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Would you sign a defective contract?

Do music business lawyers always know what they are doing? Or could they ask you to sign a contract that would not stand up in court?

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Sometimes we allow ourselves to live under the illusion that lawyers know what they are doing. Well of course they don't. If they did, they would have nothing to argue over, and no business. So one lawyer exploits the errors of another, who in turn fights back, and at the end of the process they both go away with shedloads of money, paid by their clients largely for their mistakes.

So there is no such thing as a watertight contract. The flowery and excessive language used by lawyers prevents that, as does their obsession for writing extraordinarily long sentences entirely without commas.

Very few disputes in the music industry go all the way through the legal process. Usually the big guy threatens the little guy, the little guy realizes that he is bound to lose and gives in. This unfortunately has the effect of perpetuating bad practices in the drafting of contracts, since they are rarely properly tested in court.

One example recently seen was a contract for a composer to write and record tracks for a TV series. The composer was paid a substantial sum of money to buy out all the rights to the music, apart from the performance right for which he will continue to be paid every time the program is broadcast.

However there was a serious defect in the contract. It only specified that the deal was for the music; it said not one word about the recordings the composer had made.

There is a completely separate copyright in a recording, independent of the music. So if you write and record your own music, you can license or sell either or both copyrights in your work. In practice it would nearly always be both.

However, since this particular contract said nothing about the recordings, the composer would have been within his rights to say that they were merely demo recordings and could not be used in the program. The production company would then have had to re-record the music.

Apparently the contract was checked by a music business lawyer, who really should have spotted this.

In practice, since the composer wants to continue working and not tick anyone off, he will probably just hand over the recordings, overlooking the omission in the contract.

The best practice with contracts is to treat them as a written down expression of what both parties genuinely believe they are agreeing to. And contracts should be written in plain English - there is no need for them not to be. If both parties fully understand what they are agreeing to, and a competent music lawyer has checked that all details have been accounted for, that will lead everyone to the greatest possibility of mutual success.

Publication date Sunday March 28, 2010

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Discussion on this article's topic...

 

Gabriel Katona, Franklin, Tn, USA
I find it interesting that this topic should arise at this time. As a member of a new band, I took the basics of a production agreement that I had drafted in the past by my attorney for my clients. I work as a producer, project studio owner and musician and as such I like to get things clear to avoid misunderstandings. I took the basic language of the production agreement and modified it to meet our understanding as a band in the form of a partnership agreement. Simply, it is a two-page agreement that identifies the members of the band and that after expenses, the band members would share equally in the profits arriving from recordings, live performances and merchandise. All decisions are to be made together so everybody has equal say in the band's direction and business. Further, the band members share equally in the credits. In return, the band members make a good faith effort to be available for band events like live performances, interviews, photo sessions, etc. I produced the 12-song project together with another member of the band. We put in considerably more time and effort to do the project than the other members and we used my professional project studio for the rehearsals, recording, mixing and mastering process. We are also the founders of the band and the ones who came up with the musical concept of the band and the name. As acknowledgment, we only ask for the ownership of the master recordings of these 12 songs and the name of the band. The agreement states that a lawyer can look this over. We have a consensus with everyone but one member. This member wants to take the agreement to a lawyer because of some issues about owning masters. We don't know at this time what the lawyer will do but I did mention to the member that I was open for legal clarifications of the agreement but I was not in agreement to get into a contest of negotiations with a lawyer that wants to win brownie points make himself or herself extra cash and to look good. We now wait and see what's next. It is my desire to be fair with everyone. We also need to be fair to ourselves. We're not taking any extra money for this nor do we have more say or decision powers than the other members. I hope for the best.

Monday March 22, 2010

Naymann, Lagos, Nigeria
For every submission so far to stand the test of time, first of all musicians or recording artistes especially should place some enormous and profound sense of significance or worth and extreme value on their gift or talent. If it is seen as the end to a means, then no stage of involvement ought to be on face value.

Secondly what is a contract, what are we selling and what is the commercial value of the product? Whose intellectual grace is the unifying force? A contract is a bond/tie between two people or a group. If I write a song that is potentially an industry’s quest, it is important for me to see this product as a viable instrument of liberation first of all to me, the production team and beyond. If this is my mind set, then I must peruse every legal document from this light. More over, Rod Steward made clear that first cut is the deepest and this philosophy is necessary as it equipped us to put the horse before the cart. Fundamentally, every good turn deserves another.

This composer who wrote and recorded tracks for a TV series and was paid a substantial sum of money to buy out all the rights to his intellectual property sold out his birth right. To him a bird at hand is worth who knows what. He probably has no confident in the posterity of his job thus anything is worth his while.

In clear terms, paying an extra for a lawyer’s service to vet a contract agreement isn’t bad an investment as a stitch in time saves nine. The world is all about the winner takes it all and survival of the fittest. Everyone is practically set to take advantage of one another. Fela Anikulakpo Kuti said we should LOOKU WELLU WELLU, meaning to be thorough about everything we do.

Monday March 22, 2010

Kemar Bernard, Portland, Jamaica
I have like music from primary school and since i have been in high school i went to many music festival and won ssome, but more over i can do many things in music and i thank my music teach for all her effort she had put in me and other students.

Monday March 22, 2010

Pres-king, Lagos State, Nigeria
I loved music since when I was about 8years and since then I put my effort on it to extend I even learn how to produce music as a producer.

Monday March 22, 2010

Kemar Bernard, Portland, Jamaica
Here is my phone if you want to contact me(876)478 7077. I am also a song writer and will try to get one on the internet for the public to hair.

Monday March 22, 2010

Kemar Bernard, Portland, Jamaica
I love music and is willing to put out all my best to my fans.

Monday March 22, 2010

Shelter Studios, Schaffhausen, Switzerland
Couldn't agree more with your comments but the chances of encouraging members of the legal profession to write their contracts in plain language are about as high those of the entertainment industry turning its back on digital recording techniques and going back to analogue recording.
(Notice the complete lack of punctuation!)
It would be against the best business interests of the legal community to be understood and to be held accountable for their errors, oversights and abject incompetence.
But for the avoidance of doubt it is wise to engage more than one legal counsel when setting out a contract.
The rule of thumb is, if you want the contract to be finished before a liability can be incurred, then engage the services of one good lawyer or attorney but, if you want the contract to be as watertight as possible then you should engage the services of two lawyers and, if you don't want the contract to be completed at all then ensure that one of the lawyers is French.

Monday March 22, 2010

 


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