Music Industry Glossary of Terms
1. 360 Deal: Historically, Labels only sought to have an artist sign one agreement, i.e., an exclusive recording agreement, pursuant to which the Label obtained the right to the artist’s exclusive recording services during the term of the recording agreement. However, the trend is now for the Labels to seek all other rights related to the artist, in addition to the exclusive recording rights. These additional rights may include (a) exclusive name and likeness rights for merchandising and commercial endorsements, (b) exclusive touring rights, and (c) exclusive music publishing rights in songs written by the artist.
2. AAC: An abbreviation for Advanced Audio Coding. A standard compression encoding scheme for digital audio used exclusively by Apple’s iTunes Store.
3. Administration Agreement: (a/k/a a collection deal). Under this type of Publishing Agreement, the songwriter or other owner of the musical copyrights retains the copyrights in his songs, but grants a Publisher exclusive Administration Rights for the world or for one or more enumerated territories for a specific period of time. Under this type of agreement, the Publisher will take a relatively low fee (5% to 20%) of the income it collects and will account to the songwriter/owner for the balance.
4. Administration Rights: Means (a) the right to determine how and when a song will be exploited or otherwise used, and who is authorized to exploit or otherwise use the song (subject to compulsory licenses, for example, those referred to in §115 of the Copyright Act), (b) the right to determine the consideration.
5. AdSense: A Google service for supplying advertisements to a website based on many factors, such as the website’s content and the user’s geographical location.
6. Advances: Monies that are recoupable from royalties.
7. AFM: (American Federation of Musicians of the United States and Canada) 80,000 musicians comprise the American Federation of Musicians of the United States and Canada (AFM). They perform in orchestras, backup bands, festivals, clubs and theaters—both on Broadway and on tour. AFM members also make music for films, TV, commercials and sound recordings.
8. Aftra: (American Federation of Television and Radio Artists) Union for singers and voice announcers.
9. Agent: (aka talent agent or booking agent) The person responsible for securing employment for a performing artist.
10. Airplay: When a song gets played on the radio.
11 Album Cycle: Refers to the period of the time between an artist’s albums, generally measured by the period of time between the commencement of the recording an album and the end of the artist’s touring and promotional activities for that album or the commencement of the recording the artist’s next album, whichever occurs later. The term of a personal management agreement is often measured by one or more album cycles.
12. All-In Royalty: Refers to a royalty payable by a Label that includes the royalty rates payable to the Producers and Mixers as well as what is left over for the artist (i.e., the Artist Royalties).
13. A&R Department: Refers to the department within a Label whose function it is to find and sign artists to the Label (i.e., in other words, persons whose job it is to find artists to enter into exclusive recording agreements with the Label).
14. Analytics: the scientific process of discovering and communicating the meaningful patterns which can be found in data. Can be used to provide insight into performance, demographics, and assist in marketing efforts.
15. Ancillary Income: In concert promotion, the term for revenue for the venue from parking or food sales that are not part of the gate and are not commissionable by the promoter or artist.
16. Arbitron Rating: A Measurement of the number listening to a radio station.
17. Artist Agency Rider: When an artist signs with a Talent Agent, the artist is typically asked to sign a number of different form agency agreements. The artist agency rider is an agreement that is intended to override and supersede the terms of all of the form agency agreements. In this manner, the negotiation of the individual form agency agreements came be avoided or, at least, minimized.
18. Artist Royalties: Refers to Record royalties payable to the artist from the sale of records featuring the artist (but does not toMechanical Royalties).
19.ASCAP: American Society of Composers, Authors, and Publishers) An organization that licenses music performance rights for songwriters and music publishers. It was the first performing rights organization in the US, started in 1914.
20. Audio Engineer: a person who operates or designs equipment for recording and reproduction of sound. The term is broader than recording engineer and includes sound reinforcement and facilities sound.
21. Audit Rights: In the music industry, this term refers to a party’s right to review the books and records of the other party in order to verify that the party entitled to receive royalties (i.e., the party granted the audit rights) is being properly accounted to by the party obligated to pay royalties
22. BDS: (Broadcast Data Systems)The company that monitors radio airplay with computers that identify what records are being played by comparing the broadcast to identifiable “signature” parts of of the recording stored in the computer’s memory. BDS can deliver the actual count of the number of times a particular record is played.
23. BMI (Broadcast Music, Inc.): A Performing rights organization started in 1940 and owned by broadcasters. BMI and ASCAP are the two largest performing rights organizations in the United States. BMI licenses radio and television stations, nightclubs, retail outlets, and others to publicly perform musical compositions.
24. BPM: Beats per minute, indicates the number of beats in one minute
25. Black Box: Each Society outside of the United States establishes a pool of licensing income for which the appropriate Licensors are not “affiliated” to the Society through a sub publisher, or are otherwise unidentified or whose current address is not the Society’s records. A portion of this pool of income (the pool is called “black box”) is periodically distributed by the Societies to the Publishers in the applicable territory.
26. Blacklink: An outside link on another website that connected to your page.
27. Blanket Licenses: Typically refers to licenses issued by Performing Rights Societies pursuant to which the Licensee is entitled to publicly perform the Performing Rights Society’s entire catalog, rather than specific songs.
28. Branding: the creative visual representation of identity, and uniqueness used to distinguish you or your product from competitors.
29. Brick and Mortar Stores: Refers to retail stores that the customers physically need to enter in order to purchase physical records, for example, Big Box Stores (as opposed to online stores and mail order sales).
30. Break-even point: In concert promotion, the point at which the promoter’s gross revenues equal the fixed expenses, including artist guarantees, but not such things as any percentages for the artist or venue. In economics, the point at which total revenues have equaled total costs so the firm is showing neither a profit nor a loss.
31. Bundles: Is an online purchase opportunity where the consumer is offered more than one product (for example, a permanent download, a ringtone, and digital wallpaper) for a single price.
32. Business Manager: Refers to a person, who is typically an accountant, who handles the artist’s finances, for example, paying the artist’s business and personal bills, preparing the artist’s and the artist’s Loan-Out Companies’ tax returns, and making or overseeing the artist’s investments.
33. Capital costs: the upfront costs of creating, distributing, and marketing the product.
34. Catalog: For a Publisher or Performing Rights Society, this means the entire group of songs controlled by the Publisher. For a record company, this means the entire group of Masters and audiovisual programs owned by the record company.
35. CHR: Is an abbreviation of “contemporary hit radio” (a/k/a “top 40 radio”).
36. Clearance: In rights generally, permission to use a particular song, recording, photo, or other work. In music publishing, the writer or publisher will “clear” a new song for licensing by listing it with the PRO.
37. Co-Administration Agreement: A Publishing Agreement between two or more Publishers, each of which has Administration Rights in the portion of the song owned by the applicable Publisher.
38. Commercially Satisfactory: Is typically found in recording agreements. It means that a Record will not be deemed Delivered to the Label until the Label is satisfied that Record has a realistic potential to sell a reasonable amount of Records
39. Commission: the percentage of the artist’s income taken by the agent for arranging the performance or by the personal manager for being the artist’s manager.
40. Compilation Album: Refers to an album containing various recordings featuring more than one artist.
41. Comps: Refers to “free” tickets to a concert.
42. Compulsory Mechanical License: This is an exception to the copyright holder’s exclusive rights of reproduction and distribution that allows anyone to record and distribute commercially-released material as long as the mechanical license rates established by the copyright law are paid to the copyright owner of the original material.
43. Concept Video: A music video usually not much longer than. A single song, which features visual images other than the artist performing the song. Usually these images tell a story or set a certain mood to accompany the song.
44. Conflict of Interest: Refers to a situation that arises when a person has competing clients or interests that are adverse to each other.
45. Consolidation: the creation of larger and larger organizations as smaller ones are absurd, purchased, or merged into larger ones.
46. Contract: A legally enforceable agreement between two or more people or organizations.
47. Co-Publishing Agreement: Is a Publishing Agreement pursuant to which the songwriter (or his publishing company) agrees to share his copyrights in one or more songs with another Publisher, who, in addition to getting a portion of the copyrights, is granted exclusive Administration Rights for the entire song(s).
48. Copyright: A process taken by musicians to claim rights to their original material; this helps to stop people from stealing other artists’ songs, lyrics or music.
49. Cover: Can be used as a noun or verb and refers to a recording or the recording of a song by an artist other than the original songwriter.
50. Crew: Refers to all of the people hired by an artist to work on a concert tour and who travel from Venue to Venue on the tour, other than those people who perform on stage with the artist (see Sideman).
51. Cross-Collateralization: Refers to the recoupment of an Advances from various sources. For example, if an artist signs a recording agreement and a Publishing Agreement with the same company (or affiliated companies) and the agreements are “cross-collaterized,” then an Advances paid under the recording agreement may be recouped from the royalties payable under the Publishing Agreement as well as royalties payable under the recording agreement and vice versa.
52. DAW: Digital Audio Workstation. A DAW is software or a computer program used to record, edit and produce music.
53. Demo Deal: Refers to an agreement between a Label and an artist pursuant to which the Label agrees to advance the costs of a certain number of demo recordings. The Label is typically given for some period of time an exclusive Right of First Negotiation to negotiate an exclusive recording agreement with the artist.
54. Derivative Work: in copyright law, a work that is based substantially on a preexisting work or works that edit, recasts, or changes the form of the prior work into a new copyrightable work.
55. Digital Transmission: Generally, refers to Downloads and “streaming,” but recording agreements make the definition of this term very broad. For example:
“‘Digital Transmission’ means the selling or other distribution of master recordings or records via digital transmission over any Electronic Network.
‘Electronic Networks’ means all electronic communications networks, whether utilizing technology existing as of the date hereof or devised hereafter, including the Internet, the World Wide Web, telecommunications networks, intranets, extranets, wide area networks, cellular and other telephony networks, cable networks, electrical and other networks.”
56. Digitization: the turning of some analog work, such as a recording, book, or map into a digital format that can be stored and transmitted via computers.
57. Distribution Agreements: tell the different types of distribution agreements
(a)Strictly speaking, a distribution agreement refers to an agreement with a Distributor (rather than a Label). Under this type of agreement, the Licensor (e.g., the artist or another Licensor of the Sound Recording(s)) is responsible for all manufacturing and distribution costs, although the Distributor may loan these costs to the Licensor. The Distributor is entitled to a distribution fee, which is typically measured as a percentage of the Distributor’s wholesale receipts from the sale of the Licensor’s Records (generally, this fee is between 15% and 20% of the Distributor’s receipts). The Licensor retains ownership of the Records
58. Distributor: Refers to an Independent Distributor or to a branch distributor operated under one of the major record company groups (currently, Warner Bros., EMI, Universal, and Sony Music) who distributes Records released by the Labels owned the applicable major record company group.
59. Double Commission: Is used in connection with a clause in a contract that prohibits a party from, in effect, from collecting more than one commission from the same income. For example, a Talent Agent may have multiple agreements with an artist. However, with respect to a particular payment, the Talent Agent can be paid a commission only under one of those agreements for a particular payment.
60. Downloads: Refers to the Digital Transmission of a Sound Recording that creates a permanent copy that can be thereafter accessed and played by the end user. A “tethered download” refers to a Download that can only be accessed and played on a limited number of computers or other devices. A “limited download” is a Download that becomes inaccessible by the end user after some period of time or number of plays.
61. DRM: Digital Rights Management, an antipiracy measure that limits the number of legal copies of a digital audio file that can be made.
62. DSP: Digital service provider. Digital platforms that host music for streaming, download or both. Examples: Spotify, Apple Music, Amazon Music.
63. E&O (Errors and Omissions) Insurance: In the music and entertainment industry, this term applies to an insurance policy that protects the policyholder from third party claims.
64. EP: Means a record sold and marketed as a so-called extended play record and not as a single.
65. EPK: “Electronic press kit” is a professional music resume that provides information about a person, company, organization or cause and which is distributed to members of the media for promotional use.
66. Evergreen: in music publishing a song that is recorded by many artists and performed on a continuing basis for many years.
67. Exclusive Artist: a recording artist under agreement to make recordings only for one record company.
68. Exclusive Contract: any arrangement where one party promises not to provide services or goods to any third party
69. Exclusive Songwriter: a songwriter under agreement to writes songs only for one publishing company.
70. FLAC: Free Lossless Audio Codec, a lossless file format used to make digital audio files smaller.
71. Flat Fee: Refers to a specific amount of money payable to someone, regardless of the amount of income attributable to that person’s activities or the amount of time that person rendered in performing the services.
72. Freebooting: Uploading a video to Facebook that has been downloaded from YouTube, often by someone who’s not the owner of the content.
73. Fuelers: Contributors to a crowdfunding project.
74. Gold Album: When an album ships 500,000 copies (i.e., units) in the United States, in the digital age gold album is now 500,000 copies sold digitally.
75. Harry Fox Agency (HFA) : A collection and licensing agency designed to serve as a clearing house for mechanical licensing.
76. Hi-res: High resolution audio. This is any audio file with a bit depth and sample rate higher than the industry standard 16-bit, 44.1 kHz rate. A common bit depth and sample rate for hi-res audio sent to platforms like iTunes is 24-bit, 44.1 or 96 kHz.
77. IFPI: International Federation of the Phonographic Industry represents the recording industry worldwide with some 1,400 members in 66 countries and affiliated industry associations in 45 countries.
78. Independent Distributor: There are two types of independent distributors, i.e., those that are affiliated with a major distributor (e.g., RED which is owned by Sony Music, Caroline which is owned by EMI, ADA which is owned by Warner Bros., and Fontana which is owned by Universal) and those that are not (e.g., Koch, Navarre, and Razor & Tie).
79. Independent Label: A record label not owned by one of the four maker conglomerates or their subsidiaries. Independent labels may have their recordings distributed by one of the big four and still be referred to as ”Indies.”
80. Independent Promotion: Refers to an independent contractor being hired, usually by a Label, to promote an artist’s Single to radio programmers and disc jockeys in order to secure radio airplay of the Single.
81. Influencer: Someone who has significant knowledge and a large following in a specific cultural landscape and can use that to influence purchasing decisions or trends among others who are part of that same community. Influencers often use social media to voice their opinions on the goings-on in their community. Example: A music influencer could be a critic writing reviews, a label executive who defines their company’s tastes or a video creator on YouTube with a large following.
82. Internet Radio: Is an audio service transmitted via the internet.
83. In-House Promotion: A performance promoted by the venue itself, without any outside promoter.
84. ISRC: The International Standard Recording Code is designed to help track sales and radio station play. Every new recording and version of a recording must be assigned a unique 12 digit number code. These codes can be obtained through a number of online music service producers.
85. Joint Recording: Means a recording that features more than one artist (e.g., “Stop Draggin’ My Heart Around” by Stevie Nicks and Tom Petty and the Heartbreakers).
86. Joint Venture Deal: Typically describes an agreement between a Label and company set up to primarily to render A&R services (see A&R Department). Typically, the Label (a) advances some or all of the costs to record, manufacture, distribute, promote and market records by one or more artists (including Recording Costs, manufacturing and distribution costs, Artist Royalties, royalties payable to Producer, Mechanical Royalties and payment to the unions (see Net Receipts), Tour Support, and costs related to Independent Promotion and Marketing), and (b) agrees to pay the A&R company a percentage (typically, 50%) of the “net proceeds” from the sale of Records.
87. Key Man Clause: Refers to a clause in a contract that entitles a party to terminate the term of the contract if a particular person no longer works for the other contracting party.
88. Key Member: Under Leaving Member Provisions, if a member of a musical group, who is designated, or deemed to be, a non-Key Member, leaves the group, then the Label will not have the right to “drop” the group under the Leaving Member Provisions.
89. Label: Refers to the record label that releases an artist’s Record and, most likely, is not the Distributor of those Records, although in many cases the Label and the Distributor are affiliated to each other (i.e., under common ownership). For example, “Columbia Records” is a Label within the Sony Music Group, and Sony Music is the Distributor of all of the Records released by Columbia Records in the United States.
90. Label Deal: Is an agreement between two Labels almost always for more than one artist and is typically structured along the lines of a Joint Venture Deal (a sharing of “net proceeds”). However, the party who has the recording agreements with the artists (the “Artist Label”) may be entitled from the other party to a royalty for each artist on a Cross-Collateralized or non-Cross-Collateralized basis. In Billboard and other music charts, the name of the Artist Label generally precedes the name of the Label who provides the financing and distribution.
91. Leaving Member Provisions: (a/k/a group provisions): If the “artist” under a recording agreement consists of more than one person (i.e., a musical group), the recording agreement will contain a section that gives the Label some or all of the following rights if a member leaves the group (a “Leaving Member”) or the group disbands:
92. License: Permission to use something, such as a song or a recording, for some particular purpose.
93. Licensee: Refers to the recipient of enumerated rights under any type of licensing agreement.
94. Licensor: Refers to the grantor of enumerated rights under any type of licensing agreement.
95. Live stream (verb and noun): Any media (video, audio, or both) that is simultaneously recorded and broadcast live. Musicians host live stream shows in lieu of in-person gigs when they are unable to tour or would just like to spontaneously perform for an audience without planning a show at a venue.
96. LP: The “long playing” 33 1/3 rpm 12-inch disc phonograph recording, introduced in 1948. It usually contained eight to ten songs.
97. Major Label: A term used to refer to a label owned by one of the big three which had its own distribution system.
98. Marketing Concept: The creation and delivery of a product or service that will satisfy consumer needs and allow a profit to be made.
99. Master: The recordings from which other recordings are later going to be made or duplicated. May refer to a multitrack master, a stereo master, or a duplicating master.
100. Master Use License: Is a license that is the equivalent of a Synchronization License, except that the Licensor is granting the right to reproduce and distribute a Sound Recording, rather than a song. Under most recording agreements, 50% of the Label’s Net Receipts under a Master Use License are deemed All-In Royalty Artist Royalties.
101. Matching Right: A party to an agreement who is entitled to match the terms of a third party offer is said to have a matching right. For example, in a Demo Deal, the artist may be obligated to present the Label who financed the demos (the “Original Record Company”) with all third party offers received by the artist from other Labels that are acceptable to the artist. The Original Record Company will have the right, for a limited period of time, to enter into a recording agreement with the artist upon the terms of a third party offer. In other words, the artist will have the right to enter into a recording agreement with the third party only if the Original Record Company fails within a stated time period to accept the terms being offered by the third party.
102. Mechanical License: A license that gives authorization from music publishers or songwriters to record and distribute a song.
103. Mechanical Royalties: Refers to the royalties’ payable under a Mechanical License that the Label pays to the Publisher(s) for the reproduction and distribution of the underlying song contained in a Phonorecord or Digital Phonorecord Delivery. (SeeStatutory Rate.)
104. MEIEA (Music and Entertainment Industry Educators Association): An organization of people who teach audio and music business courses, mostly at colleges and universities, but does include some trade school teachers and related professionals.
105. Merchandising Rights: Refers to the right to reproduce and distribute merchandise (e.g., posters, T-shirts, hats, belt buckles, books, and other apparel) containing the name, logo, photograph and other likeness of an artist and biographical material concerning the artist.
106. Metadata: Metadata is the identifying data embedded in a music file, detailing everything from the artist’s name and the song’s release date to associated genres and songwriters credits.
107. Mom and Pop Store: A single store, usually a sole proprietorship, that is not part of a chain.
108. Monetize (verb); monetization (noun): To earn revenue from digital media. Monetization can be as simple as collecting money from streaming to placing ads on YouTube videos to generate advertising revenue.
109. Most Favored Nation Clause: (a/k/a MFN) is a clause in a contract where one party (the “Giver”) agrees to the give the other party (the “Recipient”) the benefit of any corresponding terms given by the Giver in any other contract with any other person if the corresponding term is more favorable to the Recipient. For example, a Synchronization License could state that the fee payable to the Publisher (i.e., the Licensor) by the Licensee shall not be less than the fee that the Licensee agrees to pay to any other Publisher for the right to synchronize another song in the applicable motion picture.
110. MSRP (Manufacturer’s Suggested Retail Price): A term often used in contracts as a basis for computing a recording artist’s royalties as a percentage of MSRP as opposed to wholesale price.
111. Music Publisher: A Business that owns and/or administers copyrights in musical compositions.
112. Music Supervisor: Is the person hired by a motion picture or television program producer to consult with the producer and the director of a motion picture or television program and recommend what music should be contained in the soundtrack of the picture or program, in addition to the music created by the film composer. For example, the music supervisor may recommend a particular artist to record new music specifically for a film and may recommend a Master that has already been released on a Record to be in the film. Music supervisors often get directly involved with negotiating the terms for the use of the music in the motion picture or television program.
113. Net Sales: Means records sold by the Label (or its Distributor) to independent third parties for whom payment has been paid or credited, less Returns and Reserves against Returns.
114. Paid Download: A downloadable song that you buy and own
115. Paid Search: A type of contextual advertising in which website owners pay an advertising fee to have their websites shown in the top placement on search-engine results pages.
116. Payola: the practice of bribing someone to use their influence or position to promote a particular product or interest.
117. Pay per click: An internet advertising model used on search engines, advertising networks, and content sites such as blogs in which advertisers pay their hosts only when their ads are clicked on.
118. Performing Rights Society: Refers to organization with Publisher members and songwriter members who are granted the authority to license the public performance of songs to Licensees, such as radio stations (terrestrial and satellite), television stations and networks, webcasters and any website that performs music, whether on the Internet or over mobile technologies, and Venues where recorded or live music is performed. §101 of the Copyright Act defines this term as follows: “A ‘performing rights society’ is an association, corporation, or other entity that licenses the public performance of nondramatic musical works on behalf of Copyright owners of such works, such as the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc.”
119. Personal Manager: Is usually thought of as the alter ego of the artist. Contractually, under a personal management agreement, a personal manager is engaged by the artist to give the artist professional advice. In California, personal managers are not contractually obligated to secure employment or engagements for any artist, unless they are a licensed Talent Agent, which very few are. However, many personal managers, in fact, spend a lot of their time securing employments and engagements for their artist clients. The artist usually determines the extent of the manager’s actual authority. Some artists let their manager interface with everyone else in their professional life (and sometimes their personal life), while other artists take a more hands-on approach to dealing with the other people in their lives. Most artist attorneys and Business Managers rely on the personal manager as the decision maker on the artist’s behalf, and, in most cases, leave it to the personal manager to determine what issues or decisions need to be run by the artist.
120. Platinum Album: When an album ships 1,000,000 copies (i.e., units) in the United States, the RIAA will certify the album as “platinum.” In the digital age…
121. Playlist: Is a list of recordings to be played on the air by a radio station or a similar list used for organizing a personal digital music collection.
122. Pre-roll: A commercial that runs before the man video.
123. Producer: Refers to the person who is in charge of the recording process in the recording studio. With some artists, the producer controls all aspects of the recording process, and the artist merely comes into the studio to sing his vocals. For established artists, the producer may merely be acting as a sounding board for the artist during the recording process.
124. Producer Agreement: In the early years of the music industry, the Label hired the Producer. In many instances, the Producer was a “staff producer,” i.e., a full-time employee of the Label. Starting in the 1960s, Labels started requiring the artist to hire the Producer. Nowadays, the artist is almost always required under the artist’s recording agreement to hire the Producer. Therefore, a producer agreement is almost always an agreement between the Producer and the artist. However, because in most circumstances, a Producer does not want to rely on the artist to pay the Producer his future royalties, most Labels will agree to account and pay the Producer pursuant to the Label’s “standard letter of direction” from the artist to the Label. Often, the Label refuses to sign its own letter of direction, and the Producer does not have the right to sue the Label if the Label refuses to abide by the terms of the letter of direction. Producer royalties are in most cases computed in accordance with the way the Artist Royalties are computed under the artist’s recording agreement; however, Producers are usually paid Retroactive to Record One.
125. Promoter: Is the person who contracts with an artist for a live performance. The artist would typically use a Talent Agent to negotiate with the Promoter. In addition to Promoter’s agreement with the artist (the terms of which are briefly discussed in the definition of Talent Agent), the Promoter also contracts with the Venue and all of the vendors who provided services for a concert (other than those vendors engaged by the artist). Vendors hired by the Promoter could include companies that provide security, backstage caterers, lighting operators, and stagehands. Promoters that are a part of Live Nation or AEG are often affiliated with the company that owns the Venue.
126. Proration: A prorated royalty arises when an artist, Producer, Mixer or other royalty recipient is not entitled to receive a royalty for all of the recordings on a Record.
127. Publisher: Typically refers to the person that controls the Administration Rights in one or more songs.
128. Publisher’s Share: Means the share of income attributable to the exploitation of a song remaining after the deduction ofSongwriter’s Royalties from that income.
129. Publishing Agreement: As an agreement pursuant to which one or more of the Administration Rights in one or more songs is granted to a party to the agreement (such as an Administration Agreement, Sub publishing Agreement, Co-Publishing Agreement, Songwriter Agreement, or Print Agreement) or are otherwise addressed, such as in an Co-Administration Agreement.
130. QR Code: A graphic code similar to a bar code that provides a link to a website when scanned. Analog web link.
131. Record: Is typically defined very broadly in a recording agreement along the following lines: “any device, which utilizes technology existing as of the date hereof or devised hereafter, on or by which sound may be recorded or reproduced with or without a visual reproduction, which is manufactured or distributed primarily for home, consumer, and/or juke box use and/or use in means of transportation, including, but not limited to, analog disc records (e.g., vinyl records), tape cassettes, compact discs, New Technology Records, Masters, Records sold by Digital Transmission, and audiovisual records.”
132. Recording Costs: A typical definition would read as follows: “all amounts expended in connection with the recording ofMasters hereunder (including travel, rehearsal, equipment rental and cartage expenses, costs incurred in connection with re-mixing and/or ‘sweetening’, advances, fees and other monies payable to individual producers (other than royalties), transportation costs, hotel and living expenses, all studio and engineering charges, in connection with the Label’s facilities and personnel or otherwise, and all costs necessary to prepare Masters for release on all applicable media including those costs necessary to prepare final, equalized tapes therefor), plus any other costs generally recognized as ‘recording costs’ in the recording industry and incurred in connection with the recording, production, editing, re-editing, mixing, re-mixing, equalizing and mastering of the Masters.” Recording costs are almost always recoupable from Artist Royalties (but not Mechanical Royalties) under recording agreements.
133. Recording Fund: Refers to an Advances that is inclusive of Recording Costs for the particular album or other Record project (e.g., new Masters for a greatest hits). For example, if a recording agreement provides for a Recording Fund of $250,000 of a particular album, then the artist would be paid, as a general Advances, the amount, if any, by which the Recording Costs for the album are less than $250,000.
134. Recoupment: Means that the person who paid an Advances has the right to apply any royalties that would otherwise be payable to the recipient of the Advance against the Advance until such time as the aggregate royalties equal the Advance. The “unrecouped balance” refers to the amount by which the aggregate of Advances has not been recouped from royalties otherwise payable to the recipient of the Advances.
135. Referral Fee: Is typically a fee that a professional (such as a lawyer or accountant) pays to a third party for referring the third party a client.
136. Reserves: Are a pool of money that are taken by the Label out of the Artist Royalties or Mechanical Royalties that are otherwise payable to the artist or the Publisher in order for the Label to guard against the Label paying Artist Royalties or Mechanical Royalties on Physical Records that are subsequently Returned. Reserves are often limited in a recording agreement to “reasonable reserves” and/or to a specific percentage of Records shipped within an accounting period. The recording agreement should not allow the Label to include Artist Royalties or Mechanical Royalties attributable to Digital Transmissions in its calculation of reserves as Digital Transmissions are incapable of being returned. Also, most Labels will agree to liquidate reserves within four accounting periods and to limit reserves outside of the United States to the amount of the reserve, if any, taken by the Label’s foreign Distributor. Distributors also take reserves in Distribution Agreements.
137. Retail Merchandising: Means the sale of merchandise through any channel of distribution other than at a Venue (for example, merchandise sold online, through mail order, and at brick and mortar retail outlets, such as clothing or department stores).
138. Reversion: Refers to the reversion of a Copyright to the artist or songwriter who was the author of the Copyright. Most Publishers will agree in a Publishing Agreement to a reversion of the Copyrights in the songs at some point in time. For example, under a Songwriter Agreement, the Copyrights in the songs may revert upon the later of (a) the date ten years after the end of the term of the agreement or (b) upon the date the songwriter’s account becomes recouped (with the songwriter usually having the right to pay 110% of the unrecouped balance in order to become “recouped”). Very few artists in the United States have the clout to get a Label to grant them reversion rights in Sound Recording Copyrights.
139. RIAA: Is an abbreviation for the Recording Industry Association of America, which is a trade association that represents the major Distributors and some other Distributors in the United States.
140. Right of First Negotiation: This right obligates one party to an agreement to first negotiate with the other party to the agreement for specified period of time (e.g., 30 days) before making a deal with anyone else. For example, under a Demo Deal, the artist may be required to negotiate a recording agreement with the Label fronting the Recording Costs for the demos before the artist can commence any negotiations with any other Label.
141. Roll Out: the official launch of a new project using strategic planning and marketing.
142. Royalty Rate: the percentage of royalties paid out to an artist under the terms of the recording agreement.
143. RSS: Real Simple Syndication, a family of web-feed formats used to publish frequently updated works (such as blog entries, news headlines, audio and video) in a standardized format.
144. Samples: Refer to pre-existing Sound Recordings and songs that (a) are subject to Copyright protection, (b) are incorporated into a new Sound Recording, which almost always has a different name than the original song, and (c) are owned by a person other than the artist or Producer who is creating the new Sound Recording. In order to “clear” a song sample (i.e., obtain a license from the owner of the pre-existing song), most Publishers will insist upon owning a portion of the Copyright in the new song. In order to “clear” a sample from a recording (i.e., obtain a license from the owner of the Sound Recording), most Labels want an upfront fee and perhaps a royalty from the Label releasing the new Sound Recording.
145. SEA: streaming equivalency album, 1,500 song streams is the equivalency of one album sale.
146. SEO: Search engine optimization, the process of improving the quality and quantity of website traffic to a website or a web page from search engines.
147. SESAC: the smallest of the three main performing rights organizations in the United States.
148. Sheet Music: Refers to printed music that includes notations and, if applicable, lyrics.
149. Sideman: Refers to a person who is hired to perform on a recording or at a concert who is not a regular member of the featured artist.
150. Single: Means a track that is featured by the Label for radio promotion. Historically, “singles” started out as 45 RPM vinyl Records and the equivalent thereof in other configurations. Singles were also released on 12” inch vinyl records and the equivalent thereof in other configurations. Currently in the United States, “singles” are rarely sold as Physical Records, but single tracks are almost universally offered as Digital Transmissions. In the provisions of a recording agreement related to the maximum Mechanical Royalties that a Label will pay (i.e., the Controlled Composition clauses), a “single” is often defined as a Record containing no more than two or three Master Recordings. Singles, other than Digital Transmissions, almost always have a lower Artist Royalty rate than an album.
151. Societies: Refers to Performing Rights Societies in the United States and Canada, and to performing rights/mechanical rights societies in the rest of the world.
152. Songwriter Agreement: Is a Publishing Agreement where a songwriter agrees that the Publisher will own the Copyrights in the song or songs subject to agreement and, corresponding, the Publisher is granted exclusive Administration Rights with respect to the song or songs, in exchange for which the Publisher agrees to pay the songwriter so-called songwriter royalties and, perhaps, an Advances or Advances recoupable out of the songwriter royalties. Except for Sheet Music, songwriters are generally entitled to 50% of the Publisher’s receipts as songwriter’s royalties.
153. Songwriter’s Share: (a/k/a writer’s share) see songwriter’s royalties under a Songwriter Agreement and see Performing Rights Society.
154. SoundExchange: www.soundexchange.com states: “SoundExchange is a non-profit performance rights organization that collects statutory royalties from satellite radio (such as SIRIUS XM), internet radio, cable TV music channels and similar platforms for streaming Sound Recordings. The Copyright Royalty Board, which is appointed by The U.S. Library of Congress, has entrusted SoundExchange as the sole entity in the United States to collect and distribute these digital performance royalties on behalf of featured recording artists, master rights owners (like record labels), and independent artists who Record and own their masters.” Prior to 1995, the owner of a Copyright in a Sound Recording did not have any performance rights under U.S.Copyright Law. In 1995, Sound Recordings were given limited performance rights. (See clause (g) of §106 of the Copyright Act, which is set forth above in the definition of Copyright. Also, see DMCA.)
155. Sound Recording: §101 of the Copyright Act defines this term as follows: “‘Sound recordings’ are works that result from the fixation of a series of musical, spoken, or other sounds, but not including the sounds accompanying a motion picture or other audiovisual work, regardless of the nature of the material objects, such as disks, tapes, or other phonorecords, in which they are embodied.” [Emphasis added.] Note the distinction between a “Sound Recording” as a work whereas a “phonorecord” is the material object in which the work is embodied. See Phonorecord.
156. SoundScan: Most, but not all, Brick and Mortar Stores and online retailers in the United States report actual Record sales to consumers to a company called SoundScan. Soundscan is used by Billboard to create its album charts for album sales in the United States.
157. Soundtrack: The audio accompaniment to a motion picture or television program.
158. Special Market Department: Refers to the department within a record company that handles the licensing of Master Recordings to third parties and otherwise exploits the Catalog of the record company that is not a new Record release.
159. Split Sheet: An agreement that identifies the ownership percentage each producer and/or songwriter has in the song. It also includes other information such as each person’s specific contribution (lyrics, hook, melody, beats, etc.) and publisher information, as well as if different versions of the song were created. This information will serve as written evidence of copyright ownership and will assure any third parties such as your PRO or a potential publisher that there is no dispute about royalty distribution.
160. Statutory Rate: (a/k/a compulsory rate). In the United States, this term refers to the compulsory Mechanical Royalty rates promulgated by the Copyright Royalty Board under §115 of the U.S. Copyright Act. For Phonorecords and Digital Phonorecord Deliveries, the Mechanical Rate is expressed as the greater of (a) a flat penny rate (e.g., 9.1¢) or (b) per minute penny rate times the number of minutes of the recording (e.g., 1.75¢ per minute or fraction thereof). The “minimum” statutory rate refers to the flat penny rate.
161. Stems: Stems are stereo recordings sourced from mixes of multiple individual tracks.
162. Streaming: The transfer of data (as audio or video) in a continuous stream especially for immediate processing or playback.
163. Subscription Service: Refers to an online service where in exchange for a periodic recurring fee (e.g., a monthly fee), the purchaser is entitled to certain content (e.g., music), and perhaps as Downloads; however, if the purchaser stops making the periodic payments, the content may become inaccessible.
164. Suggested Retail Price: (a/k/a SRLP) Means the retail price that a Distributor “suggests” that its customers should use in re-selling the Distributor’s Records to the ultimate consumers.
165. Sunset Clause: Refers to a period of time over which, or after which, a person’s commission or other percentage of income, royalty or other payment is diminished or eliminated. For example, in a personal management agreement, a “sunset clause” generally means that the commission to the Personal Manager after the term of the management agreement may diminish or end, for example, as follows: a full commission for two years after the term, a half commission for the next two years, and a zero commission after four years.
166. Synchronization License: Refers to license agreement between a Publisher and the producer of an audiovisual work (e.g., a motion picture, television program, television commercial, and videogame) pursuant to which the producer is granted the right (usually the “non-exclusive right”) to reproduce a song in the soundtrack of the particular audiovisual work, for distribution in any and all media (e.g., theaters, home video devices and video on demand) and to perform the audiovisual work, inclusive of the song, in theaters located within the United States. The license usually also gives the producer the right to use the song in trailers and advertisements of the audiovisual work (see Out-of-Context).
177. Talent Agent: (a/k/a booking agent) refers to a person who has the authority to secure employment and other engagements for an artist.
188. TEA - track equivalency album, 10 digital song sales from an album is the equivalency of one album sale.
189. Technically Satisfactory: This term is typically found in a recording agreement. It means that the recordings will not be deemed Delivered to the Label, unless they are technically capable of being reproduced on Phonorecords. See Commercially Satisfactory.
190. Technical Rider: See Performance Rider.
191. Tour Manager: Is a member of the Crew whose job it is to manage a tour. The tour manager usually has highest decision-making authority over all of the other Crew members, subject to the direction and control of the artist and the artist’s Personal Manager.
192. Tour Merchandising: Refers to the sale of artist merchandise at a Venue.
193. Tour Support: Refers to a record company (or possibly another company) covering the amount by the expenses of a tour exceeds the income from a tour. Tour support is almost always 100% recoupable from Artist Royalties.
194. TEA (Track Equivalent Album): 10 digital purchases of individual tracks from the same album will count as one album.
195. Trademark: Refers to a name identified with the sale of goods.
196. Venue: Refers to concert hall or other venue where “live” performances occur, for example, stadiums, arenas, “sheds,” theaters, and clubs. A “shed” refers to an outdoor venue that has a permanent stage and usually has lawn seats at the top of the seating area.
197. Venue Fees: (a/k/a hall fees) are the fees that the owner or manager of the Venue charges the artist or the artist’s merchandiser in order to sell artist merchandise at the venue. Most venues will state that their standard fee is 35% of the gross wholesale receipts from the sale of the artist merchandise, but this fee is often negotiable.
198. VST: Virtual Studio Technology. Plug-in software for DAWs that simulates effects one would normally achieve in a traditional recording studio instead of on a computer. Another contributor to the advances in home recording in this millennium.
199. WAV: WAV files are lossless uncompressed broadcast CD quality music files
200. Webcast: A noninteractive stream from a radio – like streaming service.
201. Work Made For Hire:
A “work made for hire” is—
(1) a work prepared by an employee within the scope of his or her employment; or
(2) a work specially ordered or commissioned for use as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas, if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.
Assuming that a Sound Recording is ruled not to be a work made for hire, and, therefore, is subject to being re-captured by the “author,” it is unclear whether the “author” will be limited to the artist. For example, in addition to the artist, the Producer of the Sound Recordings may also be deemed to be an “author” entitled to re-capture the copyright in the Sound Recordings.
202.WMA: An abbreviation for Windows Media Audio, an audio data compression
