Record Contracts Review

1. Record Contracts Review MUM 2700 Professor Calle

2. Rules • Class will be split into 6 groups. • You will have 15 seconds to confer with your group and answer the question. • Correct answers will be awarded a golf ball. • The group with the most golf balls at the end wins the prize. • You may not throw the golf balls.

3. 1 • Define cross-collateralization.

4. 2 • If you are profitable, your position is known as a _______ position?

5. 3 • What does A & R stand for?

6. 4 • What is the contractual definition of a “record” since the 1960’s?

7. 5 • A rough mix, a hard drive containing audio files & Pro Tools sessions, 2-inch reels or the final mix are all known as a • _ _ _ _ _ _.

8. 6 • This record company preset amount determines the base for the artists royalties.

9. 7 • What is the standard packaging deduction?

10. 8 • A mini-major does everything a major does except what?

11. 9 • Traditionally, records contain how many masters?

12. 10 • A record company not owned or controlled by a major is called an?

13. 11 • 1 point = 1 _?

14. 12 • You are issued a sum of money and asked to record and deliver a finished product. The amount issued to you is called an ___________?

15. 13 • The deduction for free goods is?

16. 14 • Reserves are necessary to offset _______?

17. 15 • The current standard return privilege is?

18. 16 • The standard return privilege until the 1980’s was?

19. 17 • True or False • The base price or royalty base for CDs is computed this way: SRLP - packaging.

20. 18 • Which record company, located in Beverly Hills at the old home of Charlie Chaplin, demanded the “90% of net sales rule” in order to account for breakage?

21. 19 • A new artist is described as someone having sold less than __________ records?

22. 20 • 500,000 U.S. copies sold.

23. 21 • 1,000,000 copies sold.

24. 22 • Define the term recoupable.

25. 23 • What percentage of mechanical royalties is the controlled composition reduction?

26. 24 • Define the all-in royalty rate.

27. 25 • Compute the mechanical royalties owed to a publisher for a song of length 8:34. • Who determines if an option is exercised?

28. 26 • Define the net royalty rate.

29. 27 • Which of these should you negotiate in your contract: • A retroactive escalation • A prospective escalation • WHY?

30. 28 • Min/Max formulas are called _____ & _________ in the Passman book.

31. 29 • When the company accepts your record because they feel it properly represents you and will therefore sell, the record is said to be _________ satisfactory.

32. 30 • The number of records an artist will record during the term of the contract is determined by what factors?

33. 31 • Which of these should you negotiate into your demo deal, calendar days or work days?

34. 32 • Discuss trends involving second albums?

35. 33 • These fees are paid as compensation for the use of the intellectual property.

36. 34 • In a demo deal, the contract guarantees the record company what important right?

37. 35 • When the company accepts your record because they determine it was professionally recorded and produced, the record is said to be _________ satisfactory.

38. 36 • The current statutory mechanical rate is in effect until the year _____?

39. 37 • 30 work days = _____ weeks

40. 38 • Your video cost the record company $150,000 to produce. • How much of that money is recoupable by you?

41. 39 • What company and digital recording product first afforded musicians and producers the ability to produce professional recordings in their home studios?

42. 40 • What does an independent promoter do?

43. 41 • The constructed retail price is computed this way: • ____ % of the wholesale price.

44. 42 • Which is usually higher, the constructed retail price or the SRLP?

45. 43 • The record company spends $100,000 on tour support. How much is recoupable by the artist.

46. 44 • Define the concept of the “term of a contract”.

47. 45 • How long does it take to produce a studio album?

48. 46 • A mid-level artist has sold how many units?

49. 47 • What is the standard artist-points range for a new artist signing with an independent record label?

50. 48 • What is the standard artist-points range for a new artist signing with a major record label?