Join Richard Stim for an in-depth discussion in this video Post-term commissions, part of Music Law: Recording, Management, Rights, and Performance Contracts.
- Artists are often surprised to learn…that a manager can get commission payments…after they have stopped working for the artist,…known as post-term commissions or sunset payments.…Managers believe they are entitled to these payments…because they negotiated the original deals…that continue to earn income.…Some managers believe these payments should go on forever.…Something an artist should never agree to.…Many managers insist…on a post-term commission on all albums recorded…as a result of a record deal…that was negotiated by the manager…no matter when the albums are created.…
In other words,…if the manager negotiated a three-album deal,…the manager will get a cut of the income…from all three albums…even if the management agreement ended…after only one album was recorded…and the other two albums were recorded a year or more…after the manager left.…As you can see,…these types of deals can be quite expensive for an artist.…If an artist is paying a 20%…post-term commission on an album to an ex-manager…and a 20% commission to a new manager for the same album,…
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