Here are some basic definitions of music business concepts in alphabetical order. Links in the left-hand column are external and links in the right-hand column are internal. (You can search the whole page with your browser Find command, Ctrl and F.)
| Music biz jargon | What it means (with internal links) |
|---|---|
| 360° deal (contract) | A record label deal that takes a cut from all the artist’s income (merchandising, touring, publishing, etc.) as well as record sales. Sometimes called a Kitchen Sink deal. |
| A&R | A&R is the person or group of people who sign new acts to a record label. (They used to select material from publishers for artists signed to their label, hence Artists and Repertoire.) |
| AAC | Advanced Audio Coding is an MP4 file format. MP4 sounds better than MP3 and allows DRM to be added to the audio track. Apple and Real Audio use AAC. AAC is an MPEG standard. |
| acetate | see dub plate. |
| advance (contract) | An advance is a loan, normally from a record label to an artist, to be repaid (recouped) from record sales. An advance is for one or more albums depending on the contract. A publisher’s advance would be recouped from publishing royalties. |
| aggregator (digital) | Digital aggregators supply music downloads from labels and artists to many (often 20 or more) online retailers, e.g. iTunes, Napster, Real, Yahoo! |
| AIM | The Association of Independent Music is the UK record industry trade body for independent labels. |
| aimlabeldata | Aimlabeldata provides information to CatCo for AIM members. |
| airplay (royalties) | Broadcasters buy performance licenses from PPL (recordings) and PRS (compositions) for the right to play live and recorded music. Big stations make full usage returns of all the music they play to PPL and PRS. License money is shared among members minus the society commission. |
| à la carte (digital) | A download site, or similar cell phone facility, which charges for each download or album (cf. pre-payment/subscription). |
| assignment (copyright) | Copyright can be assigned to a label or publisher, or a third party such as a royalty collection society. This allows them to act on behalf the copyright owner to issue licenses and collect royalties within the terms of the assignment. |
| AURA | A defunct UK collection society. The Association of United Recording Artists used to collect performers’ royalties from PPL and pay artists direct. AURA was mainly used by featured artists and producers but also by session musicians. |
| band contracts | A band partnership agreement spells out the rights of individual band members and how they get paid. If there is no band contract, anything not owned by individuals is liable to be shared equally between the members. Unequal shares must be formalised. |
| bar-code (CD) | A bar-code is a machine readable number (e.g. UPC code) used for various purposes in manufacture, retail and commercial use of a CD. Bar-codes don’t just identify CDs at the counter, they are also used for chart returns. Some distributors and retailers insist on bar-coding. The easiest and cheapest way for a DIY artist to bar-code a CD is to use a retailer like CD Baby. |
| black box (royalties) | Royalty collection societies cannot always find the people they collected royalties for, either because they are non-members or lost. Their royalties are held as black box income. Different countries and organisations deal with black box income in different ways. |
| blank media levy | Some countries impose a tax on CD-R, cassette, other blank media and players to compensate for supposed illicit copying. In the EU there are blank media levies in Germany, France, Italy, The Netherlands, Spain, Austria, Belgium and Greece. Poland, Hungary, Latvia, Slovenia, Lithuania, Slovakia, the Czech Republic, Estonia, Cyprus and Malta plan to implement levies, or have recently done so. There are also blank media levies in Canada and some other non-EU countries. |
| blanket license | A blanket license is an exclusive arrangement applied in the same way to everyone who licenses the material. Rights owners who sign a blanket license agreement get a basic package that fits most cases. For example, if you don’t want tobacco companies to use your tracks in advertising you need a blanket license with that condition, or to opt out of that license (if you can). |
| BPI | The British Phonographic Industry is the UK record industry trade body for major labels and large independents. |
| broadcast (royalties) | See airplay. |
| burning (CD) | See duplication. |
| The publishing copyright symbol. It represents the rights of the writer. |
| CAE | Compositeur Auteur Editeur is the most common global identification code for writers. |
| catalogue music | See film music. |
| CatCo | CatCo is an electronic system that sends details of recordings from record labels to PPL and MCPS. CatCo is owned by PPL and free to PPL members. |
| clearance (copyright) | For the right to use music in some circumstances it must be cleared with the copyright owners. Clearance is needed for copying, not just for commercial use. It is normally negotiated through licensing and collection societies, but may be through labels and publishers. |
| collection societies | Collection societies issue licenses to music users and share the license fees among copyright owners (normally record labels, publishers, writers and performers). |
| company | People are legal entities: they can be taxed and sued. Companies (including legal partnerships etc.) have similar status. You don’t have to set up a legal company to start a record label or publishing company but you may need to start one later depending on your circumstances. |
| compulsory license (USA) | This applies in the USA, not the UK. When a song is published in the USA anyone can cover it. It’s a mechanical license. |
| controlled composition (USA) | This applies in the USA, not the UK. It’s a deduction by the record label when songs are written by the artist (on USA releases). |
| copyleft | Copyleft is a copyright license that attempts to distribute material under public domain conditions while ensuring future changes are available to everybody in the same way. The main conditions are free distribution, credit for the originators and the same license for onward development. It was originally developed for software, then used more widely for other creative content on the web. A reversed copyright symbol is sometimes used to identify copyleft, but copyleft isn’t the opposite of copyright. The copyleft symbol has no legal meaning. |
| copy prevention (CD) | See copy-protection. |
| copy-protection (CD) | Major record labels use a number of different (so-called) copy-protection techniques for certain releases. These are formatted in a non-standard way to stop them playing normally in PCs. |
| copyright | Music copyright gives content creators and owners legal backing for certain restrictions on copying. |
| copyright control | Copyright control means copyright is retained by the writer and not assigned to a third party. |
| Creative Commons | Creative Commons is a range of share-alike copyright licences to package the ideas of copyleft for (mainly Internet) creative content. It’s important to understand that a free distribution license is permanent and cannot be revoked. A symbol with two Cs is often used for Creative Commons, but the proper legal shorthand is the normal copyright symbol. |
| covers (copyright) | Anyone can cover another writer’s work, under the terms of PRS or MCPS assignments where they exist. Under these blanket licenses the writer is paid mechanical and performance income. If the work is not assigned to MCPS or PRS the cover should be cleared through the publisher. |
| cross-collateralise (contract) | Cross-collateralisation means a label can recover (recoup) an advance on one album from sales on other albums. Generally, all your advances and royalties with one label will be in one pot. |
| deal (contract) | A record deal is a recording contract. |
| deductions (contract) | Deductions or discounts reduce the effective royalty rate. The headline rate in a contract can be substantially reduced by clauses about other territories, music formats, etc. Any reductions extend recoupment (which puts back the date when the label owes the artist money). |
| Digipak | Digipak is a proprietary range of CD (and DVD) packaging. |
| distribution (digital) | Digital distribution means “moving music files electronically”. It normally refers to the online equivalent of traditional distribution (shifting downloads instead of CDs). See aggregator. |
| distribution (CD) | Traditional distribution is about moving CDs (or other physical recordings) from record labels to retailers. Distributors do more than carry boxes of CDs, they also promote and invest in releases. |
| DIY | Do it yourself : making, distributing and selling records (and sometimes publishing) under your own steam. |
| DRM | Digital Rights Management is a kind of copy-protection. It is a hardware or software device that forces users to comply with copyright owners’ conditions. |
| duplication (CD) | Standard CDs are pressed. Some duplicators (or replicators) burn CD-Rs and these copies are cheaper but less reliable. |
| dub plate | A dub plate is an acetate disc which has been cut from a (normally) tape master. The acetate can be played on a record player but it isn’t very robust. Acetates are designed to be metal-plated and used to manufacture finished vinyl records but can be used for limited demo purposes. |
| EAN | European Article Numbering codes can be used for bar-codes in Europe. UPC codes are used in the USA and Europe. |
| EP | Extended Play (EP) records were originally 3 or 4 track 45 rpm 7 inch vinyl singles. (A normal vinyl single had one track on each side.) Later the term EP was also used for 12 inch vinyl records, cassettes and CDs with more than two tracks. (cf. LP) |
| exclusive (contract) | Exclusive means that something can only be done by some people. It’s a contractual term that normally ties an artist to one record label. |
| fair use (copyright) | Fair use is a non-UK music copyright term. In certain countries (USA, Canada, Germany, Belgium, and others) CD buyers are allowed to make a number of copies for personal use. |
| fair dealing (copyright) | The UK (Copyright, Designs and Patents Act 1988) term for certain exceptions to copyright law. These don’t include the equivalent of personal (fair use) copies. |
| film music | Music and recordings for film can be licensed from publishers and record labels. Unlike licenses for normal broadcasting or performance, rates for these master use and sync licenses are not fixed, so film (video, advert, etc.) makers negotiate a price. Library and catalogue music providers offer ready-made, pre-cleared recordings for a wide range of video (and other) applications. These catalogues are normally licensed through PPL, PRS and MCPS. |
| fingerprint (digital) | Fingerprinting is a way of recognising digital files by patterns in their data. The fingerprint is a short code, which can be read by special software to reliably identify the title and other details of a particular track. Fingerprinting is sometimes (erroneously) called watermarking. |
| first use (USA) | This applies in the USA, not the UK. Because of compulsory mechanical licensing, first use has a special meaning in the USA. |
| FLAC | Ogg Free Lossless Audio Codec is a popular music file format used for downloading and digital music players. It’s called lossless because unlike MP3 the files can be played back at the original quality. The files are about half the original size. Ogg FLAC is a Xiph.org open standard. |
| getting signed (contract) | Getting signed means signing a contract with a record label (for performers) or with a publisher (for writers). |
| HDCD | A Microsoft music disc format compatible with CD players. |
| IFPI | The International Federation of the Phonographic Industry is the international trade body for major labels and large independents. |
| imprint | An imprint is a record label, normally a sub-label of a larger group. |
| independent | Independent normally means record labels that are not majors. |
| indie | Indie is a broad term with many general meanings. It refers to independent record labels, several ways of doing business, various styles of music and a number of philosophies. |
| ISRC | International Standard Recording Codes identify recordings (tracks). |
| ISWC | International Standard Musical Works Codes identify compositions. |
| J-card | The front insert for a slim jewel case. |
| Jewel case | A standard plastic CD case. |
| JOL | The Joint Online License is a combined license from MCPS and PRS to cover the performance and duplication of tracks online. It is intended for commercial sites like iTunes, not artist sites. |
| jukebox (digital) | Can mean either PC playlist software or an online coin-op jukebox in a commercial venue. |
| label | See record labels. |
| key man clause (contract) | A key man clause names a person in a contract which is otherwise between organisations or partnerships. A band member or writer might be specified by a record label or an A&R man might be specified by a band. The contract normally depends on the key man or key men remaining in place. |
| library music | See film music. |
| LP | Long Playing (LP) records were 12 inch 33 rpm vinyl records. They were also known as albums because each would replace several of the shorter-running 78 rpm records. A piece of music or compilation of songs was previously issued as an album of records. (cf. EP) |
| live performance | See venue licensing. |
| major | A major record label. The major record labels are the biggest members of record industry trade bodies (e.g. RIAA in America and BPI in the UK). There isn’t a fixed definition—the majors are just the labels that sell most records. The number has got smaller over the years. |
| mastering (CD) | Mastering is the final engineering stage in audio production, normally for duplication. It is a skilled, genre-specific job. |
| master use license | A master use license is a phonographic copyright license to pay recording owners for music used in film, video, or TV soundtracks. There is no fixed fee for master use licenses. |
| MCPS | The Mechanical Copyright Protection Society issues licenses for copying recordings (see mechanicals) and collects royalties. |
| mechanical (royalties) | A mechanical license is a publishing license to pay writers for copies of music that play mechanically. It was originally for piano rolls (punched sheets that worked automatic player pianos) to compensate for lost sheet music royalties. Today mechanicals include CDs, downloads, ringtones, musical toys and MIDI files, and are collected in the UK by MCPS. |
| MIDEM | MIDEM is a music fair held annually in Cannes, France. |
| mid-weeks | The mid-weeks are provisional record sales figures issued to the industry during the week. |
| MP3 | MP3 is a popular music file format used for downloading and digital music players. File sizes are generally about a tenth of the original size. MP3 was invented in 1987 and available publicly from 1995. MP3 is an MPEG standard. |
| NDfM | New Deal for Musicians: A UK government scheme to enable unemployed musicians, who are eligible for either the New Deal for 18 to 24 year olds or New Deal 25+ programmes, to pursue a career in the music industry. |
| neighbouring rights (copyright) | Neighbouring rights generally refer to recordings rather than copyright in the content itself. The rights of performers and broadcasters to recordings of their work are neighbouring rights. |
| Ogg | Ogg is a container for a range of music file formats used for downloading and digital music players. Ogg is used with FLAC and Speex but normally refers to the lossy codec, Vorbis. File sizes are generally about a tenth of the original size. These Xiph codecs were invented to counter the threat of closed MP3 licensing. Ogg Vorbis is a Xiph.org open standard. |
| one-sheet | A one sheet is a single page of information about a record release including information about the artist. One sheets normally form part of a press kit and are used by distributors and retailers. |
| option (contract) | An option is normally an option to extend the term of a contract but it doesn’t mean everybody has options. Sometimes only the label has the option and it may be automatic. |
| The recording copyright symbol. |
| P2P | P2P is a way of networking computers over the Internet so they can exchange files directly. It has many legal applications. |
| P@MRA | A defunct UK collection society. The Performing Artists’ Media Rights Association (P@MRA or PAMRA) used to collect performers’ royalties from PPL and pay artists direct. P@MRA was mainly used by session musicians. |
| phonographic (copyright) | Phonographic and phonogram are old technical terms for audio recordings. The phonographic copyright gives recording owners rights over the use of their recordings. |
| PPD | The Published Price for Dealers is the wholesale record price paid by a retailer. |
| podcast | A podcast is a download through podcasting software such as iPodder. Podcasting software finds new downloads using RSS and adds them to playlist software for automatic transfer to a music player. |
| points (royalties) | A point is a percentage point (one hundredth, or a penny in the pound). It normally applies to royalties. The total amount (100%) is not always what it appears to be. |
| PPL | Phonographic Performance Limited issues licenses for playing recordings and collects royalties for record labels. They also distribute performers royalties from recordings. |
| pre-payment (digital) | Sometimes called Pay-As-You-Go or subscription: a download or streaming site, or similar cell phone facility, which charges a (normally) monthly fee. |
| pressing (CD) | See duplication. |
| PRO | Performing Rights Organisation is a general term for publishing rights societies like PRS (UK) or ASCAP (USA). |
| production music | See film music. |
| PRS | The Performing Rights Society issues licenses for performing music and collects royalties. |
| public domain | Not copyright. This happens when copyright expires or the owner explicitly puts the material in the public domain. |
| publish | Publishing used to refer to the availability of printed sheet music. Today it refers to the public availability of copyright material in any form. |
| publisher | A music publisher was originally a company that published sheet music. Recordings are more important in publishing today. Now, publishers invest in writers, promote songs and collect earnings from publishing copyrights. |
| publishing administration | Publishing administration is limited to royalty collection—the publisher will not get additional customers for the compositions. The rate for administration is normally about 10%. |
| record label | A record label was originally a company that made recordings (their company or imprint label was stuck on the centre). Today few if any record labels make records themselves. Now, record labels invest in artists, promote recordings and collect earnings from phonographic copyrights. |
| recoup (contract) | To recoup means to pay an advance back to the record label from royalties earned on record sales. Un-recouped artists theoretically owe their record label money and may have to be bought out if they sign with another label. |
| Red Book | The technical rule book for standard audio CDs is known as the Red Book. |
| release | The release of physical (vinyl, cassette, CD) records to radio and retail was always coordinated and formal. The release of a big record was staged like the premiere of a major film. This still happens in the mainstream but the delivery of content on an independent artist’s site is normally much less formal. |
| reversion (copyright) | Reversion is when a copyright assignment ends. Assignments are normally limited to a period of time or some other condition depending on the circumstances of the original rights owner. |
| RIAA | The Recording Industry Association of America is the USA record industry trade body. |
| royalties | Royalties are fees paid to rights owners (normally record labels, publishers, writers and performers) for the use of their work. |
| SACD | A Sony music disc format compatible with CD players. Higher quality audio is played back on new SACD machines. |
| sampling (copyright) | Sampling requires record label and publishing clearance. There is no fixed rate for clearance. Sampling may be allowed under the terms of a blanket MCPS assignment to pay the writer mechanical income. If the work is not assigned to MCPS the sample should also be cleared through the publisher. |
| SCMS | The Serial Copy Management System stops controlled digital media from being copied on certain machines by setting a marker on new recordings. Recordings with the marker cannot be copied again in these machines. SCMS is part of the Sony/Philips Digital Interface (S/PDIF) format. |
| SDMI | The Secure Digital Music Initiative is a failed copy-protection project. The technology that was used in MiniDisc. |
| session musicians | Session musicians are paid a one-off fee (which should not be less than the Musicians’ Union rate) for playing at recording sessions. |
| sheet music | Sheet music (notation, fake books, scores, etc.) is where publishing started but it’s not so popular today. Publishers still collect royalties for printed paper and digitised copies of sheet music. |
| spider (CD) | A small piece of plastic that holds CDs in a card case. |
| statutory rate (USA) | This applies in the USA, not the UK. The statutory rate is not normally paid in full. |
| SXSW | South By South-West is an annual music fair in Austin, Texas. |
| sync license | A sync license is a publishing license to pay writers for music used in film, video or TV soundtracks. There is no fixed fee for sync licenses. |
| term (contract) | Term means duration; how long something in a contract lasts. |
| territory (contract) | Territory normally means country. Contracts and copyrights don’t work the same way in every country. |
| trademark | The legal protection of a trademark is about misuse of the business asset, passing off and confusing potential customers. It isn’t an exclusive right to the trademarked name. |
| U-card | The paper CD tray or back insert for a jewel case. |
| UPC | Universal Product Code is the American bar-code number, also used in Europe. |
| vanity publishing | A vanity publication or recording is paid for by the artist but not released, distributed or sold by retailers. The finished print or record looks as though it was made for a professional. |
| VAT | UK sales tax. |
| venue license (royalties) | Venues buy performance licenses from PPL (recordings) and PRS (compositions) for the right to play live and recorded music. Big venues make complete usage returns of all the music played to PPL and PRS. License money is shared among members minus the society commission. |
| watermark (digital) | Watermarking is a way of recognising digital files by patterns added to their data. The watermark is a code that can be written and read by special software to reliably identify the title and other details of a particular track. Watermarking is sometimes (erroneously) called fingerprinting. |
| white label | A white label was originally a pre-production vinyl pressing without the final printed label. These recordings were valued as rare artefacts or versions. More recently the term “white label” has been used for any short run club vinyl. |
