Join Richard Stim for an in-depth discussion in this video Controlled composition, part of Music Law: Recording Management Rights and Performance Contracts.
- Under copyright law, the record company must pay…the song owner, what is known as a mechanical royalty.…As of 2014, it was 9.1 cents each time a song is…physically duplicated and distributed.…So if there are 10 songs on an album, the label…must pay the song owners 91 cents per album.…If the label sells 1,000 copies of that album,…copyright law requires that the label pay…the song owners a $910 payment.…
This payment is separate from the payment…of record royalties and is made to the song owner.…A controlled composition clause lets the record…company pay less than the law requires for…physically reproducing songs on a cd or a vinyl.…Typically, a controlled composition clause…allows the record company to pay 75% of the statutory…mechanical royalty rate, sometimes referred to as…the 3/4 rate, for controlled compositions.…
A controlled composition is any song used…on a recording that the artist controls, that is…the artist wrote it, owns it, or co-owns it.…So if the clause were included in the contract,…the label would pay the song owner approximately…
For example, when it comes to record contracts, it's important to know how advances and royalties work, how to maintain creative control, and what happens when a member leaves a band. Rich also tackles management contracts, describing what managers can do for you—and what to do when you need to let them go. Next, he explores the basic terms, riders, and payment options in performance contracts. Then learn about releases, artwork permissions, publishing and producer agreements, and other types of legal arrangements. Rich wraps up the course with a discussion of oral agreements, attorney fees and roles, and five basic rules worth remembering for every music contract.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Why bother with a contract?
- Understanding terms, options, royalties, and deductions
- Making provisions for marketing
- Including warranties and indemnity clauses
- Hiring a manager
- Understanding performance contracts
- Getting permission to use samples
- Creating a band partnership
- Record keeping
- Going through mediation or arbitration