muin final

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  1. 4 phases of tech evolution
    • Amateurs/Tinkerers
    • Commercialization
    • Creative anarchy
    • Rules/Laws
  2. Define copyright
    a limited duration monopoly
  3. Bundle of Rights
    • Reproduce
    • Derivative works
    • Distribute
    • Public performance
    • Public Display
  4. 3 requirements to qualify for copyright 
    • 1. Original work
    • 2. Fixed in tangible forum (cd, sheet music, etc)
    • Display some degree of creativity (non-utilitarian) 
  5. Works covered by copyright
    • Maps or charts
    • Books
    • Sound recordings
    • Songs
    • Movies
    • Pictures
    • Sculptures
  6. Copyright notices
    • Songs/musical compositions:
    • © or word copyright
    • Year of first publication
    • Name of the owner of the copyright

    • Sound recordings:
    • The symbol (P) (= stands for phonograph, something that carries sound. So any format which is a sound recording format)
    • Year of publication
  7. Fair Use
    • Right of the public to make a “reasonable” use of copyrighted material, in special instances without the copyright owner’s consent
    • What is “reasonable” is subjective and the court
    • decides
    • Meant for advancement of learning and knowledge (criticism, comment, news reporting, teaching, research, etc.)
    • Really wanted into this Berne convention, 28+28 too short by their standards. USA caved to join a treaty. Congress wanted to balance the incentives of people to create and the public to consume. Copyright too long, then some people lose. Way to use songs but not have to violate copyright laws.
  8. to qualify for work for hire, must be
    • A work prepared by an employee within the scope of his or her employment, or
    • Work specially ordered or commissioned… 
    • Based on a written agreement
  9. Term of work for hire
    95 years from publishing or 120 years from creation, whichever comes first
  10. Statute of Anne
    • 14+14
    • Authors should have a “natural right” of ownership
    • Offered statutory copyright to anyone
  11. 1909 Act
    • Requirements: notice, registration, publication
    • 28+28 (=56 years from publication)
    • First Sale doctrine
    • Mechanical royalties added
    • Congress responsible for regulating the right and fee to incorporate a song on a device (statutory rate)
  12. 1972 Act
    • Sound recordings added
    • Purpose: to stop record piracy
  13. 1976 Act
    • Effective Jan 1, 1978
    • Term lengths of © revised
    • For new works created after 1/1/78:
    • Registration no longer required
    • Publication no longer required
    • © notice IS still required on published works. Rejected from Berne Conv. Until this clause is removed

    • Terms for works created before 1/1/78 that were
    • NOT in public domain by 1/1/78 got an automatic extra 19 years. = 28+28+19=75 years. No renewal necessary
    • New works created on 1/1/78 onward have author’s
    • life + 50yrs.
  14. 1998 Act
    20 more years added to ALL copyrights
  15. Term of (C) per act in US
    • 1909 = 28+28
    • 1972 = 28+28
    • 1976 = 28+28+19 or life+50
    • 1998 = 28+28+19+20 or life+70
  16. Why (C) is increasing
    • US wanted into an international treaty, for benefit of international protection
    • We want to will our products on to our heirs
  17. (C) Exceptions
    • In the ’76 act:
    • termination rights
    • fair use
    • compulsory mechanical license.
  18. Define license
    Limited permission agreement to use the property
  19. Elements of a song that are copyrightable
    Melody and lyrics
  20. Mechanical royalty
    Money paid by record companies (song users) to publishers (song owners) for the right to use (“reproduce and distribute”) songs on records
  21. Current statutory rate
    • 9.1 cents if ≤ 5min or
    • 1.75 cents/min if > 5min
  22. Compulsory mech license (what and why)
    • Only for records
    • Exceptions to copyright. Copyright term being extended so how would the owner get hurt by people just making covers. No harm as long as it’s a cover and you pay. (course there are always exceptions) But life +70 is a long time that we can’t productively access the song.
    • First use must be established, label must pay full statutory rate, can only be a cover, no other type of song license/uses apply
  23. Song plugging
    • Proactively work to get licensees
    • Pitching the song to people who can make something happen
  24. Full-service publisher
    fully-staffed to perform ALL the operations, takes ownership of the song(s) copyright
  25. Indie publisher
    greatly range in size/scope/market, takes ownership of copyright, but usually focuses on one genre of the market, sometimes also hires a different publisher to perform SOME part of their responsibilities
  26. Artist/writer owned publishing
    artists keep song ownership including admin rights, sometimes might eventually make a deal with administrative publisher
  27. Co-publisher
    splits the publisher’s share, often also split ownership of copyright
  28. Sub-publisher
    publisher that takes care of administration for you in a different country, keeps ~15-25% of income off the top
  29. Admin publisher
    does NOT get copyright ownership or handle any song plugging, does admin duties, term of deal is shorter typically 5-10 years
  30. Songwriter primarily gets income from what 2 things?
    • mechanical licenses 
    • performance rights licenses
  31. Harry Fox Agency
    • Traffics/negotiates/issues/collects for mechanical licenses/royalties, on behalf of publisher
    • HFA doesn’t actually own anything but rather facilitates the transaction between the song user and the publisher
    • Operates generally on the full statutory rate
  32. typical Publisher-Writer deal term
    • 1 year + 6 options
    • Generally in 1 year increments
  33. Writer-publisher performance goals
    • Against publisher: 
    • # of songs in records released per year
    • # of songs in films per year
    • Minimum (floor) $$ income goal per year

    • Against writer:
    • Song minimums: requires the writer to submit a minimum number of songs per year/option period
    • If/when they’re joint works, count as “Pro-rated” to reflect the percentage of authorship (e.g. with “writing teams”) if you write a song with someone else and it’s accepted, only counts as ½ of a song
    • All songs must meet publisher’s approval; will expect/evaluate commercial quality
  34. Writer consent rights
    • An optioned/negotiated contract clause, to prohibit the publisher from authorizing some song licenses
    • If the writer (with clout) doesn’t want their songs to be used in a way that might make them look bad or something. 
    • If the publisher gave you an advance, they don’t want you to have consent rights because that limits the opportunities they can get to make money back
  35. PROs
    • ASCAP, BMI = non-profit
    • SESAC = for-profit
  36. Blanket license
    • License is issued to venues and broadcasters on an annual basis, covering all songs that PRO controls. Fees vary (negotiated) based on:
    • Manner in which music is performed
    • Size of the establishment
    • Potential audience
  37. Per-program license
    • If you license each song individually vs. as part of a blanket license
    • Most often used by a broadcaster (e.g. a TV show)
  38. Sample surveys
    • Like polling/statistics, randomly track songs for a few hours. 
    • Larger venues sampled more often than bars/clubs
    • Sit in at concerts, write down what they play, statistically extrapolate for the area
  39. Station logs/data
    • The radio/webcaster supplies a playlist report
    • ASCAP/BMI samples/listens randomly, to verify if it’s accurate
    • Broadcast Data Systems (“BDS”) tracks “digital fingerprint”
  40. Typical artist-label deal
    1 album + 6 options for more albums
  41. Options
    • Options can only by exercised by label, not mutual
    • IF an option is exercised, artist/producer MUST deliver a new, commercial-quality album
    • Next album becomes due within ~9-18 months after
    • release of prior album (avg/typical total ~12 months)
  42. Licensing of masters
    • For licensing of individual masters, label will pay artist’s account “50% of net receipts” from such licenses
    • (*Artists get more money from licensing than from actual record sales, by percentage)
    • “Net receipts” – we split actual fee, less any special costs label had to incur, if any, e.g. for collections, remixing/re-mastering
  43. Royalty Base Price
    SLRP - packaging costs
  44. Artist advance ranges
    • $0--$350,000: new artists (depending on size of label, anticipating recording costs…trend is less $ lately); also depends on your clout and how deep the pockets of the company are
    • $350,000--$500,000: mid-level artist
    • $500,000+: superstar artists
  45. Music videos
    50-100% recoupable
  46. Indie promoters for artists
    If label pays, 50-100% recoupable
  47. Cross collateralization
    • All album costs (chargebacks, tour support, indie promotion, videos, etc.) are “cross-collateralized”
    • I.e. the total expenses from ALL records can be recouped collectively against ALL royalties
  48. Reserves
    • A varying % of artist royalties withheld by label, to protect against record returns/overpayments. Why?
    • If you’re cynical, it’s a way for the label to hold back paying out some money in artist royalty account for longer (earn interest). Official reason:
    • 1) Record distributors “sell” to retailer (first sale), but offer a 100% return policy (encourages leaving CDs on shelf longer)
    • 2) When labels get a big chunk of money for “all-catalog rights”, lets them wait to see what’s used (e.g. streaming biz)

    Amount/time of reserves per accounting period can be negotiated, e.g. limited to 35% of net sales to be liquidated within 1-2 years
  49. Primary goal of the Promotion Dept. of a label 
    Get radio play
  50. Basic duties of a producer
    • Similar to film producer and director, combined
    • Creative/musical and psychological coach

    • Plus business duties 
    • Controlling the budget
    • Hiring the musicians, engineers, booking the studio
    • Filing the union paperwork, getting all © clearances, etc.
  51. Producer is an independent contractor
    • Work offered by artist, or label
    • (Technicalities) – Artist has to choose them but label strongly suggests some (has lists) 
  52. Producer: pre-production
    • Helps decide on songs, determine artist’s strengths, album objectives
    • Prepare/review budget (with A&R person and artist/manager)
    • Choose musicians, engineer, studio(s)
  53. Producer: production
    Plans/oversees the recording budget for artist/label (create the actual recordings)
  54. Producer: post-production
    Oversees mixing, mastering, and mechanical/song-use clearances (including sample uses, if any)…so masters can be delivered to label
  55. Producer fee ranges
    • Per track standards (varies greatly in real life)
    • $2,500-$15,000 (typical, e.g. rock/pop)
    • $40k-$50k (pop/hip-hop’s big name)

    • Per album (assuming there’s one producer per album)
    • Major label artist/project: $25k-$150k
    • Indie/DIY: $0-$25k (will probably ask for part of artist’s song copyrights/publishing also/instead)
  56. Artist's net rate
    The all-in penny rate, less producer’s portion (our example: $.90 - $.18 = $.72 – the artist’s net rate)
  57. Letter of Direction
    A letter (not contract) from the artist to their label basically telling the record company, “please pay my producer even if I’m un-recouped (charge to my artist royalties), here’s the producer contract we made, so you know what to pay my producer out of our all-in royalty”
  58. Why is letter of direction a good idea?
    • Artist wouldn’t have to come out of pocket to pay producer, especially if artist isn’t recouped yet
    • Labels know best how royalty math and accountings work
    • Producer is less likely to sue anyone for non-payment
  59. Other income for producer
    • Publishing (maybe you have no label, or you have no money for them up front), so offer:
    • As a co-writer, when producer actually co-wrote songs;
    • As a co-writer, even if producer did not actually write anything;
    • As a co-publisher, a split with artist/writer, AND publisher
    • Take the entire publisher’s share (claim to be
    • the publisher)

    Production Deal – sign artist exclusively to producer, or producer’s company, before any other record deal offers exist
  60. Major distributors - WESU
    • WEA (Warner Elektra Atlantic)
    • EMD (EMI Music Distribution, to be absorbed into UMGD)
    • SMD
    • UMGD
  61. Major distributor price ranges
    • 14-17% of PPD for affiliated labels
    • 18-20% of PPD for non-affiliated
  62. Indie distributor ranges
    18-30% (~25%)
  63. Digital-only distributors
    • 0-50% distributor fee (often ~15% of each sale, if they charge a distribution % at all)
    • Some prefer to charge set up fees only; take NO (zero) % of sales
    • E.g. $49/year + $20 per album; +$10 per single “set up” fees; and maybe even a fee per retailer/digital service you pick/elect/want
  64. Top 4 retailers, in order
    • iTunes
    • Walmart
    • Best Buy
    • Target
  65. 4 P's
    • Product
    • Pricing
    • Promotion
    • Placement
  66. Push vs. Pull
    • Push means distributors push market to the retailer. You push your product to them. Get the retailer to be your partner and push your product. Creates supply.
    • Pull strategy is done by labels. Go to consumers and tell them to look for it. Creates demand.
  67. Who sets wholesale price?
    • Label decides price point (SRLP)
    • But label’s SRLP must match one of distributor’s normal PPDs, aka “Card Price”
  68. Manager income/commission
    • Manager commissions range between 10-25%
    • Standard is 15-20% of gross less commissionable items/agreed upon items
    • Compromise: de-escalate as the artist becomes more successful (e.g. 20% initial, 15% if we make x amount of money, or after x years)
  69. Manager duties
    • An advisor/artist-business guru, PLUS acts as the “COO” of this company… runs the day-to-day operations of the business
    • Leaves time for the artist to do their own job
    • Artist can take on the day-to-day business operations until it becomes overwhelming to decide which opportunities to take and which ones that they need to seek out
    • No qualifications for being a publicist or a manager
    • Helps select and coordinate the artist’s team
    • Negotiates deals/agreements
  70. Agents must be licensed
    • CA, NY & many other states require an agent must be licensed, under state law, to procure employment for artists
    • Issue of fairness involved: one is slavery (someone committing someone else to do a personal service) and the other is double commissions (if the agent and the manager both do the same job, could take a huge chunk out of the monies earned by the personal actually doing the work)
  71. Management term
    • Short as possible is best
    • The norm is 1-5 yrs (avg. 3 years) IF there is a written contract
    • Current fad: go album-based instead of in years
  72. Key man clause
    • (against manager; for artists with clout)
    • *If the manager leaves the management firm, the artist can terminate the agreement, or
    • *States the artist is only willing to work with one or more specific manager at the management firm or
    • Might say manager cannot take on more than “x” number of artists (during the term of this artist’s contract)
  73. Manager performance clause
    Perform in a certain way. Do what you say you will, or I will walk! Not necessarily “I will have a performance”
  74. General Power of Attorney
    • Broad power (signing and full decision authority)
    • Allows the manager to bind the artist to long term contracts, and cash all checks
  75. Special Power of Attorney
    • Allows manager full authority to handle only specific tasks
    • Must clarify: just negotiating contracts, depositing checks, signing deals, making date commitments, etc.
    • Most likely, manager must still submit contracts to the artist for signing in this case
  76. Non-commissionable items
    Recording cost/chargeback, music videos, indie promotion (radio play gotten by not-my employee), and tour support. Generally, seems like it’s attributed to artist income, but it doesn’t hit the wallet.
  77. Music attorney fee
    Makes 5% gross off of the deals they negotiate, OR an hourly rate
  78. Music attorney - demo shopping
    • Less common today, but since many labels only take demos from a known manager or attorney, and your guy will know label attorneys (big execs)
    • If so, fee usually 5-10% of a deal
  79. Agent fee
    Capped at 10% on gigs they book
  80. Business manager fees and duties
    • 5% of artist gross receipts, or monthly minimum
    • Tax advisor, investment advisor; money manager basically
  81. Pre-existing/hit song sync licenses in context vs. out of context
    • In context: As you described to me in your sync request
    • Out of context: You want to use it for a way that isn’t in the way that you described for the sync license initially, charge lots more money
  82. Film - typical sync fee ranges
    • $15-$60k range
    • $20-$40k average
    • Song used as film title/end credits -- $75k-$1 million
  83. Rights typically granted for film/sync use
    • Worldwide theatrical
    • Home video/internet streaming
    • Subsequent TV (HBO, cable, network)
    • Use in TV trailers/promos? = a separate fee
  84. Custom-made songs
    • Bigger projects: Time is tight, so this favors seasoned/professional composers/lyricists
    • Smaller projects: Budget is tight…this is where a budding producer/composer could get noticed/earn credits
  85. Underscore
    • “Punch up” scenes: Indicate an action, comedy, historical period, location
    • Suggest a dramatic mood
    • Provide dramatic unity
  86. Three most prominent (and well paid) spots for film music
    • Main title
    • End credits
    • Source music aka visual vocal (Music that emanates from on-screen, whether seen or un-seen, worked into story; car radio, music at a dance, etc.)
  87. Composer all-in deal
    • In short, be composer AND studio/producer
    • MIDI mockups, orchestration, sheet music copy work, conducting, book studio, musicians, all recording PROs, mixing, mastering, re-writes…
  88. Composer-only deal
    Paid in 2 installments: Spotting, final delivery of score (half upon beginning the project, half upon delivery of the score); much like a producer’s deal
  89. Spotting session
    • A meeting in which director, composer, music editor, and/or music supervisor view a film scene by scene, discuss the musical needs
    • Decide on music direction, vibe, etc.
    • When music should stop and start
  90. Music Supervisor
    • Suggest, choose and provide outside music
    • Decide when/where to place music in movie
    • Pre-existing/hit songs and recordings and
    • custom-made songs…
    • Manages:
    • Overall music budget
    • Licensing in of any pre-existing works (sync)
    • Any studio production needed to make new/custom songs and recordings
  91. Music Editor
    • Technical  liaison between composer and director
    • Makes the cue sheets
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muin final
2012-12-13 02:24:22

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