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Performance Royalties - Money ($) earned when your material is played on broadcast media (TV, radio, cable, internet, etc). - $ collected by P.R.O.’s (Performance Rights Organization, such as ASCAP or BMI)
Mechanical Royalties - A.K.A. (Also Known As) Publishing Royalties - $ earned per copy sold at standard rate (Statutory rate: industry standard rate)
Statutory rate (changes every 2 years in the United States) - Before 1976: 2 cents(¢) per song - 2000: 1.32 cent per minute or fraction / therefore average 4 minute song = 6.6 cents - 2006 ~ 2007: 1.75 cent per minute or fraction / therefore average 4 minute song = 9.1 cents(¢) - Advance: Loan to be recouped (paid back) - Rate only applies to songs that have been recorded and released at least once. If not, the publisher can charge whatever rate he chooses
Licensing - Before a song can be released in any format (CD, TV, Commercials, or Cassette), the user must get permission from the owner of that song - “The owner of that copyright grants the user permission the right to release that song” ==> Granting a License - Licenses are usually issued or granted by the publishing companies
Synchronization Licensing - When a song is used in a movie or on TV, the producer of the show/film must get permission from the publisher to use the song - If the publisher and producer can negotiate the $, the producer will be granted a license ==> A Sync license - The rate of payment varies and is totally arbitrary depending on what the publisher feels the song is worth
Sampling - Permission to use parts of ‘samples’ must be granted by the original copyright holder before the new recording can be released - Negotiation fee is based on how prominent the original recording stands out in the new track - The fee is also based on how many seconds or minutes of the original recording the user intends to consume in the new composition - Fee start at $2,500 - If the recording being sampled was a hit, the original Copyright holder will most likely also request points(%) on the new record - Percentage points range from 1 to 5 points
Harry Fox Agency - Is an independent company that will handle all administration needs for your publishing & songwriting business for a fee of 6.75% - They will also audit record company for you and collect foreign royalties - The fee is 6.75% of what they recover from label on your behalf
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