I am often fascinated by how easily many give away rights to their money before they even get it! As most of us KNOW, money isn’t easy to come by, but it can quickly disappear when business is not properly handled. In this article I’ll discuss co-writing a song as an example. It is a common circumstance that I often address with many of my clients.
Within a song composition, there exists three parts: the musical “track”, the content “lyrics”, and (track and lyrics combined) the full “sound recording.” A songwriter owns 100% of the underlying composition (e.g., the lyrics), unless he/she co-wrote the song with another individual and/or gave a portion of the ownership away through an agreement with a third party.
In addition to the rights granted under Federal Copyright laws, a songwriter earns money for each paid use of the song (e.g., every time it’s played on the radio, is used as a ring tone, etc.). However, when a song is co-written and there is no evidence of an agreement identifying each person involved in its creation, by default a court of law can recognize each party, “claiming” involvement, being entitled to an equal share of all monies earned by the song. In layman’s terms—If you have NO PROOF that you wrote 80% of a song, and 3 other people are claiming they wrote 80% of it too… then instead of 80%, expect 25% of any money coming to the table. Therefore, it is imperative that a songwriter always has some type of substantiated proof of their work. Here is where a document called a split sheet can save a lot of unwarranted headaches.
Split sheets usually possess the following information: 1) The name of the song, 2) the date it was created, 3) percentage that each person contributed, and 4) signatures of all individuals involved and in agreement. When everyone shares a vision of things to come, including ‘dreams of BIG money in the future’, people tend to erroneously think that formal agreements, like split-sheets, will somehow ruin the blissful state of creativity. However, if done correctly, “splits” (i.e., percentages) can be based on the personal relationships between the parties or an upfront negotiation by those involved.
Hopefully, I have in some way versed you on the necessity of having SOME type of completed agreement between yourself and all other contributors regarding any composition (i.e., song) worked on collectively. After reading this there is no excuse for having your assets jeopardized over a petty disagreement. If you are unclear on anything and/or need further information, please contact an attorney who is knowledgeable in matters of intellectual property. Take seriously the responsibility to protect what’s yours.
If you would like a free copy of a split sheet, please email my office to request one at dante.marshall@marshallkirkland.com.
Tuesday, September 11, 2007
To Answer Your Question...
Thought I'd answer a question from one of my emails I received:
"Q: I AM SETTING UP A PLACEMENT ON A ALBUM WITH A PRODUCER THAT MAY POSSIBLY BECOME A SINGLE FOR THE ARTIST....I JUST WANT TO KNOW WHAT AM I ENTITLED TO RECEIVING FROM THE PRODUCER (e.g., ROYALTIES, RING TONES, ETC.). THE PRODUCER DRAFTED UP A CONTRACT BUT SINCE THIS MAY BECOME A BIG SITUATION I RATHER FIND OUT THE RIGHT WAY HOW TO GO ABOUT THIS. I'M NOT FOND IN SCREWING MYSELF (LOL) SO I WANT TO DO THIS THE CORRECT WAY AND FAIR WAY."
To answer the question regarding what this person is entitled to receive, it will depend on the arrangement between the producer, the songwriter (a.k.a. "our question asker"), and the Artist who will be using the song.
Depending on the agreement, a songwriter can be entitle to a portion of the music publishing from mechanical royalties (income derived from album sales) and performance royalties (income derived from ringtones, radio or internet airplay, synch licenses, etc.).
If this is a "work-for-hire" situation, then the songwriter may only be entitled to a flat fee paid up front (or upon some happening of a later event)!!
I wouldn't recommend doing a "work-for-hire" unless the Record Company, Artist, or Producer is paying you a SUBSTANTIAL amount of money up front for all the rights to the song.
How much of the music publishing you will be entitle to will depend on your bargaining power (aka "leverage"). New songwriters usually don't have much leverage and usually just want to try to get as many placements and as much money up front. Heavy weight songwriters can ask for whatever they want! By default, music publishing is usually split based upon the number of songwriters on a song. For example, if you have FOUR songwriters on a song, they would probably end up splitting the income derived from the song and getting 25% each (i.e., 100% of the song divided by 4 songwriters). However, it still comes down to the leverage you have. You may be able to demand MORE or LESS of the song. I usually advise my client's to shoot for the stars but set a floor (i.e., a minimum percentage of publishing they'd take) around 12%.
To protect yourself, make sure you have some sort of Songwriter's Agreement or a "split sheet" that spells out your agreement with others regarding ownership and rights in a song!
***Not sure what is a "split sheet"??? Read my article entitled: "SPLIT WHO? SPLIT SHEET MYSTERY SOLVED!"***
"Q: I AM SETTING UP A PLACEMENT ON A ALBUM WITH A PRODUCER THAT MAY POSSIBLY BECOME A SINGLE FOR THE ARTIST....I JUST WANT TO KNOW WHAT AM I ENTITLED TO RECEIVING FROM THE PRODUCER (e.g., ROYALTIES, RING TONES, ETC.). THE PRODUCER DRAFTED UP A CONTRACT BUT SINCE THIS MAY BECOME A BIG SITUATION I RATHER FIND OUT THE RIGHT WAY HOW TO GO ABOUT THIS. I'M NOT FOND IN SCREWING MYSELF (LOL) SO I WANT TO DO THIS THE CORRECT WAY AND FAIR WAY."
To answer the question regarding what this person is entitled to receive, it will depend on the arrangement between the producer, the songwriter (a.k.a. "our question asker"), and the Artist who will be using the song.
Depending on the agreement, a songwriter can be entitle to a portion of the music publishing from mechanical royalties (income derived from album sales) and performance royalties (income derived from ringtones, radio or internet airplay, synch licenses, etc.).
If this is a "work-for-hire" situation, then the songwriter may only be entitled to a flat fee paid up front (or upon some happening of a later event)!!
I wouldn't recommend doing a "work-for-hire" unless the Record Company, Artist, or Producer is paying you a SUBSTANTIAL amount of money up front for all the rights to the song.
How much of the music publishing you will be entitle to will depend on your bargaining power (aka "leverage"). New songwriters usually don't have much leverage and usually just want to try to get as many placements and as much money up front. Heavy weight songwriters can ask for whatever they want! By default, music publishing is usually split based upon the number of songwriters on a song. For example, if you have FOUR songwriters on a song, they would probably end up splitting the income derived from the song and getting 25% each (i.e., 100% of the song divided by 4 songwriters). However, it still comes down to the leverage you have. You may be able to demand MORE or LESS of the song. I usually advise my client's to shoot for the stars but set a floor (i.e., a minimum percentage of publishing they'd take) around 12%.
To protect yourself, make sure you have some sort of Songwriter's Agreement or a "split sheet" that spells out your agreement with others regarding ownership and rights in a song!
***Not sure what is a "split sheet"??? Read my article entitled: "SPLIT WHO? SPLIT SHEET MYSTERY SOLVED!"***
Friday, September 7, 2007
Simple Ways to Fund Projects
I constantly have artists walk into my office looking for me to “shop” their demos to record labels. The first question I ask them is, “Why do you want a record deal?” Not that there are not great deals that come along ever so often, but the good type of deals are only given to those who have what we lawyers call “leverage”. Leverage gives us bargaining power when we’re at the table with the big record companies or distributors.
I can never understand why an artist would want a record deal given the current state of record labels downsizing, merging, and cutting artists from their rosters. Today’s big labels are not giving out the advances that they gave 10 or 20 years ago, nor are they putting the necessary promotion and marketing dollars behind these artists that is quintessential to an artist’s development. Signing with a big record label can sometimes frustrate an artist’s career more than if they just went the indie route.
This brings me to the topic of my article, “Simple ways to fund your projects”. I can actually thank a good friend of mine, Jawar, author of the book “Music Industry Connection” (It’s a good book with a lot of helpful information. You should pick it up! Can be gotten at www.mt101.com). Whenever I attend a music conference or seminar, there is always a person that stands up and says, “I am a hot artist” or “I got a fan base, but I don’t have the resources”. After this article I don’t ever want to hear, “I don’t have the resources” again!
You have the money to fund your project! If you claim to have a fan base and you are constantly out performing, then you should have no problem selling CDs. A lot of artists think that it’s expensive to put a CD together and put it out, but it’s not! All the technology in the world has made it easier for artists to do self-manufacturing and distribution.
“So what’s my first step?” is what most artists ask. Well, here’s what you can do if you are a self promoting artists: If you have a computer which can burn CDs and a printer (or even a friend with one), go to Office Depot or OfficeMax and pick up a label making program (It kills me when artists hand me a CD that has no cover on it!) and some blank CDs with jewel cases. Wow! You just manufactured your own CD. The costs of all the above probably will run you maybe $30-$60, if that. Now that you’ve burned and labeled about 25-50 CDs, you take those to your next performance.
Now, if your music is hot, you’ll probably sell out and have people asking how they can get your CDs. MAKE SURE YOU GET THEIR CONTACT INFO, so that you can email or contact them when you have more CDs available! A lot of artists miss this one crucial step. Failure to get contact info is a missed opportunity to sell CDs! The numbers add up. Say you’re selling the CD for $10 flat. Selling 25 CDs has just netted you a profit of $2500 in ONE night! But now that you got the money don’t forget to REINVEST in more stock (i.e., more CDs).
So, now you’re performing, making money off of CD sales, building a fan base (and a database of information), and soon you’ll be able to quit that 9-5 job of yours! In addition, labels and distributors will start to take notice and start coming to you…hence LEVERAGE!! That’s when you come to see me, the Entertainment Attorney!! So now you have no reason to say I don’t have the “resources to fund my project”!
I can never understand why an artist would want a record deal given the current state of record labels downsizing, merging, and cutting artists from their rosters. Today’s big labels are not giving out the advances that they gave 10 or 20 years ago, nor are they putting the necessary promotion and marketing dollars behind these artists that is quintessential to an artist’s development. Signing with a big record label can sometimes frustrate an artist’s career more than if they just went the indie route.
This brings me to the topic of my article, “Simple ways to fund your projects”. I can actually thank a good friend of mine, Jawar, author of the book “Music Industry Connection” (It’s a good book with a lot of helpful information. You should pick it up! Can be gotten at www.mt101.com). Whenever I attend a music conference or seminar, there is always a person that stands up and says, “I am a hot artist” or “I got a fan base, but I don’t have the resources”. After this article I don’t ever want to hear, “I don’t have the resources” again!
You have the money to fund your project! If you claim to have a fan base and you are constantly out performing, then you should have no problem selling CDs. A lot of artists think that it’s expensive to put a CD together and put it out, but it’s not! All the technology in the world has made it easier for artists to do self-manufacturing and distribution.
“So what’s my first step?” is what most artists ask. Well, here’s what you can do if you are a self promoting artists: If you have a computer which can burn CDs and a printer (or even a friend with one), go to Office Depot or OfficeMax and pick up a label making program (It kills me when artists hand me a CD that has no cover on it!) and some blank CDs with jewel cases. Wow! You just manufactured your own CD. The costs of all the above probably will run you maybe $30-$60, if that. Now that you’ve burned and labeled about 25-50 CDs, you take those to your next performance.
Now, if your music is hot, you’ll probably sell out and have people asking how they can get your CDs. MAKE SURE YOU GET THEIR CONTACT INFO, so that you can email or contact them when you have more CDs available! A lot of artists miss this one crucial step. Failure to get contact info is a missed opportunity to sell CDs! The numbers add up. Say you’re selling the CD for $10 flat. Selling 25 CDs has just netted you a profit of $2500 in ONE night! But now that you got the money don’t forget to REINVEST in more stock (i.e., more CDs).
So, now you’re performing, making money off of CD sales, building a fan base (and a database of information), and soon you’ll be able to quit that 9-5 job of yours! In addition, labels and distributors will start to take notice and start coming to you…hence LEVERAGE!! That’s when you come to see me, the Entertainment Attorney!! So now you have no reason to say I don’t have the “resources to fund my project”!
Saturday, September 1, 2007
Using Your Local Resources
This article is probably going to be part of a series of articles. Time and time again I get clients who come to me asking me how to take their careers or businesses to the next level. Each situation varies, but the solution to their dilemma is a common one.
Whenever I sit down and speak with a person during a consultation, it seems as though their question is, "How can I make it to the next level quickly?!" First, there is NO shortcut to success. I recall a quote that states: "Success is a journey, not a destination". This is so true when trying to take your business or career to the next level.
Everyone always wants to achieve success starting on a NATIONAL level. What people forget is that you have to be able to have success on a LOCAL level. So how do you achieve this?
First by utilizing your local resources. For example, if you are someone in the music business, you should be out networking at different music related events such as local showcases, promotional parties, album release parties, etc. You should also be tapping into the local media sources (i.e., Local publications, newspapers, magazines, college radio and television stations). You should be getting to know the local DJs and venue owners. Where do you think you'll be performing if you make a buzz about yourself? You should also inquire about the local music studios and production companies. Building these relationships will help you achieve success on a local level as a musician or artist.
Second by not quitting your day job. First off you need it to pay your bills until you're making enough money from your own business or career. Second, the networking you do on the job could possibly establish a fan base or even relationships that will help you reach the next level. In some cases, your co-workers may even become investors in your business/career. CAVEAT: Make sure you have something in writing should someone want to INVEST in you!!! A lot of relationships get ruined when things are not spelled out between parties to a business transaction. Otherwise, these people can be your go to support.
Third by working your contacts. If you're going to be out networking, don't just collect business cards just to be collecting business cards. Follow up with the person to inquiry what they can offer you in furtherance of your goals, as well as, what you may be able to offer them in exchange. Some people that you network with may not be able to help you immediate. Don't completely rule them out as a potential source because they may be able to assist you in reaching that next level at a later time. Make sure you deal with people who can actually follow through on what they tell you. DON'T BE AFRAID TO ASK FOR REFERENCES!!!!
Last, but not least, by executing your plan. Whether it's a marketing plan or a business plan, follow through (i.e., execution) is key to reaching the next level! There's a common saying, "People don't plan to fail, they fail to plan". Planning and executing are two of the most important things you need to reach the next level, but execution (follow through) seems to be the one stage where 70-80% of people with a plan fail. You have to do what you say you would do! Actually be out making it happen instead of sitting back and waiting for something to be given to you! I usually tell my clients that no one is going to look out for their careers harder than they will themselves.
Follow this advice and you'll be on your way to achieving that "Next Level" in your business or career! Good luck and god speed!
Whenever I sit down and speak with a person during a consultation, it seems as though their question is, "How can I make it to the next level quickly?!" First, there is NO shortcut to success. I recall a quote that states: "Success is a journey, not a destination". This is so true when trying to take your business or career to the next level.
Everyone always wants to achieve success starting on a NATIONAL level. What people forget is that you have to be able to have success on a LOCAL level. So how do you achieve this?
First by utilizing your local resources. For example, if you are someone in the music business, you should be out networking at different music related events such as local showcases, promotional parties, album release parties, etc. You should also be tapping into the local media sources (i.e., Local publications, newspapers, magazines, college radio and television stations). You should be getting to know the local DJs and venue owners. Where do you think you'll be performing if you make a buzz about yourself? You should also inquire about the local music studios and production companies. Building these relationships will help you achieve success on a local level as a musician or artist.
Second by not quitting your day job. First off you need it to pay your bills until you're making enough money from your own business or career. Second, the networking you do on the job could possibly establish a fan base or even relationships that will help you reach the next level. In some cases, your co-workers may even become investors in your business/career. CAVEAT: Make sure you have something in writing should someone want to INVEST in you!!! A lot of relationships get ruined when things are not spelled out between parties to a business transaction. Otherwise, these people can be your go to support.
Third by working your contacts. If you're going to be out networking, don't just collect business cards just to be collecting business cards. Follow up with the person to inquiry what they can offer you in furtherance of your goals, as well as, what you may be able to offer them in exchange. Some people that you network with may not be able to help you immediate. Don't completely rule them out as a potential source because they may be able to assist you in reaching that next level at a later time. Make sure you deal with people who can actually follow through on what they tell you. DON'T BE AFRAID TO ASK FOR REFERENCES!!!!
Last, but not least, by executing your plan. Whether it's a marketing plan or a business plan, follow through (i.e., execution) is key to reaching the next level! There's a common saying, "People don't plan to fail, they fail to plan". Planning and executing are two of the most important things you need to reach the next level, but execution (follow through) seems to be the one stage where 70-80% of people with a plan fail. You have to do what you say you would do! Actually be out making it happen instead of sitting back and waiting for something to be given to you! I usually tell my clients that no one is going to look out for their careers harder than they will themselves.
Follow this advice and you'll be on your way to achieving that "Next Level" in your business or career! Good luck and god speed!
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