Music Industry Law: Business Structures, Liabilities, and Regulations

This report provides a comprehensive overview of music industry law, focusing on the business structures prevalent within the industry. It examines the legal frameworks and liabilities associated with various business models, including sole proprietorships, partnerships, and corporations. The report delves into the implications of each structure, such as tax liabilities, personal asset protection, and the roles and responsibilities of owners and partners. It also addresses the importance of choosing the appropriate business structure to mitigate risks and ensure compliance with legal regulations. The discussion extends to the legal aspects of music composition, recording, and distribution, highlighting the significance of understanding these elements for successful business operations within the music industry. The report emphasizes the need for business owners to be educated and proactive in managing their ventures according to the law and leveraging opportunities within the market.

Running head: MUSIC INDUSTRY LAW
Music Industry Law
Name of the Student
Name of the University
Author Note

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Introduction
The music industry is one of the finest and vas industry which consists of various companies and
individual people who are earning the capitals by successfully running their business by
composing new songs, selling live concerts, live shows, different audio and video recording and
the organizations and associations where they creating the compositions of the song1. The music
industry control and operate by several organizations or individuals where different kind of
activities are present for controlling. It can be creating or selling the recorded music where music
publishers, music producers, record labels Studios, other online music stores are included. When
it has been found as there are other organizations that perform live music programs, all of it are
related with the sound engineers, booking agents, promoters, music venues, road crews all are
included2.
Discussion
The music industry is one of the best business industries where it produces a fine line between
the artistry and a structured business sense. When someone wants to have their own business
which is related to the music industry a sound business infrastructure is one of the great ideas for
starting the music industry business. It is important to choose appropriate business structure for
running a business successfully. It applies several liabilities for the owner of the business. In
addition when the business is running the liability is become are debts or a circumstance which
represent the liability to the proper legislations of the law3. The success in the music business
1 Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John Wiley
& Sons, 2015.
2 Passm Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John
Wiley & Sons, 2015. an, Donald S. All you need to know about the music business. Simon and Schuster, 2015.
3

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depends on the intention of the Businessman and the strategy of business plan where it will be
applicable by the law. In the future in the music business industry which always includes the sole
proprietorship, the Corporation and the partnership where this will help the owner of the business
in the music industry. The sole proprietorship defines the individual business where only one
owner should present and control the organization and make it a corporation or a limited liability
company. In the sole proprietorship it is need to have the common business registration where it
should be start the basic legal structure which can be applied according to the law of that country
or city or the state. Therefore as per the legal terms of the sole proprietorship need to give the
nominal taxes and if any other personal liable for debts are required they need to pay then it will
be the owner, who solely responsible for paying the every individual tax returns4.
The partnership is another form of sole proprietorship where the owner can be more than
one. The liability in the partnership is depend according how the owners are making their own
partnership, where they can set their own rules and both of the partners are responsible and liable
for every business debts. In the partnership the partners can also choose the term of Limited
partners where the personal liabilities are free between the partners but they can have their
mutual understanding over the business decisions and operation. This is one of the forms of
business where at least one general partner should require.
The corporation terms define where more than owners have equal personal liability where
they have the capability of issue in public or private stock. There are two kinds of Corporation
can be seen in music industry one is C Corporation which they have a complete separate taxed
ownership or they have shareholders and in the S Corporation the partners who are the owners of
4 Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John Wiley
& Sons, 2015.

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the business or have their own entities regarding the regulation of ownership profit or loss
allocation every corporate meetings and Record Keeping payment of tax treatment etc5.
The limited liability companies are another form of separate entities which was mainly
formed by the business owners who present an offer for the taxation capabilities for both of sole
proprietorship and partnership and it relieve the owners from their personal liabilities. When the
personal liabilities are distributed along with it the personal guarantees on loans and paid Federal
and state tax dates intentional or negligent act fraud or other illegal behavior or failure to treat
the limited liability companies as separate entity by their owners which all are included which
are the important issue for form a successful business6.
When a business corporation is introduced by the owners or the individual owner it is
important that aim should be fixed which helps to set up a corporation structure where the
corporation is only held liable for any incurring debts. It is important for the business owner that
when the business strategies or the investments are using regarding the corporation then there
will be no relation in between the personal Assets of the owner and the assets related with the
business organizations7. When a person running a band business through a corporation and if any
situation arises where the band was not able to pay the Dept for their any live concert then the
corporation can force the organization into bankruptcy for paying the debts8.
According to the law any personal assets are completely separated from the corporation
where legally they cannot be seized. Therefore when someone investing the capital into the
corporation it should be necessary that the investment used to pay back the depths and in this
5 Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John Wiley
& Sons, 2015.
6 Passman, Donald S. All you need to know about the music business. Simon and Schuster, 2015.
7 Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.
8 P Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013. assman, Donald S. All you need to know
about the music business. Simon and Schuster, 2015.

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way the business owner personal assets like their house, cars or any other properties never
involved in the business. If there is any loss the company suffered it should be the corporation
itself and the capital investment which are related to the organization that will only affect due to
the loss9.
The person who starting the business must have the quality to running the business
according to the common business law and the owner should be educated, smart and must give
their complete potential for running the business and make it the best opportunities in the
marketing of business10. If the business strategies failed to work according to the corporation law
of that state of the country then the owner of the business can face legal consequences for breach
the duty of care and the acts of business11. In the music business the compositions which include
the song pieces lyrics the recordings which includes audio and video and media where different
kind of CDS or MP3s or DVD’s are used mostly sometimes the music business has no
interference12.
Conclusion
Therefore it can be stated that the controlling and monitoring music industry is not an easy
matter which according to the business perspective13. It is one of the intelligent business
ideas which always complete business structure and help to maintain and promoting the
music organizations14. The business structure is helps the company to get extra benefits and
determination from the business strategies. However the liability of running the business where
9 Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John Wiley
& Sons, 2015.
10 Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.
11 Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.
12 Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.
13 Passman, Donald S. All you need to know about the music business. Simon and Schuster, 2015.
14 Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational structure. John Wiley
& Sons, 2015.

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risk and reward both are equally balanced and help to build a business career under the
circumstances of the legal constitutions and the corporation law of the said country15.
15Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.

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Reference
Passman, Donald S. All you need to know about the music business. Simon and Schuster, 2015.
Ashkenas, Ron, et al. The boundaryless organization: Breaking the chains of organizational
structure. John Wiley & Sons, 2015.
Wikström, Patrik. The music industry: Music in the cloud. Polity, 2013.
Allen, Paul. Artist management for the music business. CRC Press, 2014.
Steingold, Fred S. Legal guide for starting & running a small business. Nolo, 2015.
Krasilovsky, M. William, and Sidney Schemel. This business of music: The definitive guide to
the business and legal issues of the music industry. Billboard Books, 2007.
White, Tom. Hadoop: The definitive guide. " O'Reilly Media, Inc.", 2012.