1. First Steps 1. PART I Your Team of Advisors

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Stuart Cox
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1 ÍNDICE Contents 1. First Steps 1 PART I Your Team of Advisors 2. How to Pick a Team 11 Getting Your Team Together 11 Business Philosophy 11 Hiring a Team 12 Changing a Team Member 25 Cocktail Party Talk Personal Managers 28 Role 28 Commission Overview 29 Negotiating the Manager's Deal 30 Picking the Right Manager Business Managers 42 Role 42 How to Pick a Business Manager 43 Business Manager Checklist 44 Fees 46 Your Half of the Job Attorneys 49 Picking a Lawyer 49 Fees 52 Conflicts of Interest 52 Attorney Checklist Agents 56 Role 56 Fees 56 Deal Points 57 Picking an Agent 60 PART II Record Deals 7. Broad-Strokes Overview of the Record Business 63 Industry Structure 63 A Word About Retailers 67 Do You Need a Record Label? 68

2 What's a Record? 71 Masters 72 Royalty Computation 72 Ye Olde Royalty Calculations Advances and Recoupment 83 Advances: The Basic Concept 83 Cross-Collateralization Real-Life Numbers 88 Overview 88 Royalties 89 Advances Rights 97 Look How Much You Already Know Other Major Deal Points 103 Amount of Product 103 How Long? 107 Delivery Requirements 110 Controlled Compositions 112 Greatest Hits 112 Live Albums 114 Guaranteed Release 115 Independents Day Producer and Mixer Deals 120 What's a Producer? 120 Royalties 121 Advances 124 Other Royalty Computations 125 Who Hires the Producer? 126 A Major Point-Pay Attention 127 Mixers Advanced Royalty Computations 133 Distribution Methods 133 Royalties for United States Sales 135 Foreign Royalties 135 Reserve Limitations 136 SoundScan 137 Master Licenses 138 Electronic Transmissions. Including Digital Downloads. Digital Streaming. and Things That Go Bump in the Night 138 Coupling and Compilations 149 Joint Recordings 150 "Greatest Hits" Albums 151 Multiple Albums 153 Box Sets 154

3 Television Advertising 155 DVDs and Other Home Video Devices 155 Mid-Price Records 158 Budget Records 159 New and Developing Artist Prices 159 Record Clubs 160 Cutouts. Deletes. Scraps, and Other Food for Bottom Feeders 161 Premiums 162 Video Games 162 DART. Digital Performance. and Webcasting Monies 163 Foreign Public Performance of Masters 164 Accountings Advanced Record Deal Points 167 Advanced Demo Deal Negotiation 167 Exclusivity 171 Videos 177 Independent Promotion 179 Merchandising Rights 180 Tour Support 182 Territory 184 Union Per-Record Charges 185 Album Cover Artwork 187 Creative. Marketing. and Other Controls Loan-out, Independent Production, Label, and Distribution Deals 189 Loan-out Deals 189 Independent Production Agreements 192 Joint Ventures 200 Pressing and Distribution (P&D) Deals 204 Upstream Deals 205 PART III Songwriting and Music Publishing 15. Copyright Basics 209 Basic Copyright Concepts 209 What Are AII These Rights You Get? 210 Exceptions to the Copyright Monopoly 211 Compulsory Mechanical Licenses Publishing Companies and Major Income Sources Publishing Overview 219 Sources of Income 224 Mechanical Royalties 224 Controlled Composition Clauses 227 Maximum Rate Per Song 228 Maximum Rate Per Album 232

4 Public Performance Royalties Secondary Publishing Income 244 Printed Music 244 Synchronization and Transcription Licenses 248 Electronic Transmissions, Including Digital Downloads, Ringtones, Webcasting, Subscription Services, and Podcasting 253 Foreign Subpublishing 262 DART Monies (Audio Home Recording Act of 1992) 269 Bonus Section! 271 How to Set Up a Publishing Company Songwriter Deals 275 Songwriter Royalties 275 Standard Contracts 275 Performance Monies 278 Printed Music Royalties 278 DART, Webcasting, and Interactive Streaming Monies 281 Advances 281 Term Songwriter Agreements 281 Pop Quiz 292 Collaboration (Two or More Songwriters) 292 Creative Control 296 Reversion of Copyright Copublishing and Administration Deals 300 Copublishing Deals 301 Administration Agreements 307 Now Look Where You Are! Advanced Copyright Concepts 313 Who Owns the Copyright? 313 Works for Hire 315 Duration of Copyright 318 Right of Termination 320 Digital Performance of Masters and Webcasting Even More Advanced Copyright Concepts 327 I Got You Twenty, Babe 327 How to Terminate a Copyright Transfer in Your Spare Time, for Fun and Profit 329 Extension Rights 330 Digital Samples 333 Sound Recording Copyrights 335 The Copyright Notice 337 Registration and Deposit 338 What You Get When Someone Rips Off Your Copyright 339

5 PART IV Group Issues 22. Groups 343 Group Provisions in Record Deals 343 Trivia Quiz 345 Internal Group Deals 346 What's in a Name? 354 PART V Touring 23. Personal Appearances-Touring 365 Roles of Team Members 365 Marketing 370 Personal Appearance Deals 371 New Artists 372 Midlevel Artists 374 Heritage Acts 375 Superstar Touring 375 Hall Fees 380 Riders 380 I'll Take the Whole Thing Lining Your Pockets with More Gold 383 PART VI Merchandising 24. Tour Merchandising Merchandisers 389 Royalties 390 Hall Fees 391 Advances 392 Term 393 Advance Repayment 394 Performance Minimum 395 Exclusivity 397 Creative Control 397 Sell-off Rights 398 Bootleggers Retail Merchandising 401 Royalties 402 Other Deal Points 403 Caution 403

6 PART VII Classical Music 26. Classical Music Term and Product 407 Royalties 408 Advances 409 Mechanical Royalties 409 Marketing Tie-ins 410 PART VIII Motion Picture Music 27. Overview of Motion Picture Music 413 Introduction 413 One Song-Eight Deals 413 The Rights Involved Performer Deals 416 Overview 416 Performance in the Film (No Record Rights) 416 Record Rights to Film Performances Film Songwriter Deals 426 Terminology 426 Deal Points Composer Agreements 431 Deal Points 431 Package Deals 439 Creative Financing 442 Television Composers 444 Video Game Composers Licensing Existing Recordings and Existing Songs for Motion Pictures 448 Master Licenses 448 Licensing Existing Musical Compositions for Films 451 Film Music Quiz Music Supervisors 453 Role 453 Fees and Royalties 455 Television Supervisors Soundtrack Album Deals 456 Score Albums 456 Song Albums 457 Cost Covering 457

7 Other Issues 458 Conclusion 461 Index 463

INTRODUCTION IMPORTANT SURVEY NOTES

INTRODUCTION IMPORTANT SURVEY NOTES INTRODUCTION Welcome to the 2011-2012 edition of Film Music Magazine s Salary and Rate Survey. This survey has been compiled based on extensive research, interviews, and information gathered from professionals