Glossary
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ADI
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This is the acronym for "Area of Dominant Influence," which is the geographic area or market reached by a radio or television station. Advertisers and rating companies use the ADI to determine the potential audience of a station.
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Blanket License
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This type of license is typically issued to broadcasters and venue owners who want to offer a wide variety of music that will be heard by the general public, even in the background. Performing Rights Organizations (see "PRO" definition below) collect the license fee, which is either a flat rate or an amount determined by complex formulas that include items like the size of the venue and the cost patrons pay to enter. In turn, the PROs pay performers and publishers based on similarly complex calculations.
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Buyout/Royalty-free Music
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See "Royalty Free." The two terms are used interchangeably.
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Clearance
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Use of music in any media production typically involves the acquisition of permission, or "clearance," from those who hold the rights to the music. Usually, music owners negotiate with music supervisors regarding the terms and pricing of music licenses.
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Collaboration Contract
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A collaboration contract is used when a two or more songwriters collaborate on or co-write one or more songs. The contract sets forth the rights each writer will have in the copyright to their song and stipulates the terms that will control how the song may be exploited.
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Cue Sheet
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Cue sheets determine where the royalties previously paid by the broadcaster get dispersed. There are no costs associated with cue sheets; however, most libraries (including royalty-free libraries) require that cue sheets be properly filled out when the music is used in a radio, television or other type of broadcast. A cue sheet is merely a paper trail to ensure that writers get paid what is due to them out of the money that has been previously paid by the TV stations and broadcasting entities.
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Foley Recording
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A Foley recording is a special recording of sound for use in films. For example, the Foley recording of footsteps is synchronized with the film image of a character walking across the floor of a large, empty room.
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Laser Drop
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See "Needle Drop."
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Leased Music
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See "Stock Music."
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Licensable
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When media producers use licensable music libraries, they might also have to apply to copyright organizations or report to the music libraries. Royalties of each use and music sources depend on the libraries used and the country where productions are being created.
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Master Use License
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See "Synchronization Royalty or Fee."
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Mechanical Rights
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A mechanical license is used when an artist or record company wishes to record a song written by someone else for distribution and sale to the public. A music publisher provides permission for "mechanical" duplication of its song; the mechanical royalty is a fee, based on the number of recordings sold, paid to a recording artist, songwriter and publisher for public distribution of a recorded song.
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Music Supervisor
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The music supervisor is an executive who manages the licensing of music for a film, television production, commercial or other media project. Part of their responsibility might also include handling music clearance and rights to music used in the production.
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Needle Drop (laser drop) License
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A single, uninterrupted use of a recording requiring a synchronization license for a specific use of music in a specific production. Any further use of the same or other recording constitutes additional needle drops. The fee is based upon the clearance category required in the exploitation of your production (i.e., broadcast, non-broadcast, TV program or commercial, theatrical use, etc.). The needle drop license usually requires reports and applications every time you use that piece of music with your production.
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Per Program License
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This is a license that authorizes a radio or television broadcaster to use the entire library of music managed by a performing rights organization (PRO). Unlike a "blanket license," the per program license covers the use of music in specific radio or television programs. This requires the user to keep track of all music used. The user must also obtain the rights for any music used in their program that is not covered by the license granted by the PRO.
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Print Rights
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Songwriters and publishers are paid a royalty fee for each sale of a song's printed sheet music.
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PRO
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This is the acronym for "Performing Rights Organization." The American PROs are ASCAP, BMI and SESAC. PROs collect performance revenue from radio and TV stations and networks, movie theatres and other sources that license the music. This revenue is divided among the composers and publishers of the music.
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Public Performance License
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Licenses do not include performance rights. In the United States, performance licenses may be obtained through the appropriate performing rights organization, such as ASCAP, BMI or SESAC. Music cue sheets must be submitted to PROs for any production that is broadcast or publicly performed (i.e., live shows, TV, radio, film, Internet broadcasting). A public performance is one that occurs in "a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered." A public performance also occurs when the performance is transmitted by means of any device or process (including broadcast, telephone wire, Internet or other means) to the public.
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Publisher
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Music publishers market and promote songs, exposing those songs to the public and generating income for the publishers and for songwriters. Publishers "pitch" songs to record labels, movie and television producers and others who use music. Then the publishers license the right to use the song and collect fees for its use, which they split with the songwriter.
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Record Label
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Record labels or record companies make, distribute and market sound recordings. Record labels obtain the right to record and distribute songs from music publishers and pay license fees for the recordings.
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Retransmission
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A retransmission is a subsequent transmission of a performance sent by any device or process (radio, TV, cable, satellite, telephone) and received in a different place than the initial transmission.
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Royalty-Free/Buyout Music
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Media producers pay a one-time fee up front and purchase a "lifetime sync license" for a song or group of songs. In other words, producers have the right to sync the licensed music with their audio/video productions an unlimited number of times without incurring additional expense. Royalty-free/buyout does NOT mean "copyright free." In addition, TV and radio broadcasters pay annual royalties to PROs for the right to broadcast music on their shows/stations. When music is broadcast, it is tracked on a cue sheet. In brief, a royalty-free license means that you do not continually pay a "synchronization royalty" each time you use a given piece of music. You pay only one time. It does NOT mean that a writer is forfeiting the performance royalty or broadcast royalty due him when his music is aired. This royalty has already been paid by the broadcaster and should be dispersed appropriately when the broadcaster submits the cue sheets to the proper PRO.
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Sound Recording
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A sound recording is the copyright of a recording, which is separate from the copyright granted to a songwriter for his or her song. The songwriter's copyright (which may also be partially or wholly owned by a music publisher) consists of the words and music. The sound recording copyright consists of what people hear (the artist singing, the musicians playing, etc.) when they listen to recorded music, words or other sounds on a tape, record, CD or other recording medium. The copyright of the sound recording is owned by the record label, which has been granted a "mechanical" license to record and distribute the song.
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Stock Music
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Pre-recorded music that can be licensed (leased) by media producers at a much lower cost than original music or commercial recordings of popular songs. Leased music is generally provided on an annual subscription basis, and any license for its use must be renewed on a regular basis, depending upon the length of the license term in your license agreement.
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Synchronization
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Sounds and music are "synchronized" with visual images (the sound of horses when the good guys chase the bad guys in a Western) or with an announcers voice in a radio commercial.
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Synchronization Royalty or Fee
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A synchronization royalty is paid to songwriters and publishers whose recorded song is "synchronized" as background music for a movie, TV show, or commercial. In addition, if a specific recording of a composition is used, media producers must also acquire a "master use" license. The synchronization license is obtained from the songwriter or songwriterÂ’s publisher; the master use license is obtained from the artist or the artist's record company.
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