Music Entrepreneurism Test 1

What is a copyright?

A limited duration monopoly (giving creators exclusive rights to their works for a while)

What are the two criterias for a work to be copyrightable?

The work has to be original and of sufficient creativity

What does sufficient creativity mean?

You cannot copyright things like a scale, chord progression, or short melodic themes.

What do you need to have to have a copyright?

A tangible copy

How do you get a tangible copy?

Once you write it down or record it, you have a tangible copy

Once you get a copyright, what rights do you get?

1. Reproduce the work

2. Distribute copies of the work

3. Perform the work publicly

4. Make a derivative work

5. Display the work publicly

What is a derivative work?

A creation based on another work (like a parody)

What is a compulsory license in general?

An exception to the copyright monopoly

What happens with a compulsory license?

You must issue a license to someone who wants to use your work, whether you like it or not

What are the five different compulsory licenses?

1. Cable television rebroadcast

2. Public Broadcasting System (PBS)

3. Jukeboxes

4. Digital performance of records

5. The use of non-dramatic musical compositions in streaming, digital downloads, and phonorecords

What are mechanical rights?

The rights to reproduce songs in records

What are the differences between mechanical rights and mechanical royalties?

Mechanical rights are the rights to reproduce songs while mechanical royalties are the monies paid to copyright owners for the manufacture of distribution of records

What does the Music Modernization Act (MMA) now also deal with since 2018?

Interactive streaming

When is the owner of a song only required to issue a compulsory mechanical license?

1. The song is a non-dramatic musical work; and

2. It has been previously recorded; and

3. The previous recording has been distributed publicly in phonorecords; and

4. The new recording (called a cover, or cover record) doesn’t change the basic melody or fundamental character of the song; and

5. The cover recording is only used in phonorecords distributed to the public for private use

What are compulsory licenses only available for?

Phonorecords - audio only recordings

What is a statutory rate?

A set rate someone has to pay if they want to use your song in phonorecords or streaming

What does a publisher do?

Finds users, issues licenses, collects money, and pays the writer

What are the roles of a publisher known as?

Administration rights

What does a songwriter gain and lose from a publisher?

The publisher will find users, issue licenses, collect money, and pays the writer, but the writer signs over the copyright to the publisher

Once performance royalties are collected by PROs, how are the earnings split?

50% to the writer (writer’s share) and 50% to the publisher (publisher’s share)

From the publisher’s share, who does the money go to?

To the songwriter and publisher and the % depends on the publishing deal

How has the publisher’s role changed?

They were the most powerful people in the music industry because they controlled the major songwriters so singers had to go to the publishers to get songs and the publisher could choose who to bless with a song. Now, some publishers, like “creative” publishers who put their writers together with other writers to hone their skills as writers, while there are other publishers who are basically banking operations.

How do writers today use publishers?

They use a publisher to handle the backroom chores of issuing licenses and collecting money, while the writer keeps ownership of their copyrights and the bulk of their money.

What is the share of money kept by the publisher from each dollar?

Publisher’s share

What are the main sources of income for a publisher?

1. Public performance monies

2. Mechanicals

3. Sync

What does PROs mean?

Performing Rights Organizations

What are some examples of PROs?

ASCAP, BMI, and SESAC

What are your exclusive rights to perform your composition in public called?

Performing rights or public performance rights

What is a blanket license?

The license that PROs give each music user to cover all of the compositions the PROs represent. Basically, in exchange for a yearly fee, the user gets the right to perform all the compositions controlled by all the publishers affiliated with that society

When writers affiliate with the same societies of the publishers, what happens?

The writers are paid 50% of the money (the writer’s share) directly by the society

How do people get paid from the PROs from live events?

It is only for the top three hundred grossing tours and festivals. In these tours and festivals, both the openers and headliners are paid. The PROs distribute concert money based on set lists which they get from either the venues or the artist’s management.

What are some examples of mechanical royalties?

Paying for CDs, vinyl, and downloads

A download is what percent performance and what percent mechanical?

25% performance 75% mechancical

Streaming is what percent performance and what percent mechanical?

75% performance and 25% mechanical

Are permanent downloads treated as a performance?

No

What is non-interactive audio streaming?

Someone else decides what you hear

What does DSPs stand for?

Digital service providers

What did the Music Modernization Act (MMA) set up and what does it do?

Mechanical License Collective (MLC) which collects all the mechanical rights money from the DSPs

What is a synchronization (sync) license?

A license to use music in “timed synchronization” with visual images

What are licenses that include radio, podcasts, or audio-only commercials?

Transcription licenses

What does in-context mean?

Using the song apart from the film with the same visual images that accompany it in the film

What does out-of-context mean?

Using the music differently than it was used in the film

What is an example of an in-context use of a song?

Trailers

What license does a podcast get to play music?

Transcription license

What is sampling?

The art of taking any sound and making a digital copy and using it in your own masterpiece

Who do you have to get a license from to sample a song?

Both the owner of the recording and the owner of the sampled song

When do you get approval to use the sample?

Once your whole song is created

What are replays?

Duplicating the track by playing it in the studio. You do not need to license the recording, but you need to license the song.

What are collections of songs?

Folios

What are a collection of songs by a number of different artists?

Mixed folios

What is a folio that has all the songs of a particular album?

Matching folio

What is a folio that has the picture of the performing artist plastered all over it?

Personality folio

Do you make more money off of digital or printed copies?

Digital

What is a contract where the songwriter keeps their ownership of their song, but they also get a share of the publisher’s share?

Songwriter agreement or co-publishing agreement

What is the fee that is sometimes charged with a songwriter agreement?

Administration fee

As a songwriter, where do you want your deal to be?

At source

What is a deal where the publisher has no ownership?

Administration agreement

What is an agreement that you give the publisher all the songs you write during the term?

Term songwriter agreement

What are people called when you write a song with other people?

Co-writers or collaborators

What is it called when the publisher must give you back your song at somepoint in the future?

Reversion of copyright

What is the period of time that the publisher keeps the songs after the term?

Retention period

What gives the publisher no copyright ownership or long-term retention period, but instead just gives them the right to administer your songs for a specific period of time?

Administration agreement or admin agreement

In this context, what is a recording by an artist that the publisher makes happen?

Cover

What are songs you write with other writers?

Co-writes

When you have a joint work, can either of the authors/owners deal non-exclusively with the entire composition, subject to the obligation to pay the other person his or her share of the proceeds?

Yes

If two people create separate, distinct parts of a work, do they own only their specific part?

No, they each own an interest in the whole copyright, not just their own contribution

If two people are totally separate in writing parts, did they create the song together?

Yes. If you intend to merge your work with someone else’s, it is a joint work

What is when you hire someone to create copyrightable material for you?

Work for hire (work made for hire)

What is the duration of copyright for works created after January 1, 1978?

Life of the author plus 70 years

When a copyright expires, where does it go?

Into the public domain (p.d)

For anonymous or pseudonymous works, when does the copyright expire?

95 years from publication or 120 years from creation

If you make a bonehead copyright deal, what can you do 35 years later?

A right of termination which means you can get your copyright back

When someone uses a part of your song without permission, they ________ your copyright.

Infringe

If you think someone ripped off your song, what do you need to do before suing?

1. Have the copyright

2. Register your copyright with the Copyright Office

3. Prove your work was copied

   1. They did not unconsciously copy your work; they had access to it and didn’t create his work on his own

4. Prove that what he copied from your song was original to you

5. When you have shown that the material they stole from you is original and protected, the court will then dissect your work and throw out everything that was not original because you can only sue over stuff that’s protected by copyright

6. The court will ask a question like, “Does it sound like infringement?”

7. Sometimes the thief may argue fair use

What is fair use?

The law that says you’re allowed to use parts of someone’s work for certain purposes without permission

How do you determine fair use?

1. The purpose and character of the use

2. The nature of the copyrighted work

3. The amount of substantiality of the portion used in relation to the copyrighted work as a whole

4. The effect of the use upon the potential market for or value of the copyrighted work