Overview of Music Law and Business Issues

Overview of Music LawOverview of Music Law
and Business Issuesand Business Issues
Donald R. Simon,Donald R. Simon, J.D./LL.M.J.D./LL.M.

MeMe
• 9 years teaching business and9 years teaching business and
legal issues to aspiring artists.legal issues to aspiring artists.
• Teaching legal and biz courses atTeaching legal and biz courses at
The Art Institutes Int’l - KC.The Art Institutes Int’l - KC.
• Prior to becoming an attorney,Prior to becoming an attorney,
worked in radio, television,worked in radio, television,
and performed as a musician.and performed as a musician.

MeMe
• Board MemberBoard Member, KCVLAA, KCVLAA
• Advisory Committee MemberAdvisory Committee Member,,
Midwest Music FoundationMidwest Music Foundation
• Co-Owner/General CounselCo-Owner/General Counsel,,
Mudstomp RecordsMudstomp Records

The Music BusinessThe Music Business
• The music business is multi-The music business is multi-
layered and complicated.layered and complicated.
• It can be profitable, but alsoIt can be profitable, but also
perilous.perilous.
• For example, licensing…For example, licensing…

““The music business is aThe music business is a
cruel and shallow moneycruel and shallow money
trench, a long plastictrench, a long plastic
hallway where thieveshallway where thieves
and pimps run free, andand pimps run free, and
good men die like dogs.good men die like dogs.
There’s also a negativeThere’s also a negative
side.”side.”
~~Hunter S. Thompson~~Hunter S. Thompson

• If you have any hope of makingIf you have any hope of making
a living out of doing somethinga living out of doing something
that you love, you have to startthat you love, you have to start
thinking of your musicalthinking of your musical
endeavor in terms of a business.endeavor in terms of a business.
• You are not just an artist, youYou are not just an artist, you
are anare an entrepreneurentrepreneur!!

• But as with any entrepreneur, youBut as with any entrepreneur, you
will be confronted by and willwill be confronted by and will
have to deal with tons of legalhave to deal with tons of legal
and business issues.and business issues.
• These issues may not be directlyThese issues may not be directly
related to writing and performing,related to writing and performing,
but are nonetheless important.but are nonetheless important.

• Common Legal/Business IssuesCommon Legal/Business Issues::
• Copyright*Copyright*
• Music Publishing*Music Publishing*
• Recording Agreements*Recording Agreements*
• Licensing Agreements*Licensing Agreements*

• Common Legal/Business IssuesCommon Legal/Business Issues::
• Group Name (Trademark)Group Name (Trademark)
• Band Agreements/LLCsBand Agreements/LLCs
• MerchandisingMerchandising
• Selecting Good Representation*Selecting Good Representation*

• Common Legal/Business IssuesCommon Legal/Business Issues

• CopyrightCopyright::
• A form of legal protection given toA form of legal protection given to
many kinds of creative worksmany kinds of creative works
including songs, recordings, poems,including songs, recordings, poems,
films, TV shows, software, andfilms, TV shows, software, and
commercials.commercials.
• For the musicians, CRs protect bothFor the musicians, CRs protect both
songs (notes and lyrics) and theirsongs (notes and lyrics) and their
respective recordings.respective recordings.

• 2 Kinds of Music Copyrights2 Kinds of Music Copyrights::
1.1. Song (notes and lyrics)Song (notes and lyrics): typically: typically
owned by a songwriter or by aowned by a songwriter or by a
music publishing company; andmusic publishing company; and
2.2. RecordingRecording: typically owned by a: typically owned by a
recording company (or the artistrecording company (or the artist
themselves, if unsigned).themselves, if unsigned).

• The CRs in songs and recordingsThe CRs in songs and recordings
createcreate 2 different revenue streams2 different revenue streams
in the form of royalties from musicin the form of royalties from music
publishingpublishing andand from record sales.from record sales.
• These different revenue streamsThese different revenue streams
come from various licensecome from various license
agreements.agreements.

MusicalMusical
WorkWork
MusicalMusical
WorkWork
SongSong
(Notes/Lyrics)(Notes/Lyrics)
Songwriter/PublisherSongwriter/Publisher
SongSong
(Notes/Lyrics)(Notes/Lyrics)
Songwriter/PublisherSongwriter/Publisher
RecordingRecording
Artist/Recording CompanyArtist/Recording Company
RecordingRecording
Artist/Recording CompanyArtist/Recording Company

• Music PublishingMusic Publishing::
““Music Publishing”Music Publishing”

• The business of exploiting a song,The business of exploiting a song,
such as in film, TV, video games,such as in film, TV, video games,
ringtones, greeting cards, andringtones, greeting cards, and
even karaoke machines.even karaoke machines.
• And collecting money from suchAnd collecting money from such
uses, usually in the form of auses, usually in the form of a
license fee.license fee.

• Common Publishing Licenses:Common Publishing Licenses:
• Synchronization (Film/TV/Adv.)Synchronization (Film/TV/Adv.)
• Videogram (DVDs/VHS/Etc.)Videogram (DVDs/VHS/Etc.)
• Performance (Clubs/Rest./Broad.)Performance (Clubs/Rest./Broad.)
• Mechanical (CDs/Compilations)Mechanical (CDs/Compilations)

• Songwriters typicallySongwriters typically
own the CRs in theown the CRs in the
songs they write andsongs they write and
earn money fromearn money from
license fees for thelicense fees for the
commercial use ofcommercial use of
their songs.their songs.

• Publishing can be lucrative forPublishing can be lucrative for
musicians who write their ownmusicians who write their own
songs.songs.
• Music publishersMusic publishers: find uses for: find uses for
songs; issue licenses; asongs; issue licenses; administerdminister
legal protection;legal protection; collect publishingcollect publishing
revenue; and pay you.revenue; and pay you.

• Common Publishing Deals:Common Publishing Deals:
• Single songSingle song
• Exclusive songwriterExclusive songwriter
• Co-publishingCo-publishing
• AdministrationAdministration
• CollectionCollection

• Important distinction to remember:Important distinction to remember:
• Publishing incomePublishing income does notdoes not come fromcome from
CR ownership in recordings.CR ownership in recordings.
• It comes from ownership of the CRs inIt comes from ownership of the CRs in
thethe songssongs..

• Once publishing rights have beenOnce publishing rights have been
secured from the songwriter, if asecured from the songwriter, if a
licensee is interested in using alicensee is interested in using a
pre-existing recording of a song,pre-existing recording of a song,
they must also acquire athey must also acquire a MasterMaster
Use LicenseUse License..

• Acquiring a Master Use License isAcquiring a Master Use License is
technically not part of musictechnically not part of music
publishing, but is an important partpublishing, but is an important part
of the process.of the process.
• A Master Use License is where non-A Master Use License is where non-
songwriting members can makesongwriting members can make
some money.some money.

• Recording AgreementsRecording Agreements

• Recording AgreementsRecording Agreements::
• There is probably no subject in theThere is probably no subject in the
music biz more frequently discussed,music biz more frequently discussed,
yet more misunderstood, than theyet more misunderstood, than the
subject of recording contracts.subject of recording contracts.
• Recording contracts can be painfullyRecording contracts can be painfully
long and complex.long and complex.

• It is important to readIt is important to read
through and understandthrough and understand
all the contract’s termsall the contract’s terms
and conditions BEFOREand conditions BEFORE
signing it.signing it.
• The devil can be in theThe devil can be in the
legalese.legalese.

• A little dangerous to attempt toA little dangerous to attempt to
discuss generally and briefly thediscuss generally and briefly the
subject of recording contracts, duesubject of recording contracts, due
to the complexity of the subject.to the complexity of the subject.
• For every general statement whichFor every general statement which
can be made, there are numerouscan be made, there are numerous
exceptions.exceptions.

• Typical recording contract sections:Typical recording contract sections:
1.1. Term (# of albums or time duration)Term (# of albums or time duration)
2.2. TerritoryTerritory
3.3. ExclusivityExclusivity
4.4. Artist royalties (for the performer(s))Artist royalties (for the performer(s))

• Typical recording contract sections:Typical recording contract sections:
5.5. Mechanical royalties (for songwriter(s))Mechanical royalties (for songwriter(s))
6.6. Costs/RecoupmentCosts/Recoupment
7.7. Ownership of the MastersOwnership of the Masters
8.8. Dispute resolutionDispute resolution

• Although artists have long beenAlthough artists have long been
frustrated with the traditional recordfrustrated with the traditional record
industry, there have been no viableindustry, there have been no viable
alternatives until recently.alternatives until recently.
• The Internet and digital recordingThe Internet and digital recording
technology has getting your musictechnology has getting your music
out there much easier.out there much easier.

• This is not to say that labels willThis is not to say that labels will
cease to be powerful or the one-cease to be powerful or the one-
sided nature of recording contractssided nature of recording contracts
will suddenly change.will suddenly change.
• Nonetheless, there are alternativesNonetheless, there are alternatives
and possibilities for artists todayand possibilities for artists today
which were impossible to imaginewhich were impossible to imagine
before the onset of the Internet.before the onset of the Internet.

• Selecting Good RepresentationSelecting Good Representation
‘

• Selecting Good RepresentationSelecting Good Representation::
• It can tough for artists to go at itIt can tough for artists to go at it
alone.alone.
• Need people around to help protectNeed people around to help protect
business interests and intellectualbusiness interests and intellectual
property, and sometimes protectproperty, and sometimes protect
them from themselves.them from themselves.
• Artist free toArtist free to create and performcreate and perform..

• Selecting Good RepresentationSelecting Good Representation::
• Artist (Personal) managersArtist (Personal) managers
• Business managersBusiness managers
• AttorneysAttorneys
• Booking agentsBooking agents

Questions?
Questions?

Overview of Music Law and Business Issues

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (10)

Semelhante a Overview of Music Law and Business Issues

Semelhante a Overview of Music Law and Business Issues (20)

Mais de Donald R. Simon

Mais de Donald R. Simon (7)

Último

Último (20)

Overview of Music Law and Business Issues