How is the music industry regulated?

The music business is largely a self-regulated industry - everyone seems to be involved in some control, from individual artists to unions and corporate giants, from publishers to licensers, from collecting agencies such as ASCAP, BMI and others to copyright and trademark offices.

Firstly, the U.S. Patent & Trademark Office must have an example of a band's name and / or logo registered before a band can claim rights in that name. The Office regulates who can have what name and symbol, and under what circumstances likenesses to similar preexisting band or entertainment names might be allowed. Any group who performs, records, or sells their music for commercial gain, would be wise to register their name in order to defend their rights to continue making a profit from that music.

An individual artist will have enough money or popularity to be able to make their own career and decisions, usually because they have their own publishing company, merchandising, and their own record company. However, most artists cannot afford, or do not have the contacts, to run their own publishing company, and as a result about 50% of their profits are paid out for the right to publish the music itself. When certain publishers own the artists rights to a song, they can prevent further performances of those songs on future albums, should the artist ever change publishing companies; or, they can prevent other bands from recording a cover of those songs.

If a group wishes to cover a previous song for commercial gain they must secure a copyright license from the Harry Fox Agency for any or all of the following reasons:

· Licensing of copyrighted musical compositions for use on commercial records, tapes, CDs and computer chips to be distributed to the public for private use.

· Worldwide licensing of copyrighted musical compositions for use in audio/visual works including motion pictures, broadcast and cable television programs, CD videos and home videos.

· Licensing for use in TV and radio commercial advertising.

· Licensing of musical compositions in recordings for other than private use, such as background music, in-flight music, computer chips, syndicated radio services, karaoke and multi-media.

· Licensing of musical compositions in recordings made outside of the U.S. and imported into this country for sale.

Reference: http://www.essortment.com/music-industry-business-regulations-control-63957.html