Join Richard Stim for an in-depth discussion in this video Record shopping, part of Music Law: Recording, Management, Rights, and Performance Contracts.
- A shopping agreement is a form of matchmaking,…in which someone acts as an artist's representative…and solicits or shops the artist's recordings…to a music label.…A shopper is an industry insider,…such as a producer, an attorney,…or an independent promotion person who is paid…a percentage of the artist's income from any resulting deal.…These payments to the shopper may continue…for the life of the deal, or for a limited period of time,…depending on the arrangement.…
Shoppers traditionally receive up to…ten percent of the record deal.…Sometimes a musician can make deductions…before the percentage is calculated.…For example, if the label is advancing…50,000 dollars to the band to make a video,…the band should try to exclude…such payments from the shopper's income.…In this way, deductions and commissions…apply to shoppers in the same way as to managers.…For more on this subject, check out the video…on "Management Contract Deductions".…
By the way, there is usually no need…for a shopping agreement if a musician has a manager,…
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