Re: Music Business Law

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synchronization licenses- Licenses for film music, usually obtained from the publisher, this does not include performance rights. A performance license is needed for that.

TV and Movie Rights- TV is handled through PRO’s. Broadcasters are trying to get direct and source licensing with the publisher to avoid having two different licenses.

Cable TV- Are considered secondary transmitters and are required to use the compulsory mechanical license. The Copyright Office collects payments and take a cut then pass it to the copyright owner(s).c The Copyright Arbitration Royalty Panel decides how these payments should be divided.

Music Video Licenses- like short films. Need performance and synchronization license. The performance licenses are generally covered by a blanket license. Music video stations usually pay compulsory mechanical licenses.

Transcription Licenses- Are needed for things like Muzak, airline in-flight music, syndicated programs, and music library services. These are basically a license to record a preexisting work and a performance license for that piece.

Special use Permits- These licenses are for basically anything that the other licenses don’t include. This would be for merchandise or use in software.

Broadcast Commercials- These are the most common of the special use permits. Allows the usage of rewriting lyrics.

Jukebox Licenses- Basically performance rights licensing. They are usually handled through the jukebox licensing office. The jukebox licensing office allows jukebox owners to get blanket licenses with all the PRO’s

Dramatic Music Rights- Music for opera, musicals, etc.

Music Industry- Dominates much of the art and business of music today with the exception of classical.

Label- a brand of commercial recordings under a trademarked name. Two type- Major and Independent. Major labels are owned and/or distributed by the major distribution companies. Independent labels don’t. Independent labels account for the majority of labels released but Major labels make up most of the income.

Major Labels- owned by some of the largest corporations around the globe. They have all the money. Only one in five records makes a profit. Since they have money they can have records lose money. Major labels have security, pay less for duplication since they usually own their own duplication sources. Can afford the best studios. Distribution systems are massive and usually have regional distribution systems. Can do a better job of publicity.

Independent Labels- More flexible and can take risk on new music styles. Most new music starts at the independent labels. Some of these independent labels are purchased by major labels (Island, Chrysalis, Virgin). Smaller labels have a following of fans who trust the label to put out good music. Technology like the Internet has helped independent labels to distribute music easily and successfully.

Specialty Labels- some independents get into releasing certain genres. Nonesuch and Naxos are examples of these. CDCM electro-acoustical works Centar classical music label.

Recording company structure- smaller companies usually have people occupying multiple positions. Usually an entrepreneurs is the CEO in smaller companies and many times in larger companies is the person who started the company then retired. Business and Legal Affairs are primarily concerned with contracts and legal work. Accounting concerned with paying royalties, income and keeping track of collecting money. Distribution and Sales- Maximizes sales and keeping a warehouse supply. Marketing Promotion- Radio and Video promotion, publicity, advertising, creative services such as liner notes and graphic design. Publishing affiliates usually two one for ASCAP or BMI or promoting music.

Piracy- unauthorized duplication of a recording for financial gain.
Counterfeiting- production and sale of recordings designed to fool the customer into thinking they are buying a legitimate copy.
Bootlegging- unauthorized taping and sale of live or broadcast performances. The RIAA combats this activity.

NARAS- organization responsible for the Grammys