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18 Ent. & Sports Law. 1 (2000-2001)

handle is hein.journals/entspl18 and id is 1 raw text is: PUBLICATION OF THE ABA FORUM ON THE ENTERTAINMENT AND SPORTS INDUSTRIES VOLUME 18, NUMBER 1 - SPRING 2000 New Uses and New Percentages: Music Contracts, Royalties, and Distribution Models in the Digital Millennium COREY FIELD rom the musician's point of view, a compo- sition or recorded performance begins its life under the statutory law of copyright1 and then generates income by the receipt of payment(s) or royalties determined by the common law of contract. This alchemy of turning music into money occurs within the complex and multifaceted U.S. music industry, where the separate rights in the bundle of rights2 of copyright ownership have tra- ditionally marched in step with separate business functions and licensing organizations within the music industry. In this traditional model, business and licensing entities are vertically integrated within the separate exclusive rights under copyright. For example, the § 106(1) right to reproduce copies or phonorecords, the §106(2) right to prepare derivative works, and the §106(3) right to distribute copies or phono- records all encompass retail enterprises that sell (continued on page 14) M Illustration by Richard Laurent

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