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Intellectual 
Property 
(Song Development) 
Copyright 
Protection 
(Song Created) 
Music 
Publishing 
(Song Monetized) 
Music Publishing & Copyright Administration 
In The Internet Age 
Lecture by Dae Bogan | Dae Bogan Music, LLC
2 
About Dae Bogan 
3rd Generation 
Music Industry 
Professor of 
Entertainment Marketing 
& Cross Promotions 
at Emerson College 
Master of Arts 
Candidate in 
Music Industry 
Administration 
at CSUN 
Music Industry 
Professional, 
Consultant, Educator, 
Speaker, Pundit at 
DaeBoganMusic.com
• Intellectual Property 
• Copyright Administration 
• Music Publishing 
• Music & The Internet 
• Self-Publishing Tool Kit 
• Q&A 
3 
Overview
Intellectual Property 
4
Music as Intellectual Property 
Intellectual property 
(IP) refers to creations 
of the mind, such as 
inventions; literary and 
artistic works; designs; 
and symbols, names 
and images used in 
commerce. 
5
Industrial Property 
• patents for inventions, 
• trademarks, 
• industrial designs, and 
• geographical indications 
Copyright 
• Literary works (such as 
novels, poems and plays), 
• films, 
• music, 
• artistic works (e.g., 
drawings, paintings, 
photographs and 
sculptures), and 
• architectural design. 
6 
Two Categories of IP
Industrial Property (Trademark) Copyright (Music) 
7 
IP in the Music Industry 
KISS logo is trademarked 
KISS songs are copyrighted
8 
From IP to Copyright 
Protect your musical works (IP) 
with copyright protection.
Copyright Administration 
9
• Copyright is a form of legal protection provided 
by the laws of the United States to the creators of 
intellectual property. (U.S. Copyright Act of 1976) 
• This protection is available to both published and 
unpublished works. 
• Copyright protection is only available to original 
works of authorship that are fixed in a tangible 
form such as a copy or phonorecord. 
– Ideas can not be copyrighted 
10 
Copyright Basics
Copyright protection grants six exclusive rights: 
1. The right to make copies and duplicate your CD 
(reproduction) 
2. The right to prepare derivative works (alternate versions, 
new arrangements, adaptations) (derivative works) 
3. The right to distribute your music (distribution) 
4. The right to perform the songs publicly (public performance) 
5. The right to display the product publicly (public display) 
6. The right to perform publicly via digital audio transmission 
(digital public performance) 
11 
Six Exclusive Rights
• The reproduction right is perhaps the most 
important right granted by the Copyright Act. 
• Under this right, no one other than the copyright 
owner may make any reproductions or copies of 
the work. 
• It is not necessary that the entire original work be 
copied for an infringement of the reproduction 
right to occur. All that is necessary is that the 
copying be "substantial and material.“ 
• MUSIC INDUSTRY EXAMPLE: Making copies of a 
master CD or sampling a song. 
12 
#1 Right to Reproduction
• The right to make a derivative work overlaps 
somewhat with the reproduction right. 
• According to the Copyright Act, a derivative 
work is a work based upon one or more 
preexisting works. 
• A derivative work usually involves a type of 
transformation. 
• MUSIC INDUSTRY EXAMPLE: Making a cover 
song or remixing a song. 
13 
#2 Right to Derivative Works
• The distribution right grants to the copyright holder the exclusive 
right to make a work available to the public by sale, rental, lease, or 
lending. 
• This right allows the copyright holder to prevent the distribution of 
unauthorized copies of a work. 
• In addition, the right allows the copyright holder to control the first 
distribution of a particular authorized copy. 
– However, the distribution right is limited by the "first sale doctrine", 
which states that after the first sale or distribution of a copy, the 
copyright holder can no longer control what happens to that copy. 
• Congress has enacted several limitations to the first sale doctrine, 
including a prohibition on the rental of software and phonorecords. 
• MUSIC INDUSTRY EXAMPLE: Distributing copies of a duplicated CD 
via sale, rental, or no monetary exchange. 
14 
#3 Right to Distribution
• Under the public performance right, a copyright holder is 
allowed to control when the work is performed "publicly." 
• A performance is considered "public" when the work is 
performed in a "place open to the public or at a place where a 
substantial number of persons outside of a normal circle of a 
family and its social acquaintances are gathered." 
• A performance is also considered to be public if it is 
transmitted to multiple locations, such as through television 
and radio. 
• MUSIC INDUSTRY EXAMPLE: A band performing a song at a 
venue, a singer-songwriter covering a song on Hollywood 
Blvd., or songs heard on over-head speakers in coffee shops. 
15 
#4 Right to Public Performance
• The copyright owner holds the exclusive right to publicly display 
protected works. 
• As defined by the Copyright Act, displaying a work means showing a 
copy of the work, directly or via some device or process. 
• Such a display is considered public in one of four situations: 
1.when it is at a place open to the public; 
2. when it is at a place with a group of people larger than a gathering of 
family or the normal circle of friends; 
3. when it is transmitted to a place open to the public or a group of 
people larger than a gather of family or the normal circle of friends; or 
4.where it is transmitted to the public (i.e., television and radio 
broadcasts). 
• For the music industry, public display and public performance is 
similar. 
• MUSIC INDUSTRY EXAMPLE: Playing a song on the radio. 
16 
#5 Right to Public Display
• The digital public performance right stems 
from the Digital Performance in Sound 
Recording Act of 1995 (DPRA). 
• Gives owners of a sound recording (e.g. a 
record label) the exclusive right to perform the 
copyrighted work publicly by means of a 
digital audio transmissions. 
• MUSIC INDUSTRY EXAMPLE: Music performed 
on Pandora and iTunes Radio 
17 
#6 Right to Digital Public Performance
18 
Music Copyrights Applied 
#1 Reproduction #2 Distribution #3 Derivative Works 
#4 Public Performance #5 Public Display #6 Digital Public Performance
• Copyright is secured automatically when the 
work is created and fixed in a tangible form, such 
as the first time it is written or recorded. No 
other action is required to secure copyright 
protection – neither publication, registration nor 
other action in the Copyright Office (although 
registration is recommended). 
• The term of copyright protection lasts from the 
moment of its creation until 70 years after the 
author’s death. 
19 
Copyright Protection & Term
• Copyright registration is a legal formality intended to 
make a public record of the basic facts of a particular 
copyright. 
• Copyright registration is not required, however, the 
benefits of registration include: 
– Public record of the copyrighted work, 
– Ability to file a copyright infringement claim in court, 
– Prima facie evidence in court of the validity of the 
copyright and of the facts stated in the certificate, 
– Statutory damages and attorney fees for copyright 
infringement, 
– Registration with the U.S. Customs Service 
20 
Copyright Registration
• Register online with the eCO Online System at 
www.copyright.gov/eco. 
• Complete the application: 
– Complete Form SR (Sound Recording) to get protection for both the 
recorded performance and the underlying musical composition. 
– Complete Form PA (Performing Arts) to get protection for only the 
musical composition, not the recorded performance. 
• Singer-Songwriter: If you have cover songs on your album, you’ll 
exclude those under the "Limitation of Claim" section. 
• Pay the $35 fee (single work or collection) 
• Mail two copies of the CD no later than 3 months after publication 
to the Copyright Office. 
• Complete details at http://www.copyright.gov/circs/circ01.pdf 
21 
Copyright Registration Process
22 
Two Music Copyrights 
C P 
Copyright for musical work 
“composition” 
Copyright for sound recording 
“master” 
**Digital Public Performance right applies
C C P P 
Sony Music Entertainment 
23 
Two Music Copyrights 
Diane Warren wrote 
“You’ll Never Stand Alone” 
and owns the (C) copyright 
in the musical work 
(“Songwriter”) 
Whitney Houston 
performed the song on 
album “My Love Is Your Love” 
but owned no rights 
(“Recording Artist”) 
Now RCA Records / 
The record was recorded 
and released by Arista 
Records, which 
owned the (P) copyright 
in the sound recording
24 
Two Music Copyrights 
C C P P 
John Legend wrote 
“All of Me” and 
owns the(C) copyright in 
the musical work 
John Legend 
performed the song 
and owns the (C) copyright 
(“Singer-Songwriter”) 
GOOD Music / 
Columbia Records 
The record was released 
by GOOD Music, which 
owns the (P) copyright 
in the sound recording
Music Publishing 
25
“Publication” is the distribution of copies or 
phonorecords of a work to the public by sale or 
other transfer of ownership, or by rental, lease, 
or lending. The offering to distribute copies or 
phonorecords to a group of persons for purposes 
of further distribution, public performance, or 
public display constitutes publication. A public 
performance or display of a work does not of 
itself constitute publication. 
26 
Publication by Law
• The essential purpose of a music publisher is to administer, 
exploit, and collect royalties for its copyright properties. 
• Administration entails 
– the filing of a notice of copyright with the U.S. Copyright Office, 
– the issuing of licenses, 
– collecting of royalties, and 
– paying writers and co-publishers their share of the proceeds. 
• Exploitation involves 
– getting artists to record your songs, and 
– getting your songs used in films, television, radio and TV 
commercials, etc. 
• Publishers also police the use of copyrighted works and take 
action to prevent or stop infringement 
27 
The Role of a Music Publisher
• Public Performance License 
• Mechanical License 
• Synchronization License 
• Transcription License 
• Print Rights 
• Foreign Monies 
• Administration and Registration of Copyrights 
• Song Plugging 
• Translations 
• Obtaining a Record Deal 
28 
Publisher Administration
• Self-Publishing 
– Writer owns 100% of publishing 
• Co-Publishing Agreement 
– Writer owns 50% of publishing 
• Single Song & Exclusive Songwriter Agreement 
– Writer owns 0% of publishing 
• Administration Agreement 
– Writer owns 100% of publishing and publisher gets an 
administration fee of 10-25% of income earned. 
29 
Publishing Agreement Types
• A publisher in a foreign 
territory who collects 
your publishing royalties 
and performs some 
publisher duties for a 
fee. 
• Many countries 
overseas have 
government entities to 
collect performance and 
mechanical royalties. 
30 
Foreign Sub-Publishing
• Songs must be registered with a performing rights society 
to collect performance royalties. 
• ASCAP, BMI, and SESAC are the three major societies in the 
United States. 
• ASCAP and BMI are non-profit and easy to join 
• SESAC is for-profit and selective. 
• A publisher can join all three societies. 
• A writer can join only one society. 
• SoundExchange collects digital performance royalties for 
the owners of sound recordings. 
– 50% paid to the sound recording owner, 45% to the artist, and 
5% to the backup musicians and session players (paid to AFM) 
31 
Performing Rights Societies
32 
Publishing Splits: Single Song Agreement & 
Exclusive Songwriter Agreement 
Publishing 
WRITER’S 
SHARE 
50% 
PUBLISHER’S 
SHARE 
50%
Publishing Splits: Co-Publishing Agreement 
33 
Publishing 
WRITER’S 
SHARE 
50% 
PUBLISHER’S 
SHARE 
25% 
WRITER’S 
PUBLISHING 
SHARE 
25%
34 
Royalty Collection 
License Issued By Royalty Collection Paid To 
Public Performance ASCAP, BMI, SESAC ASCAP, BMI, SESAC Publisher and 
Writer 
Mechanical Harry Fox Agency Harry Fox Agency Publisher 
Synchronization & 
Transcription 
Publisher Publisher Publisher 
Print Publisher Publisher Publisher 
Foreign Licenses Publisher or Sub- 
Publisher 
Foreign Public 
Performance & 
Mechanical Societies 
Publisher 
Digital Public 
Performance 
SoundExchange SoundExchange Record Label 
(50%), Artist 
(45%), 
Musicians (5%)
Music & The Internet 
35
• U.S. Copyright Act in general 
• Digital Millennium Copyright Act of 1998 (DMCA) 
– Criminalizing circumventing digital rights management 
that controls access to copyrighted materials 
• Online Copyright Infringement Liability Limitation 
Act (OCILLA) 
– Also known as the “Safe Harbor” provision, limits 
liability of Internet service provides and 
intermediaries against copyright infringement 
36 
U.S. Regulations of Music & The Internet
• Video Sharing 
– YouTube, Vevo, Vimeo 
• Internet Radio 
– Pandora, Spotify, iTunes Radio, Beats Music, Rdio, Grooveshark, 
Rhapsody, Tunein, iHeartRadio, Jango 
• Music Websites 
– MTV.com, Songza, Yahoo! Music, Myspace, last.fm, AllMusic 
• Music Social Media 
– SoundCloud, Reverbnation 
• Music Lockers 
– Amazon Cloud, Google Play Music, iTunes in the Cloud, Style 
Jukebox, AudioBox 
• Music Blogs 
37 
Types Of Internet Music Platforms
• Performance Income 
– All Internet platforms that use music must pay public performance 
fees to ASCAP, BMI, and SESAC. 
• Sound Recording/Master Use Income 
– Interactive (on-demand) services pay a royalty for the licensed use of a 
sound recording. (e.g. Beats, Rhapsody, Rdio, Spotify) 
• Mechanical Income 
– Digital sales earn mechanical income equal to 9.1 cent per track under 
5 min. (Amazon, iTunes, Google Play) 
– Interactive services pay streaming mechanical fees to a mechanical 
agent such as Harry Fox Agency, Music Reports, or SongTrust. (e.g. 
Spotify, Rhapsody, YouTube) 
• Digital Performance Income 
– Non-interactive services must pay digital public performance fees to 
SoundExchange. (e.g. Pandora, SiriusXM, NPR Streaming) 
38 
Publishing Income from Internet
• User Generated Content 
– User generated content is when users upload videos on YouTube containing a 
copyrighted song (e.g. background music, recording of a live performance, 
lyric video). 
– YouTube Content ID system detects copyrighted works in UGC and matches it 
to works registered in the system to create claims against the UGC and serve 
advertisements on the content. 
– The song must be registered with YouTube Content ID 
• Cover Songs 
– When someone creates a cover song and uploads a video to YouTube, the 
same UGC process applies. 
– When the song is released digitally for sale, then mechanical royalties must be 
paid for streams and sales. 
• YouTube Partner Program 
– Channel owners can earn income from ads served in and around videos on 
your channel. Music videos can be monetized this way. 
39 
Additional Income from Internet
Self-Publishing Tool Kit 
40
• Copyright 
– eCO Online System 
• Publishing Registrations 
– Composition: Performing Rights Society (ASCAP/BMI/SESAC) 
– Sound Recording: SoundExchange 
• Music Tracking 
– Nielsen BDS (Broadcast Data Systems) – tracks radio airplay and music 
video channels; powers Billboard charts 
– Clear Channel’s MediaBase – tracks radio airplay with real people; 
powers Radio & Records charts 
– TuneSat – Tracks music used on TV and web 
• Music Sales Reporting 
– Nielsen SoundScan – tracks music and video sales at retail 
– RIAA – RIAA certifies sales Gold, Platinum, Multi-Platinum 
41 
Registrations
• Synch Licensors (Marketing/Film/TV) 
– Music Dealers 
– RumbleFish 
– YouLicense 
– Pump Audio 
• Production Music Libraries (Film/TV) 
– Omni Music 
– Extreme Music 
– APM Music 
– FirstCom Music 
• Self Licensing 
– License Quote 
42 
Licensing
• Synch Licensors (Marketing/Film/TV) 
– Music Dealers 
– RumbleFish 
– YouLicense 
– Pump Audio 
• Production Music Libraries (Film/TV) 
– Omni Music 
– Extreme Music 
– APM Music 
– FirstCom Music 
• Self Licensing 
– License Quote 
43 
Licensing
44 
Audiam | YouTube Collection
45 
SongTrust | Pub Administration
46 
That’s all folks! 
More music industry insights for the DIY indie artist at 
www.DaeBoganMusic.com

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Music Publishing & Copyright Administration In The Internet Age

  • 1. Intellectual Property (Song Development) Copyright Protection (Song Created) Music Publishing (Song Monetized) Music Publishing & Copyright Administration In The Internet Age Lecture by Dae Bogan | Dae Bogan Music, LLC
  • 2. 2 About Dae Bogan 3rd Generation Music Industry Professor of Entertainment Marketing & Cross Promotions at Emerson College Master of Arts Candidate in Music Industry Administration at CSUN Music Industry Professional, Consultant, Educator, Speaker, Pundit at DaeBoganMusic.com
  • 3. • Intellectual Property • Copyright Administration • Music Publishing • Music & The Internet • Self-Publishing Tool Kit • Q&A 3 Overview
  • 5. Music as Intellectual Property Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. 5
  • 6. Industrial Property • patents for inventions, • trademarks, • industrial designs, and • geographical indications Copyright • Literary works (such as novels, poems and plays), • films, • music, • artistic works (e.g., drawings, paintings, photographs and sculptures), and • architectural design. 6 Two Categories of IP
  • 7. Industrial Property (Trademark) Copyright (Music) 7 IP in the Music Industry KISS logo is trademarked KISS songs are copyrighted
  • 8. 8 From IP to Copyright Protect your musical works (IP) with copyright protection.
  • 10. • Copyright is a form of legal protection provided by the laws of the United States to the creators of intellectual property. (U.S. Copyright Act of 1976) • This protection is available to both published and unpublished works. • Copyright protection is only available to original works of authorship that are fixed in a tangible form such as a copy or phonorecord. – Ideas can not be copyrighted 10 Copyright Basics
  • 11. Copyright protection grants six exclusive rights: 1. The right to make copies and duplicate your CD (reproduction) 2. The right to prepare derivative works (alternate versions, new arrangements, adaptations) (derivative works) 3. The right to distribute your music (distribution) 4. The right to perform the songs publicly (public performance) 5. The right to display the product publicly (public display) 6. The right to perform publicly via digital audio transmission (digital public performance) 11 Six Exclusive Rights
  • 12. • The reproduction right is perhaps the most important right granted by the Copyright Act. • Under this right, no one other than the copyright owner may make any reproductions or copies of the work. • It is not necessary that the entire original work be copied for an infringement of the reproduction right to occur. All that is necessary is that the copying be "substantial and material.“ • MUSIC INDUSTRY EXAMPLE: Making copies of a master CD or sampling a song. 12 #1 Right to Reproduction
  • 13. • The right to make a derivative work overlaps somewhat with the reproduction right. • According to the Copyright Act, a derivative work is a work based upon one or more preexisting works. • A derivative work usually involves a type of transformation. • MUSIC INDUSTRY EXAMPLE: Making a cover song or remixing a song. 13 #2 Right to Derivative Works
  • 14. • The distribution right grants to the copyright holder the exclusive right to make a work available to the public by sale, rental, lease, or lending. • This right allows the copyright holder to prevent the distribution of unauthorized copies of a work. • In addition, the right allows the copyright holder to control the first distribution of a particular authorized copy. – However, the distribution right is limited by the "first sale doctrine", which states that after the first sale or distribution of a copy, the copyright holder can no longer control what happens to that copy. • Congress has enacted several limitations to the first sale doctrine, including a prohibition on the rental of software and phonorecords. • MUSIC INDUSTRY EXAMPLE: Distributing copies of a duplicated CD via sale, rental, or no monetary exchange. 14 #3 Right to Distribution
  • 15. • Under the public performance right, a copyright holder is allowed to control when the work is performed "publicly." • A performance is considered "public" when the work is performed in a "place open to the public or at a place where a substantial number of persons outside of a normal circle of a family and its social acquaintances are gathered." • A performance is also considered to be public if it is transmitted to multiple locations, such as through television and radio. • MUSIC INDUSTRY EXAMPLE: A band performing a song at a venue, a singer-songwriter covering a song on Hollywood Blvd., or songs heard on over-head speakers in coffee shops. 15 #4 Right to Public Performance
  • 16. • The copyright owner holds the exclusive right to publicly display protected works. • As defined by the Copyright Act, displaying a work means showing a copy of the work, directly or via some device or process. • Such a display is considered public in one of four situations: 1.when it is at a place open to the public; 2. when it is at a place with a group of people larger than a gathering of family or the normal circle of friends; 3. when it is transmitted to a place open to the public or a group of people larger than a gather of family or the normal circle of friends; or 4.where it is transmitted to the public (i.e., television and radio broadcasts). • For the music industry, public display and public performance is similar. • MUSIC INDUSTRY EXAMPLE: Playing a song on the radio. 16 #5 Right to Public Display
  • 17. • The digital public performance right stems from the Digital Performance in Sound Recording Act of 1995 (DPRA). • Gives owners of a sound recording (e.g. a record label) the exclusive right to perform the copyrighted work publicly by means of a digital audio transmissions. • MUSIC INDUSTRY EXAMPLE: Music performed on Pandora and iTunes Radio 17 #6 Right to Digital Public Performance
  • 18. 18 Music Copyrights Applied #1 Reproduction #2 Distribution #3 Derivative Works #4 Public Performance #5 Public Display #6 Digital Public Performance
  • 19. • Copyright is secured automatically when the work is created and fixed in a tangible form, such as the first time it is written or recorded. No other action is required to secure copyright protection – neither publication, registration nor other action in the Copyright Office (although registration is recommended). • The term of copyright protection lasts from the moment of its creation until 70 years after the author’s death. 19 Copyright Protection & Term
  • 20. • Copyright registration is a legal formality intended to make a public record of the basic facts of a particular copyright. • Copyright registration is not required, however, the benefits of registration include: – Public record of the copyrighted work, – Ability to file a copyright infringement claim in court, – Prima facie evidence in court of the validity of the copyright and of the facts stated in the certificate, – Statutory damages and attorney fees for copyright infringement, – Registration with the U.S. Customs Service 20 Copyright Registration
  • 21. • Register online with the eCO Online System at www.copyright.gov/eco. • Complete the application: – Complete Form SR (Sound Recording) to get protection for both the recorded performance and the underlying musical composition. – Complete Form PA (Performing Arts) to get protection for only the musical composition, not the recorded performance. • Singer-Songwriter: If you have cover songs on your album, you’ll exclude those under the "Limitation of Claim" section. • Pay the $35 fee (single work or collection) • Mail two copies of the CD no later than 3 months after publication to the Copyright Office. • Complete details at http://www.copyright.gov/circs/circ01.pdf 21 Copyright Registration Process
  • 22. 22 Two Music Copyrights C P Copyright for musical work “composition” Copyright for sound recording “master” **Digital Public Performance right applies
  • 23. C C P P Sony Music Entertainment 23 Two Music Copyrights Diane Warren wrote “You’ll Never Stand Alone” and owns the (C) copyright in the musical work (“Songwriter”) Whitney Houston performed the song on album “My Love Is Your Love” but owned no rights (“Recording Artist”) Now RCA Records / The record was recorded and released by Arista Records, which owned the (P) copyright in the sound recording
  • 24. 24 Two Music Copyrights C C P P John Legend wrote “All of Me” and owns the(C) copyright in the musical work John Legend performed the song and owns the (C) copyright (“Singer-Songwriter”) GOOD Music / Columbia Records The record was released by GOOD Music, which owns the (P) copyright in the sound recording
  • 26. “Publication” is the distribution of copies or phonorecords of a work to the public by sale or other transfer of ownership, or by rental, lease, or lending. The offering to distribute copies or phonorecords to a group of persons for purposes of further distribution, public performance, or public display constitutes publication. A public performance or display of a work does not of itself constitute publication. 26 Publication by Law
  • 27. • The essential purpose of a music publisher is to administer, exploit, and collect royalties for its copyright properties. • Administration entails – the filing of a notice of copyright with the U.S. Copyright Office, – the issuing of licenses, – collecting of royalties, and – paying writers and co-publishers their share of the proceeds. • Exploitation involves – getting artists to record your songs, and – getting your songs used in films, television, radio and TV commercials, etc. • Publishers also police the use of copyrighted works and take action to prevent or stop infringement 27 The Role of a Music Publisher
  • 28. • Public Performance License • Mechanical License • Synchronization License • Transcription License • Print Rights • Foreign Monies • Administration and Registration of Copyrights • Song Plugging • Translations • Obtaining a Record Deal 28 Publisher Administration
  • 29. • Self-Publishing – Writer owns 100% of publishing • Co-Publishing Agreement – Writer owns 50% of publishing • Single Song & Exclusive Songwriter Agreement – Writer owns 0% of publishing • Administration Agreement – Writer owns 100% of publishing and publisher gets an administration fee of 10-25% of income earned. 29 Publishing Agreement Types
  • 30. • A publisher in a foreign territory who collects your publishing royalties and performs some publisher duties for a fee. • Many countries overseas have government entities to collect performance and mechanical royalties. 30 Foreign Sub-Publishing
  • 31. • Songs must be registered with a performing rights society to collect performance royalties. • ASCAP, BMI, and SESAC are the three major societies in the United States. • ASCAP and BMI are non-profit and easy to join • SESAC is for-profit and selective. • A publisher can join all three societies. • A writer can join only one society. • SoundExchange collects digital performance royalties for the owners of sound recordings. – 50% paid to the sound recording owner, 45% to the artist, and 5% to the backup musicians and session players (paid to AFM) 31 Performing Rights Societies
  • 32. 32 Publishing Splits: Single Song Agreement & Exclusive Songwriter Agreement Publishing WRITER’S SHARE 50% PUBLISHER’S SHARE 50%
  • 33. Publishing Splits: Co-Publishing Agreement 33 Publishing WRITER’S SHARE 50% PUBLISHER’S SHARE 25% WRITER’S PUBLISHING SHARE 25%
  • 34. 34 Royalty Collection License Issued By Royalty Collection Paid To Public Performance ASCAP, BMI, SESAC ASCAP, BMI, SESAC Publisher and Writer Mechanical Harry Fox Agency Harry Fox Agency Publisher Synchronization & Transcription Publisher Publisher Publisher Print Publisher Publisher Publisher Foreign Licenses Publisher or Sub- Publisher Foreign Public Performance & Mechanical Societies Publisher Digital Public Performance SoundExchange SoundExchange Record Label (50%), Artist (45%), Musicians (5%)
  • 35. Music & The Internet 35
  • 36. • U.S. Copyright Act in general • Digital Millennium Copyright Act of 1998 (DMCA) – Criminalizing circumventing digital rights management that controls access to copyrighted materials • Online Copyright Infringement Liability Limitation Act (OCILLA) – Also known as the “Safe Harbor” provision, limits liability of Internet service provides and intermediaries against copyright infringement 36 U.S. Regulations of Music & The Internet
  • 37. • Video Sharing – YouTube, Vevo, Vimeo • Internet Radio – Pandora, Spotify, iTunes Radio, Beats Music, Rdio, Grooveshark, Rhapsody, Tunein, iHeartRadio, Jango • Music Websites – MTV.com, Songza, Yahoo! Music, Myspace, last.fm, AllMusic • Music Social Media – SoundCloud, Reverbnation • Music Lockers – Amazon Cloud, Google Play Music, iTunes in the Cloud, Style Jukebox, AudioBox • Music Blogs 37 Types Of Internet Music Platforms
  • 38. • Performance Income – All Internet platforms that use music must pay public performance fees to ASCAP, BMI, and SESAC. • Sound Recording/Master Use Income – Interactive (on-demand) services pay a royalty for the licensed use of a sound recording. (e.g. Beats, Rhapsody, Rdio, Spotify) • Mechanical Income – Digital sales earn mechanical income equal to 9.1 cent per track under 5 min. (Amazon, iTunes, Google Play) – Interactive services pay streaming mechanical fees to a mechanical agent such as Harry Fox Agency, Music Reports, or SongTrust. (e.g. Spotify, Rhapsody, YouTube) • Digital Performance Income – Non-interactive services must pay digital public performance fees to SoundExchange. (e.g. Pandora, SiriusXM, NPR Streaming) 38 Publishing Income from Internet
  • 39. • User Generated Content – User generated content is when users upload videos on YouTube containing a copyrighted song (e.g. background music, recording of a live performance, lyric video). – YouTube Content ID system detects copyrighted works in UGC and matches it to works registered in the system to create claims against the UGC and serve advertisements on the content. – The song must be registered with YouTube Content ID • Cover Songs – When someone creates a cover song and uploads a video to YouTube, the same UGC process applies. – When the song is released digitally for sale, then mechanical royalties must be paid for streams and sales. • YouTube Partner Program – Channel owners can earn income from ads served in and around videos on your channel. Music videos can be monetized this way. 39 Additional Income from Internet
  • 41. • Copyright – eCO Online System • Publishing Registrations – Composition: Performing Rights Society (ASCAP/BMI/SESAC) – Sound Recording: SoundExchange • Music Tracking – Nielsen BDS (Broadcast Data Systems) – tracks radio airplay and music video channels; powers Billboard charts – Clear Channel’s MediaBase – tracks radio airplay with real people; powers Radio & Records charts – TuneSat – Tracks music used on TV and web • Music Sales Reporting – Nielsen SoundScan – tracks music and video sales at retail – RIAA – RIAA certifies sales Gold, Platinum, Multi-Platinum 41 Registrations
  • 42. • Synch Licensors (Marketing/Film/TV) – Music Dealers – RumbleFish – YouLicense – Pump Audio • Production Music Libraries (Film/TV) – Omni Music – Extreme Music – APM Music – FirstCom Music • Self Licensing – License Quote 42 Licensing
  • 43. • Synch Licensors (Marketing/Film/TV) – Music Dealers – RumbleFish – YouLicense – Pump Audio • Production Music Libraries (Film/TV) – Omni Music – Extreme Music – APM Music – FirstCom Music • Self Licensing – License Quote 43 Licensing
  • 44. 44 Audiam | YouTube Collection
  • 45. 45 SongTrust | Pub Administration
  • 46. 46 That’s all folks! More music industry insights for the DIY indie artist at www.DaeBoganMusic.com