Glossary

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51. Recording Budget

An amount that the record company makes available to cover costs associated with making a recording for a signed artist.

52. Recording Commitment

The smallest number of masters an artist is obliged to deliver to the record company during certain contract period.

53. Recording/Promotional Budget

A statement of the estimated cost of a recording session, promotional effort or project.

54. Recoupable

Recoverable.

55. Reserves

Portion of royalties held back by a label against return of product by distributors/retailers (i.e. records dispatched but not actually sold).

56. Restraint of Trade

In the UK, restraints of trade are restrictions on free trade or limitations on the individual liberty of traders to buy or sell freely. It is based on the principle that everyone shall be free to earn a living by carrying out their trade (recording, writing and/or performing music in the case of musicians) and that contractual clauses shall not fetter on freedom of contract. It also refers to the policy of the law that traders are free to select with whom they contract and anything that impedes that free selection is void on public policy grounds.

57. Retail price

Price set for the sale of product to the consumer rather that sale to the distributor/retailer.

58. Return of Rights in Compositions/Recordings

A clause or section in a Recording or Publishing agreement that describe the procedure for return of rights granted in respect to composition and/or recordings in case the label fails to secure exploitation within a certain period.

59. Returns

Records returned unsold by a distributor. Returns are debited the number of records sold and royalties are not due on records not sold.

60. Rider

Attachment to an agreement for a live performance setting forth the performers demands for dressing rooms, food, equipment, etc.

61. Right of first refusal

Right to match an offer made by another party.

62. Rights Period

Rights period is a period set out in Publishing Agreement which serves the purpose of reducing the period of transfer of copyright from 'life of copyright' to a shorter period defined in years (usually ranging from 5 to 35 years). During the Rights Period the Publisher is entitled to collect income from deals secured during the Term. Publisher must also account royalties to the Writer during this period. Following the end of the Rights Period, all rights will revert to the Writer and writer will be responsible for collecting income and securing new usages for the songs either by its own efforts (self-publishing) or by appointing a new publisher or administrator. Writer shall be free to assign the songs to another Publisher after the Rights Period.

63. Royalties

A payment made for the use or sale/licensing of something (e.g. recordings, compositions) to a party granting the right for such use or sale.

64. Sample/sampling

A sample is typically an excerpt of a sound recording embodying a copyrighted composition inserted in another sound recording. This process is often referred to as digital sampling and requires licenses for the use of the portion of the composition and the sound recording that was re-used in the new sound recording. In some instances, artists re-record the portion of the composition used in the new recording and, therefore, only need to obtain a license for the use of the sampled composition.

65. Societe des Auteurs, Compositeurs et Editerus de Musique (SACEM)

Multinational performing rights society for France and over 30 other territories, most of which, but not all, were formerly part of the French Empire. SACEM administers and collects for performing rights, performance rights, broadcasts royalties for producers and performers and neighbouring rights.

66. Society of Composers, Authors and Music Publishers of Canada (SOCAN)

The only performing rights society in Canada. Formed in 1990, it represents a merger of the two prior existing performing rights societies in Canada.

67. Society of European Stage Authors & Composers, Inc. (SESAC)

The third public performance society in the United States along with ASCAP and BMI. It collects and distributes music performance fees on behalf of composers, authors and publishers.

68. Sub-publisher

A publisher, usually in another territory/country, who acquires a license to perform publishing activities in regards to certain content in such territory/country.

69. Sunset Clause

Refers to earnings the manager gets paid after the end of the term of a management agreement for deals negotiated and entered into by artist during the term and which continue to generate income after the end of the term. The manager's earnings after the term are gradually reduced over a number of years until they stop.

70. Synchronisation

Type of exploitation by means of coupling of songs with images in films, TV, DVDs, video games, etc.

71. Synchronisation Right

The right to couple visual images (e.g. film and video) with musical compositions and recordings. Such synchronisation requires that the owner of the music grant the user a license, for which a negotiated fee is payable.

72. Term (of contracts)

A fixed period of time for which a contract is in force.

73. Territory

The physical geography or place for which an agreement is enforceable.

74. The Mechanical Copyright Protection Society (MCPS)

A UK collection society that collects money for songwriters and composers for the use of their material in recordings. The ‘mechanical right’, as administered by MCPS, consists of two of these rights: • the right to copy the work; • the right to issue copies of the work in public; Mechanicals refer to the use of music in CDs, Computer games, Records Feature films, Audio tapes Websites, Music DVDs, Telephone ringtones, TV and Radio Novelty products and Videos Commercials. Money is collected from the sale of these items and distributed to the members.

75. The Phonographic Performance Society (PPL)

A UK collection society which licenses TV and radio stations, online streaming services and hundreds of thousands of shops, pubs and others to use recorded music in their business and pays the collected royalties to record labels or self-released artists.

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