Answers/Glossary
Reference
The Independent Artist's Money Glossary
75 terms from the money side of independent music, each defined in one place so you can look up exactly the word that stopped you. Royalty and copyright terms describe the United States system. Every definition stands on its own — you should not need to read the one above it.
A
- Advance — An advance is money paid to an artist or songwriter up front against royalties they are expected to earn later.
- Aggregator — An aggregator is a company approved by streaming services to deliver music into their catalogues in bulk on behalf of many artists and labels.
- ASCAP — ASCAP, the American Society of Composers, Authors and Publishers, is a US performing rights organization founded in 1914.
B
- Beat lease — A beat lease is a non-exclusive licence to use a producer's instrumental, sold at a low price with defined limits on streams, sales, video views and…
- Black box royalties — Black box royalties are music royalties that were collected but could not be paid to the correct owner, usually because the work or the recording was…
- BMI — BMI, Broadcast Music, Inc., is a US performing rights organization founded in 1939 that licenses public performance of compositions and pays…
- Breakage — Breakage is money a digital service pays a label or rights holder that is never attributed to any specific track — minimum guarantees, advances and…
C
- Catalog — A catalog is the body of songs or recordings a person or company owns. In publishing it means the compositions; on the recording side it means the…
- CD Baby — CD Baby is a music distributor that charges a one-time fee per release instead of an annual subscription — $9.99 for a single and $14.99 for an album…
- CISAC — CISAC, the International Confederation of Societies of Authors and Composers, is the global umbrella body for collection societies.
- Co-publishing deal — A co-publishing deal is an agreement in which a songwriter assigns part of the publisher share of their compositions to a publisher, usually half of…
- Compulsory license — A compulsory license is a licence the law grants automatically, on set terms, without the copyright owner's consent.
- Content ID — Content ID is YouTube's automated system that matches uploaded videos against a database of reference files supplied by rights holders.
D
- Derivative work — A derivative work is a new work based on one or more pre-existing works — a remix, a translation, an arrangement, a sampled track.
- Digital performance royalty — A digital performance royalty is the payment owed for publicly performing a sound recording over a non-interactive digital transmission — Pandora…
- DistroKid — DistroKid is a subscription music distributor that delivers unlimited releases to streaming services for an annual fee and passes on 100% of…
- DMCA takedown — A DMCA takedown is a formal notice sent under the Digital Millennium Copyright Act asking an online service to remove material that infringes your…
- DSP (digital service provider) — A DSP, digital service provider, is a streaming service or download store that licenses and delivers music to consumers — Spotify, Apple Music…
E
- Exclusive beat agreement — An exclusive beat agreement is a contract in which a producer stops licensing an instrumental to anyone else and grants it to a single artist.
- Exclusive license — An exclusive license grants rights to one licensee and commits the owner not to grant the same rights to anyone else.
F
- Fixation — Fixation is the moment a work is recorded or written down in a tangible form stable enough to be perceived or reproduced.
G
- GMR (Global Music Rights) — Global Music Rights is a US performing rights organization founded in 2013 by music executive Irving Azoff.
H
- Harry Fox Agency — The Harry Fox Agency, founded in 1927, is a United States mechanical licensing agency.
I
- Interpolation — An interpolation is a re-performance of a melody, lyric or musical phrase from an existing song in a new recording, rather than a copy of the…
- IPI / CAE number — An IPI number, formerly called a CAE number, is a unique identifier assigned to a songwriter, composer or publisher within the international…
- ISRC — An ISRC, International Standard Recording Code, is a 12-character identifier assigned to a specific sound recording.
- ISWC — An ISWC, International Standard Musical Work Code, is a unique identifier for a musical composition, formatted as T followed by nine digits and a…
M
- Master use license — A master use license grants permission to use a specific sound recording, as distinct from the composition.
- Mechanical royalty — A mechanical royalty is the money owed for reproducing a musical composition — copying the song itself, not the recording of it.
- Metadata — Metadata is the descriptive and rights information attached to a release: titles, artist names, writer credits, ISRCs, the UPC, release date, genre…
- Music distributor — A music distributor delivers recordings to streaming services and stores on an artist's behalf and collects the recording royalties those services…
- Music Modernization Act — The Music Modernization Act is United States legislation signed in October 2018 that created the blanket mechanical licence for digital streaming…
- Music publisher — A music publisher is a company that owns or controls copyright shares in musical compositions and exploits them — registering works, collecting…
- Musical composition — A musical composition is the song itself — the melody, harmony, structure and lyrics — protected as its own copyright separate from any recording of…
N
- Non-exclusive license — A non-exclusive license grants permission to use a work while leaving the owner free to grant the same permission to anyone else.
P
- Per-stream rate — A per-stream rate is the average amount a recording earned per play, calculated after the fact by dividing royalties received by streams delivered.
- Performance royalty — A performance royalty is the money owed when a musical composition is performed publicly — on radio, on television, in a bar, at a venue, or in a…
- Pre-save — A pre-save is a link that lets a listener authorise a streaming service in advance to add an upcoming release to their library automatically on…
- PRO (performing rights organization) — A performing rights organization licenses the public performance of musical compositions and collects performance royalties for songwriters and…
- Pro-rata allocation — Pro-rata allocation is the method streaming services use to divide royalties: all revenue in a market and month is pooled, a contracted share goes to…
- Producer points — Producer points are a producer's percentage share of the sound recording's income, expressed in points where one point equals one percent.
- Public domain — Public domain works are works whose copyright has expired or never existed, free for anyone to use without permission or payment.
- Publisher share — The publisher share is the half of a composition's performance and mechanical royalties that belongs to the publisher of the song.
- Publishing — Publishing is the business of owning and exploiting musical compositions — the songs themselves, not the recordings.
- Publishing administrator — A publishing administrator collects a songwriter's publishing royalties worldwide for a commission without taking ownership of the songs.
R
- Recoupment — Recoupment is the process by which a label, publisher or distributor recovers money it advanced to an artist out of that artist's future royalties.
- Release date — A release date is the day a recording becomes publicly available across streaming services, set in advance when the release is delivered by a…
- Royalty pool — A royalty pool is the total sum of money a streaming service sets aside for rights holders in a given market and month, before it is divided among…
- Royalty-free — Royalty-free means a licence is paid for once and carries no ongoing per-use royalty obligation.
S
- Sample clearance — Sample clearance is the process of obtaining permission to use part of an existing recording in a new work.
- Section 115 — Section 115 of the United States Copyright Act creates the compulsory mechanical licence for musical compositions.
- Self-publishing — Self-publishing in music means owning and administering your own compositions rather than signing them to a publisher.
- SESAC — SESAC is a US performing rights organization founded in 1930. Unlike ASCAP and BMI it is a privately held, for-profit company and is invitation-only…
- Session musician release — A session musician release is a short signed agreement in which a hired performer confirms their contribution is a work made for hire or assigns…
- Songtrust — Songtrust is a global publishing administration service for songwriters. It registers compositions with collection societies worldwide, collects…
- Songwriter split — A songwriter split is each writer's percentage ownership of a musical composition. The percentages must total 100% and are what The MLC, ASCAP and…
- Sound recording — A sound recording is the fixed capture of a performance — the master — protected as its own copyright separate from the underlying musical…
- Sound recording royalty — A sound recording royalty is income earned by the specific recorded master of a song, as opposed to the underlying composition.
- SoundExchange — SoundExchange is the United States organisation designated to collect and distribute the digital performance royalty on sound recordings from…
- Splice Sounds — Splice Sounds is a subscription sample library that grants a royalty-free, non-exclusive licence for every sound you download.
- Split sheet — A split sheet is a signed document recording each contributor's ownership percentage of a musical composition, along with their legal names, PRO…
- Statutory damages — Statutory damages are a fixed range of monetary awards a copyright owner can elect instead of proving actual losses. Under 17 U.S.C.
- Statutory rate — A statutory rate is a royalty rate set by law rather than by negotiation. In United States music, it usually means the mechanical royalty rate under…
- Store delivery — Store delivery is the process by which a distributor transmits a finished release — audio, artwork, metadata and rights information — to each…
- Sub-publisher — A sub-publisher is a publishing company that represents another publisher's catalogue in a specific foreign territory, registering the works with the…
- Sync license — A sync license grants permission to synchronise a musical composition with visual media — film, television, advertising, games, online video.
T
- The MLC (Mechanical Licensing Collective) — The MLC is the non-profit organisation designated under the Music Modernization Act to administer the United States blanket mechanical licence.
- TuneCore — TuneCore is a music distributor offering both annual subscriptions and pay-per-release pricing, delivering to 150+ stores while artists retain 100%…
- Two copyrights — Every released song contains two separate copyrights: the musical composition, owned by the songwriters and publishers, and the sound recording…
U
- Unmatched royalties — Unmatched royalties are royalties a collecting society has received but cannot link to a registered work or recording.
- UPC — A UPC, Universal Product Code, is the 12-digit barcode number identifying a music release as a product — a single, EP or album — as distinct from the…
- US Copyright Office — The United States Copyright Office is the federal agency, part of the Library of Congress, that administers copyright registration and records.
- User-centric allocation — User-centric allocation is a streaming royalty model that divides each listener's own subscription fee among the artists that listener actually…
W
- Work made for hire — A work made for hire is a work whose author, in law, is the employer or commissioning party rather than the person who created it.
- Writer share — The writer share is the half of a composition's performance royalties that belongs to the songwriters.
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