Join Richard Stim for an in-depth discussion in this video Leaving members, part of Music Law: Recording Management Rights and Performance Contracts.
- What happens when a label signs…a duo or a group and members later leave…the group or the group breaks up?…The record contract deals with this possibilty…in the leaving member provision,…a clause that permits the label to poach…any leaving member from the group…under the same terms as the original deal.…In other words, when members leave,…or groups disband, the label can choose…whom it will keep under contract.…Of greater concern to the members…who are retained, is whether they will be…saddled with the debts of the group.…
For example, if a group breaks up…and the label claims the lead singer…as a leaving member, the lead singer's income…can be withheld by the label until…the groups debts are paid off.…If at all possible, leaving members should not…be linked to the financial obligations of the group.…Such provisions should also give pause…to a group member thinking seriously…about embarking on a solo career.…A side-artist provision, also known…as the a side man clause, permits an artist…to play on other people's recordings, provided that…
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