Introduction
Most of the time, a starting off or mature group band understates or overlooks its group rule of thumb. It is certainly understood since, a group band, in the very beginning isn’t more than a friendship bond amid people with the same interest and goal in music.
The rule of thumb principally can be found in a band agreement. For starters, it will be a bit awkward to talk of “formal” thing at the beginning of band formation. Yet, it is frequently misunderstood, out of unconsciousness this is the moment of the group to start discussing future matters when assorted offers are still on their way such as recordings, concerts, tours, and so on.
However, the band agreement is not the sole agreement related to group band. There are other numerous when the group has bonded with another party, for instance songwriter contract, management agreement, booking agent agreement, recording contract, publishing contract, distribution contract, performance contract, reproduction license, synchronization license, mechanical license, assignment of musical work copyright, assignment of sound recording copyright, etc.
Those arrangements and contracts are, principally, governed by the Law. However, when diving deeper, this dealing undergoes law and business complexities; in other words, sloppiness will yield a loss. In this part, the group needs to find the law expert who is familiar with this industry.
I don’t intend to meticulously illustrate those varied agreements and contracts one by one since it will be easy to find when a band has started to take off. Instead, I will only confer several important things attached to a group band formation as the most-absent initial step, yet most-frequent becomes the source of legal matters.
Why Name is Significant?
The next important thing after name selection is determining who’s who which has the right to own and use the name. Does it belong collectively, or individually? Then, should the band split-up, who has the right of exercise? These are the must have clauses in the band agreement. It is frequently mulled over as trivial, but many turns out to be the root and branch of the problem bring it on to the court.
The Kassbaum vs. Steppenwolf Productions, INC’s case shall best describe of how significant is the role of name. Nicholas Kassbaum was the ex-bassist of the band “Steppenwolf”, a rock-band formerly formed in 1967 by John Kay, Jerry Edmonton, Michael Monarch and Goldie McJohn. Kassbaum joined a year after the band formation. At that time, they had just finished making up a partnership agreement saying that each member has the same ownership of and position in Steppenwolf. The band soared it s popularity by handing in many recording and concert proposals. And Kassbaum skill granted particular characteristic for the band. In 1971, Kassbaum pulled himself out and the other founding father, John Kay, declared the end of Kassbaum. However, in 1975, Kassbaum and Goldie McJohn formed another group called “The New Steppenwolf”. This novel name created problem. It was considered as misappropriation of the popularity of the late Steppenwolf. Consequently, Kassbaum obliged to pay $ 17,500 in fine to John Kay and Steppenwolf Productions, INC to gain the exclusive right of name.
The lesson in Kassbaum’s case above is the urgency of band name’s ownership and usage. It is possible if the name is possessed by only one or two vital members. If it is so, it is not allowed to share the ownership to other members unless they are permanent members. So, what if the band split-up? That’s why it needs prior arrangement, for it is likely for a record company to intervene lots of articles to the band to use its name once it breaks up.
The fact above gives important signs for group members to start drawing up a comprehensive band agreement, or perhaps for existing bands to review their basic contracts to anticipate further legal matters.
Band Structure: Which is which?
The group band also needs to decide the group structure. It will then exemplify responsibilities for the group and affect the procedure of new members or even leaving members. Difficult to decide which structure is best. But, at least there are two customary types of a band, Limited Company and Partnership. Both have their own plusses and minuses, depending on which is beneficial for the band.
If the band chooses partnership type, then the agreement is the band partnership agreement. It will rule out the daily operation, band’s name, assets separation, etc. all members under this type has the same right in and responsibility for any profit-sharing and loss. This structure actually has been set forth in Article 1618 of Civil Law under the “partnership” name. It explains that “a partnership is an agreement in which two people or more bind themselves in the partnership with profit-sharing objective.”
Besides partnership, a group band can pick on the Limited Company type. Here, the band agreement contains shareholders’ agreement. It has some advantages in separating private assets, improving efficiency on tax, sharing profit and so on. As mentioned before, it is knotty to decide which is which. However, remember that the choice of type will give out different legal consequences in a matter of name ownership, leaving member or new member, responsibility for assets and profit sharing.
Closing
To sum up, it is wise if a band, in its career achievement, maintains the surrounding legal aspects. The description above is only the tip of the towering legal perspectives. Formulating the concerned matters will be at ease before any plights take place. The legal perspective at the beginning of a band formation is an effective way to suppress future legal problems.
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