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Legal Aspects > Midterms > Flashcards

Midterms Flashcards

1
Q

What is a BPA?

A

defines the rights and obligations of the band members

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2
Q

Why should you have an inventory of artist/band property?

A

so if you need to make an insurance claim you have all the information, also if for debt and liability purposes

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3
Q

What types of insurance policies are beneficial to a touring artist?

A
  1. car insurance
  2. liability insurance
  3. Business Interruption coverage
  4. instrument insurance
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4
Q

Who are the members of an artists team when touring and what are their responsibilities ?

A
  1. road/tour manager- handles day to day tour details some road mangers drive the van and operate the PA
  2. Tech- professional roadie who manages band equipment and directs the set and breakdown
  3. Driver
  4. Hired musicians
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5
Q

What is needed to create copyright ?

A

Original material that is fixed in a tangible way

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6
Q

How long do copyrights last?

A

life of author or (longest living author) + 70 years

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7
Q

What is the difference between a license and an assignment?

A

An assignment is a final sale while a license is temporary permission to use a work

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8
Q

What does a performance rights organization do?

A

Collect licenses and pay royalties

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9
Q

What is music publishers?

A

Music Publishers are companies that exploit song compositions and collect the revenue they generate.

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10
Q

What are the six exclusive rights of copyright? (what can someone who owns the copyright do?)

A
  1. Reproduction
  2. Distribution
  3. public performance of the composition
  4. derivative work
  5. public display
  6. public performance of the sound recording in digital audio transmissions
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11
Q

What is Work Made for Hire?

A

its an arrangement that occurs when the hiring party acquires ownership of the music through an employer- employee relationship or an independent contractor agreement

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12
Q

What is a compulsory license?

A

A license you must obtain to duplicate a song that has already been released to the public

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13
Q

Where and how can you get compulsory license?

A
  1. SongFile.com which is a division of the Harry Fox Agency will get you a mechanical license
  2. You can send a Notice of Intention to Obtain Compulsory License to the copyright owner (usually music publisher) at least 30 days prior to distributing the recordings (tangible version)
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14
Q

What are Mechanical royalties?

A

They are payments to a song owner for the right to make copies of a song and they are only due when songs are reproduced on digital downloads, compact discs and records

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15
Q

What is statutory rate?

A

the mechanical royalty rate set by the government

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16
Q

Does the compulsory licenses and mechanical royalties apply to video, film and internet ?

A

No, when reproducing a song for video, internet, laser disc, movies or any use that is not purely audio then you must contact the music publisher or an agent for the publisher like Easy Song Licensing or the Harry. Fox agency and negotiate a separate license for each use and there is no fixed statutory rate for such use.

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17
Q

What is a mechanical license?

A

required under U.S. Copyright Law if you want to manufacture and distribute recordings of compositions written by someone other than yourself.

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18
Q

What are the different business entities?

A
  1. Sole Proprietor
  2. Partnership
  3. LLC
  4. Corporation
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19
Q

What is the difference between LLC and Corporation?

A

LLC is individually owned while a corporation is owned by shareholders

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20
Q

What are three ways to try and get a licensing deal?

A
  1. Seek out a music publisher with a successful track record
  2. Seek out a rep/agent
  3. Music licensing services ex. Taxi.com, Sonicbids.com, Broadjam.com etc
  4. Make you music known to music supervisors
  5. work for free or at low rates
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21
Q

What is a sync license?

A

A license to use a composition in a movie or television commercial

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22
Q

$______ is the per song statutory mechanical license rate for a song under five minutes?

A

9.1 cents

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23
Q

The current statutory mechanical license rate for a song over five minutes is calculated at the rate of _______ per minute.

A

$0.175

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24
Q

What is full publishing?

A

Songwriter may receive an advance and grants the publisher 100% copyright ownership and control of all songs they write during the contract term. Songwriter receives half of all income generated (after recoupment

25
Q

What is self publishing?

A

Songwriter keeps 100% copyright ownership, seeks their own licensing opportunities and takes care of all business issues

26
Q

what is co-publishing?

A

Songwriter maintains a percentage of copyright ownership and grants the publisher 100% control. Writer receives 75% of the overall revenue

27
Q

What is sub-publishing?

A

Songwriter keeps 100% copyright ownership and grants the publisher the right to administer the catalog outside of the US. Publisher receives a percentage of income from paid licenses

28
Q

What is an administrator?

A

Someone who doesn’t own the copyright but they earn revenue by handling business tasks for the songwriter

29
Q

What is a Master Use license?

A

permission from RECORD company (only recordings) that allows a company to use a specific recording of a song in a movie, tv, or film. The word master use means the company is obtaining permission to use the master recording of the song. (this will also accompany a sync license)

30
Q

What is a videogram license?

A

a specific type of synchronization license that gives the production company the right to include the music on physical copies of the film, video, or TV show (typically sold as DVD or Blu-Ray discs

31
Q

What type of license does the Harry Fox Agency administer on behalf of its clients?

A

Mechanical

32
Q

What is state partnership law?

A

In the absence of an internal band agreement, band disputes will be decided in court

33
Q

Mediation

A

A neutral 3rd party assists people to find a solution to their dispute

34
Q

What is an EIN?

A

a federal Employer Identification Number. (its required of LLCs, corporations and partnerships and sole proprietors only need one of these if they have employees)

35
Q

How are bands paid for tours?

A
  1. a percentage of the gate
  2. a flat fee with no percentage
  3. a guaranteed fee or percentage of the gate (whichever is higher)
  4. guaranteed fee plus a percentage of revenues above the guarantee
36
Q

What should be considered when putting together a tour?

A

Expenses
1. salaries
2. van expenses
3. per diems
4. Air fare
5. Hotels and airbnbs
6. equipment rental
7. sound and light
8. booking agent commissions

37
Q

What is per diem ?

A

payments to the band and crew for daily living expenses such as food

38
Q

What is a Business Certificate?

A

a local registration of a business that is conducted within the Town and filed with the Town Clerk, either in person or by mail, in every city/town where a business of any such person, partnership or corporation may be situated. It is commonly referred to as a “d/b/a” (doing business as)

39
Q

What is a blanket agreement?

A

Under this arrangement, typically made between a company that wants to use music for film, TV, video, etc. (the “licensee”) and a production music library (PML; see below), the licensee obtains unlimited use of all PML music on a compact disc or disc library for a specified period, such as two years.

40
Q

What is a music supervisor?

A

they choose and acquire the music for films, TV, and ads, and making sure that all legal rights have been granted (or “cleared”).
The supervisor may act independently or be employed by the film, TV, or advertising company seeking the music.
The supervisor is typically given a budget for a production and doles out payments based on length of use, placement in the project, and prominence (or importance) of the music.

41
Q

What is a buy out agreement?

A

This is similar to the blanket license except the licensee acquires exclusive or unlimited rights from the production music library.

42
Q

What is a rider ?

A

a special provision attached to a policy that either expands or restricts the policy.
document that addresses additional details, conditions, or terms of a contract.

43
Q

What is piercing the corporate veil?

A

under this legal ruling, court disregard the corporate entity and hold its owners personally liable for any harm done by the corporation and for corporate debts

44
Q

What is the purpose of copyright lawsuit infringement ?

A

to provide a remedy for the copyright owner’s injury

45
Q

Are song titles protected by copyright?

A

no

46
Q

What is the best way to pay for band expenses?

A

with the band credit/debit card

47
Q

What is one example of the type of info that you should include in your bands inventory ?

A

the value

48
Q

While on tour,______ of the cost of your meals are
deductible.

A

50%

49
Q

What is the 3 of 5 rule?

A

a business that loses money for 3 out of the 5 years is considered a hobby and you can’t deduct expenses

50
Q

Payroll tax

A

paid based upon employees income

51
Q

self employment tax

A

paid on net income over $400 for sole proprietorships and LLCs

52
Q

Income tax

A

paid on all income (minus deductions) and must be declared

53
Q

sales tax

A

may need too be paid at local or state level for sales of products

54
Q

Technical rider

A

detailed requirements for stage set up, lines in/out, mics, monitors etc

55
Q

Hospitality rider

A

detailed requirement for food, drinks and other backstage requirements

56
Q

What are reasons to register copyrighted music?

A
  1. proof of ownership
  2. necessary to file copyright infringement lawsuit
  3. prima facie evidence
  4. statutory damages and attorney fees
    *These things are not available if you register the work after the infringement
57
Q

What are elements of an infringement claim?

A

proof of ownership
proof of copying (access, similarity, amount used/importance to song/songs)

58
Q

What are the two accounting methods?

A
  1. Cash method- you count band income when your band receives it and expenses when your band pays them
  2. accrual method- you record income as you earn it and expenses as you incur them

Legal Aspects (2 decks)

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