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This insider guide discloses the hidden dynamics and often unfortunate consequences of what really happens when a deal is prepared, contracts are signed, and promises are made--and alerts musicians, attorneys, songwriters, and anyone else interested in the music business to the potent dangers lurking beneath the surface of this incredibly competitive industry.
Peter M. Thall has practiced law for more than 40 years and has represented many of the world's greatest artists, from Simon Garfunkel and Barry Manilow to ABBA and Pat Benatar. He is a frequent contributor to Billboard and Broadcasting, and-has appeared on news programs as an expert on copyright law and the First Amendment, www.thallentlaw.com
Table of Contents
Selecting the Right Attorney
Deal Makers: Why You Need Them
Deal Blockers: How to Get Past Them
Staying the Course or Calling It Quits
Investors: The High Costs of Low Finance
The Costs of Being Heard
Of Investors and Investment Agreements
Finding the Money
The Safe Harbor Disclaimer
Getting the Right Advice
Paying it Back
Overcalls and Conversions
Should He Who Pays the Piper Call the Tune?
Advances: Why They Seem a Lot Like Loans (and Vice Versa)
A Sad Story and a Happy Story About Advances
Is One Person's Money Another Person's Motivation?
Royalties: Some Unvarnished Truths
How the Royalty Pie Is Sliced and Who Gets the Pieces
Payment on Less Than 100% of Records Sold
Two Diabolical Deduction Devices
Reducing Mechanical Royalties
Special Issues Regarding Controlled Compositions
The Beat Goes On: Other Important Deductions
Prepayment of Royalties
The Myth of Royalty Escalations
Lost or Misplaced Royalties
Chipping Away at Post-Term Royalties: Synchronization Licenses
Accountings, Audits, and the Statute of Limitations
How Responsible Should Record Companies Be?
The Effects of Digital Downloading on Pricing and Royalties
Personal Management: The Whys, Wherefores, and Watch Outs
What a Personal Manager Should (and Should Not) Be Expected to Do
Managing the Five Stages of an Artist's Career
KMMA Keep My Music Available-At All Costs
Choosing Your Manager
The Question of Clout
Paying Your Manager
The Term of the Agreement
Extending or Terminating an Artist-Manager Relationship
Breach of Contract in Artist-Manager Agreements
Managing Your Business and Your Financial Future: When "Show Me the Money" Isn't Enough
What a Business Manager Does
Finding the Right Person
Certified Public Accountants
Auditing the Auditor
What Kind of Business is Being Managed?
Should You "Do Business As" or Form a Partnership?
Money Means Options: Resisting the "Keep 'Em Poor" Philosophy
Managing Your Money
Making It and Saving It
When Your Jon Is More than a Gig: Employment Agreements and Disagreements
Term of Employment
Confidentiality and Competition
Relocation and Re-Relocation
Disability and Death
Provisions That Survive Termination
Release and Settlement
Employment Issues Specific to the Music Industry
Variations of Royalty Calculations
Employment Agreements with Celebrities and Others Otherwise Engaged
The Ownership of Ideas
Record Producers: Are They as Sharp as Their Points?
How 25% Can Equal 100%
Cross-Collateralization: It Does Not Apply to the Producer
Producers' Royalty Provisions: The Basics
The Producer as Author of the Sound Recording
Producers and Neighboring Rights
Getting Your Record Heard: A Practical Guide to Marketing and Promotion
The Goal-Oriented Campaign
The Record Contract
Do Record Companies Know What They Are Doing?
Victim or Victor?
Airplay and Payola
The Same Old Song (Only the Coda Is New)
The Beginning of the End?
A Brief Look at the Promotional Picture-From the Artist's Point of View
Touring concerns: Trials and Tribulations
The Club Tour
The Grand Tour
Merchandising: Your Band; Your Brand
Compliance with Local Laws
End-of-Term Inventory and Sell-Off
Artwork and Photographs
Life and Disability Insurance
Audits: Truth or Consequences
Examining the Audit
The Flow of Money
Access to Registration Information
The Black Box or "Something Is Abyss Here"
Statutes of Limitations
Conducting Audits In Foreign Countries
A Few Practical Suggestions
The Right to Audit: A Contract Issue
Music Publishing: The Odyssey of the Song
What Is a Music Publisher-and What Does It Publish?
Copyright: A Bundle of Intangibles
Financial Secrets and Realities
Mechanical Royalty Rates Outside of the United States
Top Gun-A Top Buyout for Paramount
The Administrating Function
Family Ties (Too Close to Sue)
When Your Publisher Forgets You
At-Source Versus Receipts Deals
The Black Box Revisited
When Rodgers Meets Hammerstein: Determining Songwriter Credits
Cowriters Who Are Band Members
Being Your Own Music Publishing Company: Pros and Cons
Getting in Touch with the Copyright Office
Why Bother Doing It Yourself?
Reversion of Copyrights
The Value of the Copyright
The Impact of Administrating Costs on True Earnings
The Cost of Giving Away a "Piece" of the Publishing