music biz final

  1. What are the 5 conditions necessary for a contract?
    • 1) Competence: 18 years of age or older, of sound mind
    • 2) Subject Matter: Decide on what the contract will be
    • 3) Meeting of the minds: agreement on what each side of the party is going to do and a clear understanding
    • 4) Obligation: Both groups actually do what they agreed to do or not to do
    • 5) Consideration: money or services
  2. What are the 4 types of business structures?
    Sole Proprietorship, Partnership, Limited Liability Company, Corporation
  3. A ____ ___________ has one owner.
    Sole proprietorship
  4. A __________ is a seperate legal entity, much like a separate person.
  5. A _____________ must have at least two people; one general partner and one limited partner.
  6. A _____________ is owned by shareholders; only one shareholder is neccessary.
  7. A business form created January 1 1993 that combines feautures of two other types of business structures.
    Limited Liability Company
  8. What are some advantages of incorporation?
    There are tax advantages and limited liability.
  9. Under what conditions is a hoome office usually a deductible expense?
    If it is listed as the only location for the business, if it is used for nothing else, if it is used to meet with clients
  10. What type of business structure uses "dba" or "fbn"?
    sole proprietorship
  11. Limited Liability Corporation resembles a __________, taxed as a ___________.
    corporation, partnership
  12. Session Contracts
    • For musicians playing on recording sessions
    • Usually no royalties for session musicians
  13. What types of contracts would you want an entertainment attorney to look over?
    Recording contract, touring contract, personal manager contract, songwriter/publisher contract
  14. Why is a personal manager contract potentially dangerous for a SONGWRITER?
    It could include lifetime royalties if you arn't careful
  15. A letter of agreement requires...
    date, time, location, fee, name of act, agreed to, accepted by
  16. Formal Contract or Standard Contract
    • U & C (Usual & Customary)
    • can change anything on any contract if it is written in the margin and initialled
  17. Arbitration
    Have to take the ruling of the arbitrator, can't appeal
  18. Court System
    Uses a judge so there is a possibility for appeal
  19. Manager gets commissions on sales of records recorded ______ the term of the management contract, after the contract is over.
  20. Manager gets commissions on records actually made _____ the term of the management contract if they were ________ during the term of the management contract.
  21. A&R
    • Artist and Repertoire
    • Finds and signs new talent, development and execution of projects, studio production of signed talent, liason between artist and label
  22. Who typically owns the master?
    The Record Label
  23. What is it called when a record company takes profits from one area and offsets those profits with losses from another area?
    Cross collateralization
  24. What's te term for the process of a record company paying itself back its investment in an artist?
  25. A unique, widely used name that represents for a specific type of phsyical goods.
  26. A unique name widely used for a particular service.
    Service Mark
  27. The use of a trademarked name that waters down or negatively influences an existing trademark.
  28. This states that no one can claim that they own your trademarked name.
    Affadavit of Incontestability
  29. May be filed with the appropriate government office if you plan to utilize a particular name within 3 years.
    Notice of Intent
  30. Buy-on
    The record label pays the headlining act to take on an opening act
  31. Split
    Between an artist and a promoter
  32. Superstar splits
    90/10 or 85/15
  33. Papering the house
    giving away tickets for free to everyone in attendance
  34. Billing
    • the noting of the acts on programs and signs
    • specifically the size and placemnt of the artists name within the advertisements
  35. Concert promoter
    • Person or company that works to bring the artist and the audience together
    • marketing, ticket sales
    • assumes financial risk
  36. Arts administrator
    • Non profit market
    • Operating and promotion activities for non profit groups
  37. Non-profit market
    • Arts market (opera, ballet, etc)
    • not part of commerical market like the target center or excel center
  38. Invisible venue
    • places where the venue is built into an existing attraction
    • casinos, performing arts centers, fairs
  39. mechanical royalty
    • money paid by a record company for the right to use a song in records
    • publisher issues a license to the record company that says, for each record manufactured and distributed, and each digital copy downloaded, the record company will pay royalty equal to a specified number of pennies
  40. who earns performance royalties and mechanical royalties?
    songwriter and publisher
  41. performance royalty
    royalty paid for use of a song in live or broadcast performance
  42. controlled compositions
    a song that is written, owned or controlled by the performing artist
  43. what groups collect performance royalties?
  44. who collects mechanical royalties?
    harry fox agency
  45. splitting the publishing
    when a songwriter receives a portion of the publisher's income
  46. compulsory mechanical license
    • once a song has been recorded, released, and distributed, the publisher is required to grant this to anyone who wants to record that song
    • must be sold to anyone who wishes to record a song that has already been recorded, released, and distributed
  47. fair use
    allows for the usage of copyrighted materials in non-profit situations, such as quoting a passage in abook review or copying an article for classroom use
  48. works made for hire
    refers to work for whih the composer or author is paid a salary; typically the songwriter does not retain copyright
  49. sync license
    license needed for the use of music in a film
  50. application of profits from one area to offset losses in another
    cross collateralization
  51. a type of record contract in which the record label receives a percentage of every facet of the artist's earnings
    360 deal
  52. a completed, mixed track on an album, or the completed mix of an entire album
  53. given as payment to the artist to use while a record is being made
  54. as part of a record deal, when a record company is allowed to take a commission on earnings of the artist from non-record sources-sources that the record company had no part in securing
    passive interest
  55. a record contract in which the artist ahs to pay the producer out of his/her points
  56. money earned by the artist from companies that the record label required artist to utilize
    active interest
  57. money designated to be used for creating an album
    recording fund
  58. money paid to the artist, usually a percentage based on sales
  59. applying the profits from one area to offset losses in another area, from one record contract to another, either previous or following the current contract
    sequential cross collateralization
  60. most common split for dividing mechanicals
    50% publisher 50% songwriter
  61. copyright on a work made for hire runs for
    95 years from date of first publication or 120 years from date of creation, whichever is shorter
  62. who would be most likely to use the services of harry fox agency?
    someone making a CD of cover tunes or standards
  63. In 1976 copyright law revision, duration of copyright was lengthened to
    to authors lifetime + 70 years
  64. we can rent DVDs and other video software without paying a royalty thanks to
    the First Sale Doctrine
  65. an example of "fair use" is
    quoting of a passage from a book for critical review in a magazine
  66. you cannot copyright a(n):
    idea, song title, chord progression
  67. 7 marketing basics:
    • 1) establish credibility
    • 2) Relevant to customer's needs
    • 3) Don't oversell
    • 4) Make it personal
    • 5) Test your material
    • 6) specialize in one thing
    • 7) repeat emails, mailings, phone calls
  68. what kind of provision should you ask for in record contract?
    key member
  69. dilution
    • exists when a subsequent usage waters down the name's original value
    • ("rolling stone records")
  70. buyouts
    a percentage of the "hard assets" owned by the partnership
  71. sampling
    process of digitally recording a sound, usually from a previously recorded sound recording, and incorporating the sampled material into a new recording
  72. what copyrights are involved in sampling?
    sound recording (from the owner of the sampled) and musical composition (owner of the composition)
  73. copyright
    • a limited duration monopoly that gives the copyright holder certain rights of ownership for a limited period of time
    • copyright exists when a work is created in tangible form
  74. Need what kinds of copyrights?
    • PA (performing arts)
    • SR (sound recording)
  75. publishing is the __________ source of income in the music business
  76. what does a producer do?
    • select songs
    • decide on arrangements
    • get right blend and balance
    • handle administrative details
  77. producers are paid royalties on ___ records sold
  78. what does a mixer do?
    blend the multitrack recording into desired sound
  79. production deals (4 types)
    • 1) prudcer hired as full-time salaried employee
    • 2) producer hired as independent
    • 3) producer delivers the artist and master
    • 4) producer's services are delivered by artist
  80. 3 phases of record production
    • Prepro
    • Tracking
    • Postpro
  81. 4 major labels:
    • Universal
    • Sony/BMG
    • EMI
    • WEA
  82. Majors labels do ____ distribution
  83. Major-distributed independent labels
    record company finds and records artist, but has a contract with a major label to do distribution, marketing and promotion
  84. "true independent"
    • not owned by a major label
    • financed by owners & investors
  85. direct sales
    buy directly from bands
  86. consignment
    stores stocks your record for 90 days, keep 25-50% of the gross sale
  87. sales (in a record label)
    • selling to retailers
    • online sales
    • distribution
  88. promotion & marketing (in a record label)
    • radio promo
    • video promo
    • publicity
    • advertising
  89. royalty calculation
    percentage of the wholesale price
  90. artist's advance
    money given to the artist during the time the album is made
  91. data collection service to track record sales
  92. BDS & Mediabase 24/7
    electronic ears to listen to radio stations
  93. webcasting royalties
    • if you are the featured artist on a master recording on a noninteractive internet site
    • 50% to owner of sound recording
    • 5% to unions
    • 45% proportionally to band members
  94. PROS
    Performing Rights Organizations
  95. PROS issues licenses and collect royalties for ____ performances and _________ performances.
    live and broadcast
  96. ASCAP
    • PRO
    • American Society of Composers, Authors & Publishers
  97. BMI
    • PRO
    • Broadcast Music Inc
  98. SESAC
    • PRO
    • Society of European Stage Authors and Composers
  99. Songwriters may join __ PRO(s) and Publishers may join ___ PRO(s)
    1; all
  100. blanket license
    a license to cover all neccessary areas 1 fee
  101. Mechanical Licenses
    Record compnay required by law to obtain a mechanical license in order to produce and distribute records to the public
  102. fair use
    use of music in a non-profit situation, no copyright needed, credit source
  103. consent decree
    allows PROs framework in which to operate
  104. weighted performances
    performances weighted heavier in terms of radio airplay
  105. Performance Rights Exclusion
    in US ppl who played on a CD don't get paid for radio airplay, record label & songwriter do, legislation trying to pass against this right now
  106. whose responsibility is it to pay for the licensing of music in a live performance?
  107. RIAA
    Recording Industry Association of America
  108. AFM
    American Federation of Musicians (instrumentalists)
  109. AFTRA
    American Federation of Television and Radio Artists (vocalists and actors on live, taped, or digital media)
  110. agents
    • mostly book for live appearances
    • should never take a commission from record earnings
  111. sunset clauses
    • manager can commission only on records recorded and released during term of contract
    • managers get 1/2 commission on records recorded during the term but released after contract expires
  112. 5 conditions to compulsory license
    • 1) song must be a non dramatic work
    • 2) previously recorded
    • 3) distributed in records previously
    • 4) doesn't change fundamental melody or song character
    • 5) used only in phonorecords
  113. merchandiser
    • company licensed to make and sell merch
    • pays 30-40% royalties to artist of gross
  114. hall fee
    fee the venues takes from merch
  115. per head figure
    how much $ an artist generates per head
  116. retail merchandising
    artist gets 15-20% of wholesale price
  117. mail order
    artist gets 25% of retail
  118. To have a song in a motion picture you must have agreements with:
    • 1) performer
    • 2) record company to whom performer is signed
    • 3) record producer
    • 4) songwriter
    • 5) publisher to whom songwriter is signed
    • 6) owner of master recording that's sampled in song
    • 7) publisher who owns a song that's been sampled
    • 8) record company putting out soundtrack
Card Set
music biz final
music biz final