Music Business/Law Tips - "Producer v. Production Agreements"

The 2 main producer related agreements are: (1) Producer Agreement and (2) Production Agreement. What is the difference? 1. A Producer Agreement is where a producer is hired by an artist or label to produce master(s) for the artist/label. The producer is a “work for hire” which means the producer will not own/control the masters (the artist/label will), but will get paid a fee for his/her work and back-end royalties on sales and licensing of the masters to film/TV/ads. 2. A Production Agreement is where the producer acts like a label and discovers/develops the artist, and signs the artist exclusively to his/her production company for a term/number of albums. The producer normally gets 50% of the profits here (a lot more than under a Producer Agreement situation). The producer will normally cut a few demos and then pitch/showcase the artist to a record company who can partner with the producer to distribute and market the artist. If the producer cannot find a distributor within a certain amount of time the artist can usually terminate. Of course there are other key issues that affect the above like recoupment of costs and songwriting/publishing, so if you are an artist or a producer make sure you have good legal counsel before doing either type of deal. Ben McLane Esq Benmclane.com

Music Business/Law Tips - "Royalty Streams"

If an artist is fortunate enough to write, produce, record and release a song that connects with the public he/she can earn income from many different sources. The primary income streams are as follows: 1. Mechanical (i.e., songwriter) income from sales of CDs and downloads 2. Radio airplay (i.e., performance) income [BMI or ASCAP] 3. Performer income from sales of CDs and downloads 4. Streaming income from listens 5. SoundExchange income from digital radio (i.e., Sirius/XM) 6. Producer royalties from sales of CDs and downloads 7. Synch income (i.e., use in TV/film/ads) Now go get that mailbox money! Ben McLane Esq benmclane.com

Music Business/Law Tips - "Foreign Entertainer/Artist Visa"

A foreign entertainer/artist must obtain an O1B Visa in order to legally stay and work in the US for an extended period of time. The entertainer/artist must file an O1B application with the US Immigration Office to begin the process. An O1B Visa is only granted to someone who can prove they have “extraordinary ability in the arts”, have “national or international acclaim” and a “record of prominence in his/her field.” Bottom line the Immigration Office is very strict about who they issue a Visa to (especially after 9/11), so the applicant has to be very careful with the paperwork submitted. There are lot of people trying to get these Visas who don’t really deserve them, so the applicant has to find a way to set him/herself apart from the pack so it’s clear he/she is worthy. The main thing the application needs to show is real evidence of working and making some kind of artistic/valuable contribution in the US. Normally an experienced immigration attorney who has dealt with entertainers/artists is recommended to assist with the process. Since the process can take some time, its best to apply early to make sure future plans are not screwed up by a rejection. Ben McLane Esq Benmclane.com

Music Business/Law Tips - Streaming Income

With the decline of CD sales and slow down of digital downloads, it seems that “streaming’ of music is becoming a dominant business model/way to make money off music (and there are no returns or packaging deductions). Industry reports that billions of dollars could be made off the streaming of music (combined), and perhaps this might even get bigger. The problem is that major labels received monetary “advances” from large streaming companies like Spotify to license them the right to stream their catalogs – but the terms of those deals were secret and none of that income has trickled down to the artists (yet). Where does the money go and how/when will it be split in the future? This is a big deal and a question no one has yet really been able to firmly answer. Certainly, transparency of the labels’ books would help, and it would also be great if artists could do their own direct deals with Spotify or get paid their share direct (like how SoundExchange or BMI does it). Hopefully a few big name artists will make some noise soon to help push through some changes/industry standards in this area so artists can continue to make a living. Ben McLane Esq Benmclane.com

Music Business/Law Tips - "U2's secrets of success"

The rock band U2 has been together for nearly 40 years, and famous for almost 35. How did they do it and what can young artists learn from them? Below are some of the secrets of their success: 1. Great songs. 2. Smart management. 3. Aggressive booking agent. 4. Retained ownership of their masters and publishing. 5. Built a global fan base through consistent releases and touring worldwide. 6. Split songwriting income 4 ways equally in order to keep group harmony. 7. Evolved and stayed relevant with the times/sounds. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Marketing Terms"

For a record label to properly release a record, it needs to market and promote the record. There are a few marketing terms/jargon that are similar/overlap which an artist may hear a label refer to or see as a line time expense on a royalty statement, but which have slightly different meanings to the industry: "Marketing" - Generally refers to money spent for in store promotions, like listening stations, posters or product placement on end-caps or near the sales counter. "Promotion" - Generally refers to the label spending money to hire an outside (or indie) radio or video promoter who can hopefully get a single played. "Advertising" - Generally refers to the label spending money to buy ads on TV, radio or in print. "Publicity" - Generally refers to the label spending money to hire an outside publicist to obtain publicity in the press, TV, print and online media. Ben McLane Esq benmclane.com

Music Business/Law Tips - "Streaming"

The 2 best known sources for streaming music in the US are Pandora and Spotify. Pandora is what is known as a “non-interactive” platform because its sort of like a traditional radio station where the listener has no real control over what is played (other than fixing genres/similar artists that cause a narrowcast). Spotify is known as an “interactive” platform because the listener gets to choose what they listen to (click). While streaming of music is great for the discovery of new music/artists, currently it does not pay out much in royalties to the performers/songwriters. Although it’s hard to say for sure, approximately 140 streams equal what is earned from 1 digital download sale on iTunes. Due to the explosion of cellphones, iPads, etc. (worldwide) where music can be listened to from anywhere via this platform, it will only get to be bigger. We will have to stay tuned to see how the money trickles down to the creators as this new model evolves. Ben McLane Esq Benmclane.com