Call NowBook Now

Tag Archives: management

by

June Music Legal and Business Roundup

No comments yet

Categories: Copyright, Infringement, Legal Disputes, Legal Issues, Music, Music Industry, Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

cowgirl, lasso, roundup

Image via freeimages.com

Here’s a recap of my article’s this month:

 

The most talked-about topic in the music legal world this month was certainly the copyright infringement case where band Spirit is sued Led Zeppelin over allegations that “Stairway to Heaven” infringed on Spirit’s song “Taurus.”  The good news is that Led Zeppelin Wins ‘Stairway to Heaven’ Jury Trial!

Here’s a recap of the week’s trial coverage:

What was also exciting is the recent push by artists to urge online content providers like YouTube to #valuemusic.  This call to action also involves the request to reform the Digital Millennium Copyright Act (DMCA) which allows safe harbor provisions for YouTube and other online content providers.

In other news, those on the other side of the spectrum are filing lawsuits to force certain musical compositions into the public domain so that they don’t have to pay the license fees for them.  This is one of a few lawsuits to follow the “Happy Birthday” case.  This is certainly not a way to #valuemusic.

by

Key Clauses in Management Agreements Part 4: Key Man Clauses

No comments yet

Categories: Articles, Management, Music Contracts, Music Industry, Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Erin M. Jacobson, Esq. - Key Man ClauseIn the last set of articles regarding management agreements, I have explained the term, commissions, and sunset commissions. In this article, I will explain what is known in the industry as the “key man clause.”

A good music attorney representing the artist will make sure there is a “key man clause” in the artist’s management agreement.

What happens if you sign with a management company and then your manager leaves the company? What if the other people at the company don’t understand your artistic vision or image, don’t jive with your personality, and/or don’t advocate for your career? I bet you’d wish you could continue working with the particular manager that has left the company, right? Right.

The scenario described in the paragraph above is exactly what the key man clause protects against. While it won’t be labeled as a “key man clause,” a good music attorney representing the artist will make sure that there is language in the agreement ensuring that if the artist’s specific manager leaves the company, the artist has the right to also leave the company and follow the manager wherever (s)he goes.

This language does not obligate the artist to leave the management company. If the artist feels there are others at the company who can manage the artist’s career just as well (or maybe better) than the leaving manager, then the artist is free to stay with the company. However, the artist does have the option to leave and follow the leaving manager at that point to protect the artist against being stuck in a management arrangement without someone that advocates for the artist.

Many management agreements don’t include this language and many artists (and some attorneys!) don’t know to ask for it.

If you need a management agreement drafted or reviewed click here to contact me now.

If you need a DIY solution in the form of a template agreement, get one from Indie Artist Resource ( CA residents click here  and non-CA residents click here).

by

Key Clauses in Management Agreements Part 3: Sunset Commissions

No comments yet

Categories: Articles, Business, Management, Music Contracts, Music Industry, Royalties, Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

erin m jacobson, erin jacobson, music attorney, music lawyer, los angeles, music industry, managementLast time I discussed commissions in management agreements, but what may be a surprise is that management agreements often also have another kind of commission involved – one that remains after the term of the agreement is long over and the manager and artist are no longer working together.

Management agreements often have something we attorneys in the business call “sunset clauses,” which are provisions dictating that the artist must continue to pay a commission to the manager after the term of the agreement has ended. The purpose of this clause is actually for the benefit of the manager, to protect him or her from putting in a lot of work on certain projects, only to have the term end (or the agreement terminated) and not earn any commissions from those projects in which the manager invested a lot of time, effort, and possibly money. A sunset provision is not unfair in itself. If the manager has worked on certain projects for the artist, the manager should be able to share in the money earned from those projects. However like anything in life, there are limits and the sunset provision should be fair based on the circumstances.

Sunset commissions can range in the amount of the commission and the duration for which the sunset commission needs to be paid. Often management agreements dictate the sunset commission at the full rate (often 15- 20% as I explained here) and often lasting in perpetuity, which means forever. A good music attorney will negotiate this commission down both in percentage and in duration because an artist should not be paying a manager his/her full commission rate forever when the manager is not currently working for the artist anymore. Chances are the artist is probably also working with a new manager at this time and paying a full commission to that person as well. A good music attorney should also negotiate the circumstances around sunset provision and to what the commission applies.

The negotiated sunset commission may be a certain percentage for a certain period of years and then end, or start at a certain percentage for a certain period of time then reduce to a lower percentage for a certain period of time before finally ending. This is why it is called a sunset clause, because the commission tapers off and fades away just like an actual sunset. The percentage amounts, durations, and negotiated surrounding circumstances vary depending on the negotiating power of the parties and the attorneys involved, which is why you need a good music attorney experienced with negotiating management agreements.

The sunset clause often surprises artists because they aren’t familiar with the concept and become upset when they see it in the contract, or they sign a contract with a sunset provision that is longer and larger than it should be because the artist does not understand the agreement. I will reiterate, that the sunset itself provision is not unfair, and it is fair to compensate the manager on projects the manager helped to make a success. Again, having the contract drafted or reviewed by a good music lawyer experienced with management agreements is paramount to protecting one’s interests.

If you need a management agreement drafted or reviewed click here to contact me now.

If you need a DIY solution in the form of a template agreement, click here (non-CA residents click here).

 

Disclaimer: This article is for educational and informational purposes only and not for the purpose of providing legal advice. The content contained in this article is not legal advice or a legal opinion on any specific matter or matters. This article does not constitute or create an attorney-client relationship between Erin M. Jacobson, Esq. and you or any other user. The law may vary based on the facts or particular circumstances or the law in your state. You should not rely on, act, or fail to act, upon this information without seeking the professional counsel of an attorney licensed in your state.

If this article is considered an advertisement, it is general in nature and not directed towards any particular person or entity.

by

Key Clauses in Management Agreements Part 2: Commissions

No comments yet

Categories: Articles, Business, Law, Management, Music, Music Contracts, Music Industry, Royalties, Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

erin m jacobson, erin jacobson, management commissions, management agreement, contract, music attorney, music lawyer, los angelesIn a recent article I explained the term of a management agreement, and in this article I’ll discuss management commissions; arguably the other most important clause of a management agreement.

The commission is the amount of money the artist will pay the manager under the contract. This is usually done as a percentage of the artist’s gross income. Standard percentages are usually 15-20%, with 15% being more common than 20%.  I have seen the percentages range from 10-25%, but with both extremes requiring special circumstances. Some more creative deals featuring other percentages have also crossed my desk, but again, these deals require other career aspects or services not typically included in management deals.

Aside from the percentage, it is important to know if the commission is being taken on gross or net income, and what gross or net income actually includes. Management agreements in the music industry typically have a list of exclusions on gross income that are specific to aspects of an artist’s career in the music business. This is different than management agreements in other areas of entertainment and in my experience, not all attorneys (even music attorneys) know what to exclude. It is also important to note when, if any, the manager is able to share in other income aside from the main commission.

It is also common for managers to take a commission after the term of the agreement has ended – and I’ll cover that in the next article on management agreements.

Contact me now to draft or review your management agreement.

by

Key Clauses in Management Agreements Part 1: Term

No comments yet

Categories: Articles, Management, Music Contracts, Music Industry, Tags: , , , , , , , , , , , , , , , , , , , , , , ,

Management Agreement Term Length The Music Industry Lawyer Attorney Erin M JacobsonThe artist-manager relationship is one of the most important relationships in an artist’s career. The manager has to “get” the artist and the artist’s artistic vision, but also needs to have the knowledge on how to translate that vision into something that will generate mass appeal and profits. The manager also has to have the business acumen and connections to generate opportunities for the artist so that his or her career can grow. An artist needs to be able to trust the manager, feeling that not only is the manager knowledgeable, connected, and in tune with the artist’s essence, but also that the manager is at all times acting in the artist’s best interests instead of serving the manager’s own needs.

Management agreements have several important aspects that need attention and often, negotiation.

The first of these aspects is the term of the management agreement. I explained what a contract term generally means here, and for purposes of this article the “term” will refer to the length of the relationship. Traditionally, management agreements have a term between three and five years. Managers typically would want four or five years because, as they often argue, it takes a long time to create the momentum needed for an artist to really start seeing success. From a manager’s perspective, this can be true and also gives the manager the opportunity to still be representing that artist when success comes; that way the manager can receive a full commission rate at the artist’s higher income level instead of earning a percentage of the low (or no) revenues artists usually earn at the start of their careers.

On the other side of this, artists usually want to sign with a manager for the shortest amount of time possible, which allows the artist to get out of the deal faster if the manager is not delivering on promises or things just aren’t working out. There is almost nothing worse for an artist than being stuck in a bad deal that hinders the artist’s career by blocking potential opportunities while the artist waits for the deal to end.

These days I have been seeing even shorter terms on management deals, often one or two year initial terms with at least one option period attached. Both parties really need at least a year to get enough momentum going to start seeing some increased success, but it seems the management deal is following the trend of all deals in the music business by shortening terms to try to reduce risk.

What people tend to forget when thinking about the length of an artist-manager relationship is that terms can always be renewed. If the contract term length is on the shorter side, the parties can always renew the agreement at the end of the term if they still desire to work together. The parties don’t have to part ways just because a piece of paper set a time limit at some point in the past. On the other hand, if the parties feel it is time to move on, they have the freedom to do that knowing they gave it a fair chance during the time period they originally allotted.

Part 2 of this series will cover management commissions.

Contact Erin now to draft, review, or negotiate your management agreement.

by

Interview with Carl Caprioglio of The Oglio Entertainment Group, Inc.

No comments yet

Categories: Business, Crowd Funding, Management, Music, Music Industry, Music Industry Interviews, Record Labels, Tags: , , , , , , , , , , , , , , , , , , , , , , ,

Today’s interview is with Carl Caprioglio of The Oglio Entertainment Group, Inc., a great independent record label that is a lot more than just a record label.

Oglio 20th Anniversary LogoNow in its 20th year, Oglio achieved worldwide recognition as a successful niche marketer of entertainment products. Oglio releases have received acclaim and significant sales success including a Billboard Top 50 hit benefiting the Make A Wish Foundation, and projects with Brian Wilson (Beach Boys), Cyndi Lauper, Robby Krieger (Doors), Ray Manzarek (Doors), Nerf Herder, Parry Gripp, Kool Keith, Ultramagnetic MCs, Rob Schneider, Jackie Martling (Howard Stern Show), Andy Dick, Craig Gass, and George Lopez. Oglio’s growth has been significant enough to earn a position on Inc. Magazine’s 1998 listing of the 500 fastest growing companies in America. In 2013, Oglio extended into the management space with the launch of “Manage It Comedy” – a service designed to help the working comic manage their business. Manage It Comedy helps comedians release their merchandise to market, build a web presence and use social media to market themselves.

1.     Describe a typical day at the office.

One of the great things about being in the entertainment business is that there is not typical day. That said, I do have a bit of a routine that starts with attacking my email in box and checking all the regular social media sites for my artists’ activities. Once I have a handle on the mayhem that has ensued since the last time I checked those places, I write up my daily priorities on one of my office white boards and get to work. My office is in Torrance, a bit of a drive from the media centers of Los Angeles, so I try to set up a lunch meeting or two each week. My workday ends with more email and project development from home after dinner.

2.     What is your favorite part of your job?

To quote the great Hannibal Smith from the A-Team – “I love it when a plan comes together.” Whether it is a record that goes from concept to release or a licensing deal or a new direction for my business, the most satisfying part of my job is that feeling of that success when it comes to fruition. It really isn’t tied to money (although that helps) but it is more about that great rush of satisfaction.

3.     What are some projects that you are currently working on that you can discuss?  

On the record side we have two new releases – one from the metal bash-up band Beatallica that combines the sounds of Metallica and The Beatles and the other from comedian Craig Gass of Howard Stern Show fame. They are wildly different projects but both are personal favorites.

Recently my attention has been moving toward artist management. Over the years a few of the artists on my label have asked me about managing them, but I liked the label side and didn’t pursue it at the time. I’ve come to realize that I enjoy the interaction with the artists and bringing that interaction to another level seems like a natural move. I can provide the bigger picture help they need and still handle the label side if needed. It seems like a logical move and I use much of the same skillset that have developed over the last 20 years in business.

4.     What do you think are the most important issues facing labels and artists at this time?

Top of the list has to be the idea that music should be free and that both artists and labels can make up the income by selling t-shirts or touring. As a label owner and a friend to artists, I’ve had many discussions about how “fans” find a justification for stealing music. Despite the perception that labels and artists were caught off guard, we could see this train coming, but unfortunately we weren’t able to do much about it. For me I simply underestimated people’s willingness to steal and the ease of which they justify their actions.

5.     What do you think is the most profitable area of the music industry for independent artists today?

For your typical independent artist, I’m going to go with the new broad definition of “merch.” Merch (short for “merchandise”) now encompasses music, t-shirts, hats, hoodies, iPhone cases, tote bags, jewelry, USB drives and anything else you can put on your merch table or sell on your website. At one time the music part of the merch table was controlled by the labels but now that control is back with the artist in most cases. My favorite merch items are USB drives in fun shapes that artists can load up with not only their music but also videos, art and even a recording of the show from that very night. One of my artists, MC Lars, sells a small metal USB robot loaded with the music, videos and art from his album “This Gigantic Robot Kills” and it is a best seller for him on the road.

6.     What other avenues are still profitable for artists?

I see PledgeMusic and Kickstarter as great avenues for artists with a fan base that can be mobilized. I have seen PledgeMusic and Kickstarter album campaigns that have raised substantially more than the actual recording costs. The extra revenue goes right into the pockets of the artists and the artists then have the ability to sell their music for 100% profit from the release date forward. This is a very powerful tool available to artists that have a following.

7.     What types of deals are mostly being offered now among the independent labels?

In 1999, Oglio started offering “profit split” deals to artists that brought us recordings ready to be released. At the time it was a very unusual proposal but we felt that the partnership feel made for a more positive and collaborative working relationship. We treated our artists like business associates and we set our plans based on our mutual goals. Those deals worked well for both sides and Oglio was able to work with some legendary artists that would not have normally been interested in an independent label. I see those joint venture deals becoming more and more popular as artists have more control and labels look for ways to mitigate the risk involved in recording costs.

8.     What is an independent label looking for when considering signing a new artist?  Is there any criteria an artist needs to have to even be considered for a deal?

At Oglio it starts with the music. We have to feel strongly about the music itself and also its commercial potential. Every artist feels that their music is fantastic but the point where we often disagree is what we can offer as a label and still make a profit on the project. If the artist doesn’t have a fan base, touring history and traction, it just might be too soon for a label to get involved. We often turn down artists with the suggestion to self release and play live shows while they gain the momentum we would need to get involved.

Thanks so much to Carl for some very insightful comments.  To learn more about Oglio, visit www.oglio.com.

by

Client News: Adam Small Launches New Venture in Music Consulting, Management, Licensing, and More

No comments yet

Categories: Clients, Music Industry, Tags: , , , , , , , , , , , , , , ,

My client Adam Small of My Music Masterclass has now launched Adam Small Music, a company focusing on music career consulting, management, licensing, publishing, and more.

profile_pic_small

Adam is a professional touring bassist, has a large career in music licensing, and is also a mastering engineer, studio consultant, video editor, web designer, computer tech, etc.  He is now using his more than twenty years experience in the music industry to help other artists with their careers.

I encourage you to learn more about Adam Small Music at www.adamsmallmusic.com.