1. Record Contracts Review MUM 2700 Professor Calle MUM 2700 Professor Calle

2. Rules / Class will be split into 6 groups. / You will have 15 seconds to confer with your group and answer the question. / Correct answers will be awarded a golf ball. / The group with the most golf balls at the end wins the prize. / You may not throw the golf balls. / Class will be split into 6 groups. / You will have 15 seconds to confer with your group and answer the question. / Correct answers will be awarded a golf ball. / The group with the most golf balls at the end wins the prize. / You may not throw the golf balls.

3. 1 1 / Define cross-collateralization.

4. 2 2 / If you are profitable, your position is known as a _______ position?

5. 3 3 / What does A & R stand for?

6. 4 4 / What is the contractual definition of a “record” since the 1960’s?

7. 5 5 / A rough mix, a hard drive containing audio files & Pro Tools sessions, 2- inch reels or the final mix are all known as a / _ _ _ _ _ _. / A rough mix, a hard drive containing audio files & Pro Tools sessions, 2- inch reels or the final mix are all known as a / _ _ _ _ _ _.

8. 6 6 / This record company preset amount determines the base for the artists royalties.

9. 7 7 / What is the standard packaging deduction?

10. 8 8 / A mini-major does everything a major does except what?

11. 9 9 / Traditionally, records contain how many masters?

12. 10 / A record company not owned or controlled by a major is called an?

13. 11 / 1 point = 1 _?

14. 12 / You are issued a sum of money and asked to record and deliver a finished product. The amount issued to you is called an ___________?

15. 13 / The deduction for free goods is?

16. 14 / Reserves are necessary to offset _______?

17. 15 / The current standard return privilege is?

18. 16 / The standard return privilege until the 1980’s was?

19. 17 / True or False / The base price or royalty base for CDs is computed this way: SRLP - packaging. / True or False / The base price or royalty base for CDs is computed this way: SRLP - packaging.

20. 18 / Which record company, located in Beverly Hills at the old home of Charlie Chaplin, demanded the “90% of net sales rule” in order to account for breakage?

21. 19 / A new artist is described as someone having sold less than __________ records?

22. 20 / 500,000 U.S. copies sold.

23. 21 / 1,000,000 copies sold.

24. 22 / Define the term recoupable.

25. 23 / What percentage of mechanical royalties is the controlled composition reduction?

26. 24 / Define the all-in royalty rate.

27. 25 / Compute the mechanical royalties owed to a publisher for a song of length 8:34. / Who determines if an option is exercised? / Compute the mechanical royalties owed to a publisher for a song of length 8:34. / Who determines if an option is exercised?

28. 26 / Define the net royalty rate.

29. 27 / Which of these should you negotiate in your contract: / A retroactive escalation / A prospective escalation / WHY? / Which of these should you negotiate in your contract: / A retroactive escalation / A prospective escalation / WHY?

30. 28 / Min/Max formulas are called _____ & _________ in the Passman book.

31. 29 / When the company accepts your record because they feel it properly represents you and will therefore sell, the record is said to be _________ satisfactory.

32. 30 / The number of records an artist will record during the term of the contract is determined by what factors?

33. 31 / Which of these should you negotiate into your demo deal, calendar days or work days?

34. 32 / Discuss trends involving second albums?

35. 33 / These fees are paid as compensation for the use of the intellectual property.

36. 34 / In a demo deal, the contract guarantees the record company what important right?

37. 35 / When the company accepts your record because they determine it was professionally recorded and produced, the record is said to be _________ satisfactory.

38. 36 / The current statutory mechanical rate is in effect until the year _____?

39. 37 / 30 work days = _____ weeks

40. 38 / Your video cost the record company $150,000 to produce. / How much of that money is recoupable by you? / Your video cost the record company $150,000 to produce. / How much of that money is recoupable by you?

41. 39 / What company and digital recording product first afforded musicians and producers the ability to produce professional recordings in their home studios?

42. 40 / What does an independent promoter do?

43. 41 / The constructed retail price is computed this way: / ____ % of the wholesale price. / The constructed retail price is computed this way: / ____ % of the wholesale price.

44. 42 / Which is usually higher, the constructed retail price or the SRLP?

45. 43 / The record company spends $100,000 on tour support. How much is recoupable by the artist.

46. 44 / Define the concept of the “term of a contract”.

47. 45 / How long does it take to produce a studio album?

48. 46 / A mid-level artist has sold how many units?

49. 47 / What is the standard artist-points range for a new artist signing with an independent record label?

50. 48 / What is the standard artist-points range for a new artist signing with a major record label?

51. 49 / What is the standard artist-points range for a mid-level artist signing with a major record label?

52. 50 / What is the standard artist-points range for a superstar signing with a record label?

53. 51 / What is the difference between an advance and a fund?

54. 52 / Your contract is for a term of 5 CDs. Two are firm and three are options. / How many CDs are you guaranteed to record? / Your contract is for a term of 5 CDs. Two are firm and three are options. / How many CDs are you guaranteed to record?

55. 53 / True or False / A company can get out of recording a firm CD by exercising the pay or play clause. / True or False / A company can get out of recording a firm CD by exercising the pay or play clause.

56. 54 / True or False / You can shop a demo produced for one record company via a demo deal to another record company. / True or False / You can shop a demo produced for one record company via a demo deal to another record company.

57. 55 / True or False / You may package and sell a demo produced for a record company demo contract after the contract term has expired. / True or False / You may package and sell a demo produced for a record company demo contract after the contract term has expired.