Music Business, Copyright Basics and Royalties

Research the following questions and answer them in your own words. Use two or more sentences if
necessary. Make sure to cite your sources.
1) There are two categories of Copyright owners. What type of Copyright owner is entitled to both “Mechanical
Royalties,” and “Performance Royalties?”
2) How much does iTunes pay in Mechanical Royalties to a composer/songwriter? If that composer/songwriter
is represented by a publisher, then is that person contractually obliged to share a percentage of their
Mechanical Royalties from iTunes sales with that publisher?
3) When is a composer or songwriter entitled to Performance Royalties?
4) What is a Performing Rights Organization (P.R.O), and how do they help composers and songwriters get
paid Performance Royalties?
5) List the 3 U.S.A-based P.R.O’s?
6) How do you register a song, or a compilation of songs, with a P.R.O?
7) Composers/songwriters do not need to pay subscription fees to have a piece or a compilation of pieces
registered with a P.R.O. Where do P.R.O’s get the funds to pay composers and songwriters their Performance
Royalties?
8) How much does it cost a small venue (between 100-300 seats) to be licensed by a single P.R.O for an entire
year?
9) Name at least one case where a P.R.O fined a small restaurant, family business, or a small concert producer
launching an event in an unlicensed venue, for not paying their licensing fees?
10) What is a “gratis license” and how can you, as the owner of a small venue or of a start-up production
company obtain “gratis licenses” from composers/songwriters/publishers?
11) What are Synchronization Royalties and what type of Copyright owner is entitled to them?
12) Does a DJ, or Cover Artist need to ask permission to perform a derivative work at a venue that has
purchased the appropriate P.RO.’s license? May they also post that performance on YouTube without the
Copyright owner(‘s’) permission?
13) What type of Copyright owner is entitled to “Master Recording Royalties?” How much Master Recording
Royalties does iTunes pay these Copyright owners?
14) List at least two digital streaming platforms.

Sample Solution