Music Industry Glossary
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360 Deals: Contracts that allow a music company to participate in a wide range of an artist's revenue streams, including music sales, touring, merchandising, and endorsements.
A
Adaptation: A new version of a musical work that incorporates changes, alterations, or modifications, typically to suit a different medium or purpose.
Administration: The process of managing and overseeing the licensing, collection, and distribution of royalties for musical compositions.
Administration Agreement (Deal): A contract between a songwriter/composer and a music publisher, granting the publisher the authority to administer and exploit the copyrights of the songwriter/composer's works.
Administrator: An individual or entity responsible for administering the copyrights of musical compositions on behalf of the rights holders.
Advance: An upfront payment made by a music publisher to a songwriter/composer against future royalties.
Affiliation: The formal relationship between a songwriter/composer and a performing rights organization (PRO) for the collection and distribution of performance royalties.
Aggregator: A company that consolidates and distributes digital music content to various online platforms and retailers.
Arrangement: A new musical interpretation or adaptation of an existing composition, typically involving changes to melody, harmony, or instrumentation.
Audio Home Recording Act of 1992 (AHRA): U.S. legislation that establishes royalty payments to copyright owners for the sale of digital audio recording devices and media.
Audio/Visual Work (AV): A term describing a film, television show or any other visual production which includes an audio component. The use of music with a visual production requires a synchronization license.
Audit Clause: This is a term used in many types of agreements. It lets songwriters check the publisher's or record company's financial records once a year. This way, the songwriter can make sure that the money they're owed is being calculated correctly
Author: The creator of a musical work, typically referring to the songwriter/composer.
B
Blanket License: A license that grants permission to use an entire catalog of musical works within a specific category or context, such as a radio station or streaming service.
Bootlegging: he unauthorized recording and selling of a song.
Broadcast Mechanical: Royalties paid for the mechanical reproduction of musical compositions in radio and television broadcasts.
C
Catalog: The collection of musical compositions administered by a music publisher.
CMPA: Canadian Music Publishers Association
Co-Publishing Agreement: An agreement between a songwriter/composer and a music publisher in which both parties share ownership of the copyrights to the musical compositions.
Co-Writer: A songwriter/composer who collaborates with others to create a musical work.
Collapsed Copyright: A situation where the same entity owns both the copyright to the musical composition and the copyright to the sound recording of that composition.
Collection Society: An organization responsible for collecting and distributing performance royalties on behalf of rights holders.
Collective Management Organization (CMO): An entity that collectively manages the rights of multiple rights holders, typically for the licensing and distribution of royalties.
Commission: A fee paid to a composer or songwriter for creating a new musical work.
Composer: An individual who writes music, including melodies, harmonies, and arrangements.
Composition: A musical work created by a composer, including both the melody and the accompanying harmonies and arrangements.
Compulsory License: A license that allows anyone to use a copyrighted work upon payment of a statutorily defined fee, without the need for permission from the copyright holder.
Compulsory Mechanical License: A compulsory license that allows the reproduction and distribution of musical compositions for certain purposes, such as cover recordings.
Controlled Composition Clause: A clause in recording contracts that limits the amount of mechanical royalties payable to the songwriter/composer for compositions recorded by the artist.
Copyright: Legal protection granted to creators of original works, including musical compositions, giving them exclusive rights to reproduce, distribute, and perform their work.
Copyright Act: Legislation that governs the protection and enforcement of copyright law.
Copyright Registration: The process of registering a copyrighted work with the relevant government authority to establish a public record of ownership.
Copyright Royalty Board (CRB): A U.S. government body responsible for setting royalty rates for certain types of digital music services.
Cover: A new recording or performance of a previously recorded song by an artist other than the original performer.
Cross Collateralization: The practice of using revenue generated from one project to offset losses or expenses from another project within the same contract.
Cue: A signal or prompt indicating when a specific musical piece or sound effect should be played in synchronization with visual media.
Cue Sheet: A document detailing the music used in a film, TV show, or other audiovisual production, including information about the composers, publishers, and usage.
D
Derivative Work: A new work based on an existing musical composition, such as an arrangement, adaptation, or remix.
Digital Millennium Copyright Act (DMCA): U.S. legislation that addresses copyright issues related to digital content, including online piracy and digital rights management.
Digital Phonorecord Delivery (DPD): The digital transmission of musical works in the form of downloads or streams.
Digital Rights Management (DRM): Technologies used to control access to digital content and prevent unauthorized copying or distribution.
Digital Service Provider (DSP): Companies that distribute and stream digital music content to consumers, such as streaming platforms and online stores.
Exclusive Songwriter Agreement ("Staff Writer" Contract): An agreement between a songwriter and a music publisher that grants the publisher exclusive rights to administer and exploit the songwriter's compositions.
E
Exploitation: The process of commercializing and generating revenue from musical compositions through various licensing and distribution channels.
F
Fair Use: A legal doctrine that allows limited use of copyrighted material without permission from the copyright holder for purposes such as criticism, commentary, news reporting, teaching, and research.
G
Grand Rights: The rights associated with the public performance of dramatic, operatic, or theatrical works, including both the music and the accompanying lyrics or libretto.
H
Independent Publishers: Music publishing companies that are not affiliated with major record labels or entertainment conglomerates.
Infringement: The unauthorized use or reproduction of copyrighted material, which violates the exclusive rights of the copyright holder.
I
In Perpetuity: Means that the rights to a song remain with the rights holder for the full life of the copyright.
Infringement: It occurs when a person copies someone else's copyrighted items without permission.
Intellectual Property (IP): Legal rights that protect creations of the mind, including inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.
Interactive/Non-Interactive Streaming: Types of digital music streaming services that allow users to either control the selection of songs (interactive) or listen to pre-programmed playlists (non-interactive).
Interested Parties Information (IPI): Identification numbers assigned to composers, songwriters, and publishers by performance rights organizations (PROs) for tracking and royalty distribution purposes.
International Mechanical Royalties: Royalties paid for the mechanical reproduction and distribution of musical compositions outside the United States.
International Standard Recording Code (ISRC): A unique identifier assigned to sound recordings for tracking and royalty collection purposes.
International Standard Work Code (ISWC): A unique identifier assigned to musical compositions for tracking and royalty collection purposes.
Interpolated Work: A musical composition that incorporates elements of an existing copyrighted work, such as a sample or interpolation.
J
Joint Work: A musical composition created by two or more authors who contribute to the work as a collective effort.
L
Letter of Direction (LOD): A document authorizing a performing rights organization (PRO) to collect and distribute performance royalties on behalf of a songwriter or publisher.
License: Permission granted by the copyright holder to use a copyrighted work in a specific manner, typically in exchange for payment of a fee or royalty.
License Fee: The amount paid for the right to use a copyrighted work under a license agreement.
M
Metadata: Information about a piece of data, like a music track, including details such as title, artist, album, and copyright info. It helps in organizing and managing music content for distribution, licensing, and royalty tracking.
Major Publishers: Large music publishing companies that own extensive catalogs of musical compositions and have significant influence in the industry.
Mechanical License: A license that grants permission to reproduce and distribute a musical composition in the form of recordings, such as CDs, digital downloads, and streaming.
Mechanical Rights: The rights associated with the mechanical reproduction and distribution of musical compositions.
Mechanical Rights Organization (MRO): An entity responsible for administering mechanical rights and collecting royalties on behalf of rights holders.
Mechanical Royalties: Royalties paid for the mechanical reproduction and distribution of musical compositions.
Micro-Sync Royalties: Small royalties paid for the use of short music clips in audiovisual productions, advertisements, or other media.
Music Distribution: The process of making music available to consumers through various channels, including physical sales, digital downloads, and streaming platforms.
Music Modernization Act (MMA): U.S. legislation aimed at modernizing copyright laws and improving royalty payments for songwriters, composers, and music publishers.
Music Publishing: The business of acquiring, administering, and exploiting the copyrights of musical compositions.
Music Supervisor: A professional responsible for selecting and licensing music for use in films, TV shows, commercials, and other audiovisual productions.
N
Neighbouring Rights: Rights related to the public performance and broadcasting of sound recordings, separate from the rights associated with the underlying musical compositions.
Notice of Intention (NOI): A legal notice filed by a licensee to obtain a compulsory license for the mechanical reproduction and distribution of musical compositions.
O
Orphan Works: Copyrighted works whose owners cannot be identified or located, making it difficult to obtain permission for use.
P
Parody: A comedic imitation of a musical work, often satirical, created to humorously comment on or critique the original. It may involve altering lyrics or melodies for comedic effect, typically protected under fair use but should avoid infringing on the original work's copyright.
Pay Source: A revenue stream that generates income for songwriters, composers, and music publishers, such as mechanical royalties, performance royalties, and synchronization fees.
Performance Royalties: Royalties paid for the public performance of musical compositions, including radio broadcasts, live concerts, and streaming services.
Performing Rights Organizations (PRO): Entities responsible for collecting and distributing performance royalties to songwriters, composers, and music publishers for the public performance of musical compositions.
Printed Music Royalties: Royalties paid for the sale of printed music, such as sheet music and songbooks.
Producer: An individual responsible for overseeing the recording and production of a musical work, including selecting the studio, engineers, and musicians, and guiding the artistic direction.
Public Domain Work: A musical composition that is not protected by copyright and can be freely used by the public for any purpose.
Public Performance: The playing or singing of a musical composition in a public place, such as on radio, TV, in a concert hall, or at a live venue.
Publisher Share: The portion of royalties earned from the exploitation of a musical composition that is paid to the music publisher.
Publishing Administrator: An entity responsible for administering the copyrights of musical compositions on behalf of songwriters, composers, and music publishers.
Publishing Agreement: A contract between a songwriter/composer and a music publisher, granting the publisher the right to administer and exploit the copyrights of the songwriter/composer's works.
R
Retroactive Royalties: Royalties paid for past uses of musical compositions that were not previously accounted for or paid to the rights holders.
Reversion Clause: A contractual provision that allows the rights to a musical composition to revert back to the songwriter/composer under certain conditions, such as after a specified period of time or if certain revenue thresholds are not met.
Rights Administration Entity (RAE): An organization responsible for managing and administering the rights of copyright owners, typically for the licensing and distribution of royalties.
Royalties: Payments made to rights holders (songwriters, composers, and publishers) for the use of their music.
S
Sampling: The use of portions of pre-existing musical recordings in new compositions, often used in hip-hop, electronic, and pop music.
Score: The written notation of a musical composition, including the melody, harmony, rhythm, and other musical elements.
SESAC - (Society of European Stage Authors and Composers). They operates as a for-profit organization
Songwriter: An individual who writes lyrics and/or composes melodies for musical compositions.
Sound Recording: The fixed embodiment of a musical performance, including vocals, instruments, and other audio elements, typically stored on a physical medium or digital file.
Split: The division of royalties among multiple rights holders, such as co-writers, publishers, and performers.
Split Sheet: A document detailing the ownership shares and royalty splits for a musical composition among its creators and rights holders.
SR Form: It is used to copyright the sound recording
Statutory Mechanical Royalty Rate: The rate set by law for mechanical royalties paid for the reproduction and distribution of musical compositions.
Sub-publisher: A music publishing company that administers the rights to musical compositions in specific territories or regions on behalf of the original publisher.
Sync Agreement: A contract granting permission to synchronize a musical composition with visual media, such as films, TV shows, commercials, and video games.
Synchronization License: A license that grants permission to synchronize a musical composition with visual media.
T
The Mechanical Collective (The MLC): An organization designated by the U.S. Copyright Office to administer and distribute mechanical royalties for digital music services.
U
U.S. Copyright Office: The government agency responsible for registering copyrights and administering copyright law in the United States.
Unallocated Royalties: Royalties that have been collected but not yet distributed to rights holders due to missing or incomplete information.
User-Generated Content (UGC): Content created and shared by users on online platforms, including videos, remixes, and covers of copyrighted material.
W
Work-For-Hire: A contractual arrangement in which a songwriter/composer creates music specifically for another party and relinquishes ownership of the copyright to the commissioner.
Writer Share: The portion of royalties earned from the exploitation of a musical composition that is paid to the songwriter/composer.