A permanent digital download (PDD) is each individual delivery of a phonorecord by digital transmission of a sound recording (embodying a musical composition) resulting in a reproduction made by or for the recipient which may be retained and played by the recipient on a permanent basis. PDDs are sometimes referred to as full downloads.

A limited download is a digital file that is delivered electronically to a computer or other device to reside there on a limited basis. There are two types of limited downloads: time-limited download (for example, the song resides on the computer for 30 days) and use-limited download ( for example, the song can be heard 12 times before it can no longer be played). Limited downloads are sometimes called tethered downloads.

Interactive streaming is when a digital file is transmitted electronically to a computer or other device at the specific request of the end user in order to allow the end user to listen to a recording or a playlist contemporaneously with the user’s request. Interactive streams are sometimes referred to as on-demand streams.

A ringtone is an excerpt of a musical composition embodied in a digital file and rendered into audio. Ringtones are stored in an end-user's mobile telephone, pager or other portable communications device and played whenever the device activates its ring or alert function (upon the arrival of a call, message or other notification).

There are two basic types of ringtones: Phonic Ringtones and Pre-Recorded Ringtones. Phonic Ringtones are, most commonly, standard MIDI sound files that are either monophonic, where the ringtones are recreated using standard single notes, or polyphonic, where notes can be played simultaneously creating harmony and/or counterpoint. Pre-Recorded ringtones play actual clips from sound recordings.

The SACD is similar in concept to the standard CD with an additional high-density layer. It debuted in 1999 in a format that uses the digital audio format DSD (Direct Stream Digital) and a 4.7GB disc with 2.8 MHz to provide the consumer with a realistic audio experience. One of the most noted features of the SACD is its very high audio quality.

The SACD currently can be found in three disc configurations. The first two types contain only the DSD data. The Single-Layer SACD, containing one DSD layer, holds 4.7 GB of data. The Dual-Layer SACD has two DSD layers, allowing it to contain twice as much data. The single and dual-layer discs can only be played on a special SACD player. The Hybrid SACD contains one DSD layer (4.7 GB) and a conventional CD layer. This allows the disc to be played on both a standard CD Player and the SACD player.

The conversion of a sound recording into a digital file format.

Recording music to a CD or portable device. A blank CD is placed into a CD Re-Writable drive that is connected to a PC. When each song is transferred, it is automatically "burned" into the blank CD.

Unlike burning where music is transferred onto a CD, ripping is the process of copying sound recordings from a compact disc and placing that copy onto a computer's hard drive.

Also referred to as file sharing, peer-to-peer is a newly popular type of application in which, rather than accessing files from a central server, users access a common network hub and open up portions of their own computer's hard drive to the public for downloading. However, any unlicensed P2P activity is illegal and can result in criminal prosecution and/or fines.

Webcasting generally refers to the streaming of audio on the Internet, and is sometimes called Internet radio. Webcasters may be Internet-only services that transmit several different genre-based channels, re-transmitters of traditional AM/FM broadcasts, or services that syndicate music programming as background music on Web sites. HFA does NOT handle webcasting licensing.

A service that allows a consumer to either stream, download or burn music on a fee per transaction basis. Examples include the Apple iTunes and Buymusic.com

This is a service that allows a consumer to either stream, download or burn music for a set fee for a set period of time. Examples of subscription services include, but are not limited to, Listen.com's Rhapsody, eMusic and Napster.