MUC109 LEC 6a. Copyright Exceptions

Music Business Essentials

SPECIAL CONSIDERATIONS
IN MUSIC COPYRIGHT

© 2006 musicbizclasses.com

SOUND RECORDINGS


Copyright and Sound Recordings
In recorded music, there are two separate
sets of copyright ownership

Copyright for the underlying Musical Work
(Song) AND f the Sound Recording
(S ) for th S dR di

Musical Work
One Piece of
Recorded Music =
Copyright
Two Separate Sound
S d
Copyrights Recording
Copyright

The copyright holder of an original work
is called the “Author”

“Authors” for sound recordings can be the Artists,
Producers, Engineers and/or Record Labels

Actual Authorship is, typically, determined by
negotiation between the interested parties
parties,
NOT by copyright law

If no negotiation or contract, law assumes equally
shared ownership amongst all creators


Generally, th copyright i S
G ll the i ht in Sound R
d Recordings h
di has
been owned by the Record Label

Record Labels treat recording sessions
as “work for hire” situations

Based on current contracts, Recording artists and
others are paid for their time in the studio they
studio–
don’t own the copyright, unless negotiated for in
advance.

This may change…there is current legal
discussion about work for hire vs. assignment
vs
status with regard to ownership of SRs


Sound Recordings were granted Copyright
protection in 1972 (published) and 1978
t ti i ( bli h d) d
(unpublished and published)

Sound Recordings made in 1972 would enter the
public domain in 2067. (95 years from date of
formal publication f corporate ownership)
f l bli ti for t hi )

Starting 2007 the Copyright on many Sound
2007,
Recordings could be open to potential reversion
as mandated by U.S. Law (35 years)


Exceptions and Sound Recordings
Copyright of Sound Recordings are
treated differently from Musical Works
(Section 114,
(S ti 114 115 of Titl 17) th
f Title 17)--there
are notable exceptions to the
protections of the bundle of rights

Sound Recordings DO NOT enjoy
the same rights as Musical Works–
The performance right is limited
p g


Public Performance Rights
Public Performance is one of the “bundle
of rights” that is controlled by the copyright
holder
h ld
A Public Performance is ANY public
broadcast of a work beyond one’s close
one s
circle of family and friends
Public Performance includes:
Broadcasting music via radio/cable/satellite
Playing live music in a venue
Playing CDs/Mixtapes/Albums at a party
Playing background music in a retail
environment (some exceptions apply here)

Exceptions and Sound Recordings

Public Performances are unprotected
and NO ROYALTIES ARE PAID to
holders of Sound Recording Copyright

Performance in Digital Audio
Transmission i th ONLY performance
T i i is the f
right that is protected for a Sound
Recording (Per the Digital Performance
Right in Sound Recordings Act of 1995)


The Digital Performance Right
Sound Recordings in Digital Audio
are now protected

This includes:
– Non-subscription services- free
streaming
– (i.e. Internet radio)
– Interactive services- free on-demand
services on demand
streaming (i.e. Song Samples)
– Subscription services- paid on-demand
services (i.e. Satellite Radio)

SoundExchange is a PRO which was set up to
PRO,
administer royalty collection and payment

Sound Recording Exception

Piece of
recorded music Copyright holder of
Musical Work always
Musical Work paid for public
p
performance
Copyright
Sound
Recording
R di
Copyright holder of
Copyright
Sound Recording
only paid f public
l id for bli
performance
in Digital Audio
g
Transmission

Politics and Music Copyright
U.S. is out of step with other countries–
i.e. artists in Europe are paid royalties
for ALL public performances

This issue is controversial and actively
debated in the music community

U.S. Record Labels and Recording Artists
successfully lobbied lawmakers to pass
the Digital Performance Ri ht i S
th Di it l P f Right in Sound
d
Recordings Act of 1995


COMPULSORY LICENSING


Compulsory Mechanical License
Compulsory Mechanical License is another
exception to copyright protection

License= permission to use someone
else’s copyright

Compulsory Mechanical License is a mandatory
license, created as part of US copyright law

The Compulsory Mechanical License states that
anyone can record their own unique version of a
previously published (i.e. recorded) musical work

According to the law, permission of the
original artist is NOT required, BUT a
required
Compulsory License is REQUIRED

Rules for Compulsory Mechanical License

Material must be first published
and licensed by original author

You cannot alter or substantially
change:
g
– Lyrics
– Musical composition

You must notify the copyright holder
of your intention to obtain a
compulsory li
l license
– This can be complicated.
– It is easier to negotiate a standard
t s eas e egot ate sta da d
mechanical license instead.

Key Take-Aways
Copyright applies t b th th underlying
C i ht li to both the d l i
Musical Work (Song) AND the Sound
Recording

Copyright holders in a Sound Recording can
be the Artists, Producers, Engineers a d/o
t e t sts, oduce s, g ee s and/or
Record Labels

Ownership and payments for sound recording
copyrights are negotiated

Copyright of Sound Recordings are treated
differently
Notable Exceptions are:
– Public Performance Rights
– Compulsory Mechanical License © 2006 musicbizclasses.com

Key Take-Aways
Performance in Digital Audio
Transmission is the ONLY performance
right that is protected for a Sound
Recording

Compulsory Mechanical License=
Anyone can record their own unique
y q
version of a previously published Sound
Recording

It is often easier to negotiate a standard
mechanical license instead of using the
Compulsory Mechanical License

For Educational Use Only

This slide presentation is part of the
Music Business Essentials series
series.

Contact
info@musicbizclasses.com
info@musicbizclasses com
for more information


MUC109 LEC 6a. Copyright Exceptions

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