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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