Chapter 19

an easily-established business entity without liability protection that is subject to pass-through taxation.

a business entity that is similar to a sole proprietorship, with the primary difference being that liability is shared between multiple partners equally.

a flexible business entity that alleviates many liability concerns for the owner(s). An LLC is established via an articles of organization and directed by an operating agreement. It may be taxed as a corporation or via pass-through taxation.

a type of business that is owned by shareholders and operates as an individual legal entity, apart from its owners.

a relatively small type of corporation that has fewer than 100 shareholders and is subject to pass-through taxation.

a relatively large type of corporation that has more than 100 shareholders and is subject to taxation as an individual legal entity.

a term that refers to the responsibility of individuals or businesses for any unpaid debt or legal actions taken against them.

a type of taxation applicable to certain business entities that “passes through” to the business owner such that the business’ taxes are filed via the owner’s individual tax return.

members of a business partnership who, in exchange for agreeing to restricted control over the business, are released from legal liability.

a document that legally establishes a limited liability company in the United States.

a form used to register a particular recording of a composition with the U.S. copyright office for the purposes of infringement. protection. This form may be used to protect both a recording and a composition in instances where the composer also serves as the recording artist.

a form used to register a composition, including any lyrics, with the U.S. copyright office for the purposes of infringement protection.

a contract situation in which a client purchases the right to use a composition without owing any further compensation or royalties to the composer, regardless of the extent of usage.

the umbrella term used to describe usage-based payments for music compositions, performances, and recordings.

royalties that are paid to musicians when pieces of music are reproduced, distributed, and sold in a variety of recording formats.

a license that grants permission to reproduce and distribute copyrighted music on a variety of media.

royalties that musicians are paid for a live or recorded performance of a composition, either in concert or in conjunction with another media format.

a specific type of performing rights royalty that applies to situations in which a composition is synchronized to some form of media, as is the case with background music for a television show, movie, or commercial.

supportive accompanimental music that is synced to media containing dialogue and, potentially, sound effects.

a payment made to a composer—sometimes in addition to synchronization royalties—in exchange for the limited use of a composition that is synchronized to some form of media.

an organization that serves to protect musicians’ interests by monitoring the usage of members’ compositions, collecting performing rights fees and royalties from music venues and other users, and distributing these earnings to musicians and their publishers.

a license that a music venue or other user purchases from a PRO that allows it to transmit that specific PRO’s entire catalogue of works.

a common type of contract agreement used in the music industry that equally divides royalties between the composer and publisher.

a type of agreement in the music industry in which one publisher allows another publisher to represent its body of work, typically in exchange for a portion of the publisher’s royalty share.

a selection of music that is released for commercial consumption as a single, EP, or LP. Commercial releases are often printed to vinyl or compact disc, and are typically released on popular streaming platforms as well.

shorthand for Digital Signal Processor, a plugin that requires the use of a separate outboard interface for processing. Also shorthand for Digital Service Provider, which, in the field of music, is an online store or streaming platform that provides digital audio to consumers. Smaller DSPs in this context often create partnerships with the largest streaming services to market burgeoning producers’ music to a wider audience for a fee.

artificial profiles within streaming services that generate plays for artists to boost their perceived market share.

a legal document that identifies the governing members of a business entity (such as an LLC) and describes their financial and managerial responsibilities.

a list of the music included in a televised broadcast that is used by a PRO for usage tracking, royalty calculation, and royalty distribution purposes. A cue sheet includes the program title, episode title, episode length, and specific details about each composition used, including its usage type (background music, theme music, etc.) and usage duration.