Mega-topic: Band Partnership Agreement

Mega-description: A band partnership agreement is a legal contract signed by the band

members explaining how the band operates. It also entails how decisions regarding the band will

be made.

Definition of a band partnership agreement

A band partnership agreement is a legal contract that is signed by members of a band. It entails

how the band is operated and how the decisions that relate to the band will be made. An

agreement is the most significant document that a group of musicians can compose to ensure that

the operations in the band run seamlessly as the career progresses.

Whether a band is well-established or has just been founded, a standard band partnership

agreement is needed to clarify things. An agreement clarifies the responsibilities, simplifies

decision-making, and prevents disagreements and conflicts. In the absence of a contract, any

band member can start their own band using the initial band name. It can also exploit the songs

of another band member that has struggled to write and record. Hence a proper band partnership

agreement should be negotiated and signed by the band members.

Steps of creating a band partnership agreement

The following are elements that are key to drafting a band partnership agreement template:

1. Naming the members of the band and writing their addresses. A bandleader may be

added in the agreement’s introduction.

2. Definition of the partnership’s purpose.

3. Deciding on how a long-term relationship will be. The agreement may be signed with a

three-year term. Upon expiration, the band members have the liberty to revisit the

agreement and add new terms and conditions.

4. Negotiating of the rights of the band name. Hence deciding on the owner and defining the

conditions that can be used by the band. The name of the trademark protection should

also be registered. The name carried the public recognition and reputation hence essential

in determining the controls of the rights to the name.

5. Provision of the partnership’s financial details. Hence specifics on what amount of

money each partner will contribute, who will cater for the instruments and equipment,

among other expenses.

6. Inclusion of the copyright clause. The songwriting copyright may be kept separate from

the partnership property.

7. Discussion of commitments and contributions. A list of the responsibilities of recording,

writing, touring, performing, marketing, creative management, and business

management. A determination of who selects the gigs to play and how to store and

transport the equipment should also be made.

8. Negotiation of income splits. This section will determine how the composers will share

the publishing income with the non-composers. It will also determine how the earnings

will be split and how the income earned will be shared when the band breaks up.

Normally, music bands agree to distribute the earnings equally.

9. A clause on novel and former members. The amount of money owed to a former band

member with regard to royalties and other income and which member has the authority to

add an extra member.

 10. Selection of the right legal structure of the musical band should also be made. Hence

clearly define who will own and se the property, songs, future profits, and name.

11. Signing and dating the document. Every band member should also get a copy of the

agreement.

Some of the key issues that are included in the agreement include:

o The owner of the compositions.

o The owner of the master recordings,

o The owner of the band name.

o What happens upon the departure of a member?

o Decision-making of the band, that is either through a majority vote or unanimous vote.

o Division of revenue from record sales, touring, publishing revenue to merch sales.

o The owner of the music equipment, that is either the band or individual members.

o Band members certified to sign cheques and contracts on behalf of the band.

o Person responsible for hiring band members.

Importance of a band partnership agreement

The majority of the bands operate as partnerships hence the need of a band partnership

agreement. A partnership is often defined as two or more people in business together. Losses,

profits and decision-making obligations are split equally among the partners. Also, there are no

formalities in establishing a partnership. When two or more individuals conduct business

together and share the profits without an agreement, the business is classified as a partnership.
Though a general partnership could be established informally, it is recommended that an attorney

prepares a written partnership agreement. The most significant reason for the same is to

guarantee the existence of the partnership if a member leaves. Without the agreement, the

departure of a member ends the band partnership agreement automatically.

Further, a band partnership agreement is among the most significant document that a group of

musicians could have. It ensures that the operations of the group run effectively. Most of the

complicated legal issues that arise later on could be avoided if there was an effective band

partnership agreement in place. However, most bands do not consider signing one until it is too

late. This later comes back to haunt them.

Before purchasing a new guitar, merch, or touring van, a legal agreement is needed. Some of the

common examples of the legal disputes that have arisen among band members due to the

absence of a band partnership agreement include the Pink Floyd Case. In this case, Roger

Walters and David Gilmour claimed the use of the band name and for some time there were two

versions of the Pink Floyd. Members from the conflicting bands spent much money for the legal

determination that from the outset in a good band partnership agreement.

Therefore, it is advisable that every band gets a lawyer to help in drafting a band partnership

agreement. A competent and efficient attorney would find it easy to operate and create. Ensuring

that one has an agreement could also save the band members on unnecessary costs that would

otherwise result from litigation.

How to put together a band partnership agreement

A basic band partnership agreement includes the address and common band matters. The

members have the discretion to modify the agreement. If the band desires a more erudite band
partnership agreement, for instance, one that includes ownership of song writing. One can add

such requirements into the basic agreement or establish a more comprehensive agreement with

the assistance of an attorney. When a band prepares an agreement, the name of the existing

member partners should be included. A name of the band partnership should also be included.

Most bands use the band named and add the term ‘partnership’ at the end. For instance, Rocky

Hill Partnership.

Using a basic band partnership agreement, the band members can include information regarding

the band’s name. If the band is uncertain regarding the owner of the name, they should sort that

out among themselves. Regarding sharing of profits and losses, the band partnership agreement

normally includes a clause on who shares the profits equally. If a band member desires a

different division, the section should be struck and the desired arrangement written. Other bands

agree ahead of time regarding the voting requirements for significant matters. For instance,

adding or removing members. Such matters are normally decided by a majority vote or

unanimously.

In the event the majority vote is needed for some significant issues and it amounts to a tie, the

band could agree before time on the designation of one person as the tiebreaker. If the band

needs a unanimous vote for expelling or terminating a band member, the terminated party is not

entitled to vote.

Other inclusions of a band partnership agreement

A band partnership agreement also includes the terminated members clause that ensures the

partnership stays in effect after the departure of a member. It also provides that a band member

can voluntarily leave the band. Such a members has the right to a share of the net worth of the
partnership and other royalties. For the majority of the bands, such payouts are easily agreed on.

However, if a band has several record deals or equipment that generate royalties, an accountant

is needed. This is to determine with certainty the share of the leaving member.

Additionally, merely signing a band partnership agreement does not establish a band partnership.

It establishes and formalizes the rules for the existing partnership agreement. For instance, where

a dissatisfied ex-member tries to use the band name and has no right to do so, the rest of the band

members could use the band partnership agreement. The agreement would help them enforce

their rights. Also, a discontented ex-partner can not drag the rest to court since the band

partnership agreement contains a dispute resolution clause. Often, such clauses provide for the

alternative dispute resolution mechanisms to be resorted to once a conflict arises. These include

arbitration and mediation. However, if the band members do not desire to rely on them, the same

should be struck off the agreement.

New members that desire to be added to the band should also sign the band partnership

agreement. The partnership could hire musicians as contractors or employees for several

purposes. For instance, playing on a tour or various recording sessions.

References

https://www.templateroller.com

https://ww.legalzoom.com

https://ww.lawdepot.com

https://vlaa.org

https://lawyerdrummer.com
https://musiciansunion.org.uk

http://www.amim.org.au

https://www.bsuiness-in-box.com/partnership

https://musiciansunion.org.uk

https://www.linkedin.com