Definition of copyright
? A limited duration monopoly
What is copyrightable?
? Original works of sufficient materiality
When does something become copyrighted?
? As soon as you make a tangible copy
Are you required to register your copyright with the Copyright Office?
? No
What are the exceptions to the copyright monopoly?
? Cable television rebroadcast
? Public broadcasting system
? Jukeboxes
? Digital Performance of Records
? Phonorecords and digital downloads of nondramatic music compositions
What is a dramatic work?
? Includes plays, screenplays, scripts, choreographic notation, choreographic shows and scenarios for a film (but not the film itself). Any work that is intended to be performed dramatically is a dramatic work.
When did mechanicals first appear in the copyright law?
? The 1909 Copyright Act, section 115
What does “mechanical” mean?
? Once a song has been recorded and released to the public, the copyright owner must license it to anyone who wants to use it in a phonorecord (defined as such in the Copyright Act) for a specific payment established by the law.
? Refers to payments for devices “serving to mechanically reproduce sound”
When does a mechanical license become compulsory?
? If the song has already been released
Under what conditions is a copyright owner required to issue a mechanical license?
? The song is a non-dramatic musical work
? It has been previously recorded
? The previous recording has been distributed publicly in phonorecords
? The new recording doesn’t change the basic melody or fundamental character of the song
? The new recording is only used in phonorecords (audio-only recordings). Excludes home video. No compulsory license for DVDs.
Are mechanicals paid on free goods?
? No
What is the makeup and function of the Copyright Royalty Board?
? Three judge panel that sets the mechanical royalty rates, cable TV secondary transmissions, non-commercial broadcasts for non-dramatic works, digital performance of sound recordings, and digital delivery of phonorecords
What are foreign mechanicals based on?
? Paid as a % of the wholesale price
What are the main functions of a publisher?
? Administration Rights
? All obligations
? Finding users, issuing licenses, collecting money, and paying the writer
How do publishers normally split the money with their writers?
? 50/50
What are the various types of music publishers?
? Majors
? Major Affiliates
? Independents
? Writer Publishers
What are the major sources of music publishing income?
? Mechanicals
? Performance
? Synchronization
? Print
What is the name of the company that issues mechanical licenses in the USA? Canada?
? Harry Fox Agency
? Canadian Musical Reproduction Rights Agency
What fees to they take for their services?
? Harry Fox 8.5%
? CMRRA 6%
What else do these organizations do?
? Audit record companies
How often do they pay?
? Quarterly, 45 days after the close of the quarter
Do record companies normally pay the full statutory rate?
? No.
If not, what rate do they normally pay?
? Normally in the 75% of statutory rate range
Understand what a Controlled Composition Clause is and the various rates paid under it
? Controlled Composition Clause – Puts a limit on how much the record company has to pay for each controlled composition.
? Normal Rate – 75%
? Record clubs or budget records – 50%
? Albums – usually ten times the single song rate per album
? No mechanical free goods on CC
? No – mechanical paid for multiple uses
? PD Songs – No or 50% the normal royalty
What is a DPD?
? Digital Phonorecord Delivery
When was this added to the copyright law?
? 1995
How licenses with venues are normally issued?
? Blanket Licenses
Can a writer affiliate with more than one PRO?
? No
Can a publisher affiliate with more than on PRO?
? Yes, but under different names
Know how song usages are tracked in:
a. TV – Cue Sheets
b. Movies – Not in US, Foreign based on the box office sales.
c. Radio – Logs or digital monitoring services such as BDS
d. Live performances – Set lists
What are the ranges of synch fees for use in different parts of a movie?
? Major Studio: $10,000-$100,000
? Main Title: $50,000-$250,000
? End Title: $35,000-$100,000
What does MFN mean?
? Most Favored Nations
? Everyone is paid the same rate
What are the normal fees for video synch?
? Flat Fee – $8,000 – $10,000
Know the difference between interactive and non-interactive radio
? The main difference between interactive and non-interactive stations is the ability to skip songs
? Interactive – can skip and choose (Spotify)
? Non-interactive stations – same stream that is being broadcast over the air (Pandora)
What are the royalties based on?
? Subscription fees
? Advertising
What is a Mixed Bundled Service?
? a locker service, limited interactive service, downloads or ringtones combined with a non-music product such as a mobile phone, consumer electronics device or Internet service
What’s a Paid Locker Service?
? provide access to sound recordings of musical works in the form of interactive streams, permanent digital downloads, restricted downloads or ringtones, where the services has been purchased by the end-user
What’s a Purchased Content Locker?
? a free locker functionally provided to a purchaser of a permanent digital download, ringtone or CD where the music provider and locker have an agreement
What fees do foreign subpublishers take?
? They keep 15-25%
What does “At Source” mean?
? % taken based on the earnings in that country
Know about DART and the Audio Home Recording Act of 1992
? Okay to copy records at home for private non-commercial use
? Imposes a tax on digital audio recorders and digital audio tapes
What is included in this act?
? Okay to copy records at home for private non-commercial use
? Imposes a tax on digital audio recorders and digital audio tapes
What is the most important thing to do when setting up a publishing company?
? Register the name with a PRO
What other things do you need to do
? Affiliate as a writer
? Fictitious Business Name Published
? Register the copyrights
? Register the songs
Who normally pays royalties to songwriters?
? Publishers
What are the exceptions?
? Performance and DART money
What does “co-terminous” mean?
? Two or more deals with the same term
What is a “Passive 360 Deal”?
? Limit of participation to mechanicals
? Only publishing if the artist has a record deal
? Only on the records by that artist
With one songwriter writing the music and another one writing the lyrics, who controls each part of the song?
? if you write the lyrics you own 50% of the entire song
With different types of music uses, know who is responsible for collecting the money and paying the publisher?
? Broadcast (TV, Radio) – Publisher’s PRO. who collects from broadcasters
? Non Broadcast Performance (clubs, hotels) – Publisher’s PRO, who collects from these venues
? Mechanical Royalties- Recording Company
? Sheet Music Sales – Publisher’s Print Music Licensee
? Synchronization of music – Movie, video or game producers
? Special Permissions (greeting Cards) – publisher’s licensee
? Jukeboxes – Publisher’s PRO
? Dramatic – Producer of the dramatic performance
? Foreign Rights – Subpublishers, licensees abroad
What is “Net Publisher’s Share” or NPS?
? Two or more people share the copyright to a song
What is the normal range for publisher administration fees?
? 10 – 25 % of gross income range deducted first before anything else
What are some of the direct expenses that are deducted before the publisher receives their NPS?
? Copyright office, demo costs, collection fees, legal costs, preparation of lead sheets
Know the different types of publisher admin deals?
? One Administration
? One Administrator with Restrictions
? One Administrator with Direct Payment to Other Parties
? True co-administration
? Co-administration with Exceptions:
0 Controlled Compositions
0 Statutory Rate
What is a “cover record”?
? recording obtained by the administrator
What is the technical definition of “Work for Hire”?
? If it is made by an employee within the scope of employment
What are the criteria for qualifying for Work for Hire?
? Commissioned
? Created under a written agreement
? Created for use in one of the following:
0 A motion picture
0 a collective work
0 a compilation
0 a translation of a foreign work
0 a supplementary work
Understand Termination Rights
? Added in the 1976 Copyright Act
? You can get your copyright back 35 years after you transfer the rights to a publisher
Does it apply to Work for Hire?
? No, because there was no transfer in the first place
When were digital performances of masters and webcasting added to the copyright law?
? Sound Recordings Act of 1995
What does that right grant and to whom does it grant it?
? Compulsory Mechanical License extended to include digital distribution of records
? Created a new right for the record company and artist to be paid when records are performed
Explain how the royalty money is divided up for this?
? Digital Performance Royalties are paid to Sound Exchange
? Record company gets 50%
? Featured Artist gets 45%
? Other Artists get the remaining 5%
What did the Fairness in Music Licensing Act of 1998 add to the copyright law?
? Act states that stores under 2,000 sq. ft. or restaurants and bars under 3,750 sq. ft. don’t need a license to perform music
? Advocated by the National Restaurant Association. WTO was not happy
What are the negatives for not registering a copyright with the Copyright Office?
? Can’t Collect compulsory license royalties
? Can’t file an infringement action
? If you don’t register within five years after first publication of work, you lose the legal presumption that everything in the registration is valid
? You can’t recover attorney’s fees nor can you get statutory damages unless you registered before the infringement happened
What are the legal remedies for copyright infringement?
? You get the fair market value of the use the infringer made
? You can recover the infringer’s profits
? You can get an injunction
? You can recover statutory damages
? The court can order destruction or seizure
? Criminal penalties for those who infringe
? you can get your court costs
What does “Copublishing” mean?
? Two or more people share the copyright to a song