TicketCity

Monday, March 3, 2014

Why the Band Agreement is Necessary for the Future Income of Artist



The purpose of this blog is to report a matter of great importance The Band Agreement. To bring this idea to the attention of Artist Managers and Bands I will address a recent law suit filed in The LA Superior Court by David Palmer former singer with Steely Dan.

Eric Gardner has posted an article on BillboardBiz.com which details the news behind why Mr. Palmer sued Steely Dan over Digital Royalties. It appears that Sound Exchange, a digital performance rights organization has a policy which excludes paying band entities. However, the featured artist are directly paid.

According to Palmer the written agreement that established Steely Dan Inc.in 1972 provides a one-sixth percentage share of all royalties earned on songs in which he performed. David Palmer is an original band member who left the group in 1973. Under the agreement Sound Exchange and Steely Dan Inc. will have to settle the royalty payments with Mr. Palmer.

The law suit filed in this case is an example of why bands must understand the need for an enforceable contract. The initial band agreement goes beyond friendship. Maggie Lange is an expert in the field who shares great advice concerning band agreements. Artist managers must be able to explain the business behind the band agreement as part of the artist management cycle.

The idea here is to keep the band functioning for the financial success of all of the members. In order for this to be consistent with law the band must have an internal agreement which insures payment of future royalties in the proper percentage for members who signed the agreement.

This law suit in my opinion is a landmark example of a band agreement that worked out. With changes in technology digital rights have come to the front of the stage. The digital foot print leads the way to income for all artist who have a clear written band agreement.

No comments:

Post a Comment