Monday, December 17, 2007

What a Lawyer does and does not do!

Through out history Attorneys have been some of the most powerful gatekeepers of the entertainment industry. At one point I think we had the power to control the destiny of many of the superstars that have transcended race and gender issues with their music. Our role as advocates for emerging and superstar artists have been vital in the stability of the industry. Having a lawyer who is well-versed in the area of entertainment law has made or broke some of the careers of many artists who strive to establish a career in this industry, but whom unfortunately due to the nature of the beast have been raped by the same industry. Our part that we have played in the history of the entertainment industry has been etched in history as much as John Lennon's first hit song.

Artist depend on us to protect their legal interests, especially when it comes to scrupulous music executives that would love nothing more than to take advantage of a starving artist. Our part in their careers is as important as any of the other team members that they may have on board (e.g., Managers, Producers, etc). We are the first line of defense that artists have against those who would even attempt to take advantage of our clients, who only dream of becoming the next superstar.

The ones who need the most protection is the artist who is just beginning his or her career. They are starving literally to make it to the top. They're hustling and practically begging the record labels and gatekeepers of the industry to let them in because they know once they're in, it could mean a multi-million dollar deal, fame and possibly their family being set financially for many generations.

The problem with a starving artist is that they are almost seen as being desperate individuals. The industry looks at them as the paupers of the village as they sit on their high thrones picking and choosing who the next superstar will be. We see this happen every year with the hit show, "American Idol". There's never a shortage of starving artists.

This mentality has got to change. If it doesn't, the emerging artist (need to rid ourselves of the term "starving") will suffer. Those artist who actually have true talent will suffer, because they will be passed over for the artist who the executives think have the perfect "it"!

Also what has to go is emerging artist thinking that their lawyer is the one who will actually make their career. Times have changed and our role as entertainment attorneys have changed. Yes, we still make the deals happen and make sure the paperwork is straight so that everyone gets paid. Yes, we still are the go between when there are conflicts and disputes between artists and their labels, managers, producers, families, etc. Yes, we are still the ones on the front line going to war when we feel that others are trying to take advantage of our clients.

However, what happened to being on your grind and making your career happen? What happened to the days when artists would build a buzz, that is, get out on the road and hit the pavement, building a following? What happened to the artist who would hustle just as much as a drug dealer would? It seems nowadays, emerging artists just want to go into a studio, record a song (which may or may not be a hit) and then run to the nearest law office expecting the Attorney to make a miracle happen!

It just doesn't work like that people. If you think it does, you're in the wrong industry. This business of music and entertainment is still grounded in fundamentals or what I'll call, "PAYING YOUR DUES!" As an emerging artist you still got to get out here and hit the pavement. You have to be willing to be out late performing at hole in the wall spots. You have to be out perfecting your craft and in the studio molding that hit song. You have to be persistent and diligent in your business as you pursue a career in this industry. You can't just think you can be lazy and count on another person to make your career happen. Countless times artists have come to my office wanting me to "shop" their demo! That's when I ask, "Where's the buzz? Where's the fan base? Is the song getting enough spins on the radio? How many units have you sold on your own? Etc. Etc." Questions that an Artist who is about their business could answer.

Emerging artists have to learn how to be self sufficient before they are co-dependent (notice I didn't say DEpendent) on the labels or anyone else for that matter, including their attorney. We can only do so much with a package unless it's properly put together. Bring me more than just your demo and the minute fans that you may have drawn to ONE show. Bring me more than just a few spins on a radio station that rarely anyone listens to. Bring me something that will make the executives salvate over it, like lions to a steak! Stop wasting your money thinking that we as attorneys are going to make it happen for you! You got to lay the ground work and foundation. Without it, your empire will fall!

Don't get me wrong, I'm there to help those who need advice. I'll gladly teach you how to fish because there is not enough fish given out by the industry to allow everyone to survive! It's up to you to create the opportunities so that they will come knocking at your door instead of you having to go BEG at theirs.

Good luck and god speed!!

Tuesday, October 23, 2007

All You Need To Know About Samples...

Question: I have a song with a sample in the beat. What do I need to do to get it cleared?

Clearing a sample can be an easy or difficult task depending on the parties with whom you have to deal. Know that if you don’t get the clearance, you CANNOT use the sample, nor can you release the song containing the sample! In some cases you may have 4-5 owners of one song and if ONE owner says “No”, then that’s it! When answering the questions below it’s under the assumption that we are talking about sampling in terms of taking a piece of another song and including it in your song, NOT singing someone else’s song in its entirety (i.e., Cover songs).

Define what sample clearing is and what constitutes the need for clearance (Please make mention of public domain).

Many records containing samples of other recordings require a license (i.e., permission) from both the owner of the sound recording and the owner of the underlying composition. The process of doing this is referred to as “sample clearing”. An example of this would be if you were to sample an LL Cool J song. You would probably have to get permission from Def Jam as well as Todd Smith’s publishing company and any other writer’s who may have helped write the song being sampled.

Why should I bother with clearing samples? What are the legal ramifications of not clearing samples?

Failure to get a license could result in copyright infringement lawsuits and criminal prosecution for the stealing of another person’s property! If a person sues you for copyright infringement, they could get a judgment against you to: 1) stop you from releasing any album using their song, 2) force you to destroy any record containing the sample, and 3) pay them monetary damages up to $150,000 PER INFRINGEMENT plus Attorney fees!!!!

Who is responsible for clearing samples, the artist or the producer of the track?

This depends on the contract between the artist and producer. It’s usually the producer’s responsibility unless the artist consents to clearing the sample. However, under a court of law, they’ll hold ALL parties responsible regardless of whose responsibility it was to clear the sample!!!

How do I go about clearing a sample?

You hire an attorney or person who’s knowledgeable about getting a license to use the particular recording.

Where does the money go?

The money goes to who ever are the owners of the song. This could include the songwriters, the music publishers, and the recording labels based up their percentage of ownership. I’ve seen songs that were owned by 4-5 different people, but 2 of the persons owned about 70-80 percent of the song.

When should I worry about sample clearances?

The moment that you sample someone else’s record, UNLESS it’s what we call is public domain material. In the case of public domain material, you don’t need anyone’s permission!!!

Tuesday, September 11, 2007

“SPLIT WHO? SPLIT SHEET MYSTERY SOLVED!”

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.

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!"***

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”!

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!

Monday, August 13, 2007

WHAT TO LOOK FOR WHEN READING YOUR CONTRACT

When artists (i.e., singers, rappers, musicians, songwriters, singers, producers, etc.) come to me with a contract there are several points in the contracts that I make sure to point out to them before they go signing their lives away. When it comes to Entertainment Law, a vast majority of my practice deals with negotiating, modifying and drafting of agreements between two or more parties wanting to do business. You have agreements such as Producer-Artist Agreements, Exclusive Artist Recording Agreements, Publishing-Songwriter Agreements, etc. The titles of such agreements might seem to tell you what the agreement is about, but when you delve deeper into the language (i.e., contractual terms) of the agreement, you’ll find that there are many sticky and complex terms and clauses that could lock you in as a “slave” to the party who drafted the agreement.

Artists signing to Record Labels have to especially be careful. WARNING! THESE CONTRACTS ARE NOT DRAFTED TO BENEFIT YOU!!! You have to be careful prior to giving your “John Hancock” (i.e., your signature). The golden rule that lawyers live by when it comes to entertainment contracts is: “The person who drafts the contract benefits the most from it!”

When reading your contract you should always look for the paragraphs dealing with the following points:

1. Parties to the contract (i.e., Who is the contract between?)
2. The “TERM” of the agreement (i.e., the length of the agreement, exclusivity)3. Your obligations versus the obligations of the other party (i.e., how many
albums do you have to deliver?)
4. Royalties and Advances (i.e., How much?)
5. Any paragraphs dealing with Publishing and your rights in your creative
property (Don’t let them touch these without something BIG in return!!!)
6. Termination of the Contract (i.e., Are there any paragraphs that say how the
contract would be terminated?)
7. The LAW that will govern the contract (i.e., If there is a dispute, where
will disputes be litigated?)

My advice to you is that you should ALWAYS have someone who is knowledgeable about entertainment contracts look the contract over and explain it to you…like an Attorney…hint…hint!!!