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What are the exclusive rights a copyright holder has?
What is necessary to make and distribute sound recordings of audio devices or "phono records" (any medium, even digital)?
Why is it called a "mechanical"?
Comes from a way to reproduce music besides sheet music
Party can get a valid license without asking the copyright owner; subject to certain procedures being followed and a statutory rate of payment
How do you obtain a Mechanical license?
- the work needs to already be distributed to public in US by copyright holder
- give the copyright holder 30 days notice
- pay owner for the records you make and distribute (not sold)
- not material changes to work (same words or same melody)
What are the mechanical rates?
- 9.1¢ for recordings up to 5 minutes
- 1.75¢ per minute if over 5
- *valid until 12/31/2017
- Ringtones: 24¢ each
- licensee and publisher can negotiate terms that suit the circumstance or business practice better
- like old song compilations or a charity project
- Can negotiate Most Favored Nations so you get paid the same as highest on compilation
Commonly negotiated terms:
- reduce rates; usually 75%
- if royalty rate can be set, the date of recording, release or distribution determine rate
- royalties paid on units sold+not returned instead of manuf.+dist.
- royalty reserves (pay for 75% of copies in case of returns)
- free goods (cost reduction for retailer)
- special free goods
- lyric reprint (print lyrics on liner notes)
- Audit rights (see the books)
- 1/4 or 1/2 year accounting
Controlled Composition Clause
line in artist contract w/ record label that limits royalties paid for any composition written, published or owned by the artist
What typical Controlled Compositions Clauses look like
- new artist has reduced royalty rate (usually 75%)
- Ceiling on amount of mechanical royalties the label will pay for album
- mechanical royalties paid from first unit sold
- overages deducted from the artist's royalties
Harry Fox Agency
- 3rd party org. that administers issuance of mechanical licenses and collection of royalties for a lot of publishers in US
- started 1927, owned by SESAC now
- licenses can by applied for online for physical/digital copy (sometimes by SongFile too)
Who collects foreign royalties?
foreign mechanical rights societies gets them from labels and distributes to local publishers
How does a US publisher get the foreign royalties?
they engage foreign sub-publisher to collect royalties in the local territory
What can HFA do about foreign royalties?
HFA has reciprocal agreements in some territories to collect royalties for US publishers
What is a Performing Rights Society?
- an entity that licenses public performances of non-dramatic musical works on behalf of copyright owners
- First one in France 1851 SACEM
- founded 1914
- response to 1909 amendment to copyright law that explicitly provided performance rights and no mechanicals or sync rights
- founded 1930
- help Euro publishers w/ American performance royalties
- foudned 1939
- reaction to royalties paid by ASCAP
- did a lot of "race music" when they were formed
How many PROs can you belong to?
one at a time, and music must be associated w/ affiliated publisher
How are mechanicals monitored for TV?
- PRO conducts census to track shows being broadcast and matching it to cue sheets that the production company makes
- Factors: # of times played, circumstance, timing, time of day, # of stations
How are mechanicals monitored for radio?
radio reports programming and music played for a specific sampled period of time, PRO extrapolates the actual uses to estimate potential uses
an annual fee paid by national networks to cover the entire repertoire; fees individually negotiated
- local stations won't use enough music to warrant the cost of a blanket license, so a program license allows them to pay for only the programs that actually use the music from a particular PRO
- pay writes+publishers directly, no through PRO
How is the fee calculated for a program license?
calculated at the blanket rate broken down by hour and multiplied by a factor of 140%
What can a broadcaster do if they want to bypass PRO?
- negotiate with music owner
- PRO not an exclusive deal, only opens doors
What license does an establishment need?
- place over 3,750ft2 pays blanket fee to ALL PROs to use their catalogs
- money goes to general fund and distributed mostly like TV and radio
- PROs have their own programs to allow songwriters to get paid for performing at venue
What is watermarking?
embedding digital ID into recording
What is fingerprinting?
analysis of waveform of a recording
Limits to fingerprinting
- not all analyzed
- dialogue, sfx, dirty audio
- performed by live act/actor on TV/Film
- need enough time to sample it
- use of sample libraries or beats
What is streaming considered for PROs? What about downloads?
public performance; reproduction and don't need PRO licensing
Types of streaming:
- non-interactive: radio style, you don't pick song
- interactive: you can control what you hear
What kind of music is sync licensing for?
pre-existing song not commissioned for film originally
Why would a production company want to use an original composition?
- match time period
- lyrics in place of dialogue to convey message
- scene w/ band playing in background
Why do you need a sync license?
copyright owner needs to authorize others to reproduce
right to reproduce an audio representation of a copyrighted work w/ a visual image on film, tape, or other visual media
What 2 licenses do you need for sync?
- composition (owned by publisher)
- specific recording of that song (owned by artist's record label
If you only have the composition license for sync, what can you do?
record your own version w/out compulsory license
What 2 things do you need for the composition license for sync?
- permission from artist (no compulsory license)
- license fee (no statutory rate)
Copyright Act 1909 says
- ideas need TANGIBLE MEDIUM of EXPRESSION to be considered copyrighted
- 2¢ statutory rate added for music
1976 Copyright Act
- Congress allows scientific writings to be protected
- Really finished in 1978
1995 Copyright Act
gives rights to recordings in digital format only
What did 1976 Coypright Act allow us to do?
- reproduce copies of master
- derived from other works to create
- distribute by sale of trans. ownership
- perform publicly