Music Business/Law Tips - "Record Deal Term"

Most record deals have a "term" based on delivery and release of an album(s). In other words, the Artist does not move to the next period until an album has been released. The language might say something like: "The initial term shall end the later of (a) 12 months from the date of the agreement, or (b) 9 months from the release of the 1st album". The problem is that the term could end up being "open-ended" or indefinite if for some reason the album is never released or it is delayed. Hence, one should always add a provision that under any circumstance, a period should never exceed 18 months (or words to that effect) just to protect against a worst case scenario/so the Artist does not get stuck forever in a bad deal. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Licensing Music = Money"

There is a surefire method to get paid from music. Despite all the so-called doom and gloom associated with free downloads, paltry streaming royalties and empty venues, the demand for music in film, TV, commercials, the Internet, radio, and other forms of media is increasing daily and globally. In TV alone there are countless channels clamoring for content, and the number of cues contained in one reality show episode can be numerous. This is great news for music creators/rights holders (both the song and master copyrights), because that means cold hard cash is being paid to the music creator/rights holders for providing the music that drives these shows. Monies can be earned either on the front end, the back-end from performance, or often from both. Moreover, there are really no barriers to licensing music. The door is open to all ages, creeds and colors. In the licensing world – unlike the “Top 40” game - all anyone really cares about is the music; not how old someone is, what they look like, where they live, who their father is, or how many friends they have on Facebook. The link between the music creator/rights holder, the media outlet and the compensation, is known as a “license”. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Sampling Defense"

Although its always advisable to gain permission from copyright owners before sampling their music since in general even taking small snippets can be considered infringement, there are a few possible arguable defenses for not having to clear a sample. One would be "fair use", where the copying serves some sort of benefit to the public (such as education, criticism, parody or satire). The other would be "de minimus", where the copying is so tiny one could never tell the original source of the music. Again, these defenses are just that and they may not fly - especially if the sampler is making money off of someone else's work. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Video Game License Fees"

When you license your music for inclusion on a video game, the royalties and fees depend upon how famous you are, how famous your song is, the prior history or anticipated sales of the game, who the game company is, the bargaining power of the parties, and the needs of the video game producer, artist and/or songwriter. Some agreements provide for an actual royalty but most provide for a one-time buy-out fee per song regardless of the number of games actually sold or how many times the game is played. There is no standard per se, but per game royalties range from 8 cents to 15 cents per song, and buyouts range from $1 to over $25,000 (with the average being between $2500-$5000). Ben McLane Esq benmclane.com

Music Business/Law Tips - "Business Formation"

Once an artist gets serious about a career and starts to make money, its wise to have a professional business structure. There are several options, and the factors involved in which entity to choose are normally based on liability protection, taxes, complexity of the artist's situation, and set-up cost. The 4 most common types of business forms are: (a) sole proprietership, (b) partnership, (c) LLC, and (d) corporation. The differenses are beyond the scope of a short article, but a good attorney or accountant can help the artist make the correct choice. In genera however, at first a sole proprietship works OK for a solo artist and a partnership for a band (and can be converted to an LLC or Inc. later once the career progresses). Ben McLane Esq benmclane.com

Music Business/Law Tips - "Marketing and Promotion"

Since there is normally a direct correlation between awareness of a record release and sales, it is important for any product commercially released to be backed by as much marketing and promotion as possible. This normally means advertising and publicity in areas like radio, online, TV, press, in-store promotions, etc. At a record label there are marketing and publicity departments that handle this. If an artist is indie - and even if signed - they may have to do some/all of this themselves to reach fans. It does not make sense to spend the time/money to record a record and then not properly promote it. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Tour Support"

Artists normally sell more product when they tour and selling product is really all that record labels care about, so sometimes a record label will financially support a tour if an artist is new and not breaking even on the road yet. This is called "tour support". Tour support money can help defray touring related expenses such as gas, food, food, lodging and crew. This would be considered an "advance" that is generally recoupable against the artist's royalties. Ben McLane Esq. benmclane.com