Music Business Final

what is a copyright?

limited duration monopoly

when does a copyright go to public domain?

when the copyright expires

you have a copyright when it is in a:

fixed, tangible form

5 bundle of rights under copyright law:

1. reproduce the work

2. distribute the work

3. perform work publicly

4. make a derivative

5. display the work publicly.

what is the statutory mechanical rate?

9.1 cents OR 1.75 cents/minute, whichever is greater

what are artist royalties?

money earned by the artist from sale of recordings

(P)

phonorecord

(C)

copyright

1976 copyright act: term of copyright?

life + 50 years

1992 copyright act: term of copyright?

life + 70 years

compulsory license:

copyright owner must license it

in a joint work, when does the "clock start ticking?” on a copyright expiration?

after the second person dies

complete copyright notice should include:

(C), year of first publication, name of author

fairness in music licensing act:

exempts small retail establishments from paying performance royalties

when song is published, who controls the copyright?

publisher

right of termination:

35 years after the copyright was originally transferred

in joint work, who has ownership of what?

both own 100%

derivative work is:

based on another work

first use:

can't get a compulsory license until it's been recorded and previously released

sound exchange

collects for performance of masters instead songs

infringed on your rights

ripped you off, steals, etc.

take-down rights

right to take down videos that aren't by them.

Performance Rights Organization’s

ASCAP, BMI, SESAC

exceptions to copyright monopoly

compulsory licenses

writer/publisher income split

50/50

standard duties of the publisher called

administration rights

4 sources of publishing revenue

mechanicals

performance

synch license

print

controlled composition

a song that's written, owned, or controlled by the artist

returns

reserves are utilized in royalty accounting

artist returns on digital

50%

iTunes download is an example of a

permanent download

is there a compulsory license for videos?

no

are publishers paid an on-going royalty for app downloads?

no, it is a one-time payment

catch all clause

contract clause that covers the writer for future unforeseen revenue streams (and current)

audio home recording act of 1992 led to

DART revenue

in print music, is there a royalty paid for name, image, & likeness?

yes

360 deal

company controls most, if not all aspects of the career

favored nations

prohibits favoring one contractual participating entity over another

blanket license

license that the performing rights societies give each music user which covers all of the compositions they represent

3 types of songwriters

exclusive

staff

independent

4 types of publishers

900 lb gorillas

stand alone

writer-publisher

major affiliates

2 major organizations that issue mechanical licenses or publishers

Harry Fox Agency

CMRRA

4 professionals that make up a team that supports a recording artist:

personal manager

attorney

business manager

agent

managers get _____ % of earnings from an artist

15-20

taste maker

important blogger, journalist, radio person who can help boost an artist's career

escalation clause

contracts that gradually raise earnings based on performance

ways business managers are paid:

percentage

hourly

flat fee

combination

off the top

from the gross income recieved

attorneys are powerful because

lots of clients = lots of stories = lots of people to tell your bad stuff to

retainer

portion of money given upfront to hold a service or commitment, typically paid to an artist or professional.

artist management percentage:

10%

AFM

american federation of musicians

SAG

screen actors guild

deescalation clause

contracts that gradually decrease earnings based on performance

album cycles

from time of release to time they stop promoting it

referral fee

amount paid to the business manager for sending your business to a particular place, as a compensation for referring you there

conflict of interest

when clients get into situation where their interests are adverse

3 major sources of income for a recording artist

merch

royalties

live performances/touring

billboard

industry magazine including the record charts

aspects of managers job

helping you with major business decisions

helping with the creative process

providing career guidance and support

help assemble a team of professionals

coordinating tours

pounding record company to maximize the advertising and marketing campaign

generally being a buffer between you and the outside world

role of business manager

handles all your money

role of agents

almost exclusively in booking live performances

franchising

union regulation of agencies

distributor

the wholesaler that sells physical copies of your records to the stores and distributes music digitally

A&R

artist and repertoire

role of A&R

find and nurture artists and work creatively with them

role of sales

get records into stores

major divisions of a fully staffed record company (10)

A&R

sales

Business/legal affairs

International

finance

product management

production

new media

marketing

promotion

SRLP

suggested retail list price

unrecouped

red position/deficit

recouped

All paid back, start earning, in the black

gold album

500,000 copies

platinum

1 million

gold/platinum sales certified by

RIAA - recording industry association of america

all-in

artist is responsible for paying the record producer/mixer out of pocket

net rate

all-in rate - amount paid to producer

fund

set amount of money, which includes both recording costs and any amounts that may be payable to the artist as an advance

active interest

actually take some of the rights involved as opposed to just getting a piece of someone else's deal

passive interest

company has no control over the rights involved

pay-or-play

record company has the option to either allow you to play your music or pay you off

commercially satisfactory

sounds good, will sell

technically satisfactory

up to mechanical standards

record one royalties

paid for all records sold, meaning recording costs that are not charged against their royalties, paid from first album the company sells

retroactive to record one

a) recording costs are recouped at the artist's net rate

b) before recording costs are recouped, the producer gets no royalty at all

types of distributers

wholesale distribution entities

one-stops

rack jobbers

licenses

one-stops

one-stops

buy from majors and then sell to "mom and pop" stores

USNRC

US normal retail channels

soundscan

a company that measures how records are sold at retail

when do you get your royalties?

twice a year, but majors mostly pay quarterly

independent promoters

promoters not hired by a record company

tour support

monies that the record companies give you to make up tour losses

approval

you can approve artwork that the company prepares

consultation

they talk to you, but don't have to get your approval

LLC

limited liability corporation

overhead or services fee

charged for services supplied by the label in addition to the distribution, such as marketing and promotion

PPD

published price to dealers

synch license

license to use in synch with visual images

DART money from sales of digital audiotapes and recording equipment are paid to

writers and publishers