Wiley GAAP 2008

Definitions of Terms

Advance royalty	An amount paid to music publishers, producers, songwriters, or other artists in advance of their earning royalties from recording or sheet music sales. These amounts are based on contractual terms and are generally nonrefundable.
License agreements	Contractual arrangements entered into by an owner (licensor) of a master or music copyright and a licensee that grant the licensee the right to sell or distribute recordings or sheet music for a fixed fee paid to the licensor or for a fee based on sales.
Minimum guarantee	An amount paid in advance by a licensee to a licensor for the right to sell or distribute recordings or sheet music.
Recording (or record) master	The master tape resulting from the performance of the artist. It is used to produce tapes for use in making cartridges, cassettes, and compact discs.
Royalties	Amounts paid to producers, songwriters, or other artists for their participation in making recordings and to sheet music publishers for their copyright interest in music.