The better - but more rare - standard for an artist is known as delivering technically satisfactory recordings. Under this standard, as long as a recording is done using the proper sonic equipment, the company does not have the same leeway to reject the tracks. This standard is usually reserved for midrange and superstar artists.
Along with the standards set forth above, labels generally add other delivery requirements to the contract. Some of the most common are the following: (a) tracks must be recorded during the term of the contract, (b) songs must be new (not previously recorded by the artist), (c) tracks are studio recordings, (d) material does not infringe upon someone else's copyright, (e) songs must have a minimum length (normally at least two minutes), (e) recordings feature only the artist's performance, and (f) recordings are not completely instrumental.
The delivery portion of the recording contract might seem insignificant on its face, but the way it is phrased can become quite important. Therefore, an artist should seek to have the technically satisfactory language added to the contract if at all possible.
Ben McLane Esq
benmclane.com
Tuesday, July 20, 2010
Monday, July 12, 2010
Music Business/Law Tips - "Delivery" (Part 1)
Whether an artist signs a recording contract with a major or minor record company, the label will have some say over what type of material will eventually be released by the artist. Hence, there exists what is known as a delivery requirement in recording agreements.
As the concept is known in the music industry, delivery means that the record company has to accept the recordings which are brought to them by the artist as adhering to the terms of the record deal. The contract will specify what standard the record company will use to test how acceptable the recordings are. It is important that the artist be aware of what standard they are agreeing to.
The most common standard is that the artist must deliver commercially satisfactory recordings. In essence, this means the company will only accept recordings which it believes are hit records. Such language is what a newer artist or an artist without much bargaining power can expect. This ambiguous standard can cause many problems, including: (a) the label suspending the contract period until acceptable tracks are delivered, (b) putting the artist deeper in debt to the label because additional recordings cost more money, and (c) allowing the label to terminate the deal under the argument that the artist was late in delivery and thus breached the contract.
[part 2 next week]
Ben McLane Esq
benmclane.com
As the concept is known in the music industry, delivery means that the record company has to accept the recordings which are brought to them by the artist as adhering to the terms of the record deal. The contract will specify what standard the record company will use to test how acceptable the recordings are. It is important that the artist be aware of what standard they are agreeing to.
The most common standard is that the artist must deliver commercially satisfactory recordings. In essence, this means the company will only accept recordings which it believes are hit records. Such language is what a newer artist or an artist without much bargaining power can expect. This ambiguous standard can cause many problems, including: (a) the label suspending the contract period until acceptable tracks are delivered, (b) putting the artist deeper in debt to the label because additional recordings cost more money, and (c) allowing the label to terminate the deal under the argument that the artist was late in delivery and thus breached the contract.
[part 2 next week]
Ben McLane Esq
benmclane.com
Tuesday, July 6, 2010
Music Business/Law Tips - "Copyright"
If you are a musician or songwriter, the copyright law affects your craft, so it is important to have a basic understanding of it.
The term "copyright" really means that the creator has the right to copy. If an artist writes an original song, that artist is the owner of the copyright. As it pertains to artists in general, the copyright law basically grants the creator the right to (1) reproduce (e.g., make copies), (2) distribute (e.g., sell copies) and
(3) perform (e.g., play the song live).
Once the song is in a tangible form (i.e., written), the artist should take steps to protect the work. In essence, an artist needs to prove the date of creation. Actually, under the present copyright law, a work is copyrighted once it is written or recorded. However, it is best to have proof of creation. The best method is to obtain a registration form from - and register the copyright with - the Library of Congress in Washington, D.C. To request the free registration form, the mailing address is: Register of Copyrights, Copyright Office, Library of Congress, Washington, D.C. 20559 (forms are also online). The fee is $45.00 per song. Another less sound technique is known as the "poor man's copyright", which consists of the artist simply enclosing a copy of the song in an envelope and sending it to the artist certified mail. The envelope should not be opened or it will spoil the purpose of securing the date.
It is also important to put the proper copyright notice on songs and recordings that are presented to the public, such as a demo. The copyright notice for songs and sound recordings must include three elements: the symbol © (for lyric sheet or sheet music) or (p) (for tapes, records, CDs), the year of publication and the name of the copyright owner.
A song can be a valuable commodity. It is imperative that any artist who wishes to be taken seriously - and not be ripped-off - do the things described above as a form of protection.
The term "copyright" really means that the creator has the right to copy. If an artist writes an original song, that artist is the owner of the copyright. As it pertains to artists in general, the copyright law basically grants the creator the right to (1) reproduce (e.g., make copies), (2) distribute (e.g., sell copies) and
(3) perform (e.g., play the song live).
Once the song is in a tangible form (i.e., written), the artist should take steps to protect the work. In essence, an artist needs to prove the date of creation. Actually, under the present copyright law, a work is copyrighted once it is written or recorded. However, it is best to have proof of creation. The best method is to obtain a registration form from - and register the copyright with - the Library of Congress in Washington, D.C. To request the free registration form, the mailing address is: Register of Copyrights, Copyright Office, Library of Congress, Washington, D.C. 20559 (forms are also online). The fee is $45.00 per song. Another less sound technique is known as the "poor man's copyright", which consists of the artist simply enclosing a copy of the song in an envelope and sending it to the artist certified mail. The envelope should not be opened or it will spoil the purpose of securing the date.
It is also important to put the proper copyright notice on songs and recordings that are presented to the public, such as a demo. The copyright notice for songs and sound recordings must include three elements: the symbol © (for lyric sheet or sheet music) or (p) (for tapes, records, CDs), the year of publication and the name of the copyright owner.
A song can be a valuable commodity. It is imperative that any artist who wishes to be taken seriously - and not be ripped-off - do the things described above as a form of protection.
Monday, June 28, 2010
Music Business/Law Tips - "Controlled Composition" (Part 2)
One potential problem that an artist faces with the controlled composition clause, is that generally such a clause requires a rate for all songs on the album. This issue becomes real when some of the songs recorded for the album are written by outside writers who refuse to accept a reduced rate. If the artist cannot convince the outside writer to take a reduced rate, the artist must pay out of his/her royalties the extra 25% payable to any producer or outside writer who will not agree to the 75% rate.
It is significant that under the 1976 Copyright Law the minimum statutory rate changes over time. The minimum rate is set to increase at certain yearly intervals based upon the U.S. Consumer Price Index. The label will want to lock-in the rate at a certain point in time, usually: (a) the date of signing the contract, (b) the date of recording, (c) the date of master delivery, or (d) the date of first release of the master. It is advantageous to the artist to get the latest possible date, since there is a strong chance the rate will go up.
Although it is usually the case that a new artist does not have much leeway with respect to negotiating a rate higher than 75% of statutory, it does not hurt to request a "full rate", or perhaps an 85% rate.
Ben McLane Esq
benmclane.com
It is significant that under the 1976 Copyright Law the minimum statutory rate changes over time. The minimum rate is set to increase at certain yearly intervals based upon the U.S. Consumer Price Index. The label will want to lock-in the rate at a certain point in time, usually: (a) the date of signing the contract, (b) the date of recording, (c) the date of master delivery, or (d) the date of first release of the master. It is advantageous to the artist to get the latest possible date, since there is a strong chance the rate will go up.
Although it is usually the case that a new artist does not have much leeway with respect to negotiating a rate higher than 75% of statutory, it does not hurt to request a "full rate", or perhaps an 85% rate.
Ben McLane Esq
benmclane.com
Tuesday, June 22, 2010
Music Business/Law Tips - "Controlled Composition" (Part 1)
One of the key provisions in any record deal is known as the "controlled composition" clause. It is important that the artist understand this provision.
A controlled composition is related to the concept of mechanical royalties ("mechanicals"). Mechanicals are the fees paid by the label to the owner of the copyright ("song") - whether it is the artist or the artist's publisher - for the use of the song on a recording sold to the public. A controlled composition is a song written, owned or controlled by the artist. Many labels insist that any song written by the producer shall also be a controlled composition.
The purpose of a controlled composition clause is to put a limit on how much the label has to pay for each controlled composition. Labels want to put a limit on how much they have to pay to use the song, because unlike artist royalties, labels generally do not recoup advances, recording costs, etc. from mechanicals. Hence, in the record contract, labels will only offer an artist what is called a "rate" on controlled compositions. The rate is usually 75% of the minimum statutory rate set forth in the 1976 Copyright Law for each song. Further, the rate for an album is usually a limit of ten times the 75% minimum statutory rate. In other words, labels will only pay mechanicals on ten songs for any album at the reduced rate (and only two times the minimum statutory rate for singles), regardless of how many cuts are on the album. Labels will normally require an even further reduced rate of 50% of the minimum statutory rate for record club or budget record sales.
[part 2 next week]
Ben McLane Esq
benmclane.com
A controlled composition is related to the concept of mechanical royalties ("mechanicals"). Mechanicals are the fees paid by the label to the owner of the copyright ("song") - whether it is the artist or the artist's publisher - for the use of the song on a recording sold to the public. A controlled composition is a song written, owned or controlled by the artist. Many labels insist that any song written by the producer shall also be a controlled composition.
The purpose of a controlled composition clause is to put a limit on how much the label has to pay for each controlled composition. Labels want to put a limit on how much they have to pay to use the song, because unlike artist royalties, labels generally do not recoup advances, recording costs, etc. from mechanicals. Hence, in the record contract, labels will only offer an artist what is called a "rate" on controlled compositions. The rate is usually 75% of the minimum statutory rate set forth in the 1976 Copyright Law for each song. Further, the rate for an album is usually a limit of ten times the 75% minimum statutory rate. In other words, labels will only pay mechanicals on ten songs for any album at the reduced rate (and only two times the minimum statutory rate for singles), regardless of how many cuts are on the album. Labels will normally require an even further reduced rate of 50% of the minimum statutory rate for record club or budget record sales.
[part 2 next week]
Ben McLane Esq
benmclane.com
Monday, June 14, 2010
Music Business/Law Tips - "Songwriter Collaboration" (Part 2)
Third, the writers must agree that if expenses are incurred for the preparation or presentation of the song, each of the writers shall be responsible for a percentage of the expenses. The percentage is usually in the same proportion as would apply to the net profits.
Fourth, it should be agreed that expenses shall only be incurred upon all parties' consent.
Fifth, the writers should agree that at any time before the song is placed with a publisher, the writer may withdraw his/her collaborative contribution freely, provided that he/she shall have no claim to, or rights in, any subsequent collaboration on that particular song.
Sixth, the writers should agree that the collaboration agreement only applies to the song listed, and no other.
Seven, the date, signatures, addresses and social security numbers of the writers should be included at the end of the agreement.
So that there is no confusion as to rights and profit splits, when two or more persons write a song together, a simple agreement including the above will make life much easier if and when the song makes money.
Ben McLane Esq
benmclane.com
Fourth, it should be agreed that expenses shall only be incurred upon all parties' consent.
Fifth, the writers should agree that at any time before the song is placed with a publisher, the writer may withdraw his/her collaborative contribution freely, provided that he/she shall have no claim to, or rights in, any subsequent collaboration on that particular song.
Sixth, the writers should agree that the collaboration agreement only applies to the song listed, and no other.
Seven, the date, signatures, addresses and social security numbers of the writers should be included at the end of the agreement.
So that there is no confusion as to rights and profit splits, when two or more persons write a song together, a simple agreement including the above will make life much easier if and when the song makes money.
Ben McLane Esq
benmclane.com
Monday, June 7, 2010
Music Business/Law Tips - "Songwriter Collaboration" (Part 1)
Whenever two people sit down to write a song together, they create a "joint work" and both of the writers own the song. Although each person may create a distinct part (such as the lyrics or the music), each writer has an interest in the entire work. In other words, a situation where there are different contributions to just one song is analogous to having the co-writers pouring small glasses of water into one large glass; it is virtually impossible separate the parts.
For example, if A writes only the music and B writes only the lyrics, B still owns half of the music and lyrics, as does A. When there is a joint work, either of the writers can deal nonexclusively with the entire song, subject to the obligation to pay the other writer(s) his/her share of the net profits. Therefore, it is advisable that the writers enter into a collaboration agreement which sets forth how the profits should be split if it is intended that the split be anything which deviates from a 50/50 ratio. Fortunately, a collaboration agreement can be quite simple and need only include a few major points:
First, the title of the song collaborated on must be listed in the agreement.
Second, the writers must agree to divide any and all net profits received from the sale of the song. To do this, next to the composer's name, there needs to be a percentage share he/she is entitled to. It should be specified whether the composer contributed music and/or lyrics.
[part 2 next week]
ben mclane esq
benmclane.com
For example, if A writes only the music and B writes only the lyrics, B still owns half of the music and lyrics, as does A. When there is a joint work, either of the writers can deal nonexclusively with the entire song, subject to the obligation to pay the other writer(s) his/her share of the net profits. Therefore, it is advisable that the writers enter into a collaboration agreement which sets forth how the profits should be split if it is intended that the split be anything which deviates from a 50/50 ratio. Fortunately, a collaboration agreement can be quite simple and need only include a few major points:
First, the title of the song collaborated on must be listed in the agreement.
Second, the writers must agree to divide any and all net profits received from the sale of the song. To do this, next to the composer's name, there needs to be a percentage share he/she is entitled to. It should be specified whether the composer contributed music and/or lyrics.
[part 2 next week]
ben mclane esq
benmclane.com
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