM in France; and PRS in Great Britain.

Administration Agreement

An agreement between a songwriter and a publishing administrator wherein the administrator handles the administrative tasks related to the songwriter's compositions.

Co-publishing Agreement

A contract between a songwriter and a music publisher where the publisher shares ownership of the song's copyright with the songwriter.

Foreign Sub-publishing Agreements

Contracts between a primary publisher and a sub-publisher, granting the sub-publisher the right to exploit the primary publisher's catalog within a specific territory or region.

On-Demand Streaming

Allows users to select and play specific songs, albums, or playlists at any time, providing them with full control over their listening experience.

User Interaction in On-Demand Streaming

Users can search for and choose individual tracks or albums from a vast library of music available on the streaming platform.

Flexibility in On-Demand Streaming

On-demand streaming services offer a high degree of flexibility and customization, allowing users to listen to their favorite music whenever and wherever they want.

Examples of On-Demand Streaming

Spotify, Apple Music, Amazon Music Unlimited, YouTube Music.

Non-Interactive Streaming

Also known as radio-style streaming, delivers music content in a linear, programmed format, where users have limited control over the selection of specific songs.

User Interaction in Non-Interactive Streaming

Users can choose from pre-programmed playlists, stations, or channels curated by the streaming service, but cannot select individual tracks or albums on-demand.

What are the limitations of non-interactive streaming services compared to on-demand streaming?

Non-interactive streaming services offer less control and customization; users can skip tracks within limits but cannot choose specific songs.

Name three examples of non-interactive streaming services.

Pandora, iHeartRadio, TuneIn Radio.

What is the primary purpose of the Mechanical Licensing Collective (MLC)?

To administer mechanical licenses for digital music streaming and downloading services in the United States.

Who should become a member of the MLC?

Songwriters who are administering their own songs.

How do record labels obtain mechanical licenses?

Record labels obtain mechanical licenses from music publishers to legally reproduce and distribute songs.

What are performance royalties?

Royalties paid for the public performance of music, collected by Performance Rights Organizations (PROs) like ASCAP and SESAC.

What is SoundExchange?

A nonprofit organization that collects and distributes digital performance royalties on behalf of recording artists and record labels.

How are artist royalties typically calculated?

Artist royalties are calculated based on a percentage of net revenue generated from sales or streams after deductions for expenses.

What is the role of a music supervisor?

A professional responsible for selecting and licensing music for use in various media, including films and TV shows.

What is a one-stop agreement in sync licensing?

An agreement that consolidates all necessary rights into a single agreement with one rights holder, simplifying the clearance process.

What is the significance of Most Favored Nations (MFN) in sync agreements?

It ensures that a writer receives the same terms as other writers involved in the project.

What are the key components of sync agreements?

Term (duration of use), Territory (geographic streaming area), and Payment (when payment is received).

What is the process for sample clearance?

Identify samples, determine rights holders, contact rights holders, negotiate terms, obtain licenses, make payments, document clearance, and monitor usage.

What does 'pro-rata' mean in the context of sampling?

It means that the sample holder's share reduces the share of all other writers proportionately.

What are the phases of a civil lawsuit for copyright infringement?

Pleading Phase, Discovery Phase, Motions Phase.

What must a plaintiff prove in a copyright infringement case?

The plaintiff must prove ownership of the work and that the defendant copied it, not just had similar ideas.

What is required for a plaintiff to sue for copyright infringement?

Registration with the U.S. Copyright Office is necessary.

What is the statute of limitations for bringing copyright infringement claims?

Three years after the date of infringement.

What elements of a work are protected by copyright?

Only original elements; common elements like chord progressions or lyrical phrases are not protected.

What is the role of musicologists in copyright infringement cases?

They are involved in the discovery phase for fact-finding.

What happens to royalties when a sample is used in a new composition?

The sample holder's share reduces the available copyright share for all other writers on a pro-rata basis.

What are the two sides of registering a song with a PRO?

Writer side registration and Publisher side registration.

What is the basic producer royalty percentage?

3%.

How do songwriters determine their publishing splits?

They negotiate splits based on contributions and document agreements in split sheets.

What is the significance of registering splits with PROs?

It helps manage royalty distribution among songwriters.

What is the difference between interactive and non-interactive streams in terms of royalties?

Interactive streams allow users to choose specific songs, while non-interactive streams do not.

Music Publisher

Acquires, protects, promotes, and exploits musical compositions. They manage the rights associated with musical works to generate revenue for songwriters, composers, and music publishers.

Songwriter

Creates original music and lyrics for performance.

Performer

Artist who interprets and presents music to audiences.

Record Contracts

Agreements defining terms between artists and record labels.

Development Deals

Contracts that support artist growth and project development.

Royalty Collection

Process of gathering payments for music usage.

Licensing

Granting permission to use copyrighted music.

Exclusive Publishing Deals

Agreements giving publishers rights to specific songs.

Revenue Split

Distribution of earnings between songwriters and publishers.

Publishing Contracts

Outline terms between publishers and songwriters.

Compulsory Licenses

Allow use of copyrighted works under legal conditions.

Audio Home Recording Act

Law addressing digital music piracy and royalties.

Copyright Royalty Judges

Determine fair royalty rates for copyrighted music.

Copyright Notice

Indicates a work is protected by copyright.

Duration of Copyright

Lasts for life of author plus 70 years.

Works Made for Hire

Copyright owned by employer for employee-created works.

Mechanical Royalties

Payments for reproducing music in physical formats.

Rights Management

Overseeing legal rights associated with music usage.

Song Promotion

Efforts to increase visibility and usage of songs.

Derivative Works

New creations based on existing copyrighted material.

Copyright Registration

Process of filing forms and paying fees to protect work. $45/ copyrighted item (Optional but offers benefits like evidence of ownership in case of infringement).

Media Usage

Involves using songs in films, commercials, and TV.

Song Rights Acquisition

Process of obtaining rights to publish and monetize songs.

Royalty Payments

Compensation received by songwriters for music usage.

Creative Control

Influence over how a song is used and marketed.

Works Made for Hire

Duration is 95 years from publication.

Copyright Renewal Procedures

Changes for easier continuation of rights.

Termination Rights

Authors can terminate copyright after 35 years.

Sound Recordings

The fixation of a performance or interpretation of a song onto a tangible medium, such as a CD, vinyl record, or digital audio file.

Copyright Infringement

Occurs when someone violates copyright by copying, distributing, performing, or adapting a work without permission

International Copyright Protection

Protection extends via treaties like Berne Convention.

Pre-registration

File works before publication to establish ownership.

Digital Performance Right Act

Gives performers royalties for digital broadcasts.

Digital Millennium Copyright Act (1998)

addresses issues of online copyright infringement. It covers collecting monies for digital exploitation.

Performance Right Payments

Royalties earned when music is publicly performed.

Mechanical Royalties

Earned from physical copies sold, like CDs.

Digital Downloads

Generate mechanical royalties similar to physical sales.