Short for “Artist and Repertoire,” this is the creative department at a record company. A&R departments scout talent, find music, and then combine and coordinate them with other creative elements such as producers, the right studios, and side musicians to create master recordings.

The rights to perform the business tasks associated with services and property. These rights include perfecting rights (such as filing copyright forms), entering into contracts, issuing licenses, collecting money, and accounting rights.

Payments made by one party of an agreement to another party in anticipation of being repaid from future royalties. For example, record companies will often pay advances to artists for the costs of making a commercial recording. These advance payments are repaid from the eventual royalties earned from sales of the recording.

A person who is authorized to represent another person in any capacity. A more legally accurate use of the term in music is talent agent, which is a person who is specifically and only authorized to seek and procure engagements for a performing artist. This is an important distinction because in some jurisdictions, individuals are required to be licensed in order to become a talent agent.

Digital distribution “agents” that represent multiple labels and/or artists collectively in the negotiation of digital distribution rights to third parties.

Broadcast of music in various ways, including radio, television, and satellite radio performances.

A method of payment in which the artist’s and producer’s fees, advances, and/or royalties are combined.

A contractually agreed-upon legal proceeding to settle disputes. The parties involved in arbitration may use lawyers, and the proceedings take place in a court setting, but the proceedings are generally less formal than in court trials. Arbitration procedures vary by jurisdiction.

See Exclusive Artist Agreement

Visual art accompanying audio recordings.

Income to be earned in the future, typically referring to future royalty income or payments to be made upon the completion of certain events (such as the completion or eventual sale of a project to a third party).

The “deal-making” department of a business, usually made up of music lawyers or other professionals well versed in the legal issues involved in each transaction.

A single recording comprised of multiple preexisting masters licensed from various record companies that are presented in their original form.

A provision in an exclusive artist agreement intended to curtail certain behavior or conduct by artists (for example, a violent felony) that may put the artist or the associated record label in public disrepute.

See Performing Art (PA) Copyright, Sound Recording (SR) Copyright, and Synchronization Right

A violation of one or more of the exclusive rights of the copyright holder.

A recording or performance of a preexisting musical composition made popular by another artist.

A work that alters a preexisting copyrighted work. For example, taking an existing song and revising the lyrics would be creating a derivative work.

The process of getting music to the public via a variety of methods. Distribution has evolved from the traditional warehousing and shipping of “hard goods” such as CDs to stores to digital distribution of music files by computer.

Music available in the digital form via digital distribution that can be accessed and saved onto a computer.

An agreement that an artist makes with a third party (such as a record manufacturing and distribution company or a music production company) that grants the third party exclusive rights to the artist’s services for a set period of time.

The right of one party to match an offer made by another party.

A one-time non-royalty payment for services or uses of intellectual property.

Rights associated with music used in connection with stage performances such as musicals, ballets, or operas.

Total income before recoupable costs and other payments are deducted.

A record label not owned or co-owned by a major label.

Property of the mind associated with the results of the creative process. Examples of intellectual property include copyrights, trademarks, and trade secrets.

One of the large multinational corporations that manufacture and/or distribute the large majority of the music that is produced in the United States.

A person who serves as the chief executive officer of an artist’s career. A manager is responsible for the development and implementation of a career plan for an artist. Also referred to as a personal manager.

An audio recording that is technically satisfactory to manufacture and reproduce multiple copies for distribution and sale to the public.

A license granted to manufacture and sell music products for the use of a musical composition on media that requires a mechanical device in order to listen to the composition (for example, CDs, vinyl recordings, and DVDs).

A legal proceeding in which the disputing parties mutually agree upon a third party to craft a negotiated settlement between them.

Selling goods that use the images, likenesses, trademarks, and/or artwork associated with a musical act.

Gross receipts minus negotiated deductions.

The opportunity, but not the obligation, for a party to take a certain action. For example, a music publishing company may be granted an option to extend an agreement to retain the exclusive services of a writer for a negotiated period of time.

The copyright that protects musical compositions. Generally, it is the protection of this copyright that governs the music publishing side of the music industry.

The companies that issue licenses, collect the money, and pay royalties on behalf of songwriters and publishers for small performance rights. Also called PROs.

Income that has been earned but not yet received.

A person or business entity that coordinates all aspects of presenting a concert or other type of live event.

A person who markets an artist, product, or business entity. Most music industry promotions professionals develop specialties such as radio, retail, or college promotions.

A professional who is responsible for the development and implementation of a publicity plan for an artist. The publicist is primarily responsible for generating press opportunities, interfacing with the media, and creating a “buzz” for an artist.

An agreement granting some combination of ownership, administration, and exploitation rights to musical compositions.

Typically, the term used for any configuration (such as CD, DVD, or tape recordings) of an audio or audiovisual recording of a musical work. Also referred to as a recording or phonorecord in many contracts.

See Exclusive Artist Agreement

The monies that one party spends directly for or on behalf of an artist (such as advances, promotional costs, and recording costs) with the expectation of being repaid or recouped before the artist receives his or her money.

Amounts of money held back by a party paying royalties to an artist. This reserve is kept in anticipation of returns and other costs or fees that may need to be paid out on behalf of the artist.

Audio recordings that are played by cellular phones that can be heard by the initiating party of a phone call.

Audio recordings that are played by cellular phones that can be heard by the receiving party of a phone call.

Payment based on sales or use fees derived from a right, product, or service. Examples of royalty payments include payments based on record sales, airplay, or merchandise sales.

All or a portion of a preexisting sound recording and/or musical composition that is used along with original material to create a new work.

The process of obtaining permissions from copyright owners to take their preexisting copyrighted works (sound recordings, musical compositions, or both) and change them to make new musical works.

The right to use music in connection with non-stage performances such as radio and television broadcasts, on-hold services, and performances of music in retail stores.

The copyright that protects master recordings. Generally, it is the protection of this copyright that governs the record business side of the music industry.

Services provided on a reduced fee or free basis in exchange for a higher fee in the future if an anticipated event occurs, such as an artist signing a major label contract.

The prescribed mechanical license rate from the copyright law.

Music being played, but not downloaded, on line.

The rights (commonly referred to as sync rights) associated with the synchronization of music to visual images. Examples include the use of music in movies, on television, and in video productions.

An agreement binding one party to another exclusively over a defined period of time rather than according to the number of product units sold.

Money or other financial support paid by a company in connection with touring, usually to promote a product. Tour support can be paid directly to the artist or to third parties—such as side musicians, tour personnel, audiovisual companies, or hotels—on behalf of the artist.

A mark that identifies the source of goods. Examples include band or record label names, logos, or slogans that are associated with a business.

A copyrighted work furnished by a creating party at the specific request of the hiring party in exchange for payment or other consideration. The legal copyright owner of a work-for-hire is the hiring party.