TAXI ROAD RALLY November, 2014NOT 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!2 Copyrights What is a copyright? Why register a copyright? Is stealing common? Copyright registration U.S. Copyright office “Poor man’s copyright” a bad idea (I can only address U.S. residents here)

TAXI ROAD RALLY November, 2014NOT 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)

TAXI ROAD RALLY November, 2014NOT 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!5 How Do Songwriters/Artists Get Paid For Their Work? 3 Main Sources of Revenue: Mechanical Royalties Performance Royalties Master/Synchronization License Fees

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!6 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!7 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!8 Performance Royalties 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!9 Performance Royalties Do I Need to Join a PRO? As a Writer? As a Publisher? Where Does The Money Come From?

TAXI ROAD RALLY November, 2014NOT 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”)

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!11 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)

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!12 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)

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!13 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.

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!14 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!15 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!

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!16 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!17 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!18 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!19 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!20 Common Types Of Music Library Agreements 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!21 Common Types Of Music Library Agreements 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!22 Common Types Of Music Library Agreements 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!23 Common Types Of Music Library Agreements Contracts and Terms Vary Widely! These Were Just Common Scenarios!

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!24 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!25 Common Income Streams with Film/TV Music 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!26 Common Income Streams with Film/TV Music 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!27 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

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!28 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.

TAXI ROAD RALLY November, 2014NOT LEGAL ADVICE!29 Questions and Discussion