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THE WRITTEN AGREEMENT AMONGST BAND<br />

M E M B E R S<br />

by John Tormey III, Entertainment Lawyer<br />

© 2009 All Rights Reserved. Used By Permission<br />

A A B M<br />

I have seen references to the above-mentioned document as both “Inter-<br />

Band Agreement”, and “Intra-Band Agreement”. Rather than initiate any<br />

a rgument with grammarians as to which term is correct -let’s simply call<br />

this all-important document the “Agreement Amongst Band Members”; or,<br />

“AABM”, for short. If one is a musician playing in a multi-member band,<br />

is an AABM needed? A b s o l u t e l y, yes!<br />

The agreement<br />

There are some parallels to an agreement amongst band members, and a<br />

pre-nuptial agreement between prospective spouses. But I actually find the<br />

case for having an A A B M more compelling than a pre-nup. A m a r r i a g e<br />

should be a function of love. A band formation, on the other hand, is often<br />

a commercial exercise.<br />

Written agreements should be required for any collaborative<br />

commercial endeavor between 2 or more people. Maybe it seems easier<br />

N O T to make it official, but no band member should skip the A A B M , if the<br />

band member takes his or her band or career seriously. It may not be<br />

realistic to operate on blind trust, in place of a good written agreement.<br />

If the band formation is not viewed as a commercial exercise, then I<br />

suppose the band members can simply agree on a handshake, and then gig<br />

for free in the subways. However, the majority of bands that I hear from,<br />

are concerned about their financial, as well as their artistic, futures. Many<br />

are trying to find a way to become economically self- sufficient on music<br />

alone, while preparing to quit their “day jobs”. It is best to have an<br />

agreement in hand, rather than, to put it off .<br />

When to begin?<br />

No one wants to be required to negotiate and close the AABM once the<br />

band is already successful, or once the band has already been furnished<br />

with a proposed recording agreement. The optimal time to close the A A B M<br />

is while the band is just being formed or while it is still struggling. A g o o d<br />

A A B M should also be flexible enough to contemplate future changes, such<br />

as changes in personnel and, Artistic direction. It is also likely one of the<br />

members may have more of a hand in the writing of the words or the<br />

music of the band’s original songs, all the more reason for creating the<br />

A A B M as early as possible.<br />

Band members<br />

In the average 4-person band, each member may play a diff e r e n t<br />

instrument. Some may have been in the band longer than others, or more<br />

experienced in the business of music. Maybe one of you has “connections”<br />

to clubs and labels, or more free time to invest in the running of the band’s<br />

business. Each member can perform a different function in business.<br />

Why a contract?<br />

The real value of a contract - any contract, including the A A B M - is as a<br />

dispute-resolution and dispute-avoidance tool. By dealing with things<br />

ahead of time, it may be best to discuss things now; and put the results on<br />

p a p e r. Resolve things before having to pay litigators thousands upon<br />

thousands of dollars to do it in the courts later.<br />

What happens if…<br />

All of those “what if” questions, may not be the focus at the beginning.<br />

Band members may not want to think about, what m a y happen if the bass<br />

player departs to raise kids in Maui, or the singer-songwriter front man<br />

decides to join the Air Force. If all the other band members all value their<br />

investment of time, sweat and money in the band, then they should know<br />

and have fully thought through - in advance - the answers to these types of<br />

questions. Who owns and administrates the copyrights in the songs? W h o<br />

is responsible for storing the masters? Who has final say in the hiring and<br />

firing of a manager? If the band breaks up, which member or members, if<br />

a n y, may keep using the band’s name? And these are just s o m e of the<br />

questions that should come up.<br />

When to get a lawyer<br />

Every band’s situation is different, and the lists of questions to consider<br />

will be as different as there are different band personalities and diff e r e n t<br />

band members. The band may be better off, if a lawyer prepares the<br />

AABM. In a perfect world, all band members would be separately<br />

represented by a different attorney, but that is not realistic.<br />

Should all these considerations prevent a band from creating a good<br />

AABM? Absolutely not, the band should at least try to resolve amongst its<br />

own members, the answers to all of the “what if” questions that will likely<br />

come up in the life cycle of any band. The band can try to resolve these<br />

questions on paper. Thereafter when affordable, one of the band members<br />

may decide to consult with an attorney to review and revise the band’s<br />

starting-point document - (typically, this turns out in practice to be the band<br />

member with the most at stake in the outcome).<br />

Be aware that one attorney may well not be able, or be allowed to<br />

represent all band members simultaneously. This is due to concerns about<br />

possible conflicts of interest, (especially if different band members have<br />

d i fferent percentage investments at stake in the band’s commercial<br />

e n d e a v o r s . )<br />

It is best to draft some kind of written agreement between band<br />

members, since doing so now can save a lot of heartache and expense<br />

down the road in the future.<br />

John Tormey III is a New York lawyer who handles general commerc i a l ,<br />

transactional, and corporate matters. John is also admitted to practice law<br />

in California, and in Washington, D.C. John’s focus is in the area of<br />

e n t e rtainment, arts, and media, including endeavors to market art i s t i c<br />

material to professional entertainment industry recipients. Please contact:<br />

w w w. t o r m e y. o rg<br />

HOW TO LEGALLY S E L L DOWNLOADS OF COVER<br />

S O N G S<br />

by Derek Sivers, CD Baby<br />

© 2009 All Rights Reserved. Used By Permission.<br />

♦<br />

Please note that the below is not official legal advice. It is ONLY for the<br />

U.S.A. We are not your lawyers, and you should always contact your<br />

attorney before entering into any contract such as a license.<br />

If you have recorded a cover version of someone else’s song, and you<br />

plan to make that recording available over the Internet, the following<br />

information applies to you. You must follow these steps BEFORE you<br />

make your recording available for distribution to the public!<br />

If you record a cover version of a song, (meaning your performance of<br />

a song that has been released in the U.S. with consent of the copyright<br />

owner), you are entitled by law to release your recording commercially,<br />

and the owner of the copyright to the song cannot prevent you from doing<br />

s o .<br />

The Copyright Act provides for what is called a “Compulsory<br />

License” for downloads and CD sales, which means that if you follow the<br />

steps set forth by statute, you can distribute your recording of that song on<br />

a CD or over the internet. This Compulsory License is only available for<br />

sales in the United States. Other uses of masters, such as streaming,<br />

conditional downloads, and the like, are not subject to a Compulsory<br />

License. A separate license from the publisher is needed in those cases.<br />

The following details the procedure for individuals to obtain a<br />

compulsory license to digitally distribute cover songs over the Internet to<br />

end users in the United States.<br />

Identify the Copyright Owner - the publisher<br />

The first step is to identify the owner(s) of the copyright to the song. T h e<br />

p u b l i s h e r. The easiest way to do this is to search the songwriter/publisher<br />

databases, here:<br />

BMI (bmi.com)<br />

A S C A P ( a s c a p . c o m )<br />

SESAC (sesac.com)<br />

Harry Fox (songfile.com)<br />

U.S. Copyright Office (copyright.gov)<br />

www.indiebible.com The Indie Bible – 10 th Edition

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