Glossary

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360 deal

An increasingly common major label deal structure in which the label not only earns income from the sale of recorded music of their artists but also gets a cut of other artist income, including money generated by touring and merchandise sales.

A&R

An abbreviation for Artists and Repertoire. The people in charge of finding new talent, new songs, and new masters for record labels.

All-In-Rate

Also called the combined rate, the all-in rate is the royalty rate that includes both the artist royalty and the producer royalty. When an artist is payed with an all-in rate it means he or she is responsible for paying the producer out of that royalty. The amount that the artist gets paid, called the net rate, is the all-in rate minus the producer's royalty rate.

Audio Home Recording Act of 1992

A US law that requires manufacturers and importers of digital audio recording devices to pay a royalty tax to copyright holders of music.

backline

The musical instruments and equipment required for a live performance. i.e. Drums, guitars, amps, monitors, etc.

Big Five

A phrase that collectively refers to the five largest corporations in the global music market: Universal, Sony, BMG, Warner, and EMI.

Black Box Monies

Unclaimed royalties for works that are collected by sub-publishers in foreign (non-US) regions.

booking agent

The person who schedules shows for a venue. They can be an employee of the venue, or someone who works independent of the venue.

Busking

Performing music or other forms of entertainment in a public place while soliciting money. Also known as street performance

CAN-SPAM

A law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violations.

Compulsory License

Also known as a Statutory License, a Compulsory License allows for someone to use a musical work under copyright without having to get permission from the copyright owner, provided they pay for the use as governed by the law.

The unauthorized use of works under copyright. Contrary to popular belief, it is not the act of stealing physical objects. It is the act of exercising a copyright holder's exclusive rights. i.e. Distributing someone else's copyrighted song without prior consent.

Counterpoint

The combination of two or more melodic lines that are harmonically interdependent, while maintaining independence in rhythm and contour.

Creative Commons

Creative Commons is a nonprofit organization that allows artists, authors, publishers and musicians the option of creating and defining a flexible copyright for their creative works. Often times it is used to provide a license that allows for free use of a copyrighted work.

CTA

Words that urge a reader, viewer, or listener to take an immediate action, such as "Buy Now," "Click Here," or "Call Now."

Demo

Recordings consisting of 5 songs or less and recorded in a less than perfect fashion. Used to shop for labels and gigs.

Derivative Work

A work based on one or more pre-existing works. To be considered a derivative work, the new piece must differ significantly from the original work(s). If the originality requirements are met, it prevents copyright infringement, and allows for the new work to be copyrighted as well.

digital rights royalties

Royalties paid for simulcasting, webcasting, streaming, downloading, and online "on-demand service"

E-Press Kit

A digital press kit. Often times in the form of a website or PDF.

Literally meaning Extended Play, this is a short album. Although the exact definition is loose, generally it will consist of 4 songs or less, and be shorter than 25 minutes.

First-Sale Doctrine

Under copyright law, if a work was lawfully purchased, the owner of that particular copy can re-sell or dispose of it as they see fit. Examples of this include selling a CD at a garage sale, to a friend, or back to a record store. The First-Sale Doctrine does not, however, allow you to reproduce the work.

Gratis License

A license that grants the right to use copyrighted material without compensation.

Harry Fox Agency

A company that represents music publishers in the negotiation of mechanical licenses, synchronization licenses and foreign licenses, and the collection of music royalty income.

Intellectual Property

Conceptual ideas that can be transferred or fixed on to a tangible medium, such as a song, book, film, Web site. The "intellectual" component of a work is the expression of ideas, the "property" refers to the physical form or manifestation of it. In music, rights are usually seen in the form of Copyright (©) or Trademark (™).

ISRC

An international standard code used to identify song recordings and music video recordings.

Jingle

A jingle is a short tune primarily used in advertising and for other commercial uses. They usually consist of a quick melodic or lyric catch that helps with branding. i.e. Everyone Knows It's Slinky

Key Man Clause

A clause that stipulates that if the manager in charge of a band leaves the company, the contract between said company and band will be terminated.

Kickstarter Campaign

A funding platform for creative projects. Used often times by musicians as a way to fund recording, touring, or music videos.

Literally meaning Long Play, these are full-length albums.

mastering engineer

This is the person responsible for getting your album ready for the public to hear. They will make sure all the songs sound like a single entity, make sure levels are equal between each song, and also loud enough to compete with the big boys.

mechanical royalties

Royalties paid for mechanical use - without human performers. (e.g. CDs, music videos, MIDI, video games, DVDs, MP3s, ringtones)

mixing engineer

This is the person responsible for taking all the tracks and turning them into a stereo file. They will EQ, add effects, edit some more, and basically make your songs sound the way you want them to.

Multiple Pricing

A form of psychological pricing. It is when you bundle items together to create a sense of value. i.e. Charging $5 for two items rather than $2.50 for each.

Odd-even Pricing

A form of psychological pricing. It is the process of setting odd prices just below an even number. i.e. $19.99 rather than $20.00. The idea is to make the price seem lower than it really is.

One Sheet

A one page version of a press kit for an artist, a one sheet contains information about the artist, their album(s), record label (if applicable), and contact information.

Pay-to-Play

When a venue requires a guarantee from you in order to play. For example, the venue may make you responsible for the sale of 50 tickets. If you don't sell all of the tickets, you are required to pay for the tickets anyways.

Payola

The illegal practice of secretly paying broadcasters to play certain records or songs.

Per Diem

Money given to performers and/or crew to cover the cost of food and other personal incidentals.

performance royalties

Royalties paid for the performance of the compositions/songs on stage or television through artists and bands

Phonorecord

Any material object onto which sounds, other than those on a soundtrack of an audio-visual work, can be recorded including an audiocassette, a CD, or a vinyl disc.

Press Kit

A package that gives a quick and comprehensive overview. Common items include photos, CDs, biographies, press coverage, etc.

Prestige Pricing

A form of psychological pricing. It is the process of inflating a price to create a greater sense of value. i.e. Charging $20 for a $12 bottle of wine.

Price Lining

A form of psychological pricing. It is used to create a price range for particular lines of products. i.e. Clothing lines often have a budget line that costs significantly less than their standard line.

print royalties

Royalties paid for printing music - lyrics, music, novels

Promotional Pricing

A form of psychological pricing. It is when a price is temporarily lowered to attract customers. i.e. 50% off sales.

PROs

Companies that act as an intermediary between copyright holders and the people that want to use copyrighted works publicly. Their primary function is to collect royalties from the use of music.

psychological pricing

A marketing practice based on the theory that certain prices have a psychological impact. i.e. $19.99 might sell better than $20.00.

Public Domain

Works that are publicly available due to intellectual property rights having expired, been forfeited, or being inapplicable. These works are no longer available for private ownership. Examples include Beethoven, Mozart, and Shakespeare.

Red Book Standard

The universal standard for audio CDs. The format requires that the audio be recorded in stereo at 44.1kHz sample rate with a 16 bit word, among other things.

RIAA

Short for the "Recording Industry Association of America," it is a trade organization that represents the recording industry distributors in the United States. Their main focus is to protect the intellectual property rights of musicians and to monitor and review laws pertaining to the music business.

Rider

A contract between a performance venue and an entertainer detailing the terms and conditions of a performance. Items covered include performance length, compensation (i.e. travel expenses, lodging), profit share, and payment.

Serial Copy Management System

A system that permits the copying of digital music by requiring users to designate how many copies they will be making.

Sound Recording Copyright Owner

The person/company that owns the actual recording of the song. For a signed band that would usually mean the record label. For independent artists, they are the SRCO. Remember, this is the recording, not the actual notes and lyrics of the music.

synchronization royalties

Royalties paid for using or adapting the musical score in the movies, television advertisements, etc

Terrestrial Radio

Conventional Radio. AM/FM. A term used to differentiate a radio station from satellite or internet radio.

Timbre

The quality of a musical note or sound or tone that distinguishes different types of sound production. For example, a voice and guitar sound different when playing the same note because they have a different timbre.

tracking engineer

This is the person who hits the “record” button whenever you are tracking a song. From setting up the mics, to editing the tracks, they will be responsible for handling all parts of the tracking process.

Underscore

The background music that accompanies a film. Often times it is a comment on what is happening in the film.

UPC

A barcode symbology. It is used to track information on trade items. Most commonly seen as a black and white set of bars and numbers.

Value Billing

Value billing is a legal term which refers to the extra fees entertainment and other lawyers charge. Usual reasons to charge more money are 'good service', 'value' and 'solutions'.

Work-For-Hire

A contractual basis wherein someone is paid for their services but will not retain any copyright ownership to the song/product.