8/29 Lecture NotesPerspectives on the Music BusinessWhy do artists sign with record companies?1) MARKETING!! (biggest cost)scale, mass marketing2) Front Moneyto make a certain kind of record3) Distributionto go beyond where/how they can distribute it for ‘free’ and/or “DIY”to make a big income , become a mainstream, household nameWhy do record companies sign new artists?MAKE MONEY…Grow or Die!This is a businessMoney: upfront for the recording, but lots for MARKETINGTECHNOLOGYTechnology has driven every change and law in the business!“Four phases of Technological Revolution”amateurs/tinkererscommercializationcreative anarchyrules/lawsNEW BAND DILEMMAHow do you get known?Record cheaply, setup website, YouTube, FacebookCan’t do it all yourselfproduct differentiationbranding yourselffinding sponsorsnavigating the world of GIGS/CONTRACTmoney managementMAKING NEW MUSIC TODAYHow do I…CreateDistributeMarketMonetizeWe could play that out for each of these…DIY artistNewly signed artistSuperstar artistLegacy artist9/3 Lecture NotesWhat do you believe in?COPYRIGHT BASICSLegal definition: a limited duration monopolyStrong copyright lawsstrong music industryPiracybenefits individuals/consumersinverse impact on creators, market/economy, larger societyIs copyright…The author’s right?A publisher’s right?A property right?A legal right?YES!!Statute of Anne-1709stationer’s right lapse 1694- they asked parliament to renew. Parliament sees flaws, doesn’t renewfirst ever copyright statuefirst time we see the words copyrightoffered statutory copyright to everyone (publishers and citizens now have the right)limited “term” length for new copyright registrations to 14+14 yearsOnly authors can renewDidn’t specifically discuss expiration (what happens after term expires)“Public domain” we own it, don’t have to payEarly American Copyright1st U.S. based law was based on the Statute of AnneCOPYRIGHT BASICS (today)In order to qualify for copyright protection, a work must be:original (created independently)fixed in a tangible form: the intellectual product produced in tangible formdisplays some degree of creativity (non-utilitarian…wouldn’t be covered by patent)another way to say: it must be “original and of sufficient materially to constitute a work”Types of artistic works presently entitled to copyright protection (original/creative expression of an idea…)music (sound organized in time) (i.e. songs- which include words/lyrics)sound recordingsliterary recordingspictorial/graphic (visual) worksmotion picturesdramatic works (incl. its music)architectural/sculptural workssoftwareCopyright protects….-not an idea alone, but the expression of an idea-intangible, rather than the tangiblenot the possession of a “thing” but right to control how the expression of the idea can be used i.e. doesn’t protect the “vessel” but what’s in the vessel.INTELLECTUAL PROPERTY: basics-other kinds of “intellectual property” (not protected by copyright):patent: procedures, methods, systems, processes, scientifically/practically useful inventions (e.g. better chair, awesome new showerhead) patent lasts for 20 yrs.trademark: titles, names (brands), short phrases (slogans), familiar symbols or designsright to publicity (celebrities)right to privacy (common citizens)trade secretspharmaceuticalsThe Copyright Owner’s “BUNDLE OF RIGHTS”The “Bundle of Rights” exclusive to a copyright owner are:the right to reproducethe right to make derivative works based on (using a portion of or adapting..) the copyrighted workthe right to distribute to the publicthe right to perform publiclythe right to display publicly“REGISTRATION” todaynot a condition of copyright ownership… anymore! (very recent change)WHY register with the library of Congress?Establishes a public record of an author’s copyright claim’Best proof in the event of a dispute, but not requiredBut before an infringement suit may be filed in court, registration is necessary in order to claim:statutory damages, attorney’s feesanything beyond actual (definable) damages; nothing speculativecopyright registration is administered by the U.S. copyright office, at the library of congress-no copyright police…no submission review!COPYRIGHT NOTICENotice for song (and other/general) copyrights:the Symbol ©the year of the first publicationexample: © 2012 Lady Gaga Publishing Inc.Notice specific to sound recording:the symbol ℗year of first publicationname of owner of copyrightexample: ℗ 2012 ABC Recordings Inc.1st USA Copyright Act: 1790Like Statute of AnneTerm length = 14 years, with renewal an option for 14 more years (28 total, but only if renewed by author)Provided for two copyright types:Maps or chartsBooksProtected against unauthorizedAuthor had to be U.S. Citizen and residentPermitted the piracy of foreign works, since only new works by U.S. citizens got protection1886 – The Berne Convention (international Euro treaty)Copyright shouldn’t be based on years, it should be based on life +50 yearsCopyright Evolution1909 Copyright ActRequirements:NoticeRegistration is a requirementPublicationTerm extended (28 + 28 = 56 years from publication)First-Sale Doctrine provides that:The copyright owner is only entitled to compensation for the first sale of the copy embodying the workThereafter, the owner of that one physical copy may dispose of it, or transfer/sell that copy as he/she sees fitMechanical RoyaltiesAdded to law (“statute”) as part of 1909 Act. i.e. Congress responsible for regulating the right & fee to incorporate a song on a device (for audio records), also called The Statutory Rate:1909: 2 cents or ½ cent per minute  whichever is largerdid not get updated for inflation until 1976: 2.75 cents or ½ cent per minute2006: 9.1 cents for up to 5 minutes or 1.75 cents per minute, whichever is largersong owner is the one who gets paidperson who sells the device is the one paying1909 Act was still against the Berne Convention, due to loss of copyright for:failure to renew copyrightfailure to affix proper copyright noticeabolished in 1989 so the U.S. could join1972 Copyright Act/Revisionsound recordings are added to copyrightpurpose was to stop record piracysound recordings still do not qualify for “performance rights”airplay was still considered “promotional” to create product salesCopyright Evolution: 1976 ActMost changes under the 1976 Act were intentionally meant to bring the U.S.