Glossary

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26. Fair use

Permitted use of copyright without obtaining consent from its owner. It applies only under certain circumstances such as usages related to ‘parody’, ‘review’ and educational purposes.

27. Force Majeure

Events or circumstances outside a party's reasonable control than impedes such party from performing obligations set out in an agreement. Forces majeure events may including so called ‘acts of God’, strikes, lock outs, accidents, war, fire, terrorist acts, act or omission of government, highway authorities or any telecommunications carrier, operator or administration or other competent authority.

28. Gesellsschaft fur musicalische Auffuhrungs un mechaniseh Vervielfaltigungsrechte (GEMA)

Both a performing rights and a mechanical rights society. A multinational society, it represents its members throughout the German-speaking world, including some former German colonies and countries that were former members of the U.S.S.R. GEMA also services countries which do not fit in the above linguistic or geographic categories, such as South Korea, Taiwan, Iran and Turkey.

29. Harry Fox Agency, Inc.

The major collection agency in the United States for mechanical licenses. It issues mechanical licenses to record companies, collects mechanical license fees and audits record companies on behalf of music publishers or self-published artists. It is a private enterprise, unlike MCPS in the UK which is a non-for profit organisation.

30. Indemnity

Generally a clause that means one party will hold the other harmless and reimburse costs related to a legal dispute, usually as a result of an incorrect warranty or representation.

31. Japanese Society for Rights of Authors, Composers and Publishers (JASRAC)

Multinational performing rights and mechanical rights society.

32. Liability

A legal term used to describe who is at fault.

33. Licensee

Person or business entity that has been granted a license to reproduce and/or distribute copyright protected musical works to the public.

34. Licensor

Person or business entity that licenses a right to a licensee to reproduce and/or distribute copyright protected music works to the public.

35. Mechanical license

A mechanical license grants the rights to reproduce and distribute copyrighted musical compositions (songs) on phonorecords (i.e. CDs, records, tapes, and certain digital configurations). Simply stated, if you want to record and distribute a song that was written by someone else, or if your business requires the distribution of music that was written by others, you must obtain a mechanical license.

36. Mechanical Royalty

Mechanical royalties are royalties that are paid by a person or company (usually a record company) to the owner of a composition (publisher or self-published artist) for making a new recording of an existing piece of music. Mechanical royalties are calculated using either a fixed rate per copy (common practice in the US) or as a percentage of the price of the CD (or other medium) on which the recording is sold. In the latter case it is necessary to adjust if CD contains several other works. In the UK, mechanical royalties are usually collected by Mechanical Copyright Protection Society (MCPS) which then passes them to the music publisher. What the publisher receives is then split between the publisher and the creators of the music. In the US, there is a statutory rate that sets a maximum royalty per song or per minute (whichever is higher). These are published by the US Copyright Office.

37. Mediation

An out of court settlement technique in which a third party reviews the case and suggests a reasonable and fair outcome for the conclusion of the dispute.

38. Moral rights

In the context of intellectual property, the right to be acknowledged as the author of a particular work and also the right to object to derogatory treatment of that work.

39. Music Performance Fees

Fees paid to the performing societies (PRS, BMI, ASCAP, etc.) for the right of performing music publicly.

40. Neighbouring Rights

Rights which extend the original concept of protection of copyright in an author’s original work, such as: - The rights of performers (for example, actors, singers or musicians) to give or withhold consent to the exploitation of their performances. - The rights of producers of sound recordings and films to give or withhold consent to the reproduction of their recordings or films. - The rights of broadcasters or cable programme makers to authorise or prohibit the use of their programmes. This term is used in many continental European jurisdictions. Although these rights are recognised under English law as specific categories of rights, the expression “neighbouring rights” has no precise meaning or definition under English or US law.

41. Net Profits /Revenue Receipts /Income

Net profits are calculated by subtracting label’s total expenses and costs from total revenue and is often used as the basis for calculating royalty splits. Different types of labels (publishers, record, merchandise, etc) will deduct different types of cost from total revenue (gross profits) when calculating Net profits

42. Option (Term Option)

It generally refers to the label's ability to continue the term of an agreement for an additional period.

43. Option Period

The periods of periods provided for in a contract that may or may not be exercised by the party holding the right to exercise the option. A period or term of an agreement that exists after the initial period of the agreement.

44. Passing off

A legal claim one can bring when someone is using the same or similar mark or symbol as one you have been using and for which you have build a reputation and goodwill.

45. Pipeline monies

Royalties or other monies which have been collected but are not yet due for payment; in general, monies from foreign sources which have been collected by the licensee in the foreign territory but are not yet due to pay to the licensor.

46. Point (producer contract)

One point is one per cent (1%). A fifteen (15) point deals means an agreement for a royalty of fifteen per cent (15%).

47. PRS for Music

The UK Performing Rights Society. A UK collection society that exists to collect and pay royalties to song writers when their music is performed or played in public, broadcast or made publicly available online.

48. Published price to dealers (PPD)

Price set out for royalty calculation usually based on the equivalent of a wholesale price.

49. Publisher

A music publisher owns and/or administers works written by songwriters. Publishing companies range from large, multi-national corporations to individual, self-published songwriters. Publishers discover and promote song-writing talent, as well as provide important business services for their songwriters. These services include pitching their songs catalogue to music executives, recording artists, producers, managers and others to secure placement for the songs on appropriate commercial recordings. In addition, music publishers finance and produce demo recordings, pitch songs for television shows, movies, and commercials, collect royalties, and issue licenses. Music publishers also register and enforce the copyrights they administer.

50. Publishing Income

Income generated from publishing activities (synchronisation licenses, mechanical and foreign royalties collection, etc) carried out by a publisher or self-published artist.

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