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Introduction to Music Business
Quiz Study Guide
32
Business
Undergraduate 3
11/03/2012

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Cards

Term
When is copyright protection considered secured?
Definition
Copyright protects “original works of authorship” that are fixed in a tangible form of expression.
Term
What are the five exclusive rights of the owner?
Definition
R-P-3D = Reproduce, Perform, Derive, Distribute, Display
Term
What website should you use to register a copyright?
Definition
www.loc.gov → www.copyright.gov
Term
What are the benefits of registering ones copyright?
Definition
•Establishes a public record •If made before or within (5) years of publication, registration will establish prima facie evidence in court. •If made within (3) months after publication of the work prior to infringement of the work, statutory damages and attorney’s fees will be available to the copyright owner. •Allows the owner of the copyright to record the registration with the U.S. Customs Service for protection against the importation of infringing copies.
Term
How many copyrights exist in a recording?
Definition
(2) SR (Sound Recording) and PA (Performing Arts Works)

Currently there is one form to complete for copyright registration and that is the Form eCO.
Term
Which copyright registrations do you search when trying to license music?
Definition
(2) SR (Sound Recording) and PA (Performing Arts Works)
Term
What is the publisher’s job?
Definition
Promoting songs, negotiating license for the songs, collecting royalties, and distributing royalty shares to songwriters.
Term

What is the difference between a

exclusive and non-exclusive license?

Definition

Exclusive – Permission is determined through a limited and sole use of the work.

 

Non-Exclusive – Permission is determined through unlimited use of the work.

Term
What is the purpose of the split sheet?
Definition
The songwriter split sheet allows for all creative parties involved on the creation of a song to be documented with their name, publishing company, Performing Rights Organization (PRO), percentage of ownership of the song and contact information to eliminate confusion and ensure that everyone gets a fair share.
Term

Mechanical License

 

WHICH COPY. OWNER?

WHO BENEFITS ($$)?

Definition

PA Owner

 

Publisher and Songwriter

Term
Compulsory Mechanical License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
PA Owner
(Harry Fox Agency)

Publisher and Songwriter
Term
Master Recording License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
SR Owner

Label and Artist
Term
Synchronization License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
PA Owner

Publisher and Songwriter
Term
Performance License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
PA Owner

Publisher and Songwriter
Term
Statutory License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
SR Owner
(SoundExchange)

Label and Artist
Term
Print License

WHICH COPY. OWNER?
WHO BENEFITS ($$)?
Definition
PA Owner

Publisher and Songwriter
Term
PA License
Definition
Publisher and Songwriter
Term
SR License
Definition
Label and Artist
Term

When do you need a mechanical license

and where can you obtain it?

Definition
A mechanical license is needed when a person wants to make a new recording of someone else's lyrics and composition. This person would have to contact the Publisher for the Mechanical License.
Term
Who is the Harry Fox Agency and what is their purpose?
Definition
In 1927, the National Music Publisher's Association established The Harry Fox Agency to act as an information source, clearinghouse and monitoring service for licensing musical copyrights. Since its founding, The Harry Fox Agency has provided efficient and convenient services for publishers, licensees, and a broad spectrum of music users.
Term
What is the current statutory rate for a mechanical license?
Definition
If the song is less than 5 min:
9.1 ($0.091) cents per song per record sold

If the song exceeds 5 min: ROUND UP
1.75 ($0.0175) cents per minute per song per record
Term
When, and where, would you need to apply for the compulsory mechanical license?
Definition
Section 115 of the Copyright Law states:

“…Once phonorecords of a musical work have been publicly distributed in the United States with the copyright owner’s consent, anyone else may, under certain circumstances and under limited conditions, obtain a ‘compulsory license’ to make and distribute phonorecords of the work w/o express permission from the copyright owner.”

This provision states that the version of the song cannot “change the basic melody or fundamental character of the work, and shall not be subject to protection as a derivative work, except with the express consent of the copyright owner.” This means that even though they are permitted to use the work w/o permission from the copyright owner, they are not allowed to change any lyrics.
Term
When do you need a master recording license?
Definition
A master recording license is needed when a person is using the original recording of a song in their project. This license is also required in the event of "sampling,” which occurs when a person uses a selection of another copyrighted work in their own project.
Term
When is a Synchronization license needed?
Definition
Anytime a person is combining music with a visual medium, they will need to have a synchronization license. Most commonly, such licenses are used with films, television shows, and radio/TV commercials for products.
Term
Who are the PROs? What license do you obtain from them and for what purpose?
Definition

PROs (Performance Rights Organizations). The most widely known are:

BMI = Broadcast Music, Inc.

ASCAP = American Society of Composers, Authors, and Publishers

SESAC = Society of European Stage Authors and Composers

Term
Who is SoundExchange and what do you contact them for?
Definition
The statutory license is needed for certain satellite, cable, and digital transmission of music, and is issued by SoundExchange (http://www.soundexchange.com). The only way an artist can collect the royalties from the statutory license is if they sign up with SoundExchange. The purpose of this license is to assist the record labels and artist in collecting royalties from public performances of their songs.
Term
What is a contract?
Definition
A contract is a series of promises b/t two or more parties. Since its legally binding, when you write a contract you create a law – it only applies to the people who sign it, but it is a law nonetheless, and will be upheld in court.
Term
What are the five valid (enforceable) points of a contract?
Definition

•All Parties must be legal

•The Contract cannot call for illegal acts.

•The Language must be clear and unambiguous.

•There must be consideration – Both Parties must promise something in exchange for the other party’s promise.

•There must be Mutual Agreement.

Term
Why are oral agreements discouraged yet still common?
Definition
They are discouraged because it can become difficult to prove if it becomes a he said she said battle. Even if there are no worries about the other person lying, there could be a different understanding about what was agreed upon. They are common because it is easier.
Term
What is the purpose of the statute of frauds?
Definition
The Statue of Frauds defines the categories of things for which the courts have decided they won’t accept an oral agreement. When it comes to big things it is best to get it in writing.
Term
What are the categories within the statute of frauds?
Definition

•Real Estate

•Sale of Goods over $500

•Agreements that will take more than a year

•Pre-nuptial agreements

•Agreements to pay another persons debt

•Selling a copyright

Term

 

What are clauses (provisions) in a contract?

[Know some examples!]?

Definition

Clause are the protections or options, they are the individual sections of the contract, which are commonly written as separate paragraphs.

Here are some examples:

•Good Faith Clause

•Severability Clause

•Indemnity, or Holds-Harmless Clause

•Audit Provision

•Sunset Clause

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