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Categotry Archives: Music Industry

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A Short Overview of My Article “360 Deals and the California Talent Agencies Act: Are Record Labels Procuring Employment?”

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Categories: Articles, Legal Issues, Music Industry, Record Labels

(Full article in the Articles tab.)

Many record labels are using 360 Deals to maintain revenue during the continuing uncertainty of the music industry.  Instead of making money mostly from record royalties and the exploitation of master recordings, 360 Deals allow the labels to either own or to share in the profits from all areas of artists’ careers, including: music publishing, live touring, merchandising, sponsorships, endorsements, websites, fan clubs and their associated ads, literary rights and acting.  Record labels have an incentive to solicit opportunities for artists in these areas because they share in the profits.  However, labels’ actions to create opportunities for artists may rise to the level of procuring employment in violation of the California Talent Agencies Act.

The California Talent Agencies Act (the “Act”) requires any person (including any company) who procures employment for an artist to become a licensed talent agent or agency by the California Labor Commissioner. See Cal. Lab. Code § 1700 et seq. (2008). Any person who is not licensed as a talent agent or agency is prohibited from procuring employment for the artist.  However, neither the Act nor any other analyses I have found actually define procurement.  Based upon my research, I created a definition of “procurement,” which is featured in the full article linked below.

In the music industry, as opposed to the television and film industries, music agents secure live performance engagements while managers handle all other aspects of the artists’ careers. Manager’s activities to secure employment opportunities for artists run in violation of the Act because most managers are not licensed talent agents.  Now with the popularity of 360 Deals, record labels are often pursuing some of the same opportunities that a manager would, such as securing sponsorships and endorsements, positions on tours, co-branding opportunities, and various other opportunities as outlined in the article.  These actions are also in violation of the Act since the labels are not licensed as talent agents or agencies.

The scope of violations can run across various aspects of an artist’s career, including live touring, merchandising, sponsorships and endorsements, fan clubs, video games, and so on.  The consequences of a lawsuit against a record label for violating the Act could void the entire 360 Deal, or sever the offending areas of the contract and cause the record label to relinquish all commissions earned from the illegal activity.  Backlash from artists and accompanying litigation in this area is just getting started, but there is definitely more to come.

Click below to read the full article:

“360 Deals and the California Talent Agencies Act:  Are Record Labels Procuring Employment? ” by: Erin M. Jacobson Published in Entertainment and Sports Lawyer, A Publication of the ABA Forum on the Entertainment and Sports Industries, Vol. 29, No. 3, Fall 2011

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New article published!

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Categories: Articles, Law, Legal Issues, Music Industry, Record Labels, Tags: ,

I am pleased to announce I have a new article published in the current issue of Entertainment and Sports Lawyer magazine.  If you would like to read the article, please click the link below.  There is also a link under the Articles section of this site.

Thanks for reading and I welcome your comments.

“360 Deals and the California Talent Agencies Act:  Are Record Labels Procuring Employment? ” by: Erin M. Jacobson Published in Entertainment and Sports Lawyer, A Publication of the ABA Forum on the Entertainment and Sports Industries, Vol. 29, No. 3, Fall 2011

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UMG pays artists $0.08 on a music download

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Categories: Business, Music, Music Industry, Record Labels

Digital Music News has posted some charts from Chuck D.’s lawsuit of how UMG calculates artist download royalties.  According to these charts, a UMG artist is paid $0.08 on a $0.99 download.  Why is this so low?  Part of the reason is that UMG takes a “container charge” deduction for these downloads.  A container charge is basically code for a “packaging deduction,” or in other words, the deduction labels would take for the cost of packaging (jewelcases, etc.) on actual physical product like CDs.  Why is UMG taking a packaging deduction on digital downloads that have no packaging?  Because they can.  They also take several other bogus deductions to make this entire calculation ridiculous.  I’m not saying every UMG deal is like this, but at least this one is.

On the other hand, artists distributing through TuneCore get $0.70 on a $0.99 download.

And people wonder why my clients like to be, and why I advise them to be, DIY.

View the accounting charts here.

© 2011 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, please provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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Interesting Industry Updates

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Categories: Legal Issues, Music Industry

I realize it has been a while since I have posted, but I have to attribute that to being busy taking care of matters for my clients.  I will be making an effort to post more regularly.  Please let me know if there is anything specific you would like to see on this site. ~Erin

To jump back in, here are some newsworthy industry updates that may interest you:

TuneCore Collects Performance Royalties:  It’s not just for distribution anymore.

The Faults of Facebook Music:  Why Facebook Music is overreaching, inconvenient and hasn’t quite figured it out yet.

Rob Zombie and the Rick James Estate lead a class action against UMG for digital download monies:  More litigation stemming from the Eminem case that categorized digital download monies under a record deal to be that of a license rather than royalties for record sales.

FCC Improperly Fined CBS Over the Janet Jackson Wardrobe Malfunction:  Does anyone even care about this anymore?  Apparently so.

© 2011 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, please provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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How to Choose the Right Attorney for YOU – Part 8

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Categories: Business, Music Industry, Tags: , , , , , , , , , ,

Over the last several weeks, I have outlined many qualities to consider when choosing an attorney.  Once you have decided what kind of attorney you want, the next step is actually finding one

How to find an attorney?

Ask your other creative friends whom they use as their attorney.  With the wealth of information on the Internet, it is also possible to find information for the attorney of another artist you admire.  There are several attorney directories like lawyers.com and findlaw.com you can browse.  You can also search for attorneys and view their websites, or refer to networks like LinkedIn.

© 2010 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, you may provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it. You may not reprint this article without written permission from Erin M. Jacobson, Esq.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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How to Choose the Right Attorney for YOU – Part 7

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Categories: Business, Music Industry, Tags: , , , , , , , , , ,

You know what they say:  “Location, location, location!”

Location

If you have to meet with your attorney or go to his/her office, you may want to make sure the attorney’s office is in a convenient location or that you are willing and able to travel to his/her office.

Next time, I’ll discuss how to find an attorney after thinking about all of the criteria I have explained over the last several weeks.

© 2010 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, you may provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it. You may not reprint this article without written permission from Erin M. Jacobson, Esq.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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How to Choose the Right Attorney for YOU – Part 6

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Categories: Business, Music Industry, Tags: , , , , , , , , , ,

Always an important concern is price.  How much does the attorney charge?

Price

Attorneys have different billing rates based, which are mostly based on their experience and number of years in practice.  Some attorneys only bill hourly and/or take retainers, while some will also charge a flat fee or take a percentage of income.  Take serious consideration of what the attorney quotes you and whether you can afford it.  An attorney will not be happy if you think you can afford their rate and then rack up a large bill you cannot pay.

There is one point I need to address because I feel a lot of people do not understand it.  Lawyer’s rates are based on time expended on a matter, experience, years of schooling and learning a skill.  It is different than walking into a store and getting a product.  Many people seem to feel that they should not have to pay for legal services because they do not walk out of the office with a tangible product in hand.  When you pay an attorney, you are paying for that person’s time and skill.  You are paying them to provide a service to you that you should not provide for yourself.  Even attorneys hire other attorneys when they have legal problems.  Just as you spent your time and used your talent to craft a song or write a screenplay and expect to be paid for it, the attorney will do work for you and expect to be paid for it.

Next time, I’ll address attorney location concerns.

© 2010 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, you may provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it. You may not reprint this article without written permission from Erin M. Jacobson, Esq.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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How to Choose the Right Attorney for YOU – Part 5

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Categories: Business, Music Industry, Tags: , , , , , , , , , ,

Consequences

Something that goes along with your attorney’s style is the consequences of your attorney’s style.  Some attorneys have bad reputations and people do not want to  deal with them.  Other attorneys have killed or almost killed deals for clients because they are difficult to work with or have a large ego.  Ask other people you know in the industry if they know anything about the attorney, or even ask the attorney for references.  If they are well respected, it will show.

Next time, I’ll talk about fees.

© 2010 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, you may provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it. You may not reprint this article without written permission from Erin M. Jacobson, Esq.

This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.

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If people hate Facebook, why do they still use it?

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Categories: Music Industry, Social Media, Tags:

A recent survey has found that Facebook scored a 64 out of 100 in a customer service satisfaction survey.  That’s a D.  MySpace scored one point lower, but everyone knows MySpace is “sooo 2005.”

Why are people so attached to Facebook when they don’t like using it?  Will their social lives really suffer that much without it?   Would it be such a tragedy to communicate face to face or on the telephone?  As much as I use social media, I think it would be a nice change for people to interact in person instead of online.  What do you think?

Read the rest of the article at Mashable.

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