• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Protection in Loose Partnership | Band

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

TheBeatlesRock

Junior Member
What is the name of your state (only U.S. law)? Georgia

I am a successful business owner (incorporated) and also a part-time musician.

I have been heavily involved in a writing/recording/performing group for the past 15 months.

While I do this mainly for the enjoyment and as a hobby, I certainly don't want to put myself in an unfavorable legal/tax position in 2015 by continuing in an informal manner.

To date, I have infused capital ($10,000+) and many billable hours into rehearsals, writing, recording (at my studio) and marketing efforts for this group. Even at an advanced age (30+) someone with my skill set can make a considerable living in writing/publishing by increasing ones visibility and network via a performing group.

As an entrepreneur I felt that this opportunity had 50/50 shot - an acceptable risk.

I have broached this subject many times, but I cannot force my 'bandmates/partners' to sign, or agree to anything - however there must be a legal structure that allows some form of protection and recourse, while recognizing and protecting my investment of capital, time and intellectual property?

Additionally, if a document were to be created between the 'group' what protections are reasonable? My biggest fear is someone jumping ship (3 members) and essentially flushing a year+ of effort/work and capital down the drain.

To date I there has been no profit to speak of, but next year (2015) things are slated to move quickly so I'd like to get a jump on an equitable framework.

Thank you for your time -
 


FlyingRon

Senior Member
Nope, other than your share of rights to works you created they don't need to acknowledge your other "contributions" to the group. If they don't want to sign, you've got little recourse.
Your money was flushed the moment you spent it by your own admission.
 

TheBeatlesRock

Junior Member
Nope, other than your share of rights to works you created they don't need to acknowledge your other "contributions" to the group. If they don't want to sign, you've got little recourse.
Your money was flushed the moment you spent it by your own admission.
Got ya - I'll certainly be reducing my exposure in 2015 sans having paper between us.

Thank you~!
 

quincy

Senior Member
What is the name of your state (only U.S. law)? Georgia

I am a successful business owner (incorporated) and also a part-time musician.

I have been heavily involved in a writing/recording/performing group for the past 15 months.

While I do this mainly for the enjoyment and as a hobby, I certainly don't want to put myself in an unfavorable legal/tax position in 2015 by continuing in an informal manner.

To date, I have infused capital ($10,000+) and many billable hours into rehearsals, writing, recording (at my studio) and marketing efforts for this group. Even at an advanced age (30+) someone with my skill set can make a considerable living in writing/publishing by increasing ones visibility and network via a performing group.

As an entrepreneur I felt that this opportunity had 50/50 shot - an acceptable risk.

I have broached this subject many times, but I cannot force my 'bandmates/partners' to sign, or agree to anything - however there must be a legal structure that allows some form of protection and recourse, while recognizing and protecting my investment of capital, time and intellectual property?

Additionally, if a document were to be created between the 'group' what protections are reasonable? My biggest fear is someone jumping ship (3 members) and essentially flushing a year+ of effort/work and capital down the drain.

To date I there has been no profit to speak of, but next year (2015) things are slated to move quickly so I'd like to get a jump on an equitable framework.

Thank you for your time -
As a successful business owner, you know the value of having a contract to protect your interests and, when working with a group, you need the contract to protect your interests as well as theirs.

Disputes often arise when there is group work and, even if the group seems solid right now, it is not unusual for one or member of the group to depart. Without a contract, if a dispute arises over ownership of rights to a work written, recorded or performed by the group, the legal presumption will be that all in the group will share equally in the rights and must share equally in all profits derived from the works.

In other words, if a member of the group heads off in his own direction, he has rights in the works of the group and can use the works as he sees fit, with the only condition being that he must share in any profits.

For that reason, I suggest you and your group sit down with a business law/IP attorney. You need a written and signed agreement outlining the rights in the works created, if you wish to protect your investment.

Good luck.
 

TheBeatlesRock

Junior Member
As a successful business owner, you know the value of having a contract to protect your interests and, when working with a group, you need the contract to protect your interests as well as theirs.

Disputes often arise when there is group work and, even if the group seems solid right now, it is not unusual for one or member of the group to depart. Without a contract, if a dispute arises over ownership of rights to a work written, recorded or performed by the group, the legal presumption will be that all in the group will share equally in the rights and must share equally in all profits derived from the works.

In other words, if a member of the group heads off in his own direction, he has rights in the works of the group and can use the works as he sees fit, with the only condition being that he must share in any profits.

For that reason, I suggest you and your group sit down with a business law/IP attorney. You need a written and signed agreement outlining the rights in the works created, if you wish to protect your investment.

Good luck.
Thank you for the additional input, I'll just add that this 'opportunity' really straddled the line between casual and business, however with what's on the horizon for us in 2015, I felt it was prudent to get some kind of formality in place.

I've amassed some great recording gear, a creative space to work in and lots of instruments I'll enjoy for years to come - so it's not a total loss.:)
 

quincy

Senior Member
Thank you for the additional input, I'll just add that this 'opportunity' really straddled the line between casual and business, however with what's on the horizon for us in 2015, I felt it was prudent to get some kind of formality in place.

I've amassed some great recording gear, a creative space to work in and lots of instruments I'll enjoy for years to come - so it's not a total loss.:)
I think you are smart to think ahead to the time when your casual band get-togethers might start to operate more as a business.

There are very few bands that can survive as a business without a good written and signed agreement between the members, that details how the business will be conducted and that designates the rights and obligations of all. Whenever money is involved in anything, disputes become more likely.

Enjoy the music and your band. Good luck with them both.
 

croque_monsieur

Junior Member
I think you are smart to think ahead to the time when your casual band get-togethers might start to operate more as a business.

There are very few bands that can survive as a business without a good written and signed agreement between the members, that details how the business will be conducted and that designates the rights and obligations of all. Whenever money is involved in anything, disputes become more likely.

Enjoy the music and your band. Good luck with them both.
This is sad but true. Had a similar experience, just couldn't believe it in the end when I had to look back.
 

quincy

Senior Member
This is sad but true. Had a similar experience, just couldn't believe it in the end when I had to look back.
These experiences are not unusual. :)

It does not matter whether the band is a casual get-together of friends playing in bars or the band is a famous one with many top-selling recordings. If they intend to perform for money, they should have a written agreement in place.

Some famous bands that have had rights and royalties challenged in court by their members/former members are the Eagles, the Black Crowes, the Stone Temple Pilots, the J. Geils Band, the Dead Kennedys, Grand Funk, the Animals and the Beatles. The list goes on and is an extensive one. Some of these bands failed to have contracts in place in time to prevent legal actions and some failed to have contracts that properly addressed the issues of departing band members, the formation of new bands using the old name or old music, and the continuing rights of each member in collaborative works.

It is easier to create a solid contract when you review first the mistakes made in the past by others, and having an attorney well-versed in entertainment law and music contracts to draft the agreement between members is definitely a plus.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top