Music Business' Last Exam

What is music synchronization?

When songs are used in different forms of media, licensing music with a moving image

When song is licensed to a movie, how is the money split between the owners of the two copyrights?

50-50% between the master owner (usually the label) and the copyright owner (the publisher or unpublished songwriter).

If an artist covers a song, do they have the right to sync license the cover to a TV advertisement?

they do not.

T OR F: AN EXAMPLE of an in context usage of a song in a film would be when a song is in a movie trailer over multiple scene from the movie

THIS IS FALSE, MULTIPLE SCENES ARE considered out of context.

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T or F synch licenses to TV major motion picture are always for eternity and for the whole universe?

true

What is a producer point?-

A royalty the percentage that they will be paid, 1% of PPD, publish price to deal

Do producers usually get points?-

No producers usually get points once they are famous and they have enough clout to negotiate points

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First producer to ever negotiate a point

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\- Snuff Garrett

DO mixer engineers receive points?-

Nah, but in rare cases a famous one might get 0.5 to 1 point

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A&R Executive who do they work for?-

The label to find sign and guide talent

Record producer is responsible for?

\- bringing the creative product into tangible form, administration of anything music

Do remixers get paid royalties on record sales?

\- No remixers get usually get paid a flat fee

How does a record producer traditionally get paid?-

They get paid from the artist advance

What happens if a band member wants to leave the band while signed to a major record label?

They will gradually get less, they can sign this artist as a solo act/artist

If a few band members leave the group when signed to a major level, can the signer keep going under the same band name and the same record deal?

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They can, but label is not under the obligation to keep releasing the music from the remaining members

How do you go about securing the ownership of a band name

check on google and social networks, check industry directories on poll star billboard talent directory, search the USPTO (United States Patent and Trademark Office)

What is intellectual property?

\- Givers musicians and artists control over their artistic works, as well as their name and brand, have to go thru the legal process to ensure it is protected.

What is a COPYRIGHT?- Protects creative works.

Song has two copyrights

\-Audio recording (recording)

\-Lyrics and composition (publisher)

What is a trademark?

It protects sound words and phrases, symbol registered by use a representing a company or product. Naming rights and good will in the brand.

What is generally included in an inter-band agreement?-

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Define the business, what type of legal business structure will the band adopt in the eyes of the law, i.e. partnership corporation.

Inter-band agreement

Legal document that stipulates the ownership of the “Band”

Inter-band agreements?

Equal partners

\-Every member same share no matter what

Un equal partners

\-one or two are the main songwriters, or new band members added

One or two members in control and others are hired

\-Salaries and or percent profits

What is a leaving member “buy-out”?

When member is paid by the band for their share back, stipulated in the inter-band agreement and normally looks at.

Price- buyout would be equal to the leaving partners percent of all “hard assets” owned by the partnership

Hard assets- tangibles such as equipment, monies earned, etc

Contingent payout- to the leaving member would continue getting percent from activities of the partnership for which they participated

Conflict of interest- restrictions such as using the bands name, performing bands songs, etc

What is a Key Member Clause?

Breach of contract by one member us considered bread of contract by ALL members

Certain individuals as designated as key members, so if a key member breachers the contract the label can stipulate that the whole group has. But is not a key member then it can’t

What are label rights to leaving members?

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If a member leaves, label has option to get his or her services as solo artist or member of new band,

Label has option to keep the remaining members of a group

Label has option to terminate the remaining members of the group

What is the diffusion of innovation?

Innovators

Early adapters

Tipping point

Early Majority

Late Majority

Laggard

Diffusion of Innovation in Hip-hop?

DJ Kool Herc, Afrika Bambaataa, and Grandmaster Flash

Who created the theory for the adoption of innovations amongst organizations?

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\- Everett Rodgers

First stage for a band?-

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Create, make a compelling product and distribute music

Second stage of a band?

Grow, developing brand with more events

Third stage of a brand?-

Develop, say thanks and build your fanbase

Ways to lose your fans?-

Taking your fans for granted, stop talking to your fans, stop listening to your fans, nitpicking how they listen to your music, and killing all the fun

Tips for musicians?

Covers, responding to trends, share unreleased demos, duet & collabs, and replying to comments

What is a Performing Rights Organization responsible for?

\- Anything that is publicly broadcast or performed, licensing fees from media and business places

What percentage does a PRO account for in a songwriter’s annual income?

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\- 30%

Publisher’s are responsible for?-

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for exploiting the copyrights of its songwriters/composers, takes care of all licenses on behalf of the songwriter, ensures the songwriter receives payment when their compositions are used, and making sure you signed to mechanical society, harry fox

Secondary income for Sheet music?

20 percent of marked retail price, lasts 3-5 years for licenses

Secondary income for Folio?-

Mixed and Matching Folios 10-15%, Personality adds 5% going to recording artist.

Secondary income for Instructional Music “How to…Books”?-

10% of Marked Retail Price

Secondary Income of Reprint of Lyrics, Books, Magazines, Greeting Cards?-

Books will be 1 cent per unit for snippet of lyrics, most other printed items is 6%-8% of wholesale price

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Secondary income for Lyrics Website-

50 percent of advertising revenue, non exclusive term

Secondary income for Lyrics Website-

50 percent of advertising revenue, non exclusive term

Secondary Income for Downloadable Sheet Music?

\- 50 percent of the income

Fee range for major studio using your music-

15k-100k

In context vs Out-of-Context use for synchronization-

in context is when a song is used exactly like it is in the trailer, out of context is when the trailer shows a different edit, but in the film it is used differently

Fee range for Indie Films?-

2,500 thru 7,500 thousand, in payments, and restrict rights where it can be played (like home versus theatre)