Survey of Music Business Test #4

Singles:

question is which company can put it out

Record Rights to Film Performances:

remember, everything must be cleared with the artist's record company; after record company consents, need to negotiate a deal both for the use of your recording in the film AND for use of the recording on the soundtrack album

What's In a Name?:

rights in a name: -the rule is that you get rights in a mark by actually using the name and having it associated with you in the mind of the public -you can stop names that are different from yours but are similar enough to confuse the public -the date you started using the mark is key (you can stop third parties from using your mark if you started using it first) -your rights come from using the name, not from registering it. -can file an "intent to use" trademark application

Bonus Tracks:

some record companies want bonus tracks on the album, meaning tracks that don't appear in the picture; the theory is that these extra tracks help drive sales of the album

Step Deals:

some songwriter deals are done on a "step" basis: (1) writer creates the song and gives the company an informal demo recording (2) if the film company doesn't like it, the company either passes or goes to step 2, which requires the writer to rewrite the song (3) once the film company is happy, it goes forward on a pre-negotiated deal to use the song

Pricing of tickets:

sometimes "scale" tickets (industry term for setting ticket prices) to charge more for up-front seats, and less for the back of the house, so that all kinds of fans can afford to come

New Artist Splits/Guarantees:

splits (meaning you get a share of monies charged for admission) run from 20%-60% depending on stature and the number of other acts; can also get a minimum guarantee

Film Songwriter Deals:

terminology- this section deals with creating a song for the film, as opposed to licensing an existing song (not written for the film)

Riders:

the actual contracts for each appearance are handled by the agency; usually, it's the same form used by the agency with the artist's rider attached; the attorney for the artist prepares the rider

Hall Fees:

the amount charged by the building for selling merchandise, and it's a percentage of gross sales

Back-End Participation:

the composer gets a piece of the film's profits, or built-in bonuses at certain box-office levels

Master License Fees:

the fee to use the master in the film varies directly with the importance of the song in its own right (was it a #1?), the stature of the artist, and how it's used in the film (is it on a radio in the background for 10 seconds while people are talking?)

Videos:

the film company almost always supplies film footage without additional charge

Contingent Payout:

the leaving member gets their continuing percentage from activities of the partnership in which they participated. this means royalties from records they played on, monies from merchandise using their name/likeness, concerts and TV shows in which they performed. the leaving member doesn't get any portion of group earnings from performances and other activities that happen after he/she leaves

Tour Merchandising:

the merch sold at concerts (this is the most significant money maker); retail merchandising is the merch sold other places like retail stores, internet, mail order, through fan clubs, etc.

New Artist Expenses:

the minimum cost of putting yourself on the road is the money to rent a van to carry equipment and sleep in, plus fast food; the next step is 3-4 to a room in a cheap motel

Cash Payout:

the reason for structuring a payment out over time is to protect the remaining members from having to come up with a big chunk of cash (which they may not have). the terminated member can look only to the assets of the partnership for his/her buy-out payments (can't look to individual band members)

Heritage Acts:

these are classic acts of the 60s, 70s, 80s, 90s, etc. that once filled arenas

Acquisition of Rights for the Picture:

these are deals to put music in the film, meaning deals with: -performing artists -songwriters, composers, publishers -record producers -record companies (both for use of existing masters or samples in the film, and for clearing the right to put new recordings of their artists in the film)

Conversion Costs:

these are the costs of converting the film recording to a master that can be used in a record

Itinerary:

this is the tour routing (which cities and in what order) and the halls you play in; this can be critical

Marketing:

traditionally, it was all about advertising in newspapers, on radio, and (for really big tours) on TV; now, it's all about visibility and online presence (e.g., your website, social media, blogs, email blasts, tweets, etc.)

Classical Music:

true classical music deals are rare because classical music doesn't make much money; classical records are very expensive to make and have limited sales potential

Foreign Registration:

unlike the United States, some countries follow the "first to file" rule

Death or Disability:

what happens in the event a partner dies? partners usually don't want the surviving spouse or parents voting on partnership matters. for this reason, there's normally a buy-out.

Incurring Expenses:

what kind of vote do you need for the group to spend money?

Contributions:

what kind of vote do you need to make partners contribute to the partnership (i.e., put in money)? e.g., to buy new equipment, new bus, etc.

Amendment of Partnership Agreement:

what kind of vote does it take to change the terms of the partnership deal? a majority? unanimous?

Firing:

what kind of vote does it take to fire a member? majority? unanimous excluding the member getting fired?

Hiring:

what kind of vote is required to take in a new partner? or to hire a lawyer, agent, or manager?

Deal Points:

when you write a song for a film, you typically get a fee, plus songwriter royalties; if you're a songwriter of even modest stature, you may be able to keep a piece of the publishing

VIP Ticketing:

where the most expensive tickets are packaged with a basket of goodies (e.g., signed merch) or a meet and greet

Image:

who opens for you; who you open for; and what types of venues you play in (e.g., amphitheaters vs. casinos vs. fairs)

Recording Costs:

you can sometimes make all or a portion of the recording costs non-recoupable; you do this by arguing that the costs of recording are really costs of the film, which they would incur even if there were no album

Creative Control:

you should have the right to approve the design, artwork, photos, drawings, layout, etc., used in all merchandise, as well as the quality of the goods themselves

Film Music Rights fall into 2 categories:

-Acquisition of Rights for the Picture -Licenses of Rights from the Picture Company to others

Group Provisions in Record Deals:

-Key Members -The Company's Rights to Leaving Members -Leaving Member Deals -Deficits

Music Supervisors Role:

-a music supervisor coordinates the music for a film; they primarily focus on the choice of songs, though they may be involved in the underscore as well -he/she sits down with the producer and director to work out the type of music needed -then, the music supervisor comes up with suggestions for artists, songwriters, composers, etc. for the film. -the director and producer make the final decisions, then the supervisor oversees the process of making it happen, often in conjunction with the studio's music department; he/she contacts the creative people, arranges for meetings with film personnel, negotiates and structures all deals, and supervises the recording sessions -most of the music can't be finalized until the film is complete -most studio executives don't understand music nearly as well as they understand films -each piece of music in a film can represent 8 or more deals -music supervisors call on their relationships to pull favors and smooth out difficult situations, getting music into pictures that couldn't be there any other way; they creatively marry music and films, as well as marry the two industries on a business level

Score Albums:

-a score album is an album wholly of underscore (i.e., with no songs) -pure underscore albums normally don't sell very well (anything over 10,000 copies is unusual)

The Company's Rights to Leaving Members:

-all companies provided that, if a member leaves the group, the company has the option to get his or her services as a solo artist (and as a member of any other group) -company will want the right to pick up ALL leaving members -company gets the option to keep the member who don't leave the group -company has the option to terminate the members who didn't leave since the group is no longer the one they signed

Leaving Member Deals:

-almost always a worse deal for the leaving member than the record deal for the group was -e.g., advance is almost always substantially less and the commitment is normally for only one album at most

Underscore:

-also called "score" -the music underneath the dialogue, action, transitions, etc. that you're not supposed to notice

Song Albums:

-an album of songs by major artists, usually a combination of preexisting songs and songs written for the film -song albums can command advances up to $500,000, but usually the advances are in the range of $100,000 to $300,000 (these prices include re-use fees) -the royalty is usually in the range of 18% to 20%, with escalations sometimes

Royalty:

-artist's royalties on soundtrack albums generally in the range of 12%-14%, all in (i.e., including the producer) -this royalty is pro-rata, which means you only get a small piece of the royalty (because you will only have one or two cuts out of the 10 or more on the album) -however, if you're the only star on the record among other midlevel artists, you should argue for a higher royalty; and, if you're a big enough artist, try for a higher royalty on single song downloads and streaming of your song -it's also possible to get escalations based on sales of the album -an exception to all this is where the soundtrack album is on your own label; in that case, you should get no less than the royalty you get under your record deal

Sell-Off Rights:

-at the end of the term, the merchandiser wants the right to sell off any remaining merchandise, usually for a period of 6 months; they should have no right to manufacture new merchandise during this time -before they can sell anything after the term, you should have the right to buy the remaining merchandise at their cost, plus some percentage (i.e., 5-15% of the cost); never have the obligation to buy back merchandise -their sell-off right must be non-exclusive; need to be able to make a deal with a new merchandiser -the merchandiser can't stockpile goods (i.e., can't manufacture more just to have more to sell during sell-off period) -can't do distress sales or dumping (the new merchandiser can't sell at normal prices if old merchandiser is selling at distress prices) -at the end of the sell-off period, if you decide not to buy it, they should have to destroy it or else donate to a charity

Domain Name Registration:

-check www.whois.com -owning a URL is nothing like a federal trademark registration (doesn't give you any trademark rights)

Delivery Date:

-composer deals have no term -they go on until the composer delivers, which could mean the composer works on the score for 4-5 months, sometimes even years -the process starts with spotting, which means the composer and director determine precisely which "spots" need music, as well as the exact length of each piece needed (measured in tenths of seconds) -historically, spotting happened only when there was a final cut of the film, meaning there wouldn't be any more changes; now, it's not uncommon for the composer to get chunks of the film over time; in this case, they do spotting and writing for the pieces as they come

Exclusivity for Composer Deals:

-composer deals used to be exclusive until delivery of the score, which meant you couldn't do anything else during that time; you have to say that your deal is non-exclusive (which means that you can do anything else you want, as long as you perform on time). -however, the studios all require exclusivity from the time you actually start recording the score until you finish.

Deal Points for Composers:

-deals for composers are similar to those for songwriters, except that a composer almost never gets any share of the publishing -the tentpole and big animated films pay fees to the composer, with the recording costs on top, but for everything else (and sometimes even for the big movies), many studios want to do package deals (i.e., a lump sum that covers both the fee and recording costs) -as composer prices have slid downward, more and more studios are open to the idea of bonuses based on box office gross (e.g., you might get $50,000 for every $25 million of box office)

Classical Artists:

-don't generally compose the material they record, and because their recordings are in essence "live performances", they can make records much faster than pop artists -can record several albums per year

Spec Deal:

-fancy way of saying the writer does it "on spec" (short for "on speculation"; i.e., he or she writes the song without a commitment from the film company to pay a full fee) -if you're doing a spec deal, try to get the song back if they don't accept the demo; another way around this is to simply not sign anything until the demo is accepted and the deal is firm

Other Issues to Cover in a Partnership Agreement:

-firing -hiring -quitting -incurring expenses -contributions -amendment of partnership agreement -death or disability -ex-partners

Classical Deals:

-historically, classical deals would commit the company and artist to 2 or 3 albums per year, and the term of the deal would be for several years, firm -multi-album deals have dropped off radically and are rare except for very significant artists; instead, the record company commits to 1 album at a time, with options for more

Publishing:

-historically, writers got no share of publishing on film songs; these days, with clout, writers can get 25%-50% of the publishing income and usually the same percentage of copyright ownership -if you do get publishing, the film company will want the exclusive administration rights -if you don't get co-administration, you may still be able to approve certain types of synch licenses; try for consultation rights on commercials, which means they have to discuss proposed uses with you, but they can make the final decision. -also, try to get paid directly by the record company for mechanical royalties, and by your PRO for performance monies, so you don't have to wait for the money to go through the film company

Major deal sponsorship points are as follows:

-how many dates are they sponsoring? -in what territories? -what is the exclusivity? (e.g., if soft drink sponsor, can't sell bottled water?) -is the artist doing a commercial? in what media/territories? how long can it run? -can music be used in ads? who is clearing the music with record company and publisher? -do they get free tickets? right to purchase tickets early? -will there be a "meet and greet"? -how will the sponsor's name be positioned on tickets/advertising?

Soundtrack Album Credit:

-ideally, you want credit on the front cover of the soundtrack album -you should always insist that you get credit on the back cover of the album, and anywhere else that songwriters and artists are credited. Can say "music by . . ."

Legal Ethics:

-if a lawyer represents the partnership, he or she can't take sides and represent any one band member against the others; when attorney is preparing the Partnership Agreement, can do one of two things: -each member can hire independent counsel to negotiate the agreement. -the lawyer explains all the issues and then the band decides among themselves how the issues are handled (attorney is the "mere scrivener")

What Rights are Granted:

-if you can help it, you don't want to give the film company any more than the right to use your master in the film, on the soundtrack album, and on a single -some film companies require the right to use your recording in sequels and remakes of the film, as well as ancillary uses such as studio tours; you almost always have to give up these rights, but sometimes you can get an additional fee for the use -another issue is co-promotions; the film company will want your master in radio and TV commercials that promote both the advertiser and the film; if you have a lot of clout, you may be able to get pre-negotiated additional payment, or even prohibit some or all co-promotions without your consent; another compromise is to limit how the song can be used in the co-promotion (e.g., it can only be used to promote the film itself, not the product)

Producing Royalties:

-if you produce the recordings, you can get 3%-4% -like other producer royalties, these are usually retroactive to record one after recoupment

Business Manager:

-in charge of all financial aspects of the tour; this begins way before the tour starts, by forecasting the income and expenses and projecting how much you're going to make or lose -all road personnel (the people who set up equipment and supervise your crew) are in payroll, and the business manager is in charge of getting everyone paid -he/she also makes sure performance fees are collected from the promoters and that all bills (travel, hotel, food) are paid -they deal with withholding taxes and file tax returns

Agent:

-in conjunction with the personal manager, the agent books the tour; he/she makes the deals with promoters -he/she makes the deals with promoters

Superstar Touring Splits:

-instead of being paid flat fees, you get a guarantee against a percentage of net profits or gross of the show (whichever is higher); if you don't make any profits, you still keep the guarantee. If you do make profits, the promoter deducts the guarantee and pays you the excess. -major artists in arenas get guarantees in the range of $100,000 to $500,000 plus per night, and sometimes as high as $1M -the usual split is from 90/10 to 85/15, meaning the artist gets 90% (or 85%) of the net profits of the shoe and the promoter gets 10%-15%

Agent and Manager make the following decisions about the tour:

-itinerary -image -radio promotion -when to put tickets on sale -pricing of tickets -deposits

Control:

-just as ownership doesn't need to be equal, neither does control of the band's decisions; normally you vote in proportion to your percentage of profits, but this is not carved in stone -try not to have an event number of votes because this allows for a deadlock (i.e., an equally divided vote where nothing can be done)

Performance in the film credit:

-make sure your credit is no less prominent than any other artist's, both as to size and placement in the film -the title song performer should be able to get single card credit (meaning no other credit is on the screen at the same time as his/hers)

Bootleggers:

-merchandisers want the right to chase bootleggers -these are people who, without authority, manufacture merchandise with your name and/or likeness on it, and sell it outside the venues; this costs you money because you don't get paid for the merchandise. -also, the quality can be crappy and then fans blame you

Mechanical Royalties:

-most classical music is in the public domain, which means that no mechanical royalties are paid for the music -however, some of the compositions may be more recent, or even contemporary, and the record company has to pay mechanicals to the publishers of these work; often, the classical artist has to split mechanicals with the record label

Record Company Masters:

-most of the master licenses are, not surprisingly from record companies; the rest are individual owners of recordings -contracting parties are your record company and the film company, who make a deal with each other; the money is paid to your record company, who pockets half and treats the balance as artist royalties -if your record contract says they need your consent to license masters, then the label will ask for the artist's permission -the film company has to make a deal with both the record company and the publisher to get a full set of rights; if you're the publisher, you control the deal -a record company / film company master license has two main elements: (1) how much is the fee to synchronize the master in the film? (2) if the master is also going on a soundtrack album, what's the royalty?

Fee and Royalties:

-music supervisors get fees of $25,000 to $100,000 per film; the top supervisors also get royalties of 1% to 2% (can be escalations), which are payable prospectively after recoupment -can also get box-office bonuses

Rights Granted:

-music written for films is always treated as a work for hire; the film companies insist on this because if it's not a work for hire, you could terminate the copyright assignment after 35 years -the film company wants the right to use your song not only in the film, but also in sequels, prequels, spin-offs, trailers, advertising for the film, and co-promotions

Most Common Solutions to Group Name Problem:

-no one can use the name if the group breaks up (regardless if some of the group is still performing together) -any majority of the group members performing together can use the name (e.g., if 5 members in the group that breaks up, then 3 of them performing together can use the name) -only the lead singer can use the name, regardless of who he/she is performing with -only the founder of the group can use the name, regardless of who he/she is performing with -the lead singer and founder can use the name as long as they perform together, but if they don't, no one else can use it

Bigger Budget Films:

-once the electronic score is locked, the composer brings in an orchestra, clamps headphones over their ears, and has them listen to the electronic score while they overdub their parts (i.e., they replace the synthesized violins with real ones, add acoustic instruments, etc.), or in some cases, the composer replaces the electronic score with an orchestra -studios now except demo recordings of the score in advance of the finished product

Royalties for Classical Artists:

-potential sales for classical music are very small, and the costs of recording can be very large (e.g., the cost of recording with a full orchestra can be $150k to $400k, and typical album sales are in the 5,000 to 10,000 unit range worldwide; a "big seller" would be 50,000 worldwide) -royalties are lower (7.5% to 10% range) for classical artists, but they are paid from the first record sold (don't have to recoup recording costs but rather only recoup their advance) -royalties are not "all in" (classical artist is not responsible for producer royalties coming out of their royalty) -guest soloists normally get a royalty and so do major conductors; a principal soloist might get 4% to 5%, a conductor 1% to 2%, a guest soloist 2% to 3%, and a well-known orchestra 1% to 2%

Promoters who handle entire tour:

-promoter will want all the dates to be cross collateralized; artist can normally get a higher guarantee -these deals are easier administratively because you have only one contract and one rider for the entire tour -the major promoters have a division that handles VIP ticketing -the national promoters also want to share in any tour sponsorship income

Marketing Tie-Ins:

-putting the classical artist in a public TV special, etc. -record company will want to recoup the amount the spend

The Record Company Piece:

-record companies want to collect all the royalties you get from soundtrack albums and singles; they normally keep 50% as a cost of waiving your exclusivity and allowing your recording to be released; if your company is the one distributing the soundtrack album, you should ask for 100% of the royalty -if you get an advance against your royalties, the record company will also want a piece of that

Recoupment:

-recording costs -conversion costs -re-use fees

Registration:

-registration tells the world that you're using a particular name -also establishes a date on which you are using the name and creates a legal presumption that you own it nationwide -registration makes sure that you will show up in any search that somebody else does -you can file an application online -you can file an "intent to use" application to reserve the name before you actually start using it -you're required to file evidence that you're actually using the mark within 3 years from the date the USPTO issues a Notice of Allowance -must use the mark in "interstate commerce" (i.e., online or across state lines) -if you use a name continuously for 5 years after your registration is issued, can file an Affidavit of Incontestability (means no one can ever say they used the mark first before you)

Tour Manager:

-responsible for everything running smoothly on the road; make sure hotel reservations and airline tickets are confirmed -the tour manager is the person who physically collects the money after each show and reviews the promoter's accounting on the night of the show and depositing the money in the correct place

Retail Merchandising:

-retail merchandising means all the non-concert ways of selling merchandise (e.g., retail stores, mail order, internet, fan clubs, etc. -the merchandisers keep a percentage of the license income, ranging generally from 15-25% -when you make a retail merchandise deal, you'll want approval of the quality of the merch items and what they are, approval of your name/likeness, and approval of the designs/layout -you'll also want approval of all sublicenses

Key Members:

-sometimes a record deal may list who the "key member(s)" are; if a key member leaves the group -the record label can treat the event as a breach by the whole group and can exercise various options

Percentages:

-sometimes, not all the people on stage are actual members of the group; some of them are hired hands; hired hands can get both a salary and a percentage of profits; hired hands serve at the will and the pleasure of the employer -simplest way to split money is to divide it equally; this is common in new bands, but it can become a source of irritation if some members work harder or contribute more than others. -another approach is to give the founders a higher percentage -sometimes bands split evenly on concert monies but have different splits for records, merchandising, television performances, etc.

Can your record company use the master?

-sometimes, you can get the right to use the recording on your own records -the period before you can release the master on your record is called a holdback -make sure the day arrives (e.g., if you measure your period from release of the soundtrack album and it never gets released, you could never use it) -always include an outside date -current trend is for many films not to have a soundtrack album

Buy-Outs:

-the Partnership Agreement spells out what the purchase price is -cash payout & contingent payout -when a member has died or becomes disabled, other members don't want to deal with other member's family and kids so wants to buy them out

Performance in the film fees:

-the artist's fee can range anywhere from union scale up to $400k plus for a major artist -the norm is about $5,000 to $10,000 for a minor artist, escalating to somewhere around $15,000 to $25,000 for a mid-level artist -superstars tend to range from $100,000 to $200,000

Logos:

-the artwork in your logo (if it's original enough) is protected under the copyright laws, which means you should file a copyright application -if you didn't do the logo artwork, then need the artist who created it to sign a work for hire agreement or a copyright assignment

Television Composers:

-the composer's fees and the money available for recording costs are much less than those for theatrical films -the performance monies generated by television programs can be substantial - much more for films - because programs may be shown over and over, forever -and remember that you get performance monies each time your music is played on television

Performance in the film (no record rights):

-the deal for an artist to perform a song in a film is usually a flat fee; however, most record deals say the record company owns all "recordings" made during the term, and that language is broad enough to include film recordings; thus, the record company's consent is required -the film company should talk directly to the record company

Who Owns the Masters?

-the film company argues it paid for the recordings and should own them -the record company argues that the advance it pays under the soundtrack album deal pays for the masters, and thus they own them -most often the record company owns the masters and licenses them to the film company

Cost Covering:

-the most common deals these days are for the film company to pay all or part of the music costs of the film (recording costs, synchronization licenses, master licenses, songwriter fees, artist's fees and advances, composer's fees, and so forth) and get back what they can from the record company -whatever the record company pays is recoupable from the royalties

For every song that goes in a film, there are always deals to be made with a number of people:

-the performer (singer/instrumental) -the record company to whom the performer is signed -the record producer -the songwriter -the publisher to whom the songwriter is signed -the owner of a master recording that's sampled in the song -the publisher who owns a song that's been sampled -the record company putting out the soundtrack album

Royalties for Record Company:

-the range of royalties paid to the record company is 11% to 14% pro-rata; if your record company is releasing the soundtrack album or a single, you should get 100% of your normal royalty -your record company can get most favored nations treatment for the master (meaning no one gets a higher royalty) -since the film company didn't pay the recording costs, the only things that can be recoupable are the union re-use fees and this too is negotiable

Deal Point Fees:

-the range of songwriting fees is anywhere from $0 to $100,000 plus for established writers -the vast majority of deals fall in the range of $25,000 to $50,000 for major studio films -a film company will never obligate itself to use a song; the most it will do is agree to pay the fee, which is known as "pay or play" because it can either use you (play) or pay you to go away; same is "pay or play" in record deals

Film Release:

-the record company wants a guaranteed release of the film -they argue that their album isn't worth much without a film to go with it

Release Timing:

-the record has to be released in coordination with the film -(Tie-in - a track from an artist's upcoming album) -record companies want a single promoted about 6 weeks ahead of the film

Term:

-the term of most merchandising agreements is one album cycle or until the advance is recouped, whichever is longer (note this means the deal could go on forever); an album cycle is defined as the date of release of your album and ending 60 days prior to release of the next album; always want to add an outside date in case there is never a "next album" -if not based on album cycle, based on tour cycle, which means the deal continues until the end of the tour or until recoupment, which is longer -try to get the right to repay the advance so that deal doesn't last forever

Royalties:

-these are just a percentage of gross sales; gross sales is a term of art, meaning the selling price to the public, less only taxes -the range of royalties is generally 30-40% of gross sales; this can be escalated based on sales -the souvenir programs sold at concerts are based on a percentage of net profits, regardless of how everything else is calculated. (i.e., the merchandiser takes the gross selling price, deducts the cost of the goods, and divides up what's left) -foreign royalties run somewhere around 80% of the U.S. rate

Promoter:

-these are the people in each market who hire you for the evening -promoters book the hall (which means they owe the rent even if no one shows up), pay for advertising the concert, and supervise the overall running of the show -Live Nation and AEG are international promoters, which purchase entire tours; they make a deal to promote every date. -under venue deals, the building owners contract directly with the artist; sometimes venues will pay artists more than promoters because they have income from parking, goods, beverage sales, and other areas that promoters don't share

Soundtrack Album Deals:

-these contracts are made between the film company and a record company -there are two different kinds of soundtrack albums: score albums and song albums

Exclusivity:

-tour merchandise deals are exclusive, as the merchandiser doesn't want anyone else selling stuff with your name/likeness -need to exclude retail sales from this restriction if you have a separate merchandiser handling that

The personal manager coordinates and supervises the following:

-transportation of people and equipment -overseeing rehearsals, hiring band members, watching finances -hiring and smooth functioning of crew -booking hotels -collecting money on the road -dealing with promoters (the people who hire you, rent the hall, advertise the event, etc.) -coordinating advertising, marketing, and radio and -internet promotions, both in advance and while you are in each city -handling day-of-show activities (e.g., interviews and meet and greets) -putting out fires (missing equipment, dates that aren't selling well, etc.) -dealing with illness, cancellations, or other disasters

Background Score:

-typical package fees are around $2,000-$5,000 for a half-hour television episode, with a few going as high as $7,000. -for a pilot, studios pay a very small fee (from $500 for 30 minutes to as much as $5,000 for 60 minutes, including all recording costs and musicians) -if you want writer's royalties, be very clear about that up front

Video Game Composers:

-unlike films, however, there are very little performance monies, for the simple reason that video games aren't played on television or in theaters -some game companies take a much tougher stance and refuse to pay writer royalties at all -most of them are done as packages -these deals are sometimes a flat fee for the entire game, but they're usually a dollar amount for each minute of music (typically $1,000 to $2,000 per minute)

Orchestrations:

-virtually all composers use orchestrators; the orchestrator is paid for his/her services (usually $80 per page) -you should make sure the orchestration fees are on top of your composer fee

Deficits:

-what happens if the group is unrecouped when a member leaves and creates a solo album? Labels will generally agree that only a prorata share of the group's deficit can be charged to the soloist (e.g., if there are 5 members of the group, only 1/5 of the deficit can be carried over into a solo deal) -labels will also normally agree only to charge the soloist's prorata share of group royalties with the soloist's deficit -be careful to provide that, if the group continues to record without the soloist, no future group deficits can affect the soloist's new account -most labels will agree not to charge future costs against a person who has left, because the leaving member doesn't participate in the future records' royalties and thus shouldn't bear the costs

Certificate of Authorship:

-what studios made composers sign before they would pay them -more and more studios have now adopted a policy of not paying money until the full contract is signed -standard now is 1/3 on spotting, 1/3 on commencement of recording, and 1/3 on completion of services

Credit Questions:

-what type of credit will the record company have in the film? -will it be in film ads as well as onscreen? -what credit will the film company get on the records and in record company ads?

Conducting Royalties:

-when conducting, the composer becomes a recording artist by leading the orchestra -the customary range of royalties is 6%-10%.

Re-Use Fees:

-whenever you take a recording made for one medium (in this case, a motion picture) and use it in another (like records), the union charges a fee; these fees are called re-use fees or new use fees because they are charges to re-use an existing recording in a different way -re-use fees are also payable the other way around - taking a recording made for records and using it in a film (and in other situations like going from television to records, records to television, records to commercials, etc.). -the reasoning is that, when you use an existing recording, you don't have to hire the singers and musicians you would have needed to re-record the song; since you're putting union members out of work, the unions allow you to do this only if you pay them an amount listed on a schedule

Recoupment for Composers:

-with composers, the record company usually recoups only conversion costs -the issue becomes what they're recouped from -the best is the gross royalty payable to all participants, and the worst is your artist/conductor royalty

Check it Out:

-you have to make sure no one else used the group name before you did -changing a name once you've built up a local following is not good -search the internet (Google, social media sites, iTunes, Spotify, Allmusic.com, etc.) -search the www.whois.com registry -check the USPTO and Copyright websites -order an official search through Thomson CompuMark -important! (if you find a name that is similar, you will need a legal opinion as to whether or not it's too close; the test is whether the public is likely to confuse the two groups. "Substantial likelihood of confusion")

Credit:

-your credit shouldn't be any less prominent than anyone else's; if you do write the main title song, and if a major artist performs it, you may be able to get credit on a single card (i.e., no one else's credit is on the screen at the same time) -if you're a really major writer, you may be able to get credit in the billing block of paid ads for the film, but this is VERY hard to come by; the billing block is the very small box of credits down at the bottom of movie ads. -you may also be able to get credit in full-page trade ads (i.e., entertainment industry ads)

New Artists:

-your first goal as a new artist is to play as a headliner in clubs

Hall Fees:

-your merchandiser doesn't usually hire people to sell products in each of the venues: instead, they make a deal with the hall to supply the personnel, display racks, etc. -from the money that's paid, the venue keeps a percentage, and this is the hall fee -a standard hall fee is from 25-30% of the gross monies collected for the merchandise -today's deals almost always set a limit on the hall fees, and if you go over it, the excess comes out of your royalties.(e.g., a merchandise deal might say that you have a royalty of 37% and that the hall fee cannot exceed 30%)

Here are some points covered in a rider:

Expenses - maximum amounts for each category (also says that artist can verify expenses by examining invoices, checks, etc.) Free Tickets Billing - artist may want 100% headline billing and the right to approve the presence and size of anybody else's name in the same advertising, publicity, or sign Recording - contains prohibitions against recording the performance (audio and/or visual) Merchandising - says who has the right to sell merch Interviews/Promos - be sure the promoter can't commit you to any interviews or local sponsors without your consent Catering Technical - size of stage, equipment the promoter must supply, power requirements, security needs, sound check; sometimes there is a separate technical rider Legal - other provisions regarding cancellation, bad weather, insurance, etc.

Ex-Partners:

What happens if you're terminated or you quit? do you keep your same percentage for past activities (usually yes)? for future activities (usually no)?

Record Royalties:

a film composer, being a songwriter and not a performer, doesn't automatically get record royalties; underscore royalties are paid only for (a) conducting the orchestra and/or (b) producing the recordings, neither of which may be done by the composer

Package Deals:

a package is very much like a fund in record deals (i.e., the composer agrees to deliver a completed score for a set fee, and the fee includes both the compensation for the composer's services and the costs of recording the score)

Deposits:

agents are also responsible for collecting deposits, which are amounts paid in advance by the promoters; promoters normally pay 50% ahead of time and 50% at the performance; deposits are held by the agent and paid to the artist when the artist performs the gig (after deducting their commission)

Advances:

almost always returnable; usually paid over the course of a tour

Personal Manager:

as the CEO of your professional team, the personal manager is in charge of the tour

Corporation vs. Partnership:

band members can set up either a corporation, LLC, or partnership: there are tax reasons for selecting any particular one

When to put tickets on sale:

be careful that you're not going on sale the same day as a major tour

Package Prices:

can be anywhere from $50,000 for a low-budget film up to $1.5M and even $2M plus for mainstream

New Artist Fees:

can range from $250 to $1,500 per night for local following; or $5,000 to $10,000 per night for regional following

Who writes underscores?

composers

Radio Promotion:

coordinate with the radio promotions department of the record label

Why You Need an Internal Contract:

determine how decisions are made

Percentage of Publishing:

film companies normally own all the publishing for the underscore; in these creative deals, the composer might get ownership and/or administration

Expenses:

from the gross, the promoter deducts every expense he/she has, such as the following: -advertising -rent for the facility -personnel (box office, cleanup, ushers, ticket takers, doormen, etc.) -rental of equipment (PA, lights, pianos, etc.) -insurance -security -stage crew -ground transportation for artist and entourage -catering for artist and crew -public performance license for the music -medical

The Most Important Asset:

group name; an internal contract should figure out what to do with the group name if there's a fight

Midlevel Artists:

guarantees against splits at this level are of course lower than superstars; midlevel artist guarantees are in the range of $7,500 to $25,000 (or more if you raise the ticket price)

Music Videos:

if there is going to be a music video, the record and film company will usually share the cost 50/50, and the film company customarily supplies footage from the film (at no cost) to be included in the video

Quiting:

is everyone free to quit at will? can't walk out in the middle of a tour?

Re-Recording Restriction:

just like a record deal, soundtrack deals include a re-recording restriction

Floors:

major composers can sometimes get a floor (i.e., if you do absolutely nothing on the record, you still get a royalty)

With bigger artists...

many of theses duties are delegated to a tour manager and/or tour accountant, but the personal manager is ultimately responsible

Gross Recepits:

means gross monies from ticket sales, less selling costs (such as ticket fees), taxes, and facilities charges

Merchandisers:

merchandising at concerts is handled by licensing the right to use your name and likeness to a merchandiser; a merchandiser, very much like the record company, manufactures the goods, oversees the sales at your concerts, and pays you a royalty for each sale

Travel Expenses:

negotiate for reimbursement of your expenses and ask for per diem

Licenses of Rights from the Picture Company to others:

once the film company acquires these rights, these are the deals to let other people use the music; specifically: -a deal with a record company to release a soundtrack album -licensing film clips for music videos -possibly a publishing administration deal

Advances for Classical Artists:

only $5,000 to $10,000 per album; if your name is recognizable (e.g., John Williams), you might get $50,000 per album