Copyright Basics and Music Industry Overview

A comprehensive set of flashcards covering copyright laws, music industry concepts, and financial agreements relevant for exam preparation.

What does copyright protect?

Original works fixed in a tangible medium such as songs, lyrics, recordings, films, and books.

What are the exclusive rights under copyright?

Reproduction, distribution, preparation of derivative works, public performance, public display, and digital audio transmission of sound recordings.

What are the requirements for copyrightability?

Originality and fixation.

What are joint works?

Works created when two or more authors intend to merge their contributions into one work; ownership is undivided unless agreed otherwise.

When do derivative works require permission?

When changing the melody, lyrics, chord progression, structure, or essence of a song beyond allowable cover modifications.

How long do works created after January 1, 1978 last?

For the life of the author plus 70 years.

What does the Sonny Bono Copyright Term Extension Act do?

It extended the duration of certain older works.

What is a sync license?

The right to synchronize music with visual media.

What are cue sheets?

Lists that detail songs used in audiovisual productions, used by PROs for royalty allocation.

What must copyright require for AI-generated material?

Human authorship; material produced entirely by AI without meaningful human contribution is not copyrightable.

What is the statutory mechanical royalty rate for songs under five minutes as of January 1, 2025?

12.7 cents per song.

How is a per-unit mechanical royalty for an album calculated?

By multiplying the number of tracks by the statutory rate.

What percentage of mechanical royalties is split between songwriters and publishers?

50 percent to the songwriter and 50 percent to the publisher.

What does a compulsory mechanical license allow?

Anyone to record a cover of a song after its release without fundamentally altering the melody and lyrics.

What is a 360 deal?

An agreement that gives labels participation in multiple revenue streams, including touring, merchandising, and branding.

What is a performance royalty?

Royalties generated when compositions are publicly performed via radio, streaming, live venues, TV, or film.

What do PROs do?

Performance rights organizations collect and distribute performance royalties for songwriters.

How do independent labels typically succeed?

By targeting niche genres and using selective release strategies.

What are publishing companies responsible for?

Exploiting songs by pursuing recordings, sync placements, and performances.

What does the term 'joint works' mean in publishing contexts?

Ownership that is distributed between all contributing writers.

What is crowdfunding?

A method of raising capital through the contributions of many individuals.

Describe the term 'barriers to entry.'

Obstacles to entering a marketplace.

What is the time value of money?

The concept that money today is worth more than the same amount in the future.

How is gross income different from net income?

Gross income is total income before expenses; net income is income after expenses.

What do manager and agent commissions vary by?

Role and responsibilities in the artist's career.

What is a power of attorney?

A legal authorization allowing a representative to sign agreements on behalf of an artist.

What is the purpose of a sunset clause?

To phase out management commissions after the termination of a contract.