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What are the 5 conditions necessary for a contract?
- 1) Competence: 18 years of age or older, of sound mind
- 2) Subject Matter: Decide on what the contract will be
- 3) Meeting of the minds: agreement on what each side of the party is going to do and a clear understanding
- 4) Obligation: Both groups actually do what they agreed to do or not to do
- 5) Consideration: money or services
What are the 4 types of business structures?
Sole Proprietorship, Partnership, Limited Liability Company, Corporation
A ____ ___________ has one owner.
A __________ is a seperate legal entity, much like a separate person.
A _____________ must have at least two people; one general partner and one limited partner.
A _____________ is owned by shareholders; only one shareholder is neccessary.
A business form created January 1 1993 that combines feautures of two other types of business structures.
Limited Liability Company
What are some advantages of incorporation?
There are tax advantages and limited liability.
Under what conditions is a hoome office usually a deductible expense?
If it is listed as the only location for the business, if it is used for nothing else, if it is used to meet with clients
What type of business structure uses "dba" or "fbn"?
Limited Liability Corporation resembles a __________, taxed as a ___________.
- For musicians playing on recording sessions
- Usually no royalties for session musicians
What types of contracts would you want an entertainment attorney to look over?
Recording contract, touring contract, personal manager contract, songwriter/publisher contract
Why is a personal manager contract potentially dangerous for a SONGWRITER?
It could include lifetime royalties if you arn't careful
A letter of agreement requires...
date, time, location, fee, name of act, agreed to, accepted by
Formal Contract or Standard Contract
- U & C (Usual & Customary)
- can change anything on any contract if it is written in the margin and initialled
Have to take the ruling of the arbitrator, can't appeal
Uses a judge so there is a possibility for appeal
Manager gets commissions on sales of records recorded ______ the term of the management contract, after the contract is over.
Manager gets commissions on records actually made _____ the term of the management contract if they were ________ during the term of the management contract.
- Artist and Repertoire
- Finds and signs new talent, development and execution of projects, studio production of signed talent, liason between artist and label
Who typically owns the master?
The Record Label
What is it called when a record company takes profits from one area and offsets those profits with losses from another area?
What's te term for the process of a record company paying itself back its investment in an artist?
A unique, widely used name that represents for a specific type of phsyical goods.
A unique name widely used for a particular service.
The use of a trademarked name that waters down or negatively influences an existing trademark.
This states that no one can claim that they own your trademarked name.
Affadavit of Incontestability
May be filed with the appropriate government office if you plan to utilize a particular name within 3 years.
Notice of Intent
The record label pays the headlining act to take on an opening act
Between an artist and a promoter
90/10 or 85/15
Papering the house
giving away tickets for free to everyone in attendance
- the noting of the acts on programs and signs
- specifically the size and placemnt of the artists name within the advertisements
- Person or company that works to bring the artist and the audience together
- marketing, ticket sales
- assumes financial risk
- Non profit market
- Operating and promotion activities for non profit groups
- Arts market (opera, ballet, etc)
- not part of commerical market like the target center or excel center
- places where the venue is built into an existing attraction
- casinos, performing arts centers, fairs
- money paid by a record company for the right to use a song in records
- publisher issues a license to the record company that says, for each record manufactured and distributed, and each digital copy downloaded, the record company will pay royalty equal to a specified number of pennies
who earns performance royalties and mechanical royalties?
songwriter and publisher
royalty paid for use of a song in live or broadcast performance
a song that is written, owned or controlled by the performing artist
what groups collect performance royalties?
ASCAP, BMI, SESAC
who collects mechanical royalties?
harry fox agency
splitting the publishing
when a songwriter receives a portion of the publisher's income
compulsory mechanical license
- once a song has been recorded, released, and distributed, the publisher is required to grant this to anyone who wants to record that song
- must be sold to anyone who wishes to record a song that has already been recorded, released, and distributed
allows for the usage of copyrighted materials in non-profit situations, such as quoting a passage in abook review or copying an article for classroom use
works made for hire
refers to work for whih the composer or author is paid a salary; typically the songwriter does not retain copyright
license needed for the use of music in a film
application of profits from one area to offset losses in another
a type of record contract in which the record label receives a percentage of every facet of the artist's earnings
a completed, mixed track on an album, or the completed mix of an entire album
given as payment to the artist to use while a record is being made
as part of a record deal, when a record company is allowed to take a commission on earnings of the artist from non-record sources-sources that the record company had no part in securing
a record contract in which the artist ahs to pay the producer out of his/her points
money earned by the artist from companies that the record label required artist to utilize
money designated to be used for creating an album
money paid to the artist, usually a percentage based on sales
applying the profits from one area to offset losses in another area, from one record contract to another, either previous or following the current contract
sequential cross collateralization
most common split for dividing mechanicals
50% publisher 50% songwriter
copyright on a work made for hire runs for
95 years from date of first publication or 120 years from date of creation, whichever is shorter
who would be most likely to use the services of harry fox agency?
someone making a CD of cover tunes or standards
In 1976 copyright law revision, duration of copyright was lengthened to
to authors lifetime + 70 years
we can rent DVDs and other video software without paying a royalty thanks to
the First Sale Doctrine
an example of "fair use" is
quoting of a passage from a book for critical review in a magazine
you cannot copyright a(n):
idea, song title, chord progression
7 marketing basics:
- 1) establish credibility
- 2) Relevant to customer's needs
- 3) Don't oversell
- 4) Make it personal
- 5) Test your material
- 6) specialize in one thing
- 7) repeat emails, mailings, phone calls
what kind of provision should you ask for in record contract?
- exists when a subsequent usage waters down the name's original value
- ("rolling stone records")
a percentage of the "hard assets" owned by the partnership
process of digitally recording a sound, usually from a previously recorded sound recording, and incorporating the sampled material into a new recording
what copyrights are involved in sampling?
sound recording (from the owner of the sampled) and musical composition (owner of the composition)
- a limited duration monopoly that gives the copyright holder certain rights of ownership for a limited period of time
- copyright exists when a work is created in tangible form
Need what kinds of copyrights?
- PA (performing arts)
- SR (sound recording)
publishing is the __________ source of income in the music business
what does a producer do?
- select songs
- decide on arrangements
- get right blend and balance
- handle administrative details
producers are paid royalties on ___ records sold
what does a mixer do?
blend the multitrack recording into desired sound
production deals (4 types)
- 1) prudcer hired as full-time salaried employee
- 2) producer hired as independent
- 3) producer delivers the artist and master
- 4) producer's services are delivered by artist
3 phases of record production
Majors labels do ____ distribution
Major-distributed independent labels
record company finds and records artist, but has a contract with a major label to do distribution, marketing and promotion
- not owned by a major label
- financed by owners & investors
buy directly from bands
stores stocks your record for 90 days, keep 25-50% of the gross sale
sales (in a record label)
- selling to retailers
- online sales
promotion & marketing (in a record label)
- radio promo
- video promo
percentage of the wholesale price
money given to the artist during the time the album is made
data collection service to track record sales
BDS & Mediabase 24/7
electronic ears to listen to radio stations
- if you are the featured artist on a master recording on a noninteractive internet site
- 50% to owner of sound recording
- 5% to unions
- 45% proportionally to band members
Performing Rights Organizations
PROS issues licenses and collect royalties for ____ performances and _________ performances.
live and broadcast
- American Society of Composers, Authors & Publishers
- Society of European Stage Authors and Composers
Songwriters may join __ PRO(s) and Publishers may join ___ PRO(s)
a license to cover all neccessary areas 1 fee
Record compnay required by law to obtain a mechanical license in order to produce and distribute records to the public
use of music in a non-profit situation, no copyright needed, credit source
allows PROs framework in which to operate
performances weighted heavier in terms of radio airplay
Performance Rights Exclusion
in US ppl who played on a CD don't get paid for radio airplay, record label & songwriter do, legislation trying to pass against this right now
whose responsibility is it to pay for the licensing of music in a live performance?
Recording Industry Association of America
American Federation of Musicians (instrumentalists)
American Federation of Television and Radio Artists (vocalists and actors on live, taped, or digital media)
- mostly book for live appearances
- should never take a commission from record earnings
- manager can commission only on records recorded and released during term of contract
- managers get 1/2 commission on records recorded during the term but released after contract expires
5 conditions to compulsory license
- 1) song must be a non dramatic work
- 2) previously recorded
- 3) distributed in records previously
- 4) doesn't change fundamental melody or song character
- 5) used only in phonorecords
- company licensed to make and sell merch
- pays 30-40% royalties to artist of gross
fee the venues takes from merch
per head figure
how much $ an artist generates per head
artist gets 15-20% of wholesale price
artist gets 25% of retail
To have a song in a motion picture you must have agreements with:
- 1) performer
- 2) record company to whom performer is signed
- 3) record producer
- 4) songwriter
- 5) publisher to whom songwriter is signed
- 6) owner of master recording that's sampled in song
- 7) publisher who owns a song that's been sampled
- 8) record company putting out soundtrack