Legal and Business Must-Knows for Artists, Producers, and Engineers
June 6-2023
Navigating the music industry can be difficult for music artists, sound producers, and engineers, especially when it comes to legal and business issues. While working in the music industry, you must know the copyright law, contract and intellectual property in the music industry which comprises the legal aspects of the industry, besides knowing the different business structures and the music royalties. Read this guide till the end to understand these concepts from the music industry.
Let us first navigate the legal aspects of the music industry.
Intellectual property in the music industry
If you are working in the music industry, this is a crucial aspect of the music industry that you should be aware of. It refers to the legal rights that guard the creative works of music artists and is a crucial part of the music business.
Types of Intellectual Property Protection
1 . Copyright (musical compositions and recordings)
2 . Trademarks (images, names, logos, or other marks)
3 . Patents (enforceable legal rights)
4 . Trade secrets (proprietary and confidential business information)
Copyright Law in the music industry
Copyright law is a subset of intellectual property law that guards against the unauthorized use of creative works, such as music. If you are working in the music industry, this exclusive right control the use of your work, including reproduction, distribution, display, and performance. Copyright law also you to profit from your work by collecting royalties.
In the music industry, copyright law applies to both musical composition and sound recording. The melody, lyrics, and chord progression are referred to as the musical composition, whereas the sound recording is the actual recording of the music. Copyright law protects both the musical composition and the sound recording.
How to obtain copyright protection for musical works?
In the United States, musical works are automatically protected by copyright. Music is automatically protected by copyright law once it is created and fixed in a tangible form, such as being written down or recorded. However, in order to enforce and protect the creator's rights, the work must be registered with the United States Copyright Office. In the event of infringement, registering the work also serves as proof of ownership. Copyright law protects your work.
How does licensed music work?
Music can be licensed for use in a variety of media, including movies, commercials, and television shows. The terms and conditions under which the musical work can be used are specified in licensing agreements, including the amount of money paid to the creator in royalties. If you want to start working in the music industry, you must know the licensing organizations in the music industry. These include the American Society of Composers, Authors, and Publishers (ASCAP), the Society of European Stage Authors and Composers (SESAC), and Broadcast Music Inc. (BMI).
Contract in the Music Industry
Contracts are crucial in the music industry as they protect the interests of all parties involved. They provide clarity and certainty about the terms of the working relationship and establish the rights and responsibilities of each party. If you are working in the music industry, contracts provide a framework for resolving disputes and help to prevent misunderstandings and disagreements.
1. Recording contracts: These are used to formalize the terms of a recording deal between an artist and a record label. The contract specifies how many albums the artist will release, how much money they will be paid, and how much royalties they will receive.
2 . Publishing contracts: These contracts are used to formalize the terms of a publishing agreement between a songwriter and a music publisher. The contract specifies each party's rights and responsibilities, as well as the amount of money and royalties to be paid to the songwriter.
3 . Management contracts: These are used to formalize the terms of a management agreement between an artist and a manager, working in the music industry. The contract specifies the services that the manager will provide, the amount of money that will be paid to the artist, and the length of the agreement.
4. Collaboration Agreements: These agreements are used to formalize the terms of a collaboration between two or more music artists, such as songwriters or producers. The contract specifies each party's rights and responsibilities, as well as the amount of money and royalties they will receive.
Key players in the music market
While working in the music industry, you should also know who the key players in the music market are. These are the passionate professionals who keep the music going around. They include the following:
- Music artists
Without the music artists who create and perform it, there would be no music. Composers, bands, rappers, singers, songwriters, and multi-talented singer-songwriters all fall under this category.
- Producers
Producers turn the passion and talent of artists into commercially viable tracks. They support music artists' budget management, and album curation, and work with record labels and sound engineers.
- Audio engineers
For the sharp highs and thunderous bass notes on a track, you can thank the sound engineers. They masterfully record, mix and master the music.
- Artist managers
Managers help music artists in establishing networks with industry professionals. They look for opportunities for music artists, negotiate contracts, and oversee flourishing musical careers.
- Agents
Getting bands on stage is the responsibility of booking agents. They negotiate gig terms, deal directly with venues, and let music artists handle enjoyable activities like jamming out.
- Fans
In the end, fans are what keep the industry going by attending live performances, creating buzz, purchasing music, and reminding artists of the happiness and beauty they bring to the world.
Royalty in the Music Industry
Music artists, working in the music industry, must also know about music royalties. These payments may come from a variety of places, including radio stations, streaming services, and live performances. To ensure that music artists are fairly compensated for their work, they should be aware of the various types of royalties and how they are determined.
In the music business, several different kinds of royalties operate. Some of them are:
1. Mechanical Royalties: When a CD, vinyl record, or song is purchased or downloaded, songwriters and publishers are compensated with mechanical royalties.
2. Performance royalties: For the public performance of their music, such as when a song is played on the radio or performed live, songwriters and publishers are compensated with performance royalties.
3. Synchronization or Sync Royalties: These are paid to music artists for the use of their music in motion pictures, television programs, commercials, and video games. These are also known as licensing royalties.
4. Streaming royalties: Royalties for the use of music on streaming services like Spotify and Apple Music are known as "streaming royalties" and are paid to music artists.
If you are working in the music industry, it is crucial for you to be aware of how these royalties operate and what your shares are as it is a complex procedure. Depending on the type of royalty and the party making the payment, royalties are calculated differently. For instance, mechanical royalties are frequently determined by the number of units sold or downloaded, whereas performance royalties are determined by the number of times, your music is air played on the radio or performed live. The number of streams a song receives and the money the streaming service makes are typically used to determine how much a song's streaming royalties should be.
Conclusion
For music artists, navigating the music industry can be a difficult task. While working in the music industry, you must understand the legal and business fundamentals that are mentioned in this guide. Music artists can lay a solid foundation for their careers and achieve long-term success by safeguarding their music, comprehending contracts, selecting the best business structure, receiving fair royalties, and protecting their intellectual property.
ZOOM Recording Studio , a music recording studio in LA, assists aspiring music artists in producing high-quality music by offering several music production services, such as a rental studio, audio recording sessions, and mastering services, and professional videography and photography.