Why legal representation matters in the Entertainment Industry (and one dirty trick label owners don't want you to know)

The entertainment industry is a profoundly dangerous and beautiful place, and its legal landscape shares more in common with the Wild Wild West than any other frontier. Its participants encounter arduous challenges- diversified revenue sources, restrictive and unreliable public funding, and the high octane stresses of live event planning- all while suffering a chronic lack of access to legal counsel in navigating these challenges. Most cow-boys and girls opt to traverse this tumbleweed-ridden landscape without ever speaking to an attorney. Listed below are a few reasons why that may be a bad idea.

Dude, Where are my royalties?

The Music industry features a uniquely diversified revenue model with regard to recorded compositions that spans public and private organizations. This means that Artists who choose to go it alone may miss out on key revenue sources and leave money on the table. With the help of an entertainment attorney, Artists can maximize their royalty collection and ensure that future success is adequately compensated.

Generally, ownership of a recorded song is split into two main portions: (1) The composition (or the "Publishing") ie: the actual written work of the song, and (2) The "Recording" (my personal choice to replace the formally used and notably problematic term the "Master") which refers to the recording of the composition created by the artists in question. The holder of each portion of ownership rights is then entitled to certain royalties forthcoming from the recording. The owner of The "Recording" is typically entitled to a portion of the sales of the record, while the owner of the "Publishing" is typically entitled to certain statutory compensation for every performance of their written work.

For Artists, tracking down the compensation to which they are due can be tricky work, requiring registration with several public entities and solicitation from private distributors. When working alone, this work can seem arduous. With the help of an entertainment attorney, Artists can ensure they are collecting their payments with ease.

More than just Green M&Ms- why you need a solid performance agreement.

For artists and venues alike, live performance is a dazzling spectacle that brings written compositions to life and engenders a feeling of true connectivity. Many such artists and venues fail to appreciate the equally dazzling potential for liability and dispute embedded in each such performance. Absent a well-crafted performance agreement, participants become embroiled in arduous and lengthy legal disputes in order to determine the most equitable outcome. Had the parties enlisted the deft hand of a skilled attorney, such disputes would be resolved in minutes- saving each participant extravagant cost.

In drafting performance agreements, Attorneys consider the varied and extensive potential outcomes embedded in a live performance. I've listed a few below:

How much does the venue pay if the performance is cancelled due to weather?

Does that change if the artist needs to cancel due to their own fault?

How is the settlement distributed?

Is that deposit subject to tax withholding?

Who is on the hook for liability insurance?

As you can see, the outcomes of each of these disputes have impacts ranging from hundreds of dollars (in the case of deposit disputes) to thousands of dollars (ie: an uninsured injury taking place). Through the use of an adept entertainment attorney, the parties can make the outcomes of these circumstances clear and save valuable time (and money) via that clarity.

The "Friendly" Label Attorney: A Conflict of Interest in Sheep's Clothing

One of the most common "dirty tricks" in the industry starts with a gesture of goodwill. A label executive leans across the table and says, "We want to make this easy for you. Don't worry about the cost of a lawyer; you can just use ours to review the paperwork. They know the deal inside and out."

On the surface, this feels like a win. You save a few thousand dollars in billable hours, and the deal moves faster. But here is the reality: That attorney does not work for you.

In legal terms, an attorney owes a fiduciary duty to their client—a strict obligation to act solely in that client's best interest. When a label provides the lawyer, that lawyer’s fiduciary duty is hitched firmly to the label's wagon, not yours. They aren't there to point out the predatory "cross-collateralization" clause or the hidden deductions that will keep you in debt for the next three album cycles. They are there to ensure the label’s investment is protected.

Navigating a record deal with the label's attorney is like asking the opposing team’s coach to referee the game. They might know the rules, but they aren’t going to help you win. You need a "hired gun" whose only loyalty is to your career.

*DISCLAIMER: This blog post does not serve as legal advice and should not be relied on as such. To receive legal advice, please book a free consultation to discuss retaining my services as your attorney.