Copyright Law: Rights, Licenses, and Royalties in Music

What are the 5 rights granted to a copyright holder?

Right to reproduce, Right to distribute, Perform publicly, Derivative works, Display publicly

What are the 5 conditions met in order to get a compulsory license?

Non-dramatic Work, Previously released and distributed phonorecord, Previously recorded, No fundamental changes, Phonorecord only

What was the copyright duration for works created before 1978?

28 years + 28 renewal period, for a total of 56 years

What is the copyright duration for works created after 1978?

Life of author + 70 years

What is a Mechanical License?

A license provided by the copyright holder to cover, reproduce, or sample specific parts of a composition

What are the two ways to license the use of a copyrighted musical composition?

Direct licensing from the copyright holder or administrator, Compulsory license

Who issues licenses on behalf of publishers?

Licensing Administrators

What is the Harry Fox Agency?

A licensing administrator in the US

What generates Mechanical Royalties?

Sale of a physical product, Sale of download, Interactive streaming

What is the current statutory rate for Mechanical Royalties?

12.7 cents or 2.43 cents for each minute of time playing; whichever is greater

What are the four major Performing Rights Organizations (PROs)?

BMI, ASCAP, SESAC, GMR (Global Music Rights)

What is the government-run non-profit PRO in the UK?

PRS

What is the government-run non-profit PRO in France?

SACEM

What is the government-run non-profit PRO in Germany?

GEMA

What is a traditional publishing deal?

Songwriter assigns copyright to the publisher in exchange for an advance vs future royalties (50/50 split)

What is a co-publishing deal?

1. Publisher and writer share copyright

2. Writer still gets the writer's share

3. Publisher handles all admin

What is an administration deal?

Songwriter retains 100% of ownership and the publisher gers a % of proceeds after expenses

How do publishers get paid vs songwriters?

Publishers get paid by a monthly sum up front, and songwriters get a monthly draw

What are Minimum Delivery Requirements?

They are in a songwriter deal in order to Advance the Term or Move the Term Forwards

What is an example of a Minimum Delivery Commitment?

During each contract period, X# 100% songs, or the equivalent

thereof, X# of which must be released on a major

label. Each released song must achieve a penny rate

of no less than X cents. (usually 12.7c)

What is a controlled composition?

1. Any song in which the recording artist has a writing interest

2. Sets caps on payouts of Mechanical Royalties from Label to Publisher and Writer

What is Reversion, and what does it consist of to obtain copyright from the publisher?

1. Contractually negotiated

2. Ownership and admin control revert to songwriter after X # of years

3. Conditions around unrecouped advances

4. Publisher retains ability to collect money after term on any income generated during term

What is Termination, and what does it consist of to obtain copyright from the publisher?

1. Songwriter can terminate a transfer of copyright in a window of 35-40 years after the original transfer

2. Have to send a notice of intent, which may be sent 10 years in advance of the window, and no less than 2 years in advance of the end of the window (25-38 years)

Who can initiate the Termination of Transfer?

1. The original owner (songwriter)

2. If deceased, surviving spouse, children or grandchildren

3. If no survivors, the estate of the deceased