The Importance of Legal Guidance in the Music Industry

Music and law: two words that don’t usually go well together. Hell, as a music lover myself, I used to think that legal considerations were a low priority in the crazy world of the music industry. And then I ended up working with musicians. Ones who weren’t bound by appropriate contracts, didn’t have proper licenses, who never knew that they had rights and royalties to be paid to them. And promoters or music producers who didn’t know that there were only certain ways in which they could use a song or an album, for example. You get the picture.

Now, I’m not saying that I did those artists a favor by getting involved. In fact, I’m perfectly aware that I was a cog in the music industry machine. I was one of those secret antagonists, so to speak. The system failed them, and it can’t be blamed on a few lawyers trying to milk people of their money during mindless legal battles.

A contract offers a guarantee: it assures an artist that the tracks they’ve recorded will remain theirs, and their royalties will come on time. That’s what every musician wants, right? This is exactly why every musician needs a lawyer to sort contracts between producers, music labels, and performers. After all, you’ve spent a LOT of your time and energy in making your music; it shouldn’t be wasted on legal battles and malpractice, right?

Imagine this: You’ve just come out of the recording studio, and you’re beaming with pride at the thought of becoming the next rockstar. A producer has heard your demos and has taken an interest in signing you. All that’s left to do is sign the contract. Sounds easy, doesn’t it?

Now let’s say that you trust the producer implicitly and don’t think you need a lawyer to review the contract because it’s a simple split the proceeds 50%-50% type of contract. Well, what happens if the contract divides sales profits, but not licensing profit? Because the producer decided to publish your demo on his blog or as ringtones, you won’t see a penny from it. Or let’s say the contract demands that you mix and master the demo, but doesn’t state who owns the rights to the original material. You could have lost all rights to your music. It happens. All the time.

Joseph Chitty, English lawyer and renowned as the “father of modern contract law,” once said that “All contracts are made with reference to the law (which includes statutes as well as common law), and every contract must have regard to the surrounding circumstances of its making.” In other words, contracts are subject to the whims of circumstance, which is why it pays – literally – to have a legal eagle review a contract on your behalf.

Andrew Lang, Scottish author, summed it up nicely in one of his poems: “He uses statistics as a drunken man uses lamp-posts – for support rather than illumination.” When it comes to certain parts of the music industry, a legal head behind a contract can prevent the misuse of data. Especially when that information can result in a tarnished reputation.

A statue that without a name, but today known as “A Lawyer Blaming a Poet” was erected in the New River Walk Bridging of Civitas, Peterborough, England, to symbolize the founding of the city by an attorney named indeed Peterborough. The story goes that during voting to decide the location of the courthouse on one of the two hills of the city, the attorney wanted the courthouse on his hill; the poet, on the other hand, preferred that the building be constructed on the other hill. Unfortunately for the poet, the decision was based on the attorney’s vote. The poet then jumped off the 30-meter high cliff to his death. A depiction of the event was later immortalized with the statue. It is this type of irreverence to the law that’s commonplace in the music industry.

The problem with most contracts is that they are usually written by one party, leaving the other to read through clause upon clause explaining why they should put ink to paper. I could sum all that up for you in one word: money. A record label, for example, will want to turn a band into a cash cow; and would stretch the signing process out until the fringe costs espoused in the contract would exceed the contract value itself. This is the very reason why hiring a lawyer is crucial: to navigate your way through contractual obligations and make sure neither you nor your music career vaporize after the first album drops.

If you’re convinced that you’ve read enough contracts in your life and that you can’t possibly hire an attorney to draft and review your contract, here’s a step-by-step guide to get someone on board. This is by no means exhaustive, but it’ll give you an idea of how much work is involved in the contracting process:

Once you’ve found a lawyer who’s fit for the job (ranging from your neighborhood’s jack of all trades legal practice to a boutique firm specializing in entertainment law), you’ll have to draw out the following details:

Contrary to popular belief, legal advice doesn’t have to be pricey. For example, many lawyers will offer a cost estimate to draft or review a contract, rather than provide hourly rates. Also, if you have a good rapport with a lawyer who isn’t that sure about dipping into entertainment law, they may just write you a contract at a throwaway price compared to what you’d expect to pay to a specialist. And while prices will vary depending on your location, the level of expertise, research and effort required, and the reputability of the firm, you’re likely to pay less than USD 500 to have a lawyer draft a contract.

Some people say it’s best to leave things to chance, or the “benefit of hindsight.” If your goal as a musician is to make music and connect to as many people as possible, however, this is not a risk you want to take in today’s music industry. More stability and sustainability means that your odds for success are higher; not to mention that building a career takes time and costs money, so you might as well make sure that it isn’t jeopardized by simple mistakes that could be prevented with adequate legal advice. In other words, you might want to START thinking long-term. And I mean in the decade-long period, not years or months.

How many artists haven’t been given the correct credit for their tracks? And how many haven’t received the payment for their sales or royalties? There’s a reason why contractual obligations are laid out in minute detail. If you don’t understand it or know how to enforce it, you need someone who does, especially if you’re new to the game.

It’s the same thing with any product or service. And if you think about it, when you want to buy a used car, you usually get someone to look through it with you to tell you whether there’s something wrong with it. Why would any of this change when it comes to one of the most important, life-changing deals you could ever make?