Music Business/Law Tips - "Copyright Protection"

A songwriter should protect the song(s) they write to ensure maximum income streams and defend against infringement. The songwriter(s) own the copyright in an original work. The term of copyright generally is life of the author plus 70 years. This means the originator(s) control all the rights for that period (e.g., record, distribute, perform, etc.). Copyright exists once the song is in a “tangible” form. Generally this would be a recording (demo is OK). There is no requirement to file the song with the US Copyright Office to create a copyright, but a writer obtains additional legal rights by doing so (i.e., right to sue in court for infringement and get statutory damages), and filing is a presumption of authorship. Hence, it’s best to file any songs with the US Copyright Office that a writer plans to exploit, and just to be safe always put the © symbol next to the song title on credits or demos sent out. Ben McLane Esq Benmclane.com

Music Business/Law Tips - Touring Profits

Touring profits for new artists are razor thin as most of the money goes right back out for travel, crew and commissions. It’s estimated that a new act only pockets between 15-30% of the profit from a show (after expenses and commissions), and this is before taxes. For example, a new band playing decent size rooms opening for a bigger act will generally gross about $10,000 a night if you combine the show fee plus merchandise sales. If such a band plays 5 nights a week they are grossing $50,000 a week (on average). Out of that, the band must deduct production costs ($10,000/week average), transportation costs ($10,000/week average), and crew costs ($10,000/week on average). That is a net profit of $20,000. The band must then deduct commissions of up to 40% to pay its manager, booking agent, lawyer and accountant, leaving the band with on average $8,000-$10,000 to split between the 4-5 members. Clearly, for a new artist, touring is all about setting themselves up for making more money in the future once they become a headliner where the fees increase (but so do the production and travel costs). On the other hand, touring is essential to develop a fan base that will stick with the act for many years to come/reap future benefits. Ben McLane Esq Benmclane.com

Music Business/Law Tips - "Royalties for Oldies"

A recent California court case ruled that Sirius XM Radio (digital radio) must pay broadcast royalties for pre-1972 records it plays. The case was filed by The Turtles who sang on several big hits in the 1960s (i.e., Happy Together). Current Copyright law says that terrestrial (i.e., AM/FM band) radio stations don’t have to pay broadcast royalties to performers (only to songwriters via BMI, ASCAP or SESAC). Moreover, there was no copyright in sound recordings (only songs) prior to 1972. However, in 1995 the Digital Millenium Copyright Act carved out an exception whereby digital services like Sirius XM Radio must now also pay a performance royalty to performers and master rights owners when records are played on their stations. This royalty is collected by SoundExchange. The key issue was that Sirius XM was only paying out on records made from 1972 onward on the basis that no copyright existed prior to 1972 so there was no legal right to pay - artists like The Turtles felt they were getting screwed. The ruling is a major precedent and may result in terrestrial radio stations eventually being forced to pay broadcast royalties to performers as well. Of course Sirius XM will probably appeal, so keep posted to see if the decision stands. Ben McLane Esq Benmclane.com