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Music
Contracts 101
Don't Let This
Happen to YOU!
Music Contracts 101
According to the American
Heritage Dictionary;
A Contract
is an agreement between two or more parties, especially one
that is written and enforceable by law.
A contract tells each person exactly what their
responsibilities are, and exactly what they can expect from
the other people in the contract. Having everything in writing
leaves no question and protects YOU. Here are some real-life
examples:
Here's what
happens when Music Contracts are
NOT
used. |
Now here's
that same deal
With
Music Contracts properly used. |
Example #1
The Black Crowes spent 2 weeks in court
with a person who claimed was their manager. Backing up
the alleged manager was a crumpled piece of paper with a
circle, pie-shaped lines and names on it. He had booked
gigs for them for 18 months in Georgia, and now he was
after his slice of the multi-million dollar pie. His
working relationship with the band ended 6 months before
they were ever signed.
Don't
Let This Happen to
YOU!
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Now |
If the Black Crowes had realized the
value of music contracts even when they were just starting
out, they would have had their manager sign one, and
formally terminated the relationship when it became
unworkable. |
Scenario #2
when music contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
|
You and
your 3 best friends decide to form a band and play out in
bars. You are all doing very well, playing out 2 times a
week, and making some good money. You decide as a group to
buy PA equipment and a van to haul it around in. Your
guitar player puts it all on his credit card, but he is
reimbursed with gig money. Then, he decides to quit
because he’s getting married. He also decides to keep the
PA. When you take him to small claims court to get the PA
and the van or at least the cash back, the case is thrown
out, because the only pieces of paper are the guitar
player’s credit card receipts.
Don't
Let This Happen to
YOU!
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Now |
If your band had a written
agreement regarding ownership of equipment, your guitar
player would have a specific set of guidelines about how
to leave the band, who owns what equipment, and how any
jointly owned equipment gets disbursed. |
Scenario #3
when Music Contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
|
You book your band at a
local bar. Your vocalist gets a cold, which develops into
a sore throat. He can’t sing that night. The bar owner
demands money from YOU because nobody showed up for the
gig.
Don't
Let This Happen to
YOU!
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Now
|
If you signed a music
contract with the bar owner, there would be a contingency
clause regarding illness or other matters beyond your
control, and the bar owner may owe YOU money! |
Scenario #4
when Music Contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
|
It’s 3 AM. You have played
your butts off for 3 long sets. You’ve packed your
equipment and the other band members are loading the
truck. You’re in the back office with the closing
bartender. She hands you an envelope with cash in it. You
take it out and count it. It’s short a couple of hundred
dollars. Of course, you complain to the bartender, but she
tells you that the bar owner, her boss, said this was what
the band was getting, and this is what ALL the bands get.
The owner isn’t there to argue with, so you take what she
offers. The owner doesn’t remember promising you the extra
money the next day when you call.
Don't
Let This Happen to
YOU!
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Now |
If you had signed a music
contract with the bar owner, it would state the price you
would be paid. You show that to the bartender, and she has
to give you the agreed amount, regardless of what she
remembers the owner telling her. |
Scenario #5
when Music Contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
|
Your band’s been together
for 4 years, and has a big local following. Your keyboard
player and drummer want to take their music in another
direction, and you all agree that the band needs to split
up. She and the drummer want to take the band name,
because she remembers that she came up with it over 4
years ago. You want to keep the name because you’ve worked
for 4 years establishing an identity. Things get heated
and nasty, nobody’s speaking to each other, and everyone
has to start over again with a new name.
Don't
Let This Happen to
YOU!
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|
If your band has a contract
among its members, it could state explicitly what happens
when one or more members choose to leave, and who owns the
band name. |
Scenario #6
when Music Contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
You are a friend of a band.
A good friend. You help them get gigs, lug equipment,
handle their website, phone hotline and mailing list. They
call you their manager, and tell you that you are along
for the ride. One day, a major label rep hears them and
has a meeting with the band behind your back. The meeting
turns into several meetings, and you haven’t been invited.
When the announcement comes that they are relocating to LA
to record their first album, you aren’t on the guest list
anymore.
Don't
Let This Happen to
YOU!
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Now
|
If you had a management
contract with the band, you would be protected from this
situation. |
Scenario #7
when Music Contracts are
NOT
used. |
The same
scenario
With
Music Contracts properly used. |
You are at a club and hear a band that you think has what
it takes to make it. After they play, you take them aside,
and discuss getting gigs for them, and shopping their demo
to some contacts at labels that you have. They are
enthusiastic and hand you a pile of CDs to distribute.
When you have lunch with your A&R buddy, you find that
they are being shopped by another agent.
Don't
Let This Happen to
YOU!
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|
A written Agent’s contract can prevent them from going
behind your back to another agent. |
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