Welcome To http://musiccontract.brighterplanet.org By Paul Leishman

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This book is ESSENTIAL to YOUR MUSIC CAREER !

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Is It Time To Write Our Own Music Contract?

In these days of do it yourself (DIY) music recording, with a laptop and a bunch of software, Online distribution with the likes of The Orchard and Tune core, Retail outlets like Itunes and Amazon, and even low cost internet marketing strategies to boot, you might be left with one last nagging question. Should musicians, independent record companies etc now start writing their own music contracts as well? Well it definitely would be cheaper.

 

Also, by writing your own music contract you might be able to resolve the issue of musicians working outside the usual music industry norms and completing the whole process on their own in the absence of any commercial record contract agreement. After all, such contractual agreements are commonplace in many other industries. If collaborating musicians start making any serious money, and don’t have a music contract between them, it does not take a rocket scientist to see that power struggles and arguments over who wrote the songs, who paid for the recordings or recording equipment etc might ensue when the profits are divided up.

 

This might destroy an otherwise very good friendship and possibly a profitable musical collaboration altogether, not to mention broken bones and smashed guitar amps. If you think the idea of musicians working in this collaborative fashion is a fantasy, then you only have to scan the band pages of myspace, facebook or artists twitter comments to see that it is a growing phenomenon. “So that’s that sorted then, show me how to write the contract.”

 

Hold on, before you start getting all excited about becoming the music industries very own Judge Judy, consider first the potential downside to this ever-popular DIY approach to your music career. Music contracts in general are thought out very carefully and thus are very comprehensive. There is a lot of unusual terminology that few of us encounter in our every day lives. Moreover, there are a multitude of different types of music contracts to become familiar with, manager contracts, royalty contracts, artist contracts, producer contracts, song writer contracts and the list goes on and on. So you’re going to need a lot of time on your hands and a strong willingness to study for possibly several years to master this subject area.

 

Although I am a musician, who fully embraces this new and exciting paradigm of the online music industry, I have some initial reservations. I’ve had a lot of dealing with contractual law as a property landlord and despite the fact I also have a 1^st class Honours degree in Psychology, I have learnt that real life experience in a discipline such as music law really adds major value. Remember, ignorance is not bliss, as some people would have you believe.

 

So, in legal matters, where one music contract clause inaccuracy due to lack of adequate knowledge of the law could put you on the wrong side of it, you might want to try another strategy. A middle ground strategy now available, which still has a DIY kind of ethic and is significantly cheaper than paying for a music attorney, is to purchase music contract templates and forms off the Internet. Strange but true, you can buy a whole range of contracts to cover every music contract category or event you might face in your artistic dealings.

 

So you can do it yourself in the sense that you can edit the music contracts to your own situation. This is not uncommon with landlord-tenant contracts, within the bounds of state or statutory property law of course. You need to ensure that the music contract templates and forms you buy are up to date with current laws, work on the computer platform of your choice and arguably most importantly of all are standardised for the music industry. So all that is left to do is enter your information in the spaces left in the contract and sign the dotted line. So, the DIY music contract final frontier has in part been reached with the help of the star ship Internet.  Lets hope the independent artists musical revolution continues. As always, if you are in any doubt seek professional advice before you ever sign a music contract.

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Music Contract - Band Members Agreement

Many bands that form start out as just good friends. This is probably the best time to draw up a Band Members Agreement, when every one is on good speaking terms.  Few members of a band start their music careers considering the nitty gritty of which member is entitled to what proceeds from any sale pertaining to the bands musical works. However, any band trying to make a living in the music industry by definition is a business matter. There is a music contract, which can be drawn up to protect each member of the bands contribution to its commercial success. It is known as a “Band Members Agreement”.

 

Unfortunately, such music contracts can be viewed as being akin to a prenuptial agreement prior to a marriage. This may be uncomfortable to certain band members, but bear in mind couples, I hope, marry for love. Moreover, a marriage agreement is a legally binding contract in its self. I would assume that most band members at least are not in love with each other!!! Thus, just like in a work environment you have work colleagues who are friends but all have their own employee contract with their respective company, institution, organisation etc. You might even employ them. Thus a Band Members Agreement outlines the responsibility and expectations of all band members towards each other. It can also be viewed in a similar way to a will in that it plans in advance who gets what in the event of something dreadful happening. Sounds a bit heavy for most musicians I have met and played with. Well you know, sex, drugs and rock n roll my friends.

 

A little voice in your mind might be saying “Why bother with all that stuff until we have a record deal or something like that? Well I might have had sympathy with that view in my younger days. Now I am older and the Internet is here. What If you don’t get a record contract and decide to go it alone using myspace, Itunes, Amazon.owned createspace.com. If you start selling units of your tracks as mp3 downloads how do you decide who has the rights to receive profits from the sales. Also, in what percentage terms should that be worked out between the band members? Recently, whilst uploading one of my tracks for sale on Amazon.com via createspace.com I was very interested to find a form that asked for information regarding which parties should receive royalties from any sales? Now have I got your attention? If I haven’t and you are in a band there may be trouble ahead.  

 

One of the central reasons for such an agreement is related to the issue of copyright. One of the biggest slices of the financial cake comes from those members of the band who write the music and lyrics. Think here Lennon & McCartney as an iconic example. Also, less iconic no doubt is the court case regarding British 80’s band Spandau Ballet and who wrote their songs. An example of this was the classic “True.” So it makes good commercial sense and hopefully will secure the bands friendship together if such a music contract is negotiated before, rather than after the bands musical and in some cases personal roller coaster begins. It could save a lot of arguments and disputes not to mention very expensive legal fees in the future. Money allegedly is at the route of all evil and many band break-ups and disputes are of a financial nature.

 

So what is this music contract known as the “Band Members Agreement?”

 

Well it can outline in advance what roles the band members play in its future. These are some examples but they can vary a great deal. Can a band member work with another artist? What happens if one band member dies? How should the profits from, for example, royalties be split? Who pays any band debts? Who looks after the bands finances? Who owns any assets, equipment, transport etc? Who has ownership of the copyrights of the songs? Who takes care of any master recordings? Who decides when to employ or fire a manager? Who owns and has the legal right to use the bands name? Often all members of the band own the name. Are the decisions of the band made by committee, by a votes system? Alternatively, is this responsibility left to one or two band members?

 

Please note that in the absence of any written agreement the law of the land in your country may ultimately decide things on your behalf, as is the case in state partnership law in America. Based on this, as with any legal matter, it would be better if a music attorney were employed to draw up the contract. In an ideal world every member of the band would have a music attorney to represent their interest and help to make the music contract more equitable and fair between band members. “Well that sounds like a whole load of money?” I hear you say. You can hold off the cost by agreeing on paper the basic things that should be included in the Band Members Agreement until a later date when things get on to a more serious financial footing. The band can then look at employing professional advice. Remember that, music contracts are drawn up to limit the likelihood of a serious financial or artistic dispute. If such events do occur, then a music contract as with any contract is there also to resolve any issues that might arise. Without them, everything is based on nothing more than a handshake or hearsay. Although music contracts are a psychologically uncomfortable issue to deal with for bands they are a necessary evil in the long run. Bear in mind that proposing a Band Members Agreement could be an excellent way of testing the amicability of the band members, if they argue before they have an agreement imagine what it would be like without one later on when things are really serious. This article is not intended to be legal advice. As always take professional advice before you ever sign a music contract.

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The Music Contract – Basic Types

 

 

Several musicians have contacted me asking about kinds and types of music contracts. So as requested I have tracked down an article that should break down things for us and give a better understanding of what the comparisons and contrasts there are between them. After all, it kind of helps if you at least know what kind of music contract you are actually signing, if and when the moment arises. As they say don’t act in haste and repent at your leisure. Special thanks to the author of this article details of which are given at the end of this blog posting.

 

There are many types of contracts used in the music industry. Some are very detailed and specific to any number of services that may be provided. It is a good idea to have an understanding of the basic types of music contracts that you are most likely to see if you are (or intend to become) a music professional.

 

However, it is first important to understand the basic forms of rights and compensation. Songwriters, publishers, and performing artists are compensated in a variety of ways. In the United States, there are specific rights in direct accordance with Copyright Law as well as rights associated with specific usages. Contracts are used to firmly establish rights and compensation in all cases.

 

First, Copyright Law provides for songwriter compensation and publishing compensation. The Law guarantees the payment of those folks holding the rights for a specific work. While these amounts have a set rate, they are generally split 50/50 between songwriting and publishing rights. Of course, songwriters, publishers, and record companies will negotiate for portions of these guaranteed payments and the provisions are generally outlined in a contract. This portion of the compensation is usually monitored and distributed for registered works through the professional rights organizations such as ASCAP.

 

These days, there are many more options available for an artist. The more traditional option is to sign with a record label that will take care of the distribution and marketing. For someone signing with a record label, there is additional compensation for performing a song. This is usually paid to the performer by the record company in accordance with a separate contract. This contract may or may not additionally address the above rights which are guaranteed by law. For example, payment from the record company may also be direct to an artist which does not necessarily involve the rights described herein.

 

Advances are a form of payment that a record company may offer to an artist, but it usually operates like a loan from the bank. That is, until sales reach a specified point, a specified portion of income received by the record company and expenses accrued on behalf of the artist are maintained in the artist’s account. In this case, the advance is already in the account as a form of “debt” to the record company. It is possible for an artist to actually “owe” money to the record company long after release if sales are weak and the terms are not favorable. Cross collateralization is a term that refers to using the funds from an additional, separate work to “pay off” the “debt” from a previous work.

 

By contrast, the independent artist will hire services or provide their own distribution and marketing. In this case, the profit from the sale of material becomes much less complex in nature but the ability to reach the public becomes very difficult as the traditional infrastructure for gaining exposure remains very much in play. That is, relationships that exist between record companies and the mass media outlets are very strong. Nonetheless, there are increasing numbers of independents who are finding markets for their music and the profit margins are much more favorable when an audience is found. The proceeds from the sale of digital downloads and tangible media are then collected and apportioned by the artist or someone managing the money for the artist.

 

There are also Mechanical Rights that are collected and paid for each public play or in most cases, compensated with blanket fees. These rights are monitored and collected in a similar fashion as the above described songwriting and publishing rights. The Harry Fox Agency is one of many companies that monitor the usage of songs as a service to an artist. Some publishers also perform this service on behalf of the artists they represent as it is also in their interest to make sure the publishing component of the fees are paid.

 

Finally, there are synchronization rights which are associated with films and television shows. Forms of compensation for commercials may vary but are generally paid directly to the associated parties by the sponsor.

 

All of these forms of compensation are separate and require specific agreements to protect the parties involved. These forms of compensation also require a level of diligence to insure that payments are received when the material is used. The following types of contracts are intended as an aid to help you, the music professional, better understand the types of arrangements that you are likely to encounter:

 

Artist Recording Contract - This contract is directly between an artist and a recording studio. It is intended for a specific recording. The provisions generally include the form of compensation for the artist as well as those people who perform on the recording. This is separate from a Record Company Contract as outlined below.

Artist - Record Company Contract - This contract is directly between an artist and a record company. In this case, a record company handles distribution and marketing of recorded materials for the artist. To distinguish from an Artist Recording Contract, a Record Company Contract allows an artist to work through the record company to obtain the services of a recording studio or a record company that may have their own recording studio. Again, the provisions are for the forms of compensation to the artists.

Assignment of Copyright - This contract is to assign the rights for a previously copyrighted material to a company or individual for the purpose of marketing. This assignment is a form of guarantee for the company or individual who intends to devote their time on behalf of the artist. This contract does not provide for a transfer of ownership. That is, the songwriter retains ownership of the work but has assigned the rights to another individual or company.

Collaboration Agreement - This is a type of contract that specifies the degree of ownership of a work that is done between two or more artists in a collaborative effort. While collaborations were frequently done without a contract between artists who worked side by side, it is now becoming necessary with long distance collaborations between people who do not know each other aside from correspondence and telephone calls.

 

Co-publishing Contract - This contract is usually between an individual or company (publisher) and a larger publishing company. It is a way for a smaller publishing company or individual to collect a portion of the publishing component of compensation in exchange for acting on behalf of the artist.

 

Copyright License and Contract - This contract is between the individual or company who holds the rights (or assignment of copyright) and a record company. This contract is used by publishers to obtain the services of a record company on behalf of an artist.

Exclusive Songwriter Agreement - This is a form of employment contract in which a publisher might hire a songwriter to write songs. This type of contract typically does involve transfer of ownership to the publisher in exchange for a salary paid to the artist. This type of contract sometimes does not provide for listing the songwriter’s name in association with a given work.

 

Exclusive Songwriter Contract - This contract is for a specific writer who is expected to produce a specific work over a designated period of time. It is similar to the above, but is not considered a form of regular employment as the contract has a fixed time and the intention is for a fixed body of work for which the songwriter will receive credit. Rights are typically assigned as part of this type of contract to the publisher or record company but ownership is retained by the artist.

 

Film Synchronization Contract - This contract is between the individual or company holding the rights to a song and a film production company. The compensation is generally tied to the performance of the film at the box office, but may also have a fixed advance with no provisions for royalties.

Foreign Agency Contract - This contract is used when an artist and the agent live in different countries. It is a form of agency that may be used to guarantee compensation for an individual who wishes to work on behalf of an artist who may or may not have an existing work in another country.

 

Publisher - Record Company Contract - This contract is between the publisher and the record company. It involves the normal forms of compensation to a publishing company who has the rights for a specific body of work. These forms of compensation, usually in the form of royalties, are related to the sales volume. It is also specific to the services that will be provided by the record company in exchange for the license to distribute the material.

 

Publisher Royalty Sharing Agreement - This contract is between the publisher and the assignee. Provisions in the contract are for the specific percentage of a royalty to be paid to an assignee. There may also be provisions for expenses. This contract is usually to establish a form of payment to a third party in exchange for a service or for exposure. For example, a publisher may use a portion of their compensation to improve the chances for success.

 

Publisher Royalty Sharing Contract - This contract is usually between the publisher and a record company which is an additional form of payment to the record company for a record deal with an artist. Record companies may negotiate for songwriting, publishing, and merchandising in addition to the compensation stipulated in the Recording Contract.

 

Single Song Option Contract - This contract is also referred to as a “hold”. It gives a publisher a set amount of time to find an artist, larger publisher or a record company who is interested in a specific song. This contract may also be used by the artist or by the record company who wants to have the option to use the song when it is time to record.

 

Sub Publishing Agreement - This contract is used when the artist and publisher live in different countries. It is most often used when the artist has a published work in another country. For example, if the artist has a cd in Germany, then the German publisher (or the individual or company holding the rights for the work) may wish to have the work promoted in the United States. A Sub Publishing Agreement allows the publishing company operating in the United States to act on behalf of the individual publisher or publishing company in Germany for a published work.

 

Each of the aforementioned contracts is available through any number of sources. While it is possible to modify an existing contract or purchase a basic contract online, it always makes sense to have someone review the contract or contracts prior to execution. Each contract should be very specific with regard to the parties and the work for which it is intended. Jurisdiction should be established to determine which laws will apply. Also, it is important to understand the idea of precedence. Contracts will be interpreted in accordance with different state laws, but they will also be interpreted in order of precedence. Precedence refers to the legal order of interpretation of each contract when there is a dispute.

 

While most of the above contracts will stand alone, there are many cases in which more than one contract is required. There are also cases when there is a conflict with more than one contract claiming the same exclusive rights. Contract Law has very specific rules for determining precedence which should be understood prior to entering into a contract. It also helps to have an Arbitration Clause to reduce the potential for excessive court costs. The laws in the court system and the laws used by the American Arbitration Association are the same within any given state. In general, if exclusive rights are already properly bound by contract, they may not be claimed otherwise.

 

Article distibuted by permission of Del Boland and Bluemusepublishing.com. http://Bluemusepublishing.com is a free online community for songwriters, bands, and musicians.Article Source: http://EzineArticles.com/?expert=Del_Boland

 

 

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You And Your Exclusive Music Contract

When a record company has exclusivity over your musical work, in a music contract, this means that you can only record for the label you are signed to for the term, (length) of the music contract.

 

However, you need to also realise that many music contracts have a re-recording restriction. This basically prevents you from recording any of the material you have recorded for your previous record company for a period of two years or more following the end of the term of the contract. Also, the contract could state that you cannot record for any other company for five years after the contractually agreed submission date of your album to the record company you signed to. Either the two-year or five year stipulation will apply depending on which one is longer.

 

Obviously, you should endeaver to work around this exclusivity restriction. Two ways you might do this is to negotiate for the right to perform on another artist’s album as a sideman. Also, having your music contract allow another record company to release your work to be included in a soundtrack to a motion picture. There are a myriad of examples of this such as the film Top Gun or Pretty Woman. It is very important that you are aware of these music contract exclusivity options. However, as always, seek professional advice before you ever sign a music contract.

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How The Music Contract Has Changed

How The Music Contract Has Changed

 

Well when Madonna decides to move from Warner and sign a new music contract with Live Nation you know things are a changing. As an article at www.thisislondon.co.uk suggests, “Madonna has sounded the death knell for the traditional music contract”. Bear in mind that she has been one of Warner’s biggest selling artists over the last 20 years. What seems to be happening now, is that rather than music contracts just being drawn up to receive revenues from album sales, they are also dipping into other revenue streams such as live performance and merchandising. Kind of sounds like the package holiday of the music industry to me.

 

Anyway, in theory, it gives more choice and control to the artist in relation to which kind of company they sign with. For example, Live Nation deal with live performance where as traditionally Warner are concerned with album sales. So now both artist and company (I hesitate to use the outdated term record company) can discuss between them what aspects of the artists income streams can be considered for negotiation in a music contract. I mean, did you ever seriously think  you would get an album by Prince with your Sunday newspaper, or download Radioheads album for free and decide what if any charitable donation you would like to pay towards their musical cause? Who knows what will turn up next in your cornflake packet. All joking aside, these are very interesting times ahead for all musicians trying to make a dollar out of their work. Maybe there will be all sorts of music contracts on offer in the future, tailored more towards specific artists musical niche. You probably think I am barmy. I say, “Watch your cornflake packet carefully”.

 

Check out the article Madonna Lands £60m Luxury Recording Contract http://www.thisislondon.co.uk/showbiz/article-23416256-details/I+just+like+a+payeer:+Madonna+lands+%A360m+luxury+recording+cont/article.do

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Points Mean Prizes In Your Music Contract

This is a true story and even if it weren’t the principles would still apply to any music contract you sign. At the time I was 26 in 1996. My manager brought a producer up from London who was interested in working with me. I was really excited because he had many hits under his belt. However, despite his musical credentials his legal and financial acumen were nowhere near as finely tuned as his creative ability.

 

You see on that day I learnt that points mean prizes in a music contract. The producer in question, let’s call him Tony, had for many years been in the service of a production company in London. Obviously, between them they had had a string of hits. So all seemed well. As Tony the producer pointed out to me at the time,

 

“When you are getting cheques for thousands of pounds dropping through your letter box each month you don’t think there is anything wrong.”

 

Well indeed at first glance, there was nothing wrong with his music contract agreement from what I could tell. However, at that time I was young and not privvy to any in-depth knowledge about what clauses are in a music contract. Remember, these were the days before the Internet was being used seriously for do it yourself distribution, with the likes of The Orchard or Tune Core and digital download retail outlets like itunes or Amazon.com.

 

So I hear you cry, “Get to the point what was the problem”.

 

Notice I referred to my mystery man Tony as the producer and this is the point.  Well as someone wisely once said “life is a numbers game”. What had gone wrong for Tony was that he for years had been signing music contracts with the production company as a producer who typically get between 1 to 5 points towards any royalties they might receive from the sales of records. Obviously this can vary depending on how sought after you are. According to Tony, he had in actuality written the songs as well and should have been getting many more points in the music contract for his efforts. The implication here was that he had lost a great deal of money from this lack of legal knowledge.

 

Well both myself and the friend I was musically involved with at the time sloped off to MCDonalds after the meeting feeling sick as parrots. By the way we felt like this before we had the big Mac meal. It seemed to me especially that even if you were lucky to get any kind of record contract, unless you had a law degree from Harvard, Oxford or Cambridge preferably all three to be on the safe side you were going nowhere fast . These days I am more philosophical and the Internet has made things a great deal easier for artists to carve out their own niche. Indeed, I have had many hours of pleasure writing and producing my own tracks for sale on retail sites globally on the Internet. Be warned though, in my opinion I still think you need to know a little about music contracts especially when working in a collaborative situation if you are going to go down the DIY route with other people.

 

Well back to Tony. He had, of course, after the fact sought legal advice from a music lawyer and what happened after that is anyone’s guess. I’m a lot older now, and as one of my business interests is in property where contracts are awash and points mean very very big prizes, Tony’s story has been imprinted into my mind. I have been to court on several occasions, where I have won all my cases hands down, and have learnt that if Tony ever managed to get to have his day in court he will have most likely had to stump up the legal fees for the case with no certainty of success. A very daunting thought especially if you are strapped for cash.

 

So take notice of this warning, get professional advice before you ever sign a music contract. Let your creative efforts mean points mean prizes for you in your music contract.

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Creating A Music Contract On A Budget

Veteran musicians have long thought that legal fees for creating a music contract costs big money. In stark contrast to this, property investors like myself have long known that you can buy pre done contracts for all sorts of property related issues such as for example an (AST) Assured Shorthold Tenancy Agreement for next to nothing from a local high street shop. Also, as a musician with tracks for sale on for example itunes and Amazon.com, to name but a few, I discovered that music contracts can also be brought for a mere fraction of the price of a lawyer and can be downloaded straight off the Internet. These days you can get all manner of types of music contracts for all those involved in the music industry.

 

Don’t believe me?

 

Take a look at this great article by Ty Cohen and start to re-think your options.

 

 

Music Contracts The Easy Way

 

Were you aware that you don’t have to be a lawyer to write or create your own music business contracts? As a musician, it is understandable that you may not fully understand the business side of the music industry. Even if you are starting your own record label, this is not at all uncommon. Luckily there are solutions for those people who cannot afford hundreds, even thousands of dollars, just to have lawyers write your recording contracts. As well as solutions for people who have no idea how to write music contracts.

 

Whether you own a record label or are trying to get signed to one, you have come to the right place. Legal fees are entirely too expensive, especially if you are just starting out. I mean, you can always write your lawyer an I.O.U. or have your lawyer recover their fees when you start generating profits. But who wants to do this? It is like giving away your money just to have some music contracts written when you could go about this using a cheaper method. Using the services of a lawyer when handling music business contracts could amount to thousands of dollars. Do you have the money to deal with that?

 

Most people starting out in the music business do not. You now have the option of purchasing hundreds of pre-written music contracts and recording contracts online. This is a fantastic route to take because it will save you a ton of money in the long run. The types of music contract that you may need are for your Record Company, Management Team, Recording Artist, Agents, Producers, Songwriters and Publishers, just to name a few. Purchasing iron-clad, industry standard pre-written music contracts and recording contracts is the best way to go if you want to save money but protect your company or your career at the same time.

 

You are in complete control of your career or business in the music industry. Stay that way! Don’t throw away thousands of dollars on lawyer’s fees for something that you can take care of yourself. By purchasing a wide variety of standard music business contracts, you will be on your way to saving money on legal fees and handling your business the way you want it handled.

 

About the Author:

 

Ty Cohen, the online music industry’s most recognizable

voice is the former owner of a successful independent record label, current owner of Platinum Millennium publishing and nation-wide music industry seminar speaker and panelist. He is also the author and creator of over 40 best-selling music business books, reports, courses, audio products and other music industry “How to” resources, that have helped tens of thousands of individuals like you successfully find their way in the music business.

 

Visit

 

http://www.order-yours-now.com/

for more information on Music Contracts, Recording Contracts and

Music Business Contracts.

 

 

 

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Where do musicians go to get real music contract help?

This You tube page has been put up by musicians for musicians. Most recording artists, musicians etc are not legal beagles. So this is why we are compiling

information about music contracts on a regular basis from others in the know. They can give us the tools we need to help us make the right decisions when

offered or asked to sign a music contract. If you’re searching for music contract help look no further.

Check out this video at youtube at:

http://uk.youtube.com/watch?v=ExeEO6Ch7QM

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