Band Membership Agreement
Written agreement defining terms of your business and legal relationship
Record Advance
Covers all recording expenses and any monies paid to the band in the form of an “artist advance”.
Recording Fee
Factored into a band’s recording budget and are the union mimimum scale wages to which each musician is entitled for recording an album.
Record Royalties
Percentage’s the record company pays to you for the sale of your record.
Digital Download Royalties
Royalties of the sale of your music sold as digital downloads on music download sites like itunes.
Master Tone Royalties
(aka. Mobile ring tones) for the sale of your music used on cell phones. Are also the same as your record royalty rate.
Master Use Licenses
(Film, TV, Video Games) When a record company licenses the recorded masters of your music in film, tv, video games and advertisements, it will pay you 50% of the monies it receives.
Audiovisual DVD Royalties
Royalties from the sales of your DVD. (MTV, VH1 are used as a promotion)
Interactive Webcasting Royalties
When record companies license the master recordings of your CD or Video to “Interactive subscription services” like Yahoo!, AOL, MSN….the record company will collect a fee and pays you a split of these earnings. (Listener has a choice in what they hear)
NonInteractive Webcasting Royalties
When Master recordings on which you are a “featured artist” are broadcast on noninteractive internet sites, a webcasting royalty is due. (Like XM radio, DirecTV, where a listener doesn’t have a choice in what they hear)
Live Performance Money
Monies received for live performance
Music Publishing Royalties
Can be split into an individual effort or it can be a collaborative effort involving any combo of band members. When two or more people collaborate on writing a song and each writer contributes either musically, lyrically, or in both ways the ownership is split pro rata…unless there is a written agreement between the writers that stipulates otherwise.
Mechanical Royalties
Your record company pays you a licensing fee, or mechanical royalty for the use of your songs on a record.
Performance Royalties
Any Public venue that performs you music is required to obtain a license and pay a fee or performance royalty. (Radio stations, tv networks, cable stations, satellite networks, colleges and universities, nightclubs, internet websites and mobile carriers)
Synchronization Fees
When motion picture companies, tv broadcast stations, video game developers, and any company who wishes to synch, a synchronization fee is required.
Print Royalties
When print companies are authorized to reproduce your music in sheet music and music books, a print royalty is paid on sales.
Electronic Transmissions
Music Downloads on itunes, ring tone sales with carriers like Verizon, “Interactive” streaming audio and video services like Yahoo!, and “Non Interactive” streaming with sites like MusicChoice; that are not new types of income but rather sources that encompass the various incomes previously discussed.
Foreign Subpublishing
Another source of income you may receive when your music is published overseas. Encompasses the various incomes already discussed.
Publishing Advances
An advance recoupable from future song earnings that should be divided among the songwriters in proportion to their individual shares.
Sole Proprietor
Business owned by one person
When two or more persons engage in common business, a partnership is presumed by law.
A separate legal entity (Which could consist of one or two more people)
LLC (Limited Liability Company)
An entity with limited liability but fewer formalities that a corporation.
S Corporation
A separate legal entity with 35 or fewer shareholders.