Tera Harrell Exam 2 Corrections Multiple Choice 1.) Anyone can perform a sound recording in a non-digital environment: --AnsweredA.

With payment and a performance license from ASCAP, BMI, & SESAC --Correct AnswerB. Without any license or having to make any payment --Pg. 2 Book Revised CopyAs the copyright owner of the music and the sound recording, you have the exclusive right to reproduce, distribute, display, perform and create derivative works with those properties, with the sole exception that, in the U.S. you have no exclusive rights to perform the sound recording in a non-digital environment (as distinct from the performance of the music on the sound recording), namely anyone can perform the sound recording in a nondigital environment without having to make any payment to you for it. Examples of performing the sound recording in a non-digital environment include playing, broadcasting or transmitting those sound recordings over radio or television.

2.) A performance of a sound recording in a digital medium: --AnsweredB. Must have a compulsory license for non-interactive streaming --Correct AnswerD. All of the above --Pg.100Under the DMCA and DPRSRA, fees must be paid for the performance of the sound recording in the digital medium. The companies that wish to perform the sound recording digitally must get either a voluntary license for interactive streaming and conditional downloads (consumers can choose what they want to listen whenever they want to listen to it) or a compulsory license for noninteractive streaming (consumers get to listen only to whatever selections the transmitting entity decides to program) if they are to avoid copyright infringement claims. 3.) With regard to the compulsory license under the DPRA for non-active streaming the fees collected are disbursed to: --AnsweredA. The record company --Correct AnswerE. All of the above --Pg. 101With regard to the compulsory licensing under the DPRSRA for noninteractive streaming, the record, cable and satellite industries tried to negotiate and establish the rates that would be used to compute the fees to be paid. They could not reach agreement and an arbitration panel, under the auspices of the Copyright Office, reviewed the matter and set the rates. The record companies were arguing for a royalty of 15% to 20% of the receipts of the cable and satellite companies, and the latter were offering 1% to 2% of their gross revenues. The final license fee imposed on the cable and satellite industries was 6.5% of their gross revenues. The fees paid, based on that percentage, are allocated 50% to the record company (i.e., the owner of the sound recording), 45% to the featured artist, 2.5% to nonfeatured musicians and 2.5% to nonfeatured vocalists. 4.) The songs (compositions copyright) brought on a service such as iTunes (downloads) have been ruled by the court to be: --AnsweredA. Public Performance --Correct AnswerB. A reproduction

Tera Harrell --Pg. 10Book Revised CopyWhen a record is manufactured and sold, the record company must pay a mechanical royalty to the publisher for the reproduction of the music on the phonorecords. Likewise, the DPRA provided that mechanical royalty must be paid for music that is digitally downloaded just as the mechanical royalty is paid for music on phonorecords sold in hard medium. 6.) If major film studio commissions a song to be written/performed for movie, typically: --AnsweredC. The writer always obtains full statutory mechanical rate for the soundtrack CD or single --Correct AnswerA. The writers share of royalties for songwriting services will be 50% of the income except for sheet music --Pg. 190The writers share of royalties for songwriting services is negotiated the same as with a nonfilm song agreement, i.e., the writer basically receives 50% of the income, except for sheet music, which typically generates 8 cents to 12 cents per piano copy and 10% to 12.5% of wholesale for nonpiano copies. 8.) In standard management contracts, managers are given a blanket power of attorney: --AnsweredB. Meaning that Manager can act and sign for Artist upon Artists consent or knowledge --Correct AnswerC. Meaning that Manager can sign and approve anything without the consent or knowledge of the Artist. --Pg. 205In standard management contracts, managers are given a blanket power of attorney, meaning that they can sign and approve anything regarding the artists career without the consent or knowledge of the artist. Certainly, artist should work to limit that power if they are available to sign; or at least specify the circumstances under which the manger has that power, e.g., not being able to sign for engagements longer than a certain period of time or for a certain amount of money. At the very least, artists can have clauses requiring consultation and approval, if only verbal, before the manager signs anything on their behalf. True/False 2.) Pg. 3 Book Revised CopyThere have been millions of dollars collected to date under the DPRA, which have been paid to SoundExchange as the representative of the sound recording copyright owners and artists. SoundExchange disburses that money to the labels and to the recording artists in their respective shares on a quarterly basis. 4.) Pg. 11The Copyright Office has issues a ruling setting the mechanical royalty rates for ringtones at 24 cents per download. 7.) Pg. 221The manager should not obtain double commissions; that is, a fee and a percentage as a producer or employer, in addition to a management commission from the artist from the same activity for which the manager is compensated as an employer or partner. 9.) Pg. 230Artists should not overextend finances when purchasing real estate, autos, equipment and other assets. If possible, they should pay cash so there will be no payments due if money gets tight.