FAIR TO ASSUME THAT YOU’RE MORE INTERESTED IN MAKING TUNES THAN TALKING ABOUT THE LAW, BUT NONETHELESS, IT’S WORTH GETTING YOUR HEAD AROUND HOW THE LAW RELATES TO THE MUSIC INDUSTRY OR, SADLY, YOU’RE LIKELY TO BE EATEN ALIVE.

INTELLECTUAL PROPERTY

There are two areas of the law that apply to artists: Intellectual Property (what we commonly call copyright) and Contract Law (what you get into when you sign a contract).

Copyright essentials:
An original song  is automatically copyrighted to its composer (that’s you) when it’s recorded or written. Artists hold copyright for their lifetime plus an additional 70 years, then it becomes public domain. In Australia, you don’t have to register for copyright: as soon as your work has been documented, you’re protected by law if anyone tries to rip off what you’ve done.

You can sell your copyright or give permission for other people to use it. Two groups in Australia provide detailed information and assistance in this area: check out APRA and AMCOS.

Performers’ rights essentials:
Performers’ rights protect you if someone reproduces your performance without permission. The Phonographic Performance Company of Australia (PPCA) collects income on behalf of registered performers; it’s worth contacting them once you’re ready to release your work.

Trade mark essentials:
Registering your ‘brand’ with a trademark registry helps protect it and makes it easier to enforce cases of infringement. The common-law charge of ‘passing off’ can be handy too if someone adopts your band name.

Database rights essentials:
The Commonwealth Privacy Act 1988  and Privacy Amendment Act 2000 set up strict rules about how you collect and store data, and how you use it. Databases should be protected by encryption: they’re valuable, and the penalties for breaking the rules are severe. Do the right thing by your fans and check out for info www.efa.org.au.


CUSTOMARY DEALS   

There are some deals in the industry that are known as ‘customary deals’ and you’re likely to come across most of them during your career. As always, get your lawyer to check everything.


Management Deal:
Management deals normally last for 18 months to three years, with a ‘get-out’ clause if the manager doesn’t make a major deal within 12 to 18 months. Mostly, managers get 20% of your earnings as commission, based on the net amount (what’s left after costs) for live income, or the gross amount (the total before deductions).

Always remember that your manager works for you, not the other way around.


Major Record Deal:
If you’re offered a deal with a major, you’ll usually be expected to sign for an initial period to deliver an album, after which the label may extend the deal for anything between three and five more releases.


Independent Record Deal:
Like the majors, independent labels will usually make an initial agreement with you for a certain number of recordings, possibly only a single or EP, with the option for further albums down the track. They’re more likely to do an Australia-only deal and profits are split 50/50, so you’ll earn more on sales.

Publishing Deal:
These deals usually involve the publisher registering your work, taking care of the admin and trying to maximise revenue. If you sign a publishing deal, the company will own or licence your work, normally for 10 to 20 years.

Income from publishing works in a few different ways, but don’t forget you may not start earning cash until the company recoups any advance it’s given you.
 

Mechanical income:

Check how this is being worked out: if it’s a major, the figures will be based on the ‘at source’ amount (without deductions), while indies will work from ‘receipts’ (a percentage of what the publisher receives after costs). With indies, ensure the deductions are capped around 20% or there won’t be much left.

Synch income:

If your music is used for ads, films, games or TV shows, you’ll receive synch income. Rates depend purely on who organises the deal.

Performance income:

This is where APRA look after you and half will go directly into your pocket.

Other income:

This might include things like money earned on ring-tones.

Production Deal:

Production companies are middle men: they find an artist, develop them and then sell them on to another label.

You’ll usually get about 50% of net profits if the producer releases your music; sometimes up to 60% if another label joins the mix. Organise a ‘get-out’ clause in case they don’t find you a major deal within 12 to 18 months. 

Producer Deal:
In return for rights and an advance on each track, producers will, as the name suggests, produce your record. The advance depends on how good they are and who’s paying them. 

Booking Agent Agreement:
Booking agent agreements usually give one agent exclusive rights to schedule your live gigs for a year. They’ll take between 10 and 15% of gross revenue.

Other Deals:
As new players enter the market, other arrangements are appearing, including:

• Bands or artists establishing an independent business and going it alone.
• Sponsorship deals, where brands are involved with an artist.
• Joint ventures between managers and artists.
• Digital deals around new technology.

LEGAL JARGON

In the music business, it’s standard practice that lawyers review every contract, so don’t sign anything until you get professional advice. If you can’t afford a lawyer, ask the other side to pay your fees or check in with the Musicians Union of Australia, who offer some free advice to members.

Most music contracts use the same basic structure and the same basic terms, including:

Parties: Simply, who the agreement is between. Generally, you, a manager, publisher, record label or promoter.

Term: How long the agreement lasts.

Territory: Where the contract applies: either worldwide or only in specific countries.

Rights Granted: Or what the other party is allowed to do with your intellectual property. Depending on the type of agreement, you can grant exclusive or non-exclusive rights to your work.

Obligations: What you, and they, agree to do. The details will vary based on the particular deal.

Payment: Important questions: how do you earn income and how is it calculated? And when will you get paid?

Termination: Basically, how you (or they) end the agreement if the other side goes bust or the terms of the agreement are broken. Make sure that, if you’re terminated, you retain the rights to your work.

Warranties: Warranties are what you both get from the deal. As in, you play a gig and they pay you for it.

Indemnity: Indemnity covers what happens if a party suffers a loss. So, for example, if you miss a gig after the tickets are sold, the promoter’s going to be short a few bucks. Indemnity lets you know that there are consequences.

Jurisdiction: This covers what law applies (and what courts) to your agreement. If things do go wrong, this section lets you determine that any proceedings happen locally and in language you understand.