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Introduction to Music Business

by: Mr. Erich Feest

Introduction to Music Business MUM 3301

Marketplace > Florida Atlantic University > Music > MUM 3301 > Introduction to Music Business
Mr. Erich Feest
GPA 3.69

Raul Sanchez

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Raul Sanchez
Class Notes
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This 5 page Class Notes was uploaded by Mr. Erich Feest on Monday October 12, 2015. The Class Notes belongs to MUM 3301 at Florida Atlantic University taught by Raul Sanchez in Fall. Since its upload, it has received 45 views. For similar materials see /class/221652/mum-3301-florida-atlantic-university in Music at Florida Atlantic University.


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Date Created: 10/12/15
Rules of the game 1 There is no such thing as a standard recording contract 2 Everything can be subject to negotiation 3 The one with the most power and clout sets the rules of the game 4 Attorneys lawyers charge by the hour are not cheap 5 Everyone wants a piece of the pie Terms Exclusivity limits sidemusician video lm etc Recording budget minimum maximum Advances are always against future royalties Royalties points based on wholesale deductions Attribution may use commercially or noncommercially derivatives allowed Attribution share alike same s above except new user must license under same terms similar to Open Source Attribution no derivative may use commercially or non commercially but NO derivatives allowed distribute unchanged Attribution noncommercial derivatives allowed noncommercial new creation not bound by same license Attribution noncommercial share alike derivatives allowed noncommercial new creations bound by same license Creative control Who chooses Songs to be recorded Artwork Producer who pays and how Producers want percentage points or a front end rate The all in is the producers contract Recoupment chargebacks to recover incurred cost Ownership of Master record label owns master usually for life favoring record label Controlled comp Clause Label will only pay for a certain number of artists controlled compos Label will pay reduced rate 75 of statutory rate mechanical license Standing in the shadows of Motown movie Federal appeals court in San Francisco has ruled that songs downloaded from iTunes and other digital retailers are not ruled as sales but licensed by the buyer What is song The marriage of words and music Characteristics of a hit son 1 Universal and identi able idea theme 2 Immediate appeal 3 A strong repetitive and memorable hook 4 Wellcrafted appropriate form Potential income sources for songwriters Types of music use Broadcast performance tv commercial radio Nonbroadcast performancesclubs hotels stadiums in ight music etc Mechanical royalties tape and CD sales Sheet music sales Synchronization of music to lm tv Who pays the writer 0 Writers PROASCAPBMISESAC 0 Record company pays writer s publisher who shares 5050 w writer 0 Publisher pays per song sheet or of total sales 0 Production company negotiates sync license w publisher 5050 split with writer Mechanical License 7 mechanical reproduction of a song only license that has a set price statutory rate Current license rate is 91 cent per song per unit Compulsory Mechanical license 0 Permission to reproduce and distribute a song phonorecords in exchange for royalty payment 0 Current Mechanical Licensing fee 0 91 cents per song per unit for songs under 5 min o 15 cents per minute for songs over 5 min 0 Synchronization rights 0 Sync rights need to be negotiated with publisher for use of song and a Master use license for use of the recording Copyright is 0 Right to copy 0 A protection granted by law to original works published or unpublished o A copyright extends to the expression of ideas not the ideas themselves Bundle of lights 0 To reproduce the work in copies or phonorecords 0 To prepare derivative works based on the copyrighted work To distribute copies by sale transfer of ownership rental lease lending To perform the copyrighted work publicly To display the copyrighted work publicly In case of the sound recordings to perform the work publicly via audio transmission Fair Use Use is for nonprofit education use criticism comment research etc Performance of a work in the course of facetoface teaching Performance of a dramatic musical work of religious nature in the course of religious services No money involved MAY constitute fair use Nonfood establishments of nonprofit institutions that comply with the yadayada Performance as promotion for the sale of phonorecords in vending establishments Limitation of copyright ownership 0 Ownership is distinct from the object it is embodied in ie The song itself vs the sound recording 0 Collective works ie Compilation album has own separate from each song 0 Film audiovisual works embodies multiple yet holds individual Transfer and recapture 0 Ownership of maybe transferred ie Songwriter transfers partial ownership to publisher 0 Recapture After Jan 1 1978 original may recapture 35 years after publication date 5 year window How long does copyright last 0 Created after 1978 life of author 70 years 0 Corporate copyright 95 years from publication or 120 years from creation 0 19641978 95 years 28 automatic renewal 0 192363 2867 if renewal made prior to expiration 0 Work for hire 95 years after date of first publication 0 Before 1923 public domain Copyright Protection 0 A work is protected by copyright once it is fixed in a tangible form however registration in the Library of Congress is what counts in court Poor Man s Copyright mailing it to yourself in a sealed envelope notary etc is insufficient For multiple authors of ownership is applied equally on copyright form If ownership is weighted differently a contract between authors must be drafted Music Publishers exploit and administers the right to songs Types of Publishers o Maj or Publishing Companies 0 Large catalogs of songs 0 Tend to be record label affiliated 0 Worldwide sub publishing agreements o EX EMI SonyATV Universal Independent publishers ex Peer Music Educational Publishers 0 Sheet music based 0 Sell and possibly lease scores and parts Attorney 0 Explain draft or negotiate contracts 0 Represent bandor artist in 0 Contract negotiations o Lawsuits o For mediation and or arbitration or to resolve disputes Litigation Wages and scales Class of venue Tracking fees Rehearsal fees Wages Overtime Hours working conditions Leader contractor fees Heavy instruments cartage Instrument doubling overdubbing Reuse New use of recorded material Agents 0 Books gigs 0 Need license to become an agent 0 In Florida if you only represent one act or yourself or family member you don t need a license Writer The Ten principles of abundance thinking the future of a radical price If it s digital sooner or later its going to be free Atoms would like to be free but they are not so pushy about it You cant stop free You can make money from free Redefine your market Round down Sooner or later you will compete with free Embrace waste Free makes other things more valuable Manage for abundance not security Sole Proprietorship 0 One owner Personally liable for business debts 0 Owner pays other members 0 Passtrough entity income is passed through the business to the indiVidual Partnership 0 All band members split pro ts and losses 0 Each member is personally liable for all partnership debts Limited Liability Company LLC


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