Join Richard Stim for an in-depth discussion in this video Band partnership, part of Music Law: Recording Management Rights and Performance Contracts.
- A band partnership agreement is used by a band…or group of musicians, to help them set standards…for hiring or firing members, dividing up revenue…and establishing who owns group property.…Only bands operating as a partnership…should use this agreement.…It's not used if one member is hiring…the other members of the group…and treating them like contractors or employees,…known as a sole proprietorship,…or if the group is a corporation or an LLC.…If the band doesn't fit any of these categories,…then by default, the state government and the IRS…will consider the group as a partnership.…
In the absence of an agreement, for example,…under state laws, the group's profit must…be shared equally and each member…has an equal voice in running the business.…If that's not the arrangement wanted by the group,…then a partnership agreement is needed.…A partnership agreement is also needed…if the members want to establish ownership of songs,…ownership of the group's name and other trademarks…and to set standards for resolving disputes.…
For example, when it comes to record contracts, it's important to know how advances and royalties work, how to maintain creative control, and what happens when a member leaves a band. Rich also tackles management contracts, describing what managers can do for you—and what to do when you need to let them go. Next, he explores the basic terms, riders, and payment options in performance contracts. Then learn about releases, artwork permissions, publishing and producer agreements, and other types of legal arrangements. Rich wraps up the course with a discussion of oral agreements, attorney fees and roles, and five basic rules worth remembering for every music contract.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Why bother with a contract?
- Understanding terms, options, royalties, and deductions
- Making provisions for marketing
- Including warranties and indemnity clauses
- Hiring a manager
- Understanding performance contracts
- Getting permission to use samples
- Creating a band partnership
- Record keeping
- Going through mediation or arbitration