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Music Business Notes
MUSB 2301 Intro to the Music Business
Study Guide for exam no. 3

Chapter 7: Music Licensing
Compulsory Mechanical Licenses Why compulsory 4 requirements for compulsory licenses The song is a non-dramatic musical work It has been previously recorded The recording has been publicly distributed in phonorecords Your use of the recording is in phono-records only

When to notify author regarding a compulsory license
Notify copyright holder within 30 days after making the recording and before distribution
Statutory Rates History and current rates 1909-1976 2 cents per record 1976-2002 2.75 cents per copy 2002-2003 Larger of 8 cents or 1.55 cents per minute of playing time 2004-2005 8.5 cents or 1.65 cents per minute 2006-now 9.1 cents or 1.75 cents per minute Negotiated mechanical licenses When to notify the copyright owner of your intentions to record
Sampling

How much can you use without filing for a mechanical license

Digital phonorecord deliveries (DPDS)

Foreign mechanicals Applies only to CD’s
Controlled Composition Clause Allows label to pay reduced royalty. Allows label cap number of song on which they will pay any royalty. Co-writer beware!!

Performance Licensing Each time song is played on radio, TV, internet or live. What is it and who pays Performing Rights Organizations (Societies) ASCAP (American Society of Composers, authors and publishers) Original membership makeup Full name When established: Established 1914 Original membership makeup
For authors of books in addition to everyone else. Until 40’s MOSTLY RELATED TO BROADWAY SHOWS. Tin Pan Alley BMI Full name: Broadcast Music Incorporated When established 1939 Membership makeup and why SESAC: Society of Eu Full name When established Membership makeup and why Ownership of the PROs (for profit vs. non-profit) Whom they license and how Blanket license Considerations for determining

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