taxi road rally november, 2014not legal advice!1 music business and terminology this presentation is...

TAXI ROAD RALLY November, 2014

NOT LEGAL ADVICE! 1

Music Business and Terminology

This presentation is general information. Nothing in it should be construed as

legal advice. Consult a qualified entertainment attorney for actual legal

advice.

By Charles “Casey” Hurowitz [email protected]


NOT LEGAL ADVICE! 2

Copyrights What is a copyright? Why register a copyright? Is stealing common? Copyright registration U.S. Copyright office

http://www.copyright.gov “Poor man’s copyright” a bad idea (I can only address U.S. residents here)


NOT LEGAL ADVICE! 3

Copyrights Form PA

Music and Lyrics Form SR

Sound Recording Can Register Music, Lyrics, AND Sound Recording on

SR Form Fee Is $50 For On-Line Registration Can Copyright a “Collection” for ONE Fee

All Writers/Co-writers on a Collection Must Be The Same

(I Can Only Address U.S. Residents Here)


NOT LEGAL ADVICE! 4

What Is A Publisher? Owns or administers works written by

songwriters Can range from large, multi-national

corporations to individual, self-published songwriters

Pitches songs to music executives, recording artists, producers, managers, film/TV, and others to secure commercial placements

May finance and produce demo recordings Collects royalties and issues licenses Registers and enforces the copyrights


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How Do Songwriters/Artists Get Paid For Their Work?

3 Main Sources of Revenue: Mechanical Royalties Performance Royalties Master/Synchronization License Fees


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Mechanical Royalties Statutory rate 9.1 cents per mechanical

copy such as CD or digital download Owner of Master Recording gets $0.61 per

digital download First Commercial Use

Permission Required, Rate Negotiable Once “Published” (offered for

Commercial Sale) Compulsory License, Statutory Rate Applies


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Performance Royalties

Public Performance: TV, Radio, Concert, Gig, Muzak, etc.

Collected through PRO: Performance Royalty Organization (ASCAP, BMI, SESAC, etc.)

Split Between Writer and Publisher


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Each PRO dollar is 50% to writer (“Writer’s Share”), 50% to publisher (“Publisher’s Share”) 100% of Writer’s Share = 50% of total

dollar 100% of Publisher’s Share = 50% of

total dollar


NOT LEGAL ADVICE! 9


Do I Need to Join a PRO? As a Writer? As a Publisher? Where Does The Money Come

From?


NOT LEGAL ADVICE! 10

Master/Sync License Fees For Film, TV, Advertising, etc. The Difference Between the

Composition and the Recording Master Use License: The Right to Use

the Recording Sync License: The Right to Synchronize

the Music to Video Sometimes These Are Separate

Contracts, often Combined (Hence “Master/Sync”)



The “Single Song Publishing Contract” Most Common Publishing Contract for

Beginner Songwriters Can Be For One Or More Songs Writer(s) Signs Over Copyright

Ownership for Life to the Publisher (See Reversion Clause)

Publisher Has EXCLUSIVE Control Over the Song(s)

Publisher Works to Secure a Commercial Placement for the Song(s)



The “Single Song Publishing Contract” (Based on U.S.)

Contract Specifies How Income Will Be Split: Performance Royalties (This is Almost

Always 50/50) Mechanical Royalties (Should Be 50/50) Master/Sync License Fees (Most often

50/50 But Can Vary) Sheet Music Revenue (Terms Vary)



The “Single Song Publishing Contract” – Reversion Clause Reversion Clause (VERY Important!)

If publisher doesn’t place song within N years, all rights revert back to writer(s)

Suggestions For Reversion Clauses Best if there are qualifiers beyond just

“secure a commercial recording” such as minimum revenue, nationally distributed film/TV, etc. (Consult a music attorney!)

Should apply to individual songs on the contract if multiple are including. If there are 2 songs and once gets placed but the other doesn’t, one should have rights reverted.



Collaboration Agreements Why You Need These When You Co-write! Things To Spell Out Include:

Financial Splits of Revenue (Equal is the Preferred Way But It’s Up To You)

Financial Splits of Recording Expenses Ownership of The Composition and The

Master Recording Who Can Sign What Types of Agreements What If One Writer Can’t Be Reached – Power

of Attorney Templates Available



Work For Hire/Musician’s Release Agreements ABSOLUTELY Required for Film/TV, Music

Libraries, Master/Sync Agreements, etc. The Difference Between the Composition

and the Recording Required for ALL Musicians and Vocalists

(Other Than The Copyright Owners) Who Performed on Your Tracks

Don’t Wait and Try to Track People Down AFTER You Get a Deal offer for Your Track!



Work For Hire/Musician’s Release Agreements Things Commonly Included on Release

Agreements: Name of Track(s), Name of Musician, Type of

Performance, Date, Price Paid You Own All Rights to Use the Performance on the

Recording for Any Purpose for All Time (Unless Exceptions) with No Additional Fees or Royalties Payable (Unless Noted).

Can You Use The Musician’s Name and Likeness (e.g. Photos) in Association with Promotion and/or Credits? (Optional, Not Required but Helpful)

Exceptions? (e.g. No Pornography, Graphic Violence, etc) Do You Want to Optionally offer a Percentage of Revenue

with the Musician on Your Own? Only an Attorney Can Give You Exact Legal Language

Though There are Templates Available



Pitching For Film/TV “Film/TV” (Here): Any Application Involving Syncing

Music to Video Including Movies, TV, Advertising, Internet, etc

Music Libraries What is a Music Library?

Sign Licenses on Your Behalf – Wide Range Why Work with Music Libraries? The Terms “Exclusive” Vs. “Non-exclusive”

Exclusive Means Exclusive! (Except Where Noted in Contracts)

Re-Titling: PRO Registrations of Same Track with Different Names



Common Types Of Music Library Agreements Exclusive Agreement

Much Like a Single-Song Publishing Agreement The Target is (Usually) Only Film/TV, Not Song Pitches To Artists

Term and Reversion Important “In Perpetuity”?

May or May Not Involve Assignment of Copyright

Pros and Cons



Common Types Of Music Library Agreements

Non-Exclusive with Re-Title No Restrictions on Where/How You

Can Pitch the Track Elsewhere Including on Your Own and Other Music Libraries

Pros and Cons The Great Re-Title Debate




Exclusive with Respect to Film/TV Only Only the Library Can Pitch for Film/TV You Cannot Pitch Tracks on Your Own

for Any Film/TV Opportunities or Other Music Libraries

You Can Do Song Pitches to Artists, Sell Tunes on iTunes, etc.

Pros and Cons




Exclusive with Respect to Other Music Libraries Library is the Only LIBRARY for the Track You (Usually) Can Pitch Track on Your Own

for Direct (Non-Library) Film/TV Opportunities, Do Song Pitches to Artists, Sell Track on iTunes, etc

Cannot Sign the Same Track with Other Music Libraries

Pros and Cons




Buyout Library Pays An Up-Front Fee Per Track

No Other License Fees Earned by Writer for Placements Unless Specified (Terms Vary)

Library Takes Full Ownership of The Track(s) For Life

You Earn the Writer’s Share of Performance Royalties if Broadcast

Common with Commissioned Works Pros and Cons




Contracts and Terms Vary Widely! These Were Just Common

Scenarios!



Common Income Streams with Film/TV Music

License Fees (Master/Sync) One Fee for All Broadcasts of That

Particular Program Most Common Is 50/50 Share Between

Library And Writer But It Varies. Fees Are Dropping. Sometimes There Is

No Up-Front Fee, It’s All “Back-End” (PRO) Larger Fees for MAJOR Placements




Performance Royalties (The “Back-End”) What is a “Cue Sheet”? If the Library Shares In PRO Royalties (Most

Do), It’s Usually 50/50 (e.g. They Take “Publisher’s Share”, You the “Writer’s Share”.

Can Be Lucrative or Small Depending on the Placement

Which Network, Time of Day, Number Of Broadcasts, Foreground vs. Background, Vocal vs. Instrumental, etc




Needle Drop License Fee for Each Individual Broadcast

Soundtracks Master Use May or May Not Be Covered in

Other Agreements – Library, Master/Sync, etc. (Usually Covered with Libraries)

Sometimes Additional License Fees Negotiable

Mechanical Royalties May Apply to CDs



Pitching For Film/TV

Pitching Direct To Music Supervisors Doable but Not as Easy as it Might

Seem At First Film/TV Music Supervisor Directories



Pitching For Film/TV REMINDERS!

You Must Have Work-For-Hire/Musician Releases for All Performers Other Than Yourself in Order to Sign Any Film/TV Deals.

You Must Not Sign a Track That is Signed To an Exclusive Deal to a Non-Exclusive Deal (or Vice-Versa) Unless the Exception Agreed Upon in Writing.



Questions and Discussion

taxi road rally november, 2014not legal advice!1 music business and terminology this presentation is...

Documents

actual legal advice

publishernot legal advice

mastersyncnot legal

songsnot legal advice

copyrightsnot legal

total dollarnot legal

residents herenot legal

copyright ownership