The Aspect of Music Business

Running head: THE ASPECT OF MUSIC BUSINESS
The Aspect of Music Business
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1THE ASPECT OF MUSIC BUSINESS
Music industry refers to the general network of parties involved in the creation,
recording, promotion, performance and management of the business of music. The purpose of
this essay is to understand the music industry practices and various business contracts in the
industry. This essay will interpret various contractual relationships between the parties in
music business, the complexity and diversity that is generated by the changes in the business
environment and the history of music business.
The music industry involves a number of intermediaries (Clayton 2013). The industry
practices which would ensure a positive outcome for a tour, includes a writer to create to
work, a composer to produce the music, a publisher to invest in and find the artist, a record
company to record and distribute the work. Once the work is ready then the phonogram is
manufactured and the product is promoted and distributed. The music industry requires and
entertains various contracts to design the contractual relationship between the artists and
agents, producers, artist manager, publishing companies and record companies and others. A
contract is a binding agreement between the parties to create contractual obligations between
them and is enforceable by the law. A binding agreement between the music artist and the
agent sets out the duties and rights of the agent in the context of music creation. By the
agreement, the musician employs an agent with respect to the services, endeavours and
appearances as a musician. The contract requires the artist to provide sample of work to the
agent for securing assignments. The agent shall be bound to take reasonable effort to protect
the work of the artist from any loss or damage by his own negligence. The contract between
artists and artist manager should include the common clauses like, power of attorney to
appoint the manager for the terms of the agreement and of any extensions as the attorney-in-
fact of the Artist; the limitation of appointment of the manager as to the jurisdiction and
authority of him as a personal manager related to the career of artist in the industry; the
entitlement of the manager to a percentage of the contracts and commitments in existence or

2THE ASPECT OF MUSIC BUSINESS
negotiated or offered during the term (Morrow 2013). The Music Managers Forum United
Kingdom is a representative body of artist management. The publishing agreement is an
agreement between songwriters or songwriter with a publisher to usually transfer the
ownership of all or any of their present, past and future work to the publisher to enable the
publisher to exploit the work on behalf of them. This agreement arranges to pay a share of the
revenue received, to the songwriter by the publisher. This contract empowers the publisher to
exercise sole right to administer the interests of the publisher and writer. The contract assigns
the publishers and their successors all the rights and interest of the result of the work of the
writer and the composing services. A recording contract is required where an artist enters into
an agreement with record labels to allow them to take the ownership of the work and the right
of exploitation in return of a share of royalty. The terms of the contract usually require the
artist to sign the record label exclusively, which means that the Artist will provide his service
as a recording artist for the recording company exclusively within the territory and not for
any other entity, without permission. The contract also disables the artist to re-record,
reproduce, remix or distribute any recording generated within the terms of the contract
without authorisation. This contract also grants the company a perpetual right to use the name
of the artist for the purpose of any recording made under the agreement. The contractual
relationship between the music artist and the producer consists the terms which requires the
producer to use their best efforts to produce the work of the Artist. The contract would entitle
the producer to a consideration for their services and until such payment is made, the work of
the Artist shall remain the property of the producer. The Artist should ensure that all the
commercialization of his work would give credit to the producer under the agreement. The
producer will also ensure that his services would not contain any sample that is unauthorised
under the terms of the contract.