Unit 39 Four Areas of the Music Industry

Daisy Grace Wakefield 10 June 2015

Areas of the music industry

Unit 39

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Music Industry Four Areas

There are 4 areas of the music industry which consist of;

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Live performance; Health and safety

Tour management

Planning a live performance

Promoting a live performances

Event manager

Merchandise

Backstage roles

Front Of House

Performing rights

Record companies; Majors and independent

Finding and signing artists

Recording studios

Retail and Distribution

Internet sales

Music publishing companies; Finding songwriters/composers

A&R

Promotion

Artist management; Business management

Sponsorship

Tour management

Artists and managers rights

Merchandising


Live Performance Live performance is an important part of the music industry as this is now the main

way artists make their money. By buying tickets and merchandise you are investing in that artist allowing them to carry on creating music.

Planning a Live Performance To create a live performance there are several things to organise and prepare for

otherwise the event cannot go ahead. The first is booking a suitable venue for the artist/s to perform in. Its no good trying to book the O2 arena for a local band with a fan base of around 500 people. You will also need to book the venue either weeks or months in advance so that staff, equipment can he hired and there is plenty of time to advertise the event. You would also need to enquire about what staff they have available as you may need to source your own.

Once you have booked the venue then you need to decide on ticket prices. Depending on the venue this will help determine the ticket price as if its a well known band such as The Rolling Stones, they will more than likely be booked to perform at the O2 and therefore you would be able to charge a higher price for tickets than for example a local band in a pub. You will also need to think about merchandise and what you will sell and at what price. For a well known band, The Rolling Stones, you would have merchandise such as t-shirts, posters, limited number of signed posters to bring in some more money, wrist bands, CDs, Autobiographies where as for a local band, you would probably stick to posters, wristbands, CDs and maybe t-shirts. Pricing these items will also depend on their popularity as The Rolling Stones would be selling items between10 for wristbands and 200 for a signed poster but a local band would change 3 for wristbands and 15 for t-shirts.

You need to think about hiring staff for the event. This also includes technical crew who help set up the venue, make sure all runs smoothly during the performance and will pack away all the equipment afterwards. Most large venues such as the O2 will have their own staff available such as front of house and security which would be included in the cost of hiring the venue where as if your venue is a local hall or pub, you will have to sort out your own front of house staff and security.

Once you know that there will be enough appropriate staff, you can start advertising for the event. You can use obvious methods such as posters, flyers, bus

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adverts, newspapers, television and radio. You could also go on social media and advertise on there, ask the artist to talk about the event on social media, or you could go wild, depending on the artists popularity and budget, you could hire a small aeroplane with a banner attacked to the back advertising the event which would get people talking about it and therefore causing some free advertising.

http://areasofthemusicindustry.blogspot.co.uk/2012/05/live-performance.html

Areas associated with live performance Within the music industry, key areas that come under live performance are,

prompting live performances, health and safety, tour management, event management, Performing rights, Backstage roles, merchandise, front of house and security.

If a band or artist is on tour, then its best to have a tour manager. If the tour is very long, this role may be split between 3 or 4 different people focusing on a few particular aspects of the job. This person is responsible for making sure the tour runs as smooth as possible, the band and crew do not have any issues, bills are being paid and money is being collected. They are responsible for booking all accommodation, transportation, promotion, merchandise and crew involved with the tour. They travel with the band or artist and solve any problems that happen during the tour. They will also act as the accountant creating budgets, paying for potential hired equipment and other expenses. A tour manager is usually freelance and they work on either a daily or weekly rate paid by the artist or the artists management and the tour also pays for their accommodation, travel and other expenses.

http://www.tourconcepts.com/what-does-a-concert-tour-manager-do/

Tour managers must call ahead of venues, around a week in advance to schedule the loading in of equipment, sound check, walkthrough and creating a time table. They will also work with staff from the venue to double check details such as who will be arriving, merchandise sales and the venues cut, and what the band or artist requires back stage before the show and after. The tour manager will also contact local radio stations, and other promoters to help bring attention to the tour. As tours can span months, the tour manager will be with you every step on the way dealing with the long stressful days and thinking on their feet when a crisis strikes.

http://getinmedia.com/careers/tour-manager

The events manager and tour manager share the common role in insuring that the event runs as smoothly as possible, but the events manager is slightly different to the tour

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manager in that the events manager looks for suitable venues for the event or tour, establishing a budget, once a time and place is settled upon, they will work with those in marketing by creating poster, flyers and other forms of advertisement to help draw attention to their act. The events manager will also hire all necessary staff, equipment, organise food and drink and any other necessities for the event making sure they cater for the clients every need.

http://uk.music-jobs.com/blog/index.php/career-profile/events-manager/

https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/

As said earlier, the events manager and tour managers are the ones who work on promoting events. Promoting an event can come in a variety of different forms such as posters, flyers, advertisements on the side of buses, radio, television, newspapers, social media, artists website and it is the events managers duty to work with people in marketing to make this happen and for the advertisements to be seen by as many people as possible and also to be advertised in appropriate locations. There is no point advertising for a local band performing in Kent in the middle of India. Also, depending on who or what you are promoting will depend on what media forms you decide to use, for example, you may use posters, flyers, radio, television ,newspaper adverts and social media to help promote Reading festive for example or The Rolling Stones but for a local artist it would be more appropriate to stick to posters, flyers, local radio stations and the local newspaper.


http://smallbusiness.chron.com/promote-music-concert-event-profit-4165.html

Essential people needed for a live performance include backstage roles such as a lighting technician also known as a spark, who is in charge of all lighting and creating appropriate lighting to compliment the music. They have to carry out lighting tests to make sure all are working and are positioned correctly and keep track of bulb and filter numbers. They work alongside the chief lighting technician who directs each individual lighting technician and works with the rest of the technical crew and is an assistant to a gaffer who is in charge of the lighting technicians and chief lighting technician and they work closely with the lighting director who helps make big decisions on the lighting and may also suggest specific lighting equipment. The lighting director is in charge of the whole lighting team and they use their experience and knowledge to create suitable lighting for the desired event. They are in control of all lighting activity and any plans which show where each light should go.

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Moving onto the sound, a sound technician needs to make sure that all equipment is working and is ready to be used for the event and that there is little or no undesired sounds coming through. It is their job to make sure that all instruments on stage are working and are in tune and that there are back up instruments available if anything should happen to the ones on stage. The sound technicians can be supported by sound trainees who act as runners for them and other small tasks.

http://www.allaboutcareers.com/careers/career-path/technical-production-crew-camera-lighting-sound

A sound engineer will make sure that the sound levels are of sufficient volume for the venue and that each instrument is equal and that certain instruments are masked. Venue acoustics and crowd volume must also be considered. There is also a stage manager who's job it is to make sure that artist is in the right place at the right time. They are also in charge of all technicians ensuring they are working effectively and that the event runs smoothly.


http://www.prospects.ac.uk/theatre_stage_manager_job_description.htm

Merchandise sales from a tour or festival brings in a lot of money for the artist and their team. Items that fall under merchandise include, posters, wristbands, foam fingers, hats, t-shirts, CDs, books, signed items and many more. If its a small band then members of the band, their manager or a friend of the band will act as the seller and bring in the money from these sales and either all of it goes to the band or is split between them and their manager. If the artist is touring around venues then they might hire someone to be their merchandise person to look after the merchandise and sell as much as they can. If the artist becomes more popular then a merchandising company will want to work with you to sell your merchandise and make some money.

The company licenses the right to use your name and likeness on the merch they produce (http://musicians.about.com/od/playinglive/f/How-Does-Tour-Merchandising-Work.htm ) and the artist receives around 30% of the overall takings from merchandise sales. The venue may also want a cut of the merchandise sale profit and this can also be around 30%. Merchandise companies have started to put in caps to their contracts as to how much money from the sales the venue is entitled to. If the venue wants 35% and the cap is 30%, the extra 5% come out of the artists cut.

http://musicians.about.com/od/playinglive/f/How-Does-Tour-Merchandising-Work.htm

Performing rights provide artists with rights not dissimilar to copyright. Whilst copyright protects music, lyrics and sound recordings, performing rights provide artists

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with protection for their performances or recordings of their performances. For example, an artist who performs on stage or during a concert would usually benefit from performing rights.

http://www.soundcounsel.co.uk/legal-protections-for-musicians-performing-rights/

When a song is played in a public place, the artist the song belongs to is entitled to a certain amount of money called a royalty. All venues which play live music will have a PRS licence (Performing Rights Society). If that artists song is played and the song is registered with the performing rights society and is copyrighted, they are entitled to royalties. The Performing rights society was established in 1934 and they distribute fees to performers and copyright holders for music that has been played in a public area or broadcast. The PRS are responsible for distributing royalties to the songwriters/composers of the songs played publicly. This means that the royalties for songs will be split, usually 50/50 between the artist and songwriter(s)/composer(s).


http://www.ppluk.com/About-Us/

http://www.makingmusic.org.uk/our-services/performing-rights/performing-rights-faqs/what-are-performing-rights

https://www.prsformusic.com/aboutus/Pages/default.aspx

Health and safety is very important to think about when putting on an event or tour as you want as little to go wrong as possible. It is wise to create a risk assessment sheet for each venue to spot problems that could arise and find ways of dealing with them before they happen or the best way to treat them if they can only happen during the event. Things that could be prevented is tripping over by making sure all wires are covered or taped down with bright coloured tape so that it is obvious where they are. Electrocution can be prevented by prohibiting any water on the stage without a lid to avoid spillage and fires from overheating equipment can be prevented by sourcing fans to keep the equipment cool if they have to be on for long periods of time or turning off the equipment when not needed. It is also important to make it aware to those coming to the event if there is any strobe lighting as this could trigger an epileptic fit.


http://musicindustryguide.blogspot.co.uk/2007/10/health-and-safety.html

Front of house staff and security is important as these people are there to help make sure things go to plan. Security is essential as they make people coming to events feel safe, they make sure nothing goes into the venue that should not, turn people away who are not, for whatever reason, suitable to enter, keep the artists safe, and escort

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people out of the venue. They are there to guide people to the right place, make sure the venue does not go over capacity, also deliver first aid if the situation calls for it, and serve food and water to those attending. Front of house also sell merchandise such as programmes, make sure the venue is clean and tidy and answering questions from the public. Without front of house and security, the show could not happen.

With a live performance, the negatives to putting them on, especially touring, involve very long hours from early in the morning to very late at night. If people are touring with an artist, then they can expect to be away from home for weeks and months at a time and so are constantly working for days and maybe weeks without allocated days off. due to the huge work load, people touring could become stressed if things keep going wrong or they do not have appropriate breaks throughout the day and tour. The main benefit to a live performance and touring involve the love that these people have for music, the advantage for some to travel the world, and the money they receive in the end.


http://ccskills.org.uk/careers/advice/article/front-of-house

http://gallowglasssecurity.com/security/

Music publishing companies Music publishing companies search for songwriters and composers and will help

to promote the music created by them. They make sure the work is copyrighted and that they are paid royalties when played.

https://en.wikipedia.org/wiki/Music_publisher_(popular_music)

In a nutshell, a music publisher owns or administers copyrights in songs, and licenses them to companies and other entities that use music, such as record labels, radio stations, filmmakers, and advertisers. The publisher then collects the license fee, keeps a cut, and pays the rest to the songwriters or their heirs. Note that a music publisher controls the song -- the words and music -- as opposed to any particular recording of the song. Recordings are generally owned by recording artists and record labels. http://www.theodoramichaels.com/articles/publisher.php

Songwriters and composers sign over the copyright to the music publisher and they then licence, give permission, for music to be used while obtaining the royalties from its use and promoting their music through means such as radio, television and film. There

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are different kinds of royalties depending on what the music was used for. Mechanical royalties are received by the songwriter or composer when their music is bought for example digitally or in CD format and are paid by record companies. A synchronisation licence is given to film or television companies for example when the music is used along side a moving image and when their music is broadcast via a radio station or in a public area, they are entitled to performance royalties collected by the Performing Rights Society (PRS).


http://www.mpaonline.org.uk/music_publishing

http://www.alankorn.com/article-publishing-1.html

Within music publishing you have A&R people. A&R stands for artist and repertoire. These people are responsible for looking for a new singer or band. This involves overseeing the artists career developing from being unknown to known and acting as a bridge between the artist and the publishing company. They have to be aware of the most popular music tastes today and have to be on the hunt for artists that will flourish in the music industry.They also help the artist find the right record producer, find the best songs to use or the best songwriters to write songs for them. An A&R person can give out a record contract which creates a relationship between the artist and the record company. Its the artists manager who hires lawyers to help create the final record contract with the record company.

They also help with promotion for their artist. They help with deciding which songs are best to use as singles, which songs would make the final cut on an album, help decide what are the best methods of advertisement. In todays world, they mainly advertise digitally through social media, websites, television and radio. Music publishers help to advertise their musicians to anyone who broadcasts music such as television stations and radio stations around the world. They use the internet to their advantage using websites such as sound cloud, youtube and individual artists websites.

https://en.wikipedia.org/wiki/Artists_and_repertoire


Record companies A record company or record label is a company who works with many different

artists to help create singles and albums and sell them. Record companies also help with

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promoting the artist and merchandise with things such as music videos, t-shirts, posters, wristbands, hats and much more.

When an artist has been signed, the company must allocate a reasonable amount of studio time for the artist, songwriters and producers to create music which is meaningful to the artist and will sell. If the artist is able to record and write in their own home for example, this is slightly more desirable by the company as they do not have to pay as much or anything for the studio time.

When an artist is signed and gets for example a 1,000,000 record deal, this does not mean that this artist is suddenly worth one million pound. This means that the record company will give you the one million to spend on things such as studio time, producers, promotion, merchandise and touring. If you manage to make a profit from this then they will keep helping you create music as you are making the company a lot of money but if you fail to make any success or profit you will be dropped, but written into the contract it will say that if his happens then the debt is wiped and this is a risk big record companies make as it is estimated that one in 5 acts are successful.

https://en.wikipedia.org/wiki/Record_label#Vanity_labels

http://www.bbc.co.uk/news/entertainment-arts-10654380

There are 3 main record companies which are Sony Music, Warner Music Group and Universal Music Group. EMI was part of the main 4 until it broke down in 2012. Some of these companies own smaller record companies. These three work with artists with a large fan base but do support smaller artists they see with potential.

An independent (indies), label deals with smaller and/or more obscure artists whos music is distributed on a smaller scale but sometimes do work with larger companies to help promote an artist. As indies are smaller, they are happier with smaller profits from their artists. The only issue is that anyone could start an independent record label and the issue with this is that they could be a waste of your time or they could take all the money for themselves and cut you off. The music industry could have people who set up guidelines for people to follow if they want to be an independent record company. Although independent labels are much smaller, some can still be very successful such as 4AD, PMR, LuckyMe, Glassnote, Warp Records helping to propel new artists into the mainstream.

http://www.gigwise.com/photos/96433/21/the-best-independent-record-labels-in-the-world#gallery

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Finding and signing occurs with the A&R team, as said earlier, who search for new talent and working with the artist and the record company to produce material for them to release. The major 3 have an A&R team as well as teams in promotion, advertising, sales, legal, finance, shipping and merchandising.

Record companies get their artists music on the shelves by using distributors. Their goal is to publicise the artist and sell as many copies of their music as possible. This is helped along with promoting the artist by using posters, listening stations in the store, where the music is placed in the store, for example are they they first thing you see when you walk in or are they right at the back behind other peoples music. Distributors buy the music from the record company to sell to retailers who promote to the public. At each stage of distribution the price increases, for example, the record company sell to distributors for half the retail price, then the distribution company add a 3 charge which retailers then sell to the public at the full retail price. Record companies are anchorage of paying the shipping charges but the distributors do to pay the record companies until the music has been sold or a large enough profit has been made.

The distributor needs certain pieces of information from the record company such as;

The record companies trademark name

a special number for each release

a specific bar code for that piece of music so sales can be tracked.

The record label, major or independent create a One Sheet to help them sell their music and this includes information such as;

The label's logo and contact information

The CD title

The artist's name and band logo

The catalog number and bar code

The list price

The format

The date released to radio

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The street date, if different than the radio release date

A short description of the artist's background

Brief descriptive information about the music on the CD, including genre

Selling points, such as discounts and marketing and promotional plans for the CD

http://entertainment.howstuffworks.com/music-distributor2.htm

In todays market, those selling the music in stores are less likely to make a profit as many people now decide to download their music from online retailers such as iTunes. throughout the last 5 years or so, music

streaming and downloads are rapidly increasing and physical CD sales are decreasing. For record companies and artists

it would be better to spend more money in digital sales and streaming than with in store CD sales as they will be able to save a lot of money which can be used in other areas such as touring, more promotion and merchandise.

The illegal download of music causes significant losses to the music industry each year. Despite places such as Spotify allowing free and paid streaming services and iTunes delivering a cheap and easy way to download songs, there is still a large number of songs being illegally shared. The RIAA reports that music sales in the United States have dropped 47 percent since Napster first debuted in 1999 and The availability of free music has cost the music industry $12.5 billion in economic losses ( http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html). There is clearly huge financial losses but this is not the only loss to the music industry. As more and more songs are shared illegally, this means many people within the industry do

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Pie Chart - http://musically.com/2014/03/18/us-music-sales-down-in-2013-but-streaming-more-than-making-up-for-downloads-decline/

Table Chart - http://www.ifpi.org/news/Global-digital-music-revenues-match-physical-format-sales-for-first-time


not have jobs anymore as record companies just do not have the funds to pay them. The RIAA reveals that more than 71,000 jobs have been lost as a result of illegally downloading music ( http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html). They also cannot afford to invent in new talent and therefore cannot give many people a chance to make it when many probably could if they had the funds to do so.

http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html

http://www.ifpi.org/news/Global-digital-music-revenues-match-physical-format-sales-for-first-time

http://musically.com/2014/03/18/us-music-sales-down-in-2013-but-streaming-more-than-making-up-for-downloads-decline/

http://entertainment.howstuffworks.com/music-distributor1.htm


Artist Management roles and contracts

Merchandise is looked after by a specific member of the team sometimes referred to as a merchandise manager and they are responsible for the boxes upon boxes of t-shirts, posters, programmes, wrist bands, CDs, DVDs and set appropriate prices and arrange the merchandise in a way that will grab people attention so they sell more. They also help work out the percentage the venue gets from the sales, around 10% to 30%.

Again, the tour manger works alongside the artist and makes sure all goes to plan. They also ring up the venue in advance, around a week, to schedule in a sound check, moving of equipment, the personal needs of the artist and the guest list. They make sure the tour stays on budget and is in charge of accommodation, food, transport to venues and the days runs smoothly and deals with all issues that rise as swiftly as possible. Tour managers are self employed and therefore work on a freelance basis moving from one tour to another. From the beginning of the tour to the end, they are technically working 24/7 as at any point they could be called upon to sort out any issues but, a tour managers usual hours are from early in the morning to late at night, while also working long weekends.

A tour managers contract is between the artist and the tour manager where the tour manager must provide services that come under their job description. As a tour manager has to look after the artist and make sure everything is running smoothly, they

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may be under a lot of pressure and stress from the job, which might mean they do not have as much time to relax and take their mind of the job which could mean that they do not get enough privacy and sleep which could affect their performance as a tour manager. Maybe it should be written into the contract that they are allowed a certain amount of time a day to give the tour responsibilities to a number of people for the allotted time for the tour manager to have a break and also have days off in-between shows. Benefits to being a tour manager include accommodation along to tour as the record company pays for the tour managers accommodation and other expensive so they can get the job done, meaning the tour manager does not have to spend, what would be a considerable amount of money, on essentials and other things to make the tour go to plan.

http://www.ehow.com/about_5421337_music-management.html

The Business Manager, usually an accountant, manages the income and expenses of the artist. Business managers handle everyday transactions for artists. From money management, investments, benefits, bill paying, purchasing, book keeping, accounting and payroll.

http://www.ehow.com/about_5421337_music-management.html

Other duties include negotiating with agents and/or representatives for contracts and appearances or negotiating with union officials, TV Producers, motion picture studios, concert halls, record companies, merchandising firms, publishing companies, and more.

https://www.careersinmusic.com/business-manager/

Many artists are not well acquainted with the tax obligations that relate to their performance, licensing, sponsorship, recording, and merchandise income; equipment purchases and sales, business expenses, etc. Business managers help their clients organise their money affairs while also assisting with investments, savings, and retirement funds. Business managers usually take care of making payments to musicians, background singers, roadies, tour managers, etc., on behalf of the artist.

http://www.artistmanagementresource.com/management-advice/for-managers/music-manager-roles

Business managers are either freelance or have longer contracts with certain people. There are benefits that can be written into the contract between the business manager and the artist/record company which include earnings. The business manager can make sure that they are getting paid fairly and not underpaid. Their flexibility can also be written in detailing how many days a week and for how many hours each day they work for and when they can take holidays. Things like this can help with peoples work/life balance making sure that they are not over worked and underpaid and can can still do

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their job effectively. Negatives can include the length of the contract. Most business managers being freelance means they are not committed to a long term role, they could see themselves trapped in a 3 to 5 year contract if they cannot find any other work. Although this can be a benefit, holidays can be an issue as if there is a tour coming up and people and bills need to be paid, they may have to wait months to even see if they can take a holiday, so its not as easy and just asking and getting.

http://www.artistmanagementresource.com/management-advice/for-managers/music-manager-roles

The manager of the artist could be someone well known in the industry, a family friend or someone who sees potential in the band and wishes to taken on a managerial role with them. As the manager would have quite a lot of control over the artist, its important to select the right person.

A manager should have one of the following but ideally all:

Money it can be expensive process getting the band known;

Experience knowledge of how the industry works and how it is changing;

Contacts he has to know the right people and be liked and/or respected;

Enthusiasm if he doesnt believe in you then how is he going to persuade others?

http://www.budivoogt.com/understanding-music-industry-artist-managers-booking-agents/

With the managers rights, you must check the contract and make sure that you are not taking advice from the managers lawyer, as they will want to help their client and not you and if the manager wants you to stay away from their lawyer, this is a bad sign. A managers commission is 20% or lower, around 10%. If the percentage is higher than 20%, there should be a good reason for this. Make sure the contract with the manager is not one you are stuck in. When you first get a manager make sure that the contract, to start off with, ends or can be renewed after 12 months. This is important as the artist does not want to be stuck with someone for 3 years who does not deliver on the following;

Getting the artist signed to a known and well established record label

Obtaining a decent publishing deal

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getting appropriate tour support

a target amount of money by the end of the 12 month contract

Managers are also able to write in sunset clauses. This clause means that after the artist and manager part ways, over a certain period of time, for example 4 years, the manager is still entitled to a percentage which decreases each year until they are entitled to nothing. So for the first year, they could ask for 15%, the second year 10%, the third year 5% and the 4th year 2%. The year after this they will not be entitled to anything.

http://www.budivoogt.com/understanding-music-industry-artist-managers-booking-agents/

Organisations like the PRS and BMI help to uphold artists rights by making sure royalties are paid and they get what they are entitled to. This could be though mechanical rights, synchronisation rights and performance rights. If the artist is not paid at all or fairly, then they can take the case to court where they will be able to receive a substantial amount of money.


For example, Youtube star Michelle Phan in 2014 had a lawsuit brought upon her after using songs on her videos as backing music and breaching copyright. Ultra records has said Phan had used around 50 songs that belong to them and did not try and obtain permission for her to use them and asked for 88,000 per copyright infringement.

http://www.bbc.co.uk/news/technology-28418449

http://www.musicthinktank.com/blog/artist-managers-management-contracts.html

An artist might use a sponsor to help them by promoting that sponsor on their merchandise and get money in return as there is less money in the music industry now than there once was. Being a sponsor means that they are funding that specific person or group to do what they want to do. Normally with the word sponsorship, it is associated with giving money to someone to run for charity or some kind of charity event. Within music this means that a company is prepared to fun the artist in exchange for the promotion of their product or company. Whoever is sponsoring that particular artist might have their logo on their merchandise such as the bottom of a t-shirt, a page in their programme and even on the artists website. It is important that the artist chooses a

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suitable sponsor as if the artists target audience is for people aged between 10 and 18, maybe a cigarette company is not the best sponsor for them.

http://www.artistmanagementresource.com/78-music-sponsorship

Contracts, Copyright and royalties

Rights such as the performing rights society, mechanical rights, synchronisation rights and others have been mentioned a number of times throughout. It is time to delve a little deeper and explore other rights associated with copyright and royalties

Firstly, copyright is seen as a protection against other people from using your work, whether that be music, a book, a poem, films etc. Anything with a copyright is a form of intellectual property, intellectual property being something created by the mind. The copyright of something lasts the life of the creator with an added 50 to 100 years after their death. You have the power to let people do the following;

make copies of your music, book, film

distribute your work

perform your work, i.e. a play or music

display the work, for example a painting or poem

create alternative pieces of work inspired by yours

It is illegal for anyone to use your work without your permission but some exceptions in the UK includes education. If your work is being used in a school or university for example then, in most cases, permission to use your work and pay royalties are not necessary.

http://www.copyrightkids.org/whatcopyframes.htm

https://en.wikipedia.org/wiki/Copyright#Fair_use_and_fair_dealing

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A royalty is a sum of money paid to the owner of something that has copyright, for example music, which when displayed publicly or used, the owner is entitled to payment as, for example the music, was created by them and they want recognition for their work. Organisations such as the performing rights society (PRS) help regulate this.

http://www.investopedia.com/terms/r/royalty.asp

There are three companies which are associated with the PRS for music. They are;

Performing Right Society Limited (PRS)

Mechanical-Copyright Protection Society Limited (MCPS)

PRS for Music Limited

The PRS are a group of people who represent songwriters, composers and musicians, who have signed up to them, and retrieve royalties they are entitled to. If a musicians song is played in a public place such as a hairdressers or supermarket, then they have to pay money for the use of their music, which the PRS claim and distribute to the correct parties. This is the same for television and radio stations. If that have been played, then that musician deserves payment and recognition for their intellectual property. If the music is played on a CD, or live, this does not matter as they are still entitled to payment. From January 2014, they represent over 10,000 musicians and have a repertoire of over 10 million songs.

http://www.prsformusic.com/aboutus/faqs/prsformusicfaqs/pages/default.aspx

The Mechanical Copyright Protection Society (MCPS) are similar to the PRS, but they represent musicians, songwriters and composers when their music is being reproduced for CDs, Toys such as a babies mobile and digital downloads and represent over 26,000 members. If someone intends to play someone else's music then they need to obtain a music licence from PRS for Music for the public performance or reproduction of music in a business, venue or live event (http://www.prsformusic.com/aboutus/faqs/prsformusicfaqs/pages/default.aspx). In The Copyright, Designs and Patents Act 1988, it says if you used copyrighted music in a public place, permission to use the music must be obtained by the artists you wish to play.

PRS for Music represents these copyright owners and so amusic licence gives you the legal permission to play any copyright music controlled by them. A music licence is required regardless of whether you have bought any other type of licence.

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http://www.prsformusic.com/aboutus/faqs/prsformusicfaqs/pages/default.aspx

Phonographic Performance Limited or (PPL) are like the PRS, but they deal with licensing recorded music to businesses or for being broadcast and collects and distributes the fees to its performer and record company. The PPl was established in 1934 by EMI and Decca when they took a coffee shop owner to court as they wanted fair payment for the use of their music in his shop as the music was the reason the shop was doing so well. The VPL is the PPls sister company issuing licences to play music videos in public places or for being broadcast.

https://en.wikipedia.org/wiki/Phonographic_Performance_Limited#History

Digital Rights Management, or DRM, is a class of technologies that allow rights owners to set and enforce terms by which people use their intellectual property. This means that with digital media, such as DVDs, CDs and MP3 files, their data will become encoded to scrambled and so this media cant be shared or be burnt to a disk without the appropriate codes or usernames and passwords. This is what stops people from downloading DVDs to their computer and being sold illegally. CDs with this technology are classed as CD-ROMS as not all will play on computers and in CD players. This helps against the illegal downloading and distribution of music. They also encode downloadable music files so that they will not play on certain software, therefore helping to stop illegal downloads and piracy.

https://en.wikipedia.org/wiki/Digital_rights_management#DRM_and_music

Within music there is also a synchronisation licence and fee. This licences is given to film, video game and television companies fro example, by the owner of the copyright saying that the music can be used alongside a moving image. To use the music for this purpose the company must get in touch with the copyright holder, so the songwriter for example and the record company to obtain permission. If the company has a small budget, they can elect to use a cover version of the song. The fee can sometimes be free or it could be tens of thousands of pounds depending on the artist and song.

https://en.wikipedia.org/wiki/Synchronization_rights

http://moneyterms.co.uk/synchronisation-fees/

It is very important to have organisations like the PRS and PPL in place as it is only fair that musicians, songwriters, composers, record companies get paid for their hard

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work, talent and commitment to making music for everyone to enjoy. Without copyright, royalties and these organisations, many would not be paid for their work, or paid fairly and I highly doubt that many people would stick around in the music business and create music for nothing. Having these organisation in place can only be a benefit in my eyes as I'm sure, if people in other jobs for example only got paid for the work they did for one day of every week, they would not see that as being fair and I doubt they would stay in that job.

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Documents

Unit 39 Four Areas of the Music Industry