Copyright & Music Publishing Final Study Guide

Music Publishing

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

Music publishing involves managing the rights associated with musical works (songs, compositions, and lyrics) to generate what?

Revenue for songwriters, composers, and music publishers.

What does a Copyright grant and to whom?

Exclusive rights to creators of original works.

Who holds a copyright?

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

Originality Requirement for a Copyright

Author's independent creative effort.

Copyright Duration

Life of the author(s) + 70 years

Copyright Registration Process

$45 per copyrighted item. Optional but offers benefits like evidence of ownership in the case of infringement

Rights of Copyright Holders

Reproduction, distribution, public performance, right to make a derivative work, display right. (R.D.P.D.D.)

Infringement

Occurs when someone violates copyright by copying, distributing, performing, or adapting a work without permission. Ex. Illegal downloading, using music in films or ads without a license, sampling without clearance.

Fair Use Doctrine

Legal principle allowing limited use of copyrighted material without permission under certain circumstances like criticism, comment, news reporting, teaching, scholarship, or research.

Copyright Act of 1976

Foundation of modern U.S. copyright law.

Digital Millennium Copyright (DMCA)

Addresses copyright issues in digital media

Composition (Song)

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

Sound Recording (Master)

Refers to the fixation of a performance or interpretation of a song onto a tangible medium, such as a CD, vinyl record, or digital audio file. Typically owned by a Label (or the artist if independently released).

Mechanical Royalties (Definition)

Payments for reproduction and distribution of musical compositions. Includes physical and digital formats

Mechanical Royalty Calculation

12.7 cents per track, or 2.45 cents per minute of playing time, whichever is greater.

Mechanical Royalty Collection and Administration

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

Mechanical Royalties: Digital Services

Royalties from digital downloads and streaming. DSPs obtain mechanical licenses from mechanical rights organizations and pay royalties based on the number of streams or downloads of songs.

Performance Royalties

Earned from public performances collected by PROs

Sync Licensing

Licensing fees for use in visual media like films, TV shows, commercials, video games, and online videos. Generate revenue for copyright holders and are negotiated on a case-by-case basis.

Print Music and Sheet Music Sales

Revenue from printed and digital sheet music sales

What do publishers do?

Acquire, manage, and exploit rights to musical compositions.

Major Music Publishing Companies

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

Songwriters

Create musical compositions and retain copyright.

Artists

Interpret and record musical compositions for public release.

Performing Rights Organizations (PROs)

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

What do PROs do?

License musical compositions for public performance on behalf of their members, covering radio, TV, streaming platforms, live concerts, and public venues. Collect fees from users based on performance frequency and reach.

Major PROs

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

Foreign PROs

SOCAN, APRA, SACEM, and PRS

What country is SOCAN located in?

Canada

What country is APRA located in?

Australia

What country is SACEM located in?

France

What country is PRS located in?

Great Britain

Publishing Deals: Administration (Admin) Agreement

Admin tasks in exchange for a percentage.

Publishing Administration (Admin) Deal

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

What does the Administration do in an Admin Deal?

Register the songs with collection societies, licensing the songs, collecting royalties, and distributing the songwriter's share of earnings.

What does the Administration do in exchange for services in an Admin Deal?

They typically receive a percentage of the songwriter's publishing income (typically 10-20% but this varies).

Co-publishing Agreement (Co-Pub): What is shared?

Shared ownership of copyright

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.

What does the songwriter and the publisher retain in a co-pub deal?

Songwriter usually retains a percentage of the publishing rights (e.g.,50%)

How does a co-pub deal benefit the songwriter?

This arrangement allows the songwriter to benefit from the publisher's expertise in licensing and royalty collection while maintaining some control over their compositions.

Foreign Sub-publishing Agreement

Licensing within specific foreign territories.

What is a sub-publishing agreement?

Contracts btwn. 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.

What does a sub-publisher collect?

They usually collect between 10-25% of income in a certain territory depending on the success of the catalog.

What do sub-publishing agreements allow?

These agreements facilitate international licensing by allowing publishers to tap into local markets through sub-publishers who have expertise and connections in those regions.

Factors that determine fair use

Purpose, nature of work, amount used, and effect on market

What is On-Demand streaming?

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.

On-Demand Streaming: User Interaction

Users can search for and choose individuals tracks or albums from a vast library of music available on the streaming platform. They can create custom playlists, explore curated playlists, and skip tracks as desired.

Flexibility

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 apps that offer flexibility streaming

Spotify, Apple Music, Amazon Music Unlimited, and YouTube Music

What is Non-interactive Streaming?

Streaming that delivers music content in a linear, programmed format, where users have limited control over the selection of specific songs. (A.K.A radio-style streaming)

Non-interactive Streaming: User Interaction

Users can choose from pre-programmed playlists, stations, or channels curated by the streaming service. However they can’t select individual tracks or albums on-demand. The content is delivered in a continuous, radio-like stream.

Non-interactive Streaming: Limited Control

Users can skip tracks within certain limits, but they can’t directly choose the songs they want to listen to. Offers less control and customization compared to on-demand streaming.

Examples of Limited Control Non-interactive streaming

Pandora, iHeartRadio, TuneIn Radio