Music Business Final Exam
What is not protected?
Titles, information, and ideas that are not fixed
What is the purpose of publishing?
To market masters and collect royalties
Six Exclusive Rights
To reproduce copies phonorecords To prepare derivative work To distribute to the public as a rental, lease or to lend. To perform works publicly To display works publicly To digitally transmit sound recordings to the public
PRO's pay ___________.
Together
What's Sound Scan?
Tool used by retailers to calculate # of CDs sold
Synchronization License
Totally Negotiable, depends on use (Visual vocal, visual instrumental, source music, credits music)
True or False: a film company must contact and make a deal with the record company that owns the master and the song's publisher in order to obtain a full set of rights for the use of a particular recording of a song in a film.
True
True or False: a label will withhold a portion of the royalties earned by an artist in case a number of the records initially shipped to retailers are returned:
True (reserve against return 30%)
Digital Distributors that charge a flat fee
TuneCore
Where is the U.S Copyright office located?
U.S. Copyright Office is an office of public record for copyright registration and deposit of copyright material.
Free Goods
Used to Promote a Band
Recording Costs for Album
Usually paid by Artist
What are the "big 3" record labels?
Warner Music (New York) Sony Music (New York) Universal Music Group (California)
Big Three Labels & Countries
Warner USA, UMG France, Sony Japan
Where is U.S. copyright office located?
Washington D.C.
In what city is the U.S. Copyright Office located?
Washington DC
Cross-Collateralization
When a balance from one acct. is used to pay off a debit on another acct. Ex. When a current album's income is used to pay off a past album's deficit.
copy protection
When music is limited to being shared peer to peer for copyright reasons
Load In and Load Out
When musicians are supposed to take in and take out their equipment from a venue or studio
360 Deals
Where a label takes money from other revenue streams as well
Venue
Where music is performed?
Harry Fox Agency
collects license fees from record labels, distribute royalties to music publishers
Cartage/ Cartage Fees
cost of transport of heavy musical equipment to and from venues and studios.
The process of setting up and tearing down equipment before and after a concert is known as:
load in/load out and set up/tear down
the universe
major labels typically reserve the right to be the exclusive distributor of an artist's recordings in which territory or territories
record company
master is typically controlled by who
record company
master license is issued by
the advance
money paid by the label for recording and other expenses
Attorney Retainer
monthly fee guarantees a minimum amount of your lawyers time, extra hours cost extra $
force majeure
the clause in a gig contract that is typically invoked to justify a cancellation
If an artist earns $1 in royalties for each album sold and there is $400,000 in recoupables, how much would the artist receive if the album sold 1 million copies?
- $600,000
A song has earned $100,000 in mechanical royalties. Assuming the standard industry split and no HFA fees, how much has the songwriter earned?
$50,000
If an artist earns $1 in royalties for each album sold and the $400,000 in recoupables, how much would the artist receive if the album sold 1 million copies?
$600,000
Assuming the CURRENT full statutory rate applies, what will the mechanical license fee for the sale of 1,000 copies of a 3-minute song cost?
$91.00
The "suggested retail price" for an album is also known as the...?
- "List Price"
The concept that an Artist can have only one Personal Manager is known as...?
- "exclusivity"
Assuming the CURRENT full statutory rate applies, what will the mechanical license fee for the sale of 1000 copies of a 3minute song cost?
- $91
**Role of Music Publishing Company = ?
- **to Exploit, Collect, develop, & administrate
In what city is the U.S. Copyright Office located?
- Washington D.C.
Another name of a small independent record store is...?
- a Mom and Pop
**What CAN be copyright protected?
- a book, a song
The label's contractual right to record and release an additional album on an artist solely at the label's discretion is called:
An option
What can be protected?
Any idea in a fixed medium of expression
Who can own a Recording Studio?
Anyone
The recording costs for an album are advanced by the record label, but ultimately paid for by the:
Artist
"A & R" means:
Artist & Repertoire
A&R
Artist & Repertoire
The percentage of income generated by record sales that is paid to an artist is called
Artist Royalties
Monies earned by artists from the sale of recordings are known as:
Artist royalties
Reserves
Because CDs are sold to retailers on a 100% return basis, the label doesn't know whether the CDs will "sell through" to consumers or not Therefore, the label keeps a portion of the artist's royalties, it holds this money in reserve against returns. Reserves are for physical goods only.
Notice to terminate Copyright Transfer
Between 10 and 2 years before 35 year transfer period is up
Which trade magazine details the record and music industry?
Billboard
What CAN be copyrighted?
Book, song, movie, ect.
Concert promoters contract for artists services through:
Booking Agents
Concert promoters contract for artists services through
Booking or Talent Agencies
The concept that an artist can only have one personal manager is called:
Exclusivity
Music publishing companies
Exploit, Collect, Develop, Administrate
Cartage
Fee paid to move musicians' stuff
Gross
Income before expenses are paid
A "one stop" distributor sells mostly to:
Indie record stores
RIAA represents the:
Labels
Term of Copyright
Life Plus 75 Years, or 120 from Creation
After the 1976 Copyright Act, the copyright for a song created after Jan 1, 1978 lasted for:
Lifetime + 70 years
Circumstances for Fair Use (2)
Limited Use, No Profit
The "suggested retail price" for an album is also known as the:
List price
For the sale of U.S. records, the U.K., Germany, Australia, Japan, and France are referred to as:
Major territories
Producers _____?
Make hit songs
Which of the following is overseen by the Marketing Department
Press & PR, promotion, advertising, tour support, radio
The contract between the agency and the promoter has two parts, the _____ and the ____.
Prima Facia/ rider
The person "in charge" of a recorded session is the:
Producer
How are Mechanical Royalties Generated?
Sales
exclusivity
The concept that an Artist can have only one Personal Manager.
Producers are paid royalties:
The exact same way the artist gets paid
Current Statutory mechanical rate?
The greater of $0.091 or $0.0175 per minute
Sound Scan monitors:
The sale of physical records at retail/road sales (scans barcodes)
AFTRA
represents artists radio and tv
When the Publisher receives money for song income from Mechanical Licensing, what percentage is the Songwriter typically entitled to?
- 50%
The CURRENT Statutory Mechanical Royalty Rate (SMRR) is...?
- 9.1 cents per song
Cross-Collateralization = ?
- =the record company's practice of using profits from a CURRENT album to recoup debt from PREVIOUS albums
The complete notice of a copyright for a song should include...?
- A copyright sign, the year, and the creator's name.
In music publishing, a "catalog" refers to...?
- ALL of the writer's songs
"A & R" means...?
- Artist & Repertoire
The Harry Fox Agency does NOT collect money from...?
- Brokers mechanical royalty agreements
A recording that appears on several different charts/genres is called a...?
- Crossover Record
The dept. responsible for getting records into retailers is called...?
- Distribution and Sales
What does "Sound Scan" monitor?
- How many physical copies of the music are sold
A "one stop" distributor sells mostly to...?
- Indie record stores.
RIAA represents the...?
- Major labels
The recording merchandisers (retailers) are represented by...?
- NARM = National Association of Retail Merchandisers
Music publishers and songwriters usually have performance royalties collected by...?
- PRO's
The right of a Manager to sign contracts and make commitments for an Artist is given by the...?
- Power of Attorney
What organization represents record companies and certifies gold and platinum albums?
- RIAA = Recording Industry Association of America
The practice of a Record label advancing money to an Artist and then paying ITSELF back out of the Artist's royalties is called...?
- Recoupment
Arbitron=?
- a consumer research company in the United States that collects listener data on radio audiences, and checks to see who's reaching the most people via the radio
What is overseen by the Marketing Dept. at most record labels?
- advertising press, PR, radio promotion, tour support
**What CANNOT be copyright protected?
- an idea
Major labels primarily distribute their recordings through...?
- branch distributors
On an AFM session, how much does the leader get paid relative to the rest of the musicians?
- double their pay
The Overriding role of management is to...?
- further an artist's career
In a record company, the promotion dept. is usually responsible for...?
- getting radio airplay
Royalties paid to Publishers and Songwriters from the manufacture/sale of recordings are called...?
- mechanical royalties
What percentage of royalties to Artists receive on Promotional copies?
- nothing, you twat
The recording costs for an album are advanced by the record label, but ultimately paid for by who...?
- paid for by the Artist
a venue is a...?
- place to play music
the length of time of a recording contract is known as the...?
- term (of the contract)
A section of the booking contract, which gives specific artist requirements for things like food, lights, and sound, is known as...?
- the "rider"
The person who is "in charge" of a recording session = ?
- the Producer
Concert promoters contract for Artists services through...?
- the booking agent
Artist royalty = ?
- the percentage of income generated by record sales that is paid to the artist
Who receives the money generated by terrestrial radio airplay of a recording?
- the publishers and songwriters
What are the 6 exclusive rights included in a copyright?
- the right to... 1. Public performance, 2. Digital Performance, 3.Distribute copies, 4.Display copies publicly, 5.Create Derivative works, 6.to sell or assign these rights to others**
Cartage = ?
- the union term for the cost of the transportation of musical/sound equipment to a studio
Controlled Composition Clause = ?
- this Clause addresses how much money a record company will pay its recording artist (in his capacity as a composer) for those of his songs which he records.
A "Controlled Composition Clause" in an artist's record company contract usually states what?
- when the label asks for a discount of statutory rate**
In the US, synchronization royalties are paid to...?
- writers and publishers
Performance royalties
-Comes largely from Radio -Collected by PROs -Distributed to songwriters and publishers
What is their purpose?
-Offer blanket license so venues can perform the songs they cover -Distributes fees to music publishers and songwriters
Mechanical Royalties
-Paid to songwriters and publishers -Generated by CD sales
Sources of income for songwriters
-Performance royalties -Mechanical royalties -Artist royalties, if they wrote and recorded the song
What's a controlled composition clause?
-Reduces the mechanical royalties paid to the publisher and writer -Fixes the mechanical royalty rate at a percentage of the current mechanical royalty rate and that rate does not escalate like normal mechanical royalty rates
Six Exclusive Rights of Copyright
-Reproduce the work -Distribute Copies -Perform publicly -Make derivative work -Display publicly -Perform by digital audio transmission
3 Major Music Distributors
-Universal Music (Interscope/A&M/Geffen) -Sony (Columbia, Epic, RCA Records) -WEA (Warner Bros., Elektra, Atlantic)
On an AFM session, how much does the leader get paid relative to the rest of the musicians (side-persons)?
...
What percentage of royalties do artists receive on promotional copies?
0%
How much are booking agents usually paid?
10% touring income (gross)
What portion of tour support money is typically recouped from the artist's income?
100% The record company recoups it all.
Tour support is typically _____ from the artist.
100% recoupable
When the talent agency requires that the promoter give their artist top bill on all tickets, advertisement and press releases, he is asking for
100% star billing
Standard Manager Commission
15%
In a typical percentage deal, a business manager's commission is:
3-5% of Gross to manage funds
Business Manager Commission
5%
When the publisher receives money for song income from mechanical licensing, what percentage is the songwriter typically entitled to?
50%
A label needs help and hires an independent promotion team to get the artist's song played on the radio. These independent promotion costs are generally:
50% recoupable
A "controlled composition" clause in a recording artist's record company contract states:
75% of statutory rate is payed for a song
The current Statutory Mechanical Royalty Rate (SMRR) is:
9.1 cents
What is the Current Statutory Rate?
9.1/unit
Master Use License
A "master use license" is an agreement by which the Copyright Owner of a Sound Recording (usually, the record company) grants Permission to someone else to use the Sound Recording in a visual work.
Major labels primarily distribute their recordings through:
A branch distribution system
TV stations are required to keep _____ showing which songs are used, how they're used, and their duration in a television show.
A cue sheet
A retainer paid to an attorney is:
A flat fee you commit to monthly
Crossover Hit
A hit that reaches charts in two or more genres
Power of Attorney
A legal document authorizing one person (manager) to act on behalf on another person (artist). Usually authorizes manager to sign the artist's name to agreements.
Transcription License
A license from a copyright owner for the licensee to use music in a radio commercial.
Billboard
A magazine
Music supervisor
A music supervisor helps select music, supervises the clearing of music, hires a composer and supervises the recording of the score.
Performance Royalties
A performance royalty is owed to the songwriter and publisher of a particular song whenever that composition is "broadcast" or performed "in public.
A venue is a:
A place to play
Rider
A rider is list of requirements/demands that artists want to have in their dressing room,Hotel and Travel.
Demo
A song recorded for reference
What are the departments of a record company?
A&R Promotion Marketing
AFM
AFM is one of the largest unions of performing artists and is made up of musicians. AFM members work in all fields of music. Joining AFM is beneficial to musicians because it guarantees they will be paid at the minimum rate established by the union, called the union scale.
Vocalists belong to which union for recordings:
AFTRA
What are the three PROs?
ASCAP BMI SESAC
Booking Agent's Job (3)
Advice, tours, shows
What does SoundScan monitor? (2)
Airplay and Sales...
Which of the following is a source of income for songwriters:
Airplay, mechanicals
In publishing, a catalog refers to:
All the songs a songwriter has written, all songs a publisher represents
AFM
American federation of musicians -musicians union
AFTRA
American federation of television and radio artists -singers union -SAG/AFTRA
Ticketmaster
American ticket sales and distribution company
Rider
An addendum to the booking contract.
Transcription License
An electronic transcription license like those used by Muzak include the right to reproduce the copyrighted work in phonorecords to sell those phonorecords to the public... true or false? -False Electronic Transcription Licenses allow music to be played in the background or something
Which of these CANNOT be copyright protected?
An idea
Album Cycle
Beginning after recording the album and ending after all promotional activities for the album are complete
A band partnership agreement defines the rights and obligations of the band when it:
Breaks up, fires someone, deciding who owns the name (all the above)
The Harry Fox Agency does not collect monies from:
Brokers moneys from mechanicals to publishers
Business Manager
Business Manager • Not licensed, don't require CPA or JD, not investment advisors • Financial Watchdog for Artist o Collects money, pays artists bills, sets tour budgets, may invest the artist's money, may do artists taxes, but probably shouldn't How to choose a business manager • Find out if they have certifications - registered financial advisor, certified professional Accountant • Ask what kind of reports you will get and how often • Ask what their investment philosophy is; are they risky or safe investors? Taxes • Most artists have a CPA (certified public accountant) or tax attorney handle their taxes • Business managers must be aware of tax issues - touring, every state is different Business Manager's Fee • Hourly Rate or flat fee early in artists career • Percentage of artists income for an established artist • Combination of the two • Possible charges for extra services, percentage of investment income • Will your business manager do the work, or hire somebody to do it? • Key Man clause o Guarantee that the person who signed your contract is the person who will be doing your work. If that person leaves the firm, you no longer need to be with that firm
Notice of Copyright
C, Year, Last Name
Digital Distributors that charge a percentage of sales
CD Baby, IODA, The Orchard
If the artist is the CEO (Chief Executive Officer) of their business, the personal manager is the
COO - Chief Operating Officer
How 'bout Promotion?
Call and visit radio program directors to get your song played on radio
The union term for the cost of the transportation of musical/sound equipment to a studio is known as:
Cartage
Arbitron:
Checks to see which radio station has most listeners
What are PRO's for?
Collecting Money for Songwriter and Publisher
Types of "Fair Use"
Criticism and comment News reporting Research and scholarship Nonprofit educational uses Parody
The record company's practice of using profits from a current album to recoup debt from previous albums is called:
Cross-collateralization
A recording that appears on several different charts/genres is called a:
Cross-over record
Record that appears on multiple charts
Crossover
Record Clubs, iTunes, and TV offers are examples of
Direct to consumer sales
Record companies reduce the amount of royalties they pay to artists by:
Don't pay royalties on free goods, reserve and returns, less on foreign sales (all of the above)
Gross Income
Earned Income
Net Income
Earned Minus Expenses
Sonny Bono Extension Act
Extended Length of Copyright
Live recorded albums always count towards an artist's contract obligations to do a certain number of recordings for the label.
FALSE
True or False: a label should withhold reserves against returns from sales of digital downloads.
False
Your song is on a compilation album. To be paid the same as the highest paid performer, ask for a:
Favored Nations Clause
The first part of an agency-promoter contract deals with
Fees, dates and venues personal requirements of the artist
For a work to be copyrightable, the work must be:
Fixed into a tangible form AND original
Records given to retailers as a way to discount the wholesale price are called:
Free goods
Records given to retailers for free
Free goods
The overriding role of management is to:
Further an artist's career
When Vivendi spun off the movie and TV part of the business it was purchased by
General Electric
In a record company, the promotion department is usually responsible for:
Getting airplay (radio promotion)
The term for income before expenses is:
Gross income
What does Marketing do?
Handle advertising, publicity, album cover artwork, videos, etc.
The company that is the leading broker of mechanical licenses for publishers in the United States is:
Harry Fox Agency
Music publishers:
Hire creative staff writers to write new songs, publish copyrights... (all the above)
Which of the following is owned by Live Nation
House of Blues Clubs/venues TicketMaster Clear Channal
Net
Income - Expenses = Net
Departments in Record Companies (4)
Marketing, A&R, Publicity, Legal
Royalties paid to publishers and songwriters from the manufacture/sale of recordings are called:
Mechanical Royalties
Selling products with an artist's name or likeness on them is known as:
Merchandising
Another name of a small independent record store is:
Mom & Pop
Synchronization Royalties
Music Synched to a visual
The person for the motion picture company in charge of placing songs in a film is the:
Music supervisor
The organization that presents the Grammy Awards is:
NARAS (National Academy of Recording Arts and Sciences)
The record merchandisers (retailers) are represented by:
NARM (National Association of Retail Merchandisers)
Da fuq is NARAS?
National Academy of Recording Arts and Sciences - these guys handle the Grammy's
Term of a Recording Contract
Negotiable
The term referring to income after expenses are taken out is:
Net income
How many performance rights organizations can a songwriter belong to at any given time?
One
How many PROs can an artist belong to at one time?
One, bitch.
Different Kinds of Distributors (3)
One-Stops, Rack Jobbers, Mom & Pop
What stage of recording is the process of the signal playing off of the "record head" on previously recorded tracks and new tracks being recorded at the same time?
Overdub
Trademark
PROTECTS physical items...
Music publishers and songwriters usually have performance royalties collected by:
PROs (ASCAP, BMI, SESAC)
A business manager:
Paid a flat fee, hourly rate, percentage of artist's gross (all of the above)
Exclusive Term Agreement
Paid to write a set number of songs per year
Cross-Collateralization
Pay off one before the other
Promoter
People who organize, and book events
Artist Royalty
Percentage of each CD or song sale that is paid to artist by record label
Producer Royalties
Percentage of record sales, maybe like 15% or something
Which of these are included in the six exclusive rights in copyright? The right to....
Perform publicly perform digitally make copies of make derivatives of display publicly distribute copies of
The most complete description of a commercial radio station's business model is:
Play music to build audience to sell advertising
The right of a manager to sign contracts and make commitments for an artist is given by the:
Power of Attorney
Free Good
Promotional stuff given away by record labels for free
Controlled Composition Clause
Provision in recording contracts whereby the record label avoids or reduces its obligation to pay mechanical royalties on compositions controlled by the recording artist
Who receives the money generated by terrestrial radio airplay of a recording?
Publishers and songwriters
What organization represents record companies and certifies gold and platinum albums?
RIAA (Recording Industry Association of America)
Production dept. in Label's Primary Function?
Radio Airplay
Under a 360 deal, the label would share in the _______ income of an artist:
Record company takes control of publishing, tours, merch, etc... (all of the above)
Artist Royalties
Record label sells a bunch of CDs, artist signed to record label gets a percentage of each sale
What's the RIAA?
Recording Industry Association of America
Cover Song
Recording or performance of a previously recorded song by another artist
Overdubbing
Recording tracks over other tracks
The practice of a record label advancing money to an artist and then paying itself back out of the artist's royalties is called:
Recoupment
Recoupment
Recoupment is when your royalties earn back advance
Recoupment..?
Refraining from paying an artist their royalties until the advance amount has been regained
RIAA
Represents Labels, Album Sales, Piracy
Master License
Required to use a recording with an audio-visual word
Concert promoters
Retailers of talent
A section of the booking contract, which gives specific artist requirements for things like food, lights, and sound, is known as the:
Rider
Label 1 signs a demo deal with an artist, and pays for the artist to record demos in the studio. The label then decides that it does not want to sign the artist to a full contract. The artist then gets an offer to sign with Label 2. Label 1's right to match the offer made by Label 2 is called the:
Right of first refusal
Reserves Against Returns
Royalties withheld in case sales don't meet advance
The only privately owned for-profit Performing Rights Organization is:
SESAC
Which one is for-profit?
SESAC
The department responsible for getting records into retailers is called:
Sales department
Booking Agent
Secures and books gigs for artist
Talent Agency
Sells talent to promoters and clubs. Wholesalers of talent Large agencies are Signatories
Ticketmaster
Sells tickets for venues, charges convenience fee
Agency pays ___________.
Separately
Incomes Songwriters Get (2)
Sheet Music, Radio Royalties
Catalog
Songs owned by a Label
In the United States, synchronization royalties are paid to:
Songwriter and publisher
What's that Sonny Bono shit all about?
Sonny Bono term extension act: in 1998, changed term or copyright from Life + 50 to Life + 70
After Sony bought out BMG the new company was named
Sony Music Entertainment, Inc
Sound scan
SoundScan is the official method of tracking sales of music and music video products throughout the United States and Canada.
A motion picture company wants to use a particular song in a movie. The studio would need to obtain a _____ license from the publisher for this use.
Synchronization (from the publisher)
Copyright Protects
Tangible Items
The length in time of a recording contract is known as:
Term
RIAA
The Recording Industry Association of America is a trade organization that represents recording industry distributors in the United States.
Which member of the management team is the artist's exclusive representative in negotiating concert deals with promoters?
The Talent Agent
Who pays recording costs for an album that are advanced by a record label or music company to an artist?
The artist
Load in and load out
The period after a special event ends when the crews get to work tearing down their equipment and evacuating the venue within a certain time period.
Album Cycles
The period of time beginning after recording the album and ending after all promotional activities for the album are complete. Album cycles usually include a tour and promotion of the individual singles of the album. Album cycles are often used as an alternative approach in structuring a management agreement. Instead of signing for a specific number of years, an artist and manager can agree on a specific number of album cycles.
An artist may not receive any royalty despite their record being certified "Gold" because:
Unrecouped royalties
Cue Sheets
Used by Production Agencies to track usage
A key man clause in a contract refers to:
You sign to a label due to one person that is a part of the company, if they leave you have the right to leave as well.
copyright
a limited duration monopoly on the right to reproduce and distribute intellectual property
Cover song
a performance of an already copyrighted song
Venue
a place where a concert is held.
Music Supervisor
a qualified professional who oversees all music related aspects of film, television, advertising, video games and other existing or emerging visual mediaplatforms as required.
the right for the label to determine what constitues "commercially" satisfactory
a record company exec who says "i dont hear a single" is invoking what clause in a recording contract
The overriding role of management is to
advance the artist's career
Manager's Job
advises the band's career
settlement
after a show, when expenses and revenues are sorted and final payments are made
Until they are added to the team the personal manager may do the job of
all of the above including business manager
First Sale Doctrine
alows purchasers of a copyrighted work to resell it or rent it out
Synch License
an agreement by which the Copyright Owner of Musical Composition allows its use in a visual work.
a liberal sideman clause
an artist who expects to want to make appearances on lots of records by other artists not signed to the same label is seeking what clause in a recording contract
The one thing that neither of the major unions require of you to join is
an audition
What CANNOT be copyrighted?
an idea.
According to Passman, as each option is exercised by the record label and artist should receive
an increased royalty rate and more money to record the next album.
Major talent agencies like CAA and WME
are "franchised" by the unions
All talent agencies
are exclusive representatives of the artist during negotiations with promoters
percentage of net record sales
artist royalty is based on what
Prima Facia
based on the first impression; accepted as correct until proved otherwise.
Mechanical Royalties
every time a song you've written is manufactured to be sold in a CD, downloaded on a digital music retail site, or streamed through services like Spotify and Rdio, you are owed a mechanical royalty
Rider
everything artist needs backstage - towels, water, popsicles, whatever. Also specifies how much artist gets paid
Cool, what does A&R do?
find and nurture new talent, help artists find songs, listen to tracks and give feedback, Artists & Repertory
NOT a typical part of a personal manager's job?
finding work for the artist
Rather than getting a five year artist management deal, these days the personal manager's contract is just as likely to be
for a specified number of album cycles
visual media
for music licensing, the type of entity that might need music, film, tv, commercials, video games
advance; tour support; video; indie promotion
give examples of three types of expenses (advances) that are either fully or partly recoupable
In a promoter profit deal the split after breakeven
heavily favors the artist
Personal Manager
hired by an artist to act as chief operating officer of the business entity surrounding the artist. A personal manager is typically in charge of hiring/firing. to make difficult business related decisions such as which record label to sign with, what kind of publishing deal to seek
market exclusivity
if a gig in seattle says that a gig by the same artist in spokane is too close, it is invoking
radio hit
in the real world, under what circumstances will a songwriter see signigicant public performance royalties
Harry Fox Agency
is a provider of rights management and collector and distributor of mechanical license fees on behalf of music publishers in the United States. HFA has over 46,000 music publishing clients and issues the largest number of licenses for physical and digital formats of music.[1] It was founded in 1927 by the National Music Publishers Association.
negotiation and artists stature
level of that compensation is determined by what two factors?
statue of st anne
name of the very first copyright law in England
iran, north korea, china
name the 3 other countries where is this also true
manufacturing, shipping, advertising
name three record-selling expenses that typically are not recoupable
Single Song Agreement
one deal per song
Personal Manager
oversees your business life - "the single most important person in your professional life" • May be a lawyer specializing in the music business • Not hired until act is well established o Another expense for the band, won't make money if band isn't earning money to pay manager • Helps make major career decisions - record company choice, publishing deals • Helps with creative process - hiring band members, which songs to record, producer choice • Promote your career, overseeing your team (lawyers, agents, business managers) • Coordinate concert tours • Working the record company to be sure your projects get priority treatment and promotion • Act as a buffer between artist and outside world • In Cali and NY, managers cannot book for artists. Booking agents have to be licensed in CA and NY • Typically 15 to 20% of artists gross earnings o Majority receive 15% • Manager may out-earn any member of the group • Manager may get a % of net instead of gross
the composer or publisher
performing artwork is typically controlled by who
Contract Option
potential extension of contract
interactive
public performance royalties don't apply, ex iTunes or Spotify
Cross-collateralization is a method for
recoupment of advances
Agents in the music industry are
responsible for finding the artist work
production music library
royalty free music is music that is typically produced and marketed by what kind of company?
concessions
sales of food, beverage and merchandise at a show
"Scaling the house" involves
setting ticket prices
publisher
sync license issued by
The union enforces its member policies primarily by
taking membership cards away from members who violate their rules
The ________ is responsible for collecting and holding the deposits for the artist's tour appearances.
talent agency
The length of time of a recording contract
term (of the contract)
The BIG three record labels and their HQ's
the French-owned Universal Music Group-HQ's (New York, NY and Santa Monica, CA) the Japanese-owned Sony Music Entertainment-HQ's (New York, NY) the US-owned Warner Music Group-HQ's (New York,NY)
congress - set rate of approx $.091 per copy of song distributed
the amount of mechanical royalty is determined by
A&R
the division of a record label or music publishing company that is responsible for talent scouting and overseeing the artistic development of recording artists and/or songwriters. It also acts as a liaison between artists and the record label or publishing company; every activity involving artists to the point of album release is generally considered under the purview of, and responsibility of, A&R. ARTIST AND REPERTOIRE
performance rights organziation
the generic name for groups that collect the public performance
what is mean by a two firm record deal
the label picks up two options at once; guarantees to release two albums
record company to composers, through their publisher
the mechanical royalty is paid by whom and to whom
deposit
the money paid up front to confirm a show and hold the date on the artist's schedule
business affairs/legal
the most powerful department at a record label is what
avail
the name for an announcement that an artist is accepting offers for a certain region and/or time frame
split point
the name for the budgetary bench mark specifying the agreed upon total cost of a show, above which an artist might receive additional payments if the show turns a profit
Guarantee
the name for the fee an artist is promised for a show, regardless of how many tickets are sold
gross potential-capacity times ticket price
the name for the maximum amount of money that show can generate. give both the term and formula used to calculate it
BDS-Broadcast Data Systems
the name of a company that tracks the exact number of spins a record gets from week to week
ASCAP, BMI, SESAC
the names of three companies in the USA that collect public performance royalties for terrestrial radio broadcasts
booking agent
the one who finds live performance employment for artists
talent buyer
the one who selects and hires artists for live performances
promoter
the one who takes the financial risk
stage plot
the part of a gig contract that shows where on the stage the instruments should be placed
tech rider
the part of a gig contract that specifies the types of gear required for a show and what is acceptable to the artist
hospitality rider
the part of a gig contract that specifies what kind of food an artist wants or doesnt want
Artist royalty
the percentage of income generated by record sales that is paid to the artist.
The rigger is
the person that hangs speakers, lights and staging from the building's superstructure (beams)
music supervisor
the person who choses the music for a film or tv show
song plugger
the person who tries to get artists or movies to use a song
Recoupment
the process by which a musician or band repays an advance. Record companies typically withhold a musician's royalties until the entirety of their "investment" (the advance) is earned back. Once the process of "recouping" the advance is complete, the record company will begin to again reissue royalties to the musician or band.
radio
the promotions team at a record label focuses on what
composers, through their publishers
the public performance royalty for non digital transmission in the us is paid to
broadcasters, venues, places where music is performed on for the public
the public performance royalty is paid by what kinds of eminities
Cross-Collateralization
the record company's practice of using profits from a CURRENT album to recoup debt from PREVIOUS albums
back end
the slang term for fees - a percentage of profits - an artist may receive if ticket sales revenues exceed a previously agreed upon budgetary benchmark
one off
the term for a gig that is not part of a tour
routing date
the term for a gig used to fill an off day on a tour
buy-out
the term for money paid to the artist for them to get their own food or perhaps use their own gear
anchor date
the term for the gig that pays so much it supports the rest of the tour
backline
the term for the instruments and other gear-whether provided by the artist or the host of the show-that are required onstage for the performance
escrow account
the type of account where money paid prior to a show is held for safe keeping
administration deal
the type of contract in which a music publisher does not have an ownership stake in copyrights, but instead works on a commission basis
publishing or co-publishing
the type of contract in which a music publisher represents a songwriter in exchange for an ownership stake in the copyrights of the writer's songs
performing artwork or PA
the type of copyright that controls the words and music of a song
sound recording or SR
the type of copyright that protects the master
master use license
the type of license needed to put a specific royalty in a movie
Controlled Composition Clause
this Clause addresses how much money a record company will pay its recording artist (in his capacity as a composer) for those of his songs which he records
6 Exclusive Rights
to reproduce to distribute to perform publicly to display publicly to create derivative works in the case of sound recording, to perform publicly via digital transmission
artists (performers) or labels (owners of master recording)
to whom is public performance not paid
Under a typical exclusive term songwriting agreement, a writer agrees to:
transfer copyright of all songs AND you have to right a certain number of songs (both)
TicketMaster was started by
two college students
sync license
type of license needed to put the words and music of a song in a movie
AFTRA
was a performers' union that represented a wide variety of talent, including actors in radio and television, radio and television announcers and newspersons, singers and recording artists (both royalty artists and background singers), promo and voice-over announcers and other performers in commercials, stunt persons and specialty acts—as the organization itself publicly states, "AFTRA's membership includes an array of talent. HQ- Los Angelos, CA.
number of options
what determines the duration of a record deal
artist royalty
what is the name for the performers monetary payment in a record deal
recoupment
what is the term for how record labels ensure that money invested in a project will come back to them before the artist is paid?
a producer's "artist royalty" points are paid from "record one" (i.e., every record sold, whether before or after recoupment). An artist's are only paid on albums sold after recoupment
what's the difference between 'points' earned by an outside producer and those earned by a recording artist
RCA v Whiteman
whats the name of the legal case that justified this case in the US
soundexchange
whats the name of the relatively new company that was set up to collect a new type of public performance royalty in the USA only for digital transmission
The consolidation of radio began
when President Clinton signed the Telecommunications Act in 1996
work for hire
when a film composer writes a movie score for a flat fee and reliqueshes control of the copyright
needle drop or placement
when a film production secures all the rights for a composition and a master to use in a movie and licenses each song individually
No
when a label agrees to release an album 18 months after the prior album, does that mean exactly 18 calendar months?
360
when a record label wants part of your gig and merchandise money, what kind of a deal is it?
first use
when a writer invokes says no one else may record her song because that she intends to record it, the writer is invoking what perogative
commission
when an artist pays a percentage of gross revenue to an agent or manager
cover, cut or placement
when publisher is able tog et an artist to record a writer's song or get a movie to use it
reversion
when the artist secures the right to obtain ownership of the master recordings after a certain length of time, it's called what kind of clause in the contract?
offer
when the artist's representative says to the concert organizer, "that sounds workable - send it to me," they are looking for something in writing that is called what?
advance
when the artist's tour manager and the event organizer talk through all the details of the upcoming show
public domain
when the copyright on a song has lapsed and anyone can record it
cross collateralization
when the label insists on using the profits from one album to cover the debts of a prior album
controlled compositions
when the recording artist is also a songwriter who records her own material, those songs on the record are referred to as what?
advances are based on a percentage of royalties earned from the previous album; the minimum guarantees a sufficient budget if no royalties are earned, and the maximum protects the label from spending too much if huge amounts of royalties are earned
why does a record label use a "minimum/maximum" formula to calculate the recording budgets for successive albums in a record deal?
reversion is negotiated; copyright termination is the law. Also, reversion is only for the masters. Copyright termination is also for the publishing
why is reversion different from copyright termination
For an unestablished promoter the deposit
will probably be 100 percent of the guarantee
The complete notice of copyright for a song should include:
©, Copyright, 2012 (creators' name)
Agent
• Agency gets 10-15% of gross income from its work o Unions try to limit fee to 10% o Agent gets 2-3% of agency fee, agents represent several artists Creative agents • Looks for non-performance opportunities for artist • Not a salaried employee, employed by another firm • Not all artists have one of these bitches
Attorney
• Lawyers are involved in every aspect of music business, have multiple clients, see lots of deals, influence choice of other players (personal manager, business manager, record label) Choosing your attorney • Probably first person artist hires, can be terminated at any time • Industry Experience? Fees & expenses? Termination and sunset clauses. Conflict of interests? • Fee agreement must be in writing to be enforced in California Conflict of interest • Occurs when lawyer represents or has financial interest in both parties to the deal o Conflict must be removed, use a different lawyer for this deal Attorney fees • Hourly - 200 and up • Flat fees - set amount of money for a project • Retainer - monthly fee guarantees a minimum amount of your lawyers time, extra hours cost extra $ • Percentage of artist's income (usually 5%) • Value Billing - based on lawyers contribution to making the deal