1345742
Description
Flashcards by Theresa Lopez, updated more than 1 year ago
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Created by Theresa Lopez
about 10 years ago
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| Question | Answer |
| Under what conditions is a copyright owner required to issue a mechanical license? | _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. Conditions: _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. _All of these conditions must exist before you get a compulsory license |
| Describe the significance of the 1995 Copyright Act. | It made it so that compulsory mechanical licenses applied to DPD (digital phonorecord delivery). |
| Are mechanical royalties paid on free goods? | Yes. |
| What does the Copyright Royalty Board do? | _It's a 3 judge panel that sets mechanical royalty rates on: cable TV secondary transmissions, non-commercial broadcasts for non-dramatic works, digital performance of sound recordings, digital delivery of phonorecords |
| When was the Copyright Royalty Board formed, and who did this board replace? | 2004 It replaced the Copyright Arbitration Royalty Panel (CARP) - formed in 1993. |
| What are foreign mechanical royalty rates based on? | They are paid as a % of the wholesale price. |
| What are the main functions of a publisher? | _Writer first assigns copyrights to publishers that then: find users, issue licenses, collect monies, and pay the writer’s royalties _Music publisher functions include administering payment for rights, plugging songs and supplying a creative staff person (A&R) to match compositions with artists. |
| How do publishers normally split royalties with their writers? | 50/50 |
| What are the various types of music publishers? | Majors, major affiliates, independents, writer publishers |
| What are the names of the companies that issue mechanical licenses in the U.S. and Canada? | _Harry Fox _CMRRA (Canadian Musical Reproduction Rights Agency) |
| What fees do mechanical licensing companies charge for their services? | _Harry Fox collects 8.5% _CMRRA collects 6% |
| What other functions do Harry Fox and CMRRA have? | _Audit record companies on behalf of their clients _Allocate recovered royalties from audits Note: these companies pay out quarterly |
| Do record companies normally pay the full statutory rate? | No, they normally pay 75% of the statutory rate. |
| What is a Controlled Composition Clause? | _Contractually reduces the mechanical royalty rate for a songwriter/artist and its publisher on songs written or otherwise "controlled" by the artist. _Reduces pay out on songs and puts a limit on how many songs artist could be paid for on an album. Ex. The mechanical royalty on the artist's entire LP has a cap of 60 cents (3/4 rate x 10 songs) so that, even if the songwriter/artist writes 12 songs for its own album, the artist's publishing which should be worth about 96 cents an album at the full rate is only allocated 60 cents under this clause. |
| What is a DPD? | Digital Phonorecord Delivery |
| When did DPDs become protected under copyright law? | 1995 (Sound Recording Act) |
| How are licenses for Madison Square Garden and the STAPLES Center normally issued? | Blanket license |
| Can a writer affiliate with more than one PRO? | No |
| Can a publisher affiliate with more than one PRO? | Yes |
| What are the ranges of synch fees for use in different parts of a movie? | _Main title - $50000 to $250000 _End title - $35000 to $100000 _Out-of-context instrumental background music (cues) are usually around $20000. _Songs $25000 to $250000 or more |
| What does MFN mean? | Most Favored Nations Everyone gets paid the same rate - meaning that no one gets special treatment for what they pay on things. |
| What is the difference between interactive and non-interactive radio? | _Radio that offers a selection of songs to choose from is interactive (i.e. Spotify) _Radio that is just served up to you is non-interactive because it doesn't actually require any form of participation from you (Pandora) |
| What are royalties for interactive/non-interactive radio based on? | _Since information is being broadcast, non-interactive radio treated as a performance _Interactive royalty rates are the greter of 10.5% of subscription fees paid by the consumer or 10.5% of gross advertising revenue if service is advertiser supported (1) if the record company pays the publisher 17-18% of what's paid to the record company for masters and publishing combined or ii) if the streaming service pays the publisher, 21-22% of what’s paid to the record company for the masters alone from 15 50 cents/subscriber/month |
| What is a Mixed Bundled Service? | _The sale of a music product along with a non-music service |
| What is a paid locker service? | _A service you pay to store your music on someone else’s server, then stream it to yourself whenever you want. They are a type of cloud service dedicated to music (Spotify). |
| What's a purchased content locker? | _A locker service that requires you to upload your own music, from wherever you want (iTunes) |
| What fees do foreign sub-publishers normally take? | _Foreign mechanicals, collected by mandatory societies _Foreign performances (15-25%) _Printed music (10-15%) |
| What does "at source" mean? | _Percentage taken based on the earnings in that country. |
| What does DART stand for? | Digital Audio Recording Technologies (i.e. CD burners, cassette recorders) |
| What is the significance of the Audio Home Recording Act of 1992? | _Gives permission to copy records at home for private non-commercial use. _Imposes a tax on digital audio recorders. |
| What is the most important thing to do when setting up a publishing company? | _Register name with PRO _Set up 3 publishing companies U.S. PROS _Affiliate as a writer/Fictitious Business Name published (IRS) |
| Once registered as a PRO, what is another critical step? | Register copyrights and songs that you own/control to protect yourself from infringement |
| Who pays royalties to songwriters for mechanical royalties? | Publishers |
| Who pays royalties to songwriters for performance royalties? | PROs |
| What are exceptions to royalties paid to songwriters? | DART tax money |
| Define co-terminous. | 2 or more deals with the same term. |
| What is a passive 360 deal? | _Record company tries to get the publishing in a deal as well |
| With one songwriter writing the music and another one writing the lyrics, who controls each part of the song? | 50% |
| What is the net publisher's share (NPS)? | _Amount that is left over to be paid to the publisher once all the obligations are met. |
| Define co-publishing. | Having 2 or more publishers on one musical composition. |
| What are some of the direct expenses that are deducted before the publisher receives their NPS? | _Copyright office, demo costs, collection costs, legal costs |
| Name 5 different types of publisher admin deals? | _1 admin _1 admin w/ restrictions _1 admin w/ direct payment to other parties _True co-admin _Co-admin with exceptions: controlled compositions |
| What is the technical definition of "work for hire?" | _Contractor; commissioned under a written agreement _Usually a motion picture or other A/V work or collective, compilation, a translation of a foreign work _If it is made by an employee within the scope of employment, it’s a work for hire. If the employer is directing or supervising the creation of the work |
| What are the criteria for qualifying as a work for hire? | It must be: _commissioned _created under a written agreement created for use in one motion picture or other A/V work _a collective work _a compilation _a translation of a foreign work _a supplementary work |
| Understand Termination Rights | _Added in the 1976 Copyright Act _Can get your copyright back 35 years after the transfer the rights to a publisher (USA) _Applies to USA only _Need to give a 2 years notice in advance |
| Does it apply to work for hire? | No |
| When were digital performances of masters and webcasting added to the copyright law? | DPRA of 1995 (Digital Performance Right in Sound Recordings Act) |
| What does DPRA 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 money is divided for digital performance royalties. | _Digital Performance Royalties are paid to Sound Exchange _Record Company gets 50% _Featured Artist gets 45% _Other Artists get the remaining 5% paid to AFM or AFTRA funds _SoundExchange has distributed $2B _No compulsory license for digital streaming |
| What did the Fairness in Music Licensing act add to copyright law? | _Stores under 2,000 sq. ft. or restaurants and bars under 3,750 sq. ft. no longer need a license to perform music. |
| 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 the 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 (if registered) _The court can order destruction or seizure _If the infringement is willful, there are criminal penalties _You can get your court costs (if registered) |
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