| Music Business and the Law |
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| Tuesday, 05 October 2010 17:20 | |||
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The business of music is not as simple as many operators tend to believe. Unfortunately, the very simplistic view of the business of music taken by many Caribbean show promoters, artists and agents has lead to the making of some poor decisions that have set back not just these individuals, but the entire regional industry. The tendency of our artists and producers to seek advice and guidance from family, friends, and other uninformed artists and producers about the intricacies of the music industry should be discouraged, and more emphasis placed on seeking professional advice and guidance. The reality is that the business of music is one of the most complex businesses one will ever come across. It’s a business built around and based upon several different types of contractual relationships as well as the management and commercial exploitation of a variety of rights belonging to different persons. To operate effectively in the music industry requires a clear understanding by music producers, show promoters, performers, and their managers of some of the very basic principles of the law relating to contracts and the law of copyrights. The intricacies of the relationships involved in production, promotion and distribution of music, and the need to manage the exploitation of the various rights involved dictate that every properly run music business operation must secure expert entertainment law advice and guidance. There are numerous contracts that are necessary for the management, production, promotion and distribution of an artist and his or her music. The most common being the artist management contract, the performance engagement contract, and the agreement between the recording artist and music producers. In my practice as an entertainment attorney in the Caribbean I have found these agreements to be the subject of much misunderstanding by the persons who need and use them. Many artists still do not fully understand the role of a manager, and often tend to confuse the manager’s role as an advisor on career development to that of an investor in the artist’s career and products. Most artists are unaware of the fact that a manager is not obliged to invest cash in an artist’s career, and that if such investments are made they must be repaid. On the other hand many managers seem to be of the view that a management contract gives them rights of ownership of the artist they are engaged to manage, rather than see themselves as service providers to the artists. On the music production side there is also great confusion and misunderstanding as many producers mistakenly believe their recording contract with the artist also automatically gives them rights to the artist’s song writing/music publishing income. Many artists also exhibit the tendency to deprive studio session musicians and engineers of the song writing and sometimes production credits and rights they acquire because of their original creative inputs. In addition to the prevalence of contractual issues in the music industry, the implications of the copyright and other intellectual property laws are also very significant. It is the copyright law that provides the basis for the very lucrative music publishing business, and the existence of the various types of collection societies set up to represent songwriters, music producers and performers of sound recordings. Most of our songwriters, producers and performers continue to be confused about the various rights created under copyright law. The level of ignorance and misunderstanding is absolutely amazing and is compounded by the provision of advice by friends, family and other artists and producers who are also ignorant of the issues. While it is not necessary for every artist, music producer, and show promoter to go to law school to do the business of music, it is certainly advisable to seek the guidance of an experienced entertainment law counsel and/or music business manager if one plans to run a successful music enterprise. It is not an accident that many of the established record labels, music publishing companies, collection societies and entertainment management companies are run by entertainment lawyers, or have on their staff Legal and Business Affairs Managers. Law is a very integral part of the music industry and should never be left out or treated as an after thought.
Lloyd Stanbury, Music Business Consultant – www.lloydstanbury.com
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