What Does An Entertainment Attorney Do For Independent Record Labels?
Jul 24, 2009
We’ve all heard horror stories about record companies battling with their artists and distributors. I’ve seen the aftermath, and it’s not pretty. The ultimate job of your entertainment attorney is to counsel you about legal aspects of the music industry so you can avoid these kinds of disasters. Some common responsibilities of your attorney will include drafting and negotiating contracts for you as you enter into agreements with third parties (i.e., distributors, artists, and producers), preparing your copyright or trademark registrations, and advising you on issues as diverse as goal-setting, things to consider when choosing an artist, and your label’s direction.
Most important, the attorney will advise you before you sign any agreements, and do everything possible to make sure you enter into contracts that are fair and protect your interests. He or she will make sure you understand the contracts you sign, and that the contracts are up to industry standards. The attorney also can help you understand how all these legal documents affect your business on a day-to-day basis.
Just in case I haven’t been clear: before you enter into negotiations or sign any contract in the entertainment industry, always get the advice of an entertainment attorney. Simply having an attorney does not guarantee that you’ll get the best contract. However, having an attorney greatly increases the likelihood that you’ll understand the contract you are signing, and that you won’t get burned.
One thing entertainment attorneys generally do not do—despite the popular myth—is seek out and secure production and development or distribution deals—a process known as “shopping” a label. It is true that some entertainment attorneys perform this service, but very few succeed in getting their clients a deal. Those who do succeed almost always are working with a label that already has spent years building its business and has had some success selling records. A reputable, experienced entertainment attorney will explain this to you.
Many label owners want to hear that if they hire an expensive lawyer, they’ll get a deal with a distributor associated with a major label. You can try this too, but I strongly recommend that you don’t. You probably will end up with no distribution deal and a lot less money.
Unfortunately, distribution companies perpetuate this myth, telling start-up labels that entertainment attorneys can shop their materials. Why? Because these distribution companies do not accept material directly from unknown labels (like yours). Instead, they require materials to be submitted by someone—such as an entertainment attorney—who already has a relationship with the major label with whom they are associated. They give you the impression that all you have to do is hire an entertainment attorney to present your music to the distributor, but it’s not that simple. What they’re really doing is leading you to someone who can explain how the business works. I provide this explanation in the chapter entitled Finding A Distributor.
If an attorney says he or she will shop your products to distributors, be cautious. Before writing a check or entering into an agreement for the attorney to send your material around, ask a lot of questions regarding his or her experience, who he or she has represented, and how many distribution deals he or she has obtained for small labels. The fact is you can’t buy success in the music industry. You succeed through development of your label, hard work, and record sales. My goal in this book is to guide you through the process.