MUSIC TERMS YOU NEED TO KNOW- CURRENT ROYALTY RATE

If your going to be in the music industry there are frequently used terms you must know. Listed below are the most commonly used terms in the business. This should help you communicate better with the pros. Including in this list is the current royalty rate.

ADVANCE – money paid [loaned] by a publisher to a writer [usually under contract] in anticipation of that songwriter’s song(s) earning future royalties; the songwriter is only required to pay back the advance from songwriting royalties.  Advances are recoupable from future earnings.

A & R [Artists & Repertory] – the department in a record company that selects and deals with new artists, songs, and records.

CATALOG – most commonly refers to the collection of songs owned by a publisher and/or songwriter.

COPYRIGHT – the exclusive right [granted by law for a limited period, until 70 years after the death of the last surviving author of the work] to make, dispose of, and otherwise control copies of literary, musical, dramatic, pictorial and other copyrightable works; these exclusive rights or “bundle of rights” are set forth in the 1976 Copyright Law, Section 106.

COPYRIGHT DEPOSIT REGISTRATION – to register a musical work under the 1976 Copyright Act:

1. Send a request for an application to the Copyright Office, Library of Congress, 101 Independence Avenue SE, Washington, D.C. 20559-6000 or download the application from the Copyright Office athttp://lcweb.loc.gov/copyright/forms. To order an application by telephone call (202) 707-9100.
2. When an application is completed, send it back to the Copyright Office with:
   1. one copy of a manuscript, lead sheet, or tape if unpublished, or
   2. two copies of a manuscript (sheet music) or tape if published, and
   3. the appropriate registration fee, by money order, bank draft or check, made payable to Register of Copyrights.

CUE SHEET – a listing of the music used in a television program or motion picture by title, composer, publisher, timing and type of usage [e.g., background, feature, theme] usually prepared by the producer, or music supervisor of the program or film.

DIY (Do it Yourself) – in today’s independent marketplace, many songwriters and artists manage either all or certain aspects of their careers. 

HOOK – the “catchy” part of a song that makes people want to hear/sing it repeatedly; the hook can be lyrical or musical, is almost always the title of the song, and is usually repeated frequently throughout.

LEAD SHEET – a reproduction on paper of a newly written song. 

MECHANICAL ROYALTIES –  fees paid by a record company to the copyright owners for the right to manufacture and distribute CDs, records, tapes, and certain digital configurations containing a particular song. The current statutory rate is 9.1 cents per song, per unit manufactured and sold up to 5 minutes in duration.  Add 1.75 cents per min for songs over 5 minutes in length.  However, the rate is often negotiated to a “reduced rate” of the statutory mechanical rate.

ON HOLD – when an artist or producer decides to keep a song for consideration on a recording project and asks that the song not be actively pitched elsewhere, they ask to put it “on hold.”

PERFORMING RIGHTS ORGANIZATION (PRO) – SESAC, ASCAP and BMI are the three U.S. PROs that pay royalties to songwriters and music publishers based on performances of their songs through broadcasts and public performances.   A songwriter may affiliate with only one PRO.  There are more than 200 PROs throughout the world.

PITCH – to try to interest someone, such as an artist or producer, in a song or artist.

PRODUCER – the person who supervises the creation of an artist’s album project, usually through selecting songs, instruments, and musicians, as well as mixing and producing a high-quality, broadcast-ready product. They work for the artist and the label at the same time.

PUBLISHER – the person who works with songwriters.  By written contract, the publisher acquires songs or a catalog of songs with the most commercial potential (in their opinion) and works to get those songs recorded and used as often as possible, resulting in exposure to the public, thereby, generating income (royalties). Music publishers “pitch” songs to labels, music supervisors and other music users, then license the right to use the song and collect fees for the use.  The fees are split with the songwriter. 

RECOUPABLE – typically, when recording artists sign a recording contract or record a song (or album), the record company pays them an advance that must be paid back out of their royalties. This is a recoupable expense and is called recoupment.  Recoupable expenses usually include recording costs, promotional and marketing costs, tour costs, music video production costs, as well as other expenses.

ROYALTIES – income paid to songwriters, publishers, and others for the use of a song.  Royalties result mainly from two sources: performances [monies paid by a PRO based on the number of times a song receives a performance] and mechanicals [monies paid by a record company based on record sales].

SELF-PUBLISHED – many songwriters set up their own publishing company and act as the publisher to their works.

STAFF WRITER – a songwriter who is under contract to a publisher to write songs exclusively for that publisher.  You are a hired staff member.

CLICK ON JOIN AND BECOME A PART OF THE AMP TEAM FOR FREE

FAILURE; CAN IT BE A GOOD THING

I just had lunch with one of my mentors, as always, very inspirational. This friend is a very successful entrepreneur who has met with Kings, Queens, Presidents and many of the brightest people in the world including some of the most successful entrepreneurs to date. He lived in Silicon Valley for over 30 years. I asked him what is the most important single reason the Valley is the number one entrepreneur Hub in the world? I was blow away at his answer. He said, and I quote " They encourage failure". I probably looked at him as if he where a two headed cyclops. He went on to explain. The biggest reason most people fail is fear. He said most  people want take a risk for fear of failure and embarrassment .

In Silicon Valley if you fail they don't hold it against you. They actually raise you up a level or two. They don't hold it against you like the most everyone else would. If only we could get this like they do, I believe there would be a lot more successful entrepreneurs around to supply more jobs.

Failure is such a negative word that it seems strange to suggest that it can be a good thing.  How many times have you looked back on your life, thought of mistakes you’ve made, and kicked yourself over them? I know I sure have. I have had many failures in my life. I have lost a job; I have mismanaged my money; and I have had trouble in relationships. But life goes on as it should.

You see many people allow failure to hold them back, when in reality failure can be a good thing! Fear of failure prevents many people from following their dreams or having a go at something new. Fear of failing is failure in itself because it holds back so many would-be success stories.  I often remember what Zig Ziglar once said, “Failure is an event, not a person.”  How profound is that?!

History has shown that the most successful exploits frequently came on the back of failure. Just think ofWinston Churchill. He failed the sixth grade and was defeated in every single election for public office until he became Prime Minister at the young age of 62. Or, how about Albert Einstein. He did not speak until he was four years old, and couldn’t read until he was seven. His parents thought he was “sub-normal.” He was expelled from school and his teachers described him as “mentally slow, unsociable and adrip forever in foolish dreams.” You see where I am going with this. Failure is actually on our side. Failing allows us to grow, learn, and find new opportunities. Here is what I mean:

Failure means you have courage

Even though you didn’t get the results you wanted, at least you were trying to do something. So many people let the fear of failure prevent them from reaching for their dreams. So don’t be worried about a failure – at least you had the courage to have a go. Courage is not the absence of fear; it is feeling the fear and taking action anyway. When you have a go, despite the possibility of failure, you show that you have great courage.

Failure makes you stronger

When you don’t get the result you want, you can become more determined to succeed. At first you probably feel discouraged, frustrated or upset but these feelings don’t last forever. You then get a burst of determination and strength of purpose to try again. Failure makes you more focused on a successful outcome next time.

Failure helps you learn

It was Thomas Edison who said that he hadn’t failed in his hundreds of attempts to create the light bulb. His answer when questioned about his ‘failures’ was that he hadn’t failed, he had just found hundreds of ways that it didn’t work. This is the mentality of geniuses and successful people. Failure to get the results you wanted is not a negative thing; it is simply an opportunity to try a different method. It is also the opportunity to start again.

Failure helps you grow

When your efforts don’t work out, you have to reach deep inside to find the strength to try again. To solve the problem and make sure you get the desired result, you need to extend yourself and so you grow. You need to stretch and possibly move outside your comfort zone. After experiencing failure, you will never be the same as you were before you tried. You don’t know how far you can go until you have tried and failed.

Failure creates new opportunities

Many people believe that everything happens for a reason, we just don’t know what it is at the time. Failures often bring unforeseen opportunities that would not have been available without the failure in the first place. You often need to close one door so that another door of opportunity can be opened for you. Failure is a way of one door closing. Failure is seldom the end; it is often a bright beginning.

Failure provides answers

If you don’t try and fail, you will never know if your idea or method is going to work. You spend time worrying that you don’t have the answer; you wonder whether it would have worked. The pain of regret is far worse than the pain of failure. When you fail, you can start again; with regret, you will never know.

Don't live out your life in regret. My name is J. Grady and I approve this message.

Let us know your thoughts and click on join   Don't be scared.

SHOULD RECORDING ARTIST GET PAID FOR RADIO PLAY / PLEASE COMMENT

Most listeners believe that recording Artist get paid for radio play. Sorry to disappoint you, not yet, maybe never. Should they? We would love to hear from you. Then the question I would like to pose is; if the artist gets paid for radio play should the writer get paid  for each performance. I'm a writer so I want give you my opinion at this time. Pros and cons, there's plenty to go around on this issue. Here's an interesting article I found on this topic. We really need to hear from you on this topic. I hope this article stimulates some thought.

New radio "pay to play" bills pit RIAA against broadcasters

Both houses of Congress are (again) considering a "Performance Rights Act" …

by Nate Anderson - Feb 5 2009, 12:28pm EST

31

The "Performance Rights Act" has been introduced in both the House and Senate with the goal of forcing US radio stations to start paying artists whose music is played on the air. Labels are pushing hard for the idea, but radio stations could hardly be more upset.

When it comes to music, US "performance rights" law looks like a floodlit monument to inconsistency. Radio stations pay only songwriters for the music they play; recording artists get nothing (except publicity). When music is delivered through webcasting, cable networks, and satellite radio, however, station owners need to pay both songwriters and recording artists.

If the law is internally inconsistent, it's also externally inconsistent—most developed nations require radio stations to pay artists. A2IM, which represents indie labels, makes the point by saying, "of world powers, only countries like China, Iran, and North Korea join the US in failing to compensate creators of music when their songs are played on the radio."

So how to patch up the situation? One obvious way would be for Congress to force radio to pay performance royalties to recording artists—though, in reality, a good chunk of this money would go to the labels who have funded those artists. Because of the cash involved, the RIAA has been pushing hard to enact a performance rights bill for years, but it has become an even more urgent priority as record company revenues have fallen and can't get up.

The reintroduction of the Performance Rights Act to Congress means that the labels are gearing up to fight the old battle once more in a new Congress, but they will face the same stout opposition they always have.

A can of red herrings?

"This legislation is about fairness and a level playing field, plain and simple," said RIAA CEO Mitch Bainwol. "The arguments for this legislation have never been more compelling, the time never more ripe, and the level of support within the music community never more strong. Every one of the competitors of FM and AM radio pays artists and labels for the use of their music... The reasonable concerns of small broadcasters have been addressed in this bill. Nonetheless, the National Association of Broadcasters continues to thumb its nose at Congress and refuse to come to the table in good faith."

The National Association of Broadcasters, not content to take this from a bunch of "companies based overseas" (a reference to EMI, Sony BMG, and Universal), has already set out to defend "hometown radio stations" from the scourge of a new "performance tax." Radio stations defend their traditional arrangement by pointing out the publicity value to artists from radio play.

The Free Radio Alliance also sounded the xenophobic trumpet—pitting radio's "family-supporting jobs," "local community support of non-profit and service organizations," and "diversity" against the "big, foreign-owned labels."

Cue the montage of apple pie and a mustachioed French banker. (If you think this overstates the situation, consider what the NAB said in 2007 when this issue came up the last time: "After decades of Ebenezer Scrooge-like exploitation of countless artists, RIAA and the foreign-owned record labels are singing a new holiday jingle to offset their failing business model.")

Not that the labels and artists have been above this sort of stunt. Before Congressional hearings on the matter in 2008, they sent a can of fish to the National Association of Broadcasters as a way of suggesting the broadcasters' ideas were only "red herrings." Paging the grownups!

As a "debate," this sort of thing has the distinct air of the schoolyard about it; one hopes that more thoughtful and interesting presentations are taking place privately. But it's also understandable given the long history of animosity between the groups, and the amount of money at stake here.

The law, if passed, won't just affect the US. Because the US currently doesn't have a radio performance right, US radio stations pay nothing to foreign recording artists when they play their songs. That might not sound like a big deal until you realize that foreign countries generally exempt their own broadcasters from paying to play US music on the air because of this situation. The lack of a performance right is therefore "an inequity that costs American artists tens of millions of dollars each year" from overseas stations, according to the RIAA.

The bill didn't pass the last time around, but with "change" hanging heavy in the air, who knows what's possible in a new session of Congress. Last time the issue arose, the NAB helped to spearhead a countering resolution, which eventually attracted 226 House co-sponsors, and a similar countering resolution is due to be introduced shortly.

Expect plenty more dissonance before the issue is settled.

Click on join

CAN I RECORD A PREVIOUSLY RECORDED SONG

There are some really great songs out there and you can record any of them if you so choose. However there is a process you must go through. The important thing to remember is , respect the composer. Professional writers work hard at their craft and deserve to be compensated. If you do record  a cover, do it the right way, pay the composer a fair royalty. Remember, we're in this together, so let's play in the sand box like good little boys and share our toys.

 In general, the right to record somebody else's song is called a "mechanical license," and usually it's negotiated in a routine manner between representatives of the copyright holder and the would-be cover artiste. (Outfits like The Harry Fox Agency in New York generally handle the publisher's side.) However, in the rare event that negotiations fail, the copyright laws contain provisions for a type of mechanical license called a "compulsory license," which, in effect, give anyone the right to record any song he or she wants to, as long as notice is given to the song's copyright owners within 30 days after the recording is made and before it is distributed. Compulsory licenses were written into the copyright laws in 1909 in an attempt to break up a monopoly in the piano-roll industry--an industry which has since been pretty well broken up, period. So why negotiate at all? Mainly because the law dictates higher royalty rates and stricter payment schedules for compulsory licenses than you can obtain with the negotiated kind.

But hey, you say, I've just written a couple of can't-miss tunes that I'm sure will rocket to the top of the charts as soon as I can get them recorded. Do I now have to worry that music industry vultures will steal them before I can make my pile? NO WORRIES. The composer's one inalienable right is to decide who will record his song first.

MECHANICAL  ROYALTY RATE CHART

he statutory mechanical royalty rate for physical recordings (such as CDs) andpermanent digital downloads is: 

9.10 Cents per copy for songs 5 minutes or less 
or 
1.75 Cents per minute or fraction thereof, per copy for songs over 5 minutes. *For example: 
5:01 to 6:00 = $.105 (6 x $.0175 = $.105) 
6:01 to 7:00 = $.1225 (7 x $.0175 = $.1225) 
7:01 to 8:00 = $.14 (8 x $.0175 = $.14) 

The statutory mechanical royalty rate for ringtones is 24¢ per copy. 

The rates for interactive streams and limited downloads are determined by a number of factors. These include service offering type, licensee type, service revenue, recorded content expense, and applicable performance royalty expense. To view a table of rates, click here. To review the basic criteria for statutory licensing of these formats, click here. 

Licenses issued after March 1, 2009 are subject to interest for late payments of 1.5% a month, or 18% a year. 

These rates will remain in effect until the next schedule of mechanical licensing rates is det

Click on join

WRITERS HOW DO I GET PAID ON RECORD SALES

How do I get paid on record sales? This is a common question I get frequently. It can get complicated quick, however I will try to give you the short answer. Also there's the artist side to this. Do I need a license to record another persons song? Once again that can get complicated also. The short answer is yes.

Mechanical Royalties

The COMPULSORY MECHANICAL LICENSE provisions of the Copyright Act are the bread and butter for songwriters. Once a songwriters' composition has been recorded and distributed to the public, copyright registration entitles the songwriter to statutory MECHANICAL ROYALTIES whenever that songwriter's composition is further recorded.

The company putting out the record is required to pay the songwriter a mechanical royalty for each record manufactured. Effective January 1, 2006 the statutory mechanical rate is $.091 for songs 5 minutes or less, or $.0175 per minute or fraction thereof per copy for songs over 5 minutes.

Mechanical royalties can add up to a lot of money. For example, at the current statutory mechanical royalty rate, if your song is less than five minutes and is on a CD which sells one million copies you would be entitled to NINETY ONE THOUSAND ($91,000) DOLLARS.

Because the statutory mechanical rate is increased periodically, it is best to seek payment for a mechanical license keyed to the statutory mechanical rate in effect at the time of manufacture. Record companies, on the other hand, may try to key the rate to that which is in effect at the time of initial release. Thus if a record is reissued many years after its initial release the composer/publisher would get the rate in effect at the time of reissue rather than the lower rate at the time of initial release.

On a practical note, many copyright owners hire the The Harry Fox Agency to issue their mechanical licenses and collect all mechanical royalties due. This saves them much paperwork and hassles.

Due to the various requirements necessary to obtain a compulsory mechanical license many record companies try to negotiate mechanical licenses directly with the copyright owner or its representative.

If this is not possible, perhaps because the copyright owner cannot be determined or located, you should obtain a compulsory mechanical license by complying with all applicable regulations for obtaining a compulsory mechanical license. (See Circular 73 - Compulsory License for Making and Distributing Phonorecords for this information). This is a "safe harbor" approach and by so doing you will be immune from a copyright infringement suit by the copyright owner.

Before obtaining a compulsory mechanical license however, you might want to check the online databases at The Harry Fox Agency, ASCAP, BMI and SESAC to see if you can locate the copyright owner and negotiate a mechanical license directly.

Click on join to become part of the AMP TEAM