The foundation of the entertainment industry is intellectual property. At their core, the contracts used in the industry are designed to outline the protection of the rights and the payment of money for their use. Studios, labels, agents, venues, producers and other industry agencies and professionals, often have a team of lawyers drafting contracts to protect their interests. Often, artists have unequal bargaining power or simply lack the access to a lawyer to assist.
Whether you are negotiating a music recording contract, a distribution agreement, a management contract, a band agreement, or a performance agreement, the lack of competent counsel to protect your rights may well result in costly court disputes.
Everyone has their own unique contractual provisions. However, there are key provisions you should expect to find universally. It is important to familiarize yourself with these provisions.
- Intellectual Property Rights/Ownership: This refers to the ownership or licensing of your copyright or trademark rights. It is important to understand exactly what rights are being granted, for how long, and whether you can get them back for any reason. It is your intention to grant all future royalties and potentially strip yourself of ownership? Or is this merely a grant of rights for a period of time?
- Restricted or Unrestricted Use of Intellectual Property: Who can use the name of the ban if you break up? Can the label grant a faith-based organization the right to use your song in a commercial? Can the label grant a liquor company the right to use your song in a commercial?
- Royalties and Timing of Payments: Are you receiving a one-time payment for a one-time use? Will there be structured payments over time? What is your ability to audit the records of the company? Are you receiving a share of revenue from more than just the recording? Are you maximizing your royalties by negotiating a licensing, recording, or other entertainment agreement that grants you a share of revenue from all uses of your work?
- What are the Dispute Resolution and Choice of Law Provisions: These days all contract, especially entertainment contract have provisions concerning dispute resolution. But the reality is that litigation is always the least desirable for all parties. It is more expensive and takes longer than mediation or arbitration. But waiving your right to litigation may be a mistake. Also, pay close attention to the jurisdiction in which you would have to sue. Most entertainment contracts will be under NY, CA, or TN law. What is the difference? Does it matter? Will the case be a federal or state case? These are important distinctions to discuss with an experienced attorney.
While, a thorough understanding of entertainment and music law would be helpful, the reality is that an artist should rely on a qualified attorney to be a guide. Entertainment law agreements are complex. The use of an experienced entertainment attorney is critical in protecting your rights as an artist, producer, filmmaker, or record label. Even if you decide to go it alone, make sure that you read the entire agreement carefully and at least consult with a lawyer prior to entering into a negotiation. You will not talk yourself out of a deal, by negotiating for reasonable or customary changes.
If you need assistance with reviewing or negotiating a contract, please schedule a consultation or send the agreement to amy@madjammusiclaw.com for a quote for the cost of our services.
