TheEntertainmentTimes.org Eddie Sanders, Esq Brent Butcher, Esq John Tellis, Esq

Transcription

1 TheEntertainmentTimes.org Eddie Sanders, Esq Brent Butcher, Esq John Tellis, Esq

2 For every song, there is a writer's cut (50%), split amongst everyone who wrote the song, and there is a publisher's cut (50%)

3 Why is ownership in copyright important Determines who collects How is established Contract/Split Sheets Registration

4 Management Production Recording

5 Key Clauses: Term/ Options Initial Term Automatic Renewals Third Party s Duties Commission Make sure you have a firm understanding of where the Manager s commission is derived from: All Entertainment, Musical Career, etc. 360 terminology Sunset Clause

6 How long does the initial term run What are your requirements to fulfill Songs/Albums what constitutes a song Years/Months Who has the option to extend agreement

7 360 Deals are all encompassing deals offered by record labels. In return for a larger percentage of profits the label provides all of the bands services such as: Concert booking Merchandise Sales Endorsement Deals These deals allow labels to get profits from the above services that the standard record label model did not allow. These are controversial because it asks the artist to pay a higher percentage, but they can also take some of the hassle away from bands by allowing the label to handle all of their services. These deals are becoming more popular to record labels because it decreases the risk required to sign a band and allows them to focus on the idea of band branding.

8 Performance Royalties: Anytime there is a "public performance" of your song, you are owed a royalty. Like when your song is on Pandora, Spotify, YouTube. These royalties are currently collected by Performing Rights Organizations (see below). Performing Rights Organizations (PROs): ASCAP, BMI, SESAC, SoundExchange. These are organizations that collect performance royalties. The way these PROs make money to pay songwriters their earned royalty money is PROs collect money from thousands of venues (radio stations, internet radio (like Pandora), JC Penny, bars, live venues, etc) by requiring them to purchase "blanket licenses" which gives these venues permission to play music in their establishment (or on the air). The PROs then pool all of this money up and divide it amongst all of their songwriters and publishers based on the frequency of each song's public performance. The PROs then pay the publishing companies their 50% and the songwriters their 50%. Mechanical Royalties: When someone buys your song (or streams it) you, the songwriter, is owed money. itunes, Spotify, Beats and similar streaming services owe you mechanical royalties every time your song is streamed on their service. Sync Licensing: When a TV show wants to use your song, the show pays you a Sync License fee and a Master Use License fee for the rights to use the recording. The Sync (stands for synchronization) fee is for the song and goes to the publisher and songwriter, the master use license fee is for the actual recording and goes to the person, band or label that owns the recording. Spotify SoundCloud YouTube GrooveShark

9 Spotify (Interactive) Getting music on Spotify Aggregators Fee is charged generally Spotify pays the Aggregator, and the Aggregator pays you Labels with distribution/licensing deals Contract with a distribution company that already has a deal with Spotify If you manage and distribute your own music, you are recommended to join the Merlin Network (Licensing), and you can submit directly to Spotify as opposed to going through a distribution company. No direct deals are being made at this time with artists Payment structure Negotiated directly with record companies or aggregators Spotify makes money from Advertisement (Free service) $10/mo for paid subscription Spotify retains 30% of all revenue and distributes 70% in royalties There is no per play rate. Payment is distributed based on the percentage of your plays compared to all plays, and royalties are distributed mirroring that percentage. The bigger the pot, the bigger the payout. Payment increases as the user base does, but can also decrease with the increase in artists use of platform. Payment goes to whoever owns the music (artist, label, etc.)

10 The streaming PERFORMANCE royalty for the song (collected by ASCAP, BMI, SEASAC or international PRO - for the songwriter) The SYNCHRONIZATION royalty for the composition (only collected by a publisher LIKE TCP or CBP) AD REVENUE earned for the sound recording (the artist who recorded the song - NOT the songwriter) AD REVENUE earned for the composition AD REVENUE earned for the content of the video for the CREATOR (you or some dude creating the video in movie with shitty graphics over your song). Currently video creators cannot collect ad revenue unless they own 100% of the content (this will probably change soon).

11 permalink/2014/09/29/breaking-groovesharkfound-guilty-massive-copyright-infringement

12 Pre 1972 recordings case How does this help me Sampling Myths I m not selling my music, so I m safe Flossdatrumus vs Olaf Veldkamp

13 Helps in Negotiation to already be established Your card says CEO, act like it

14 Protecting your brand and logo