“It was like, `Why so serious?` But every group is a business,” she says. Even if it`s for fun and it doesn`t look like normal work, you pay taxes and invest money. With an agreement, the group works better. There`s no doubt that complications and disagreements will happen at some point in your group`s career, so an agreement will come in handy if you need to smooth things out. For example, how are the decisions of the major group determined? Is it an equal voice or do some members have more of a say? What are the consequences if a band member misses a certain number of shows or rehearsals? Start thinking about the type of issues that might affect your group and do your best to find a compromise on how best to handle them. Profits from different band activities must not be distributed equally or equally. Recording and performance funds may be distributed equitably, while publication and merchandise may not be divided. What is your structure? [18 Ways Musicians Can Make Money] In the unfortunate case of the end of the group, there are certain things that need to be included in the agreement to ensure a dissolution that is as fluid and fair as possible. Among the questions to be considered are: to whom will the name belong, can it be reused and, of course, how will the royalties be distributed? – to whom the compositions belong – to whom the master`s recordings belong – to whom the name of the group belongs – what happens when a member leaves – how decisions are made (i.e. majority decision, unanimous decision, etc.) – such as revenues from tours, record sales, merchandising sales, publishing revenues, etc. a state of affairs. – Who owns the musical equipment (band or member) – who can sign contracts and checks in the name of the band – who can hire/fire members — and much more I have a label, and if I sign a band, would another band contract be necessary or is it for independent bands? Through Edwards PC, Creative Law provides legal services to clients in the music, digital, gaming, television, film and animation industries. Byron collaborates with musicians and music companies to assist with record label contracts, publishing contracts, distribution agreements, production agreements, band agreements, etc. This blog is for general informational purposes only and should not be construed as legal advice. Please contact a lawyer if you wish to apply these concepts to your specific circumstances.
The potential to make a lot of money and/or add someone or want to fire someone can lead your group to be killed if unpleasant conversations about money don`t take place proactively. Don`t become a group horror story. .