Music Industry Legal Framework: Copyright, Contracts, and Regulations

This report provides an overview of the legal framework governing the music industry, particularly focusing on copyright and contract law within the context of Cox Music Limited, a music company planning to record and release music by artist Alison Brad. It details essential elements of contracts, inc...Read More

Running Head: MUSIC INDUSTRY
Music industry

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INTRODUCTION
Cox music limited is a music company which was established in July 2017. This music
company is now planning to record and release a music which is to be recorded by the renowned
artist Alison Brad. The company before recording has to comply with certain provision of law
governing musical works in Australia. The musical works cover under the provision of copyright
which is given under Copyright Act 1986.

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Legal matters
As the company is planning to record a song by an artist for this this purpose the artist and the
company should bind themselves legally by entering into the contract so that they can seek legal
remedy in case of there of any dispute arises in the middle of the contract. But for that there
should be basic elements which must exist into contract includes:1
 Agreements in which one party gives an offer (with terms and condition) to another party
for acceptance,2
 Capacity: both of the parties should have attained age of majority and capable to
understand the consequences of the contract.
 Consideration: There should be legal consideration between the parties without
consideration the contract will considered as valid contract.
 Legal intention: the contract should have legal binding effect to bind the parties for that
party must have legal intention to create a legal relationship between them.3
 Mutual consent: for the valid contract there must be a free consent from both of the party.
1 Small Business Development Corporation, Contract and agreements (2016)
<https://www.smallbusiness.wa.gov.au/business-advice/legal-essentials/contracts-and-agreements>.
2 Nolo, What makes a Contract Valid? (November 2006) Forbes <
https://www.forbes.com/2006/11/20/smallbusiness-statelaw-gifts-ent-law-cx_nl_1120contracts.html>.
3Harold Stock & Co, When is a Contract Legally Binding (September 2013) <
https://www.haroldstock.com/contracts/contract-legally-binding/>.

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Further after the record of the music by an artist. The company has to release the
music and it has to contact with suppliers and publishers. For that the suppliers publishers
and company will form the contract and will specify the terms and condition of the
contract. After that the company will also make the contract with event organizers for the
event of music release. In the case of any dispute the company will relay on alternative
dispute resolution where the parties to the contract will send the dispute to the arbitration
court for the settlement and the decision of the arbitrator will be considered as finale.in
the case of occurrence of any force majeure either before or at the time of recording or
release of music such that the recording or release gets affect and become impossible then
the company or artist will not be liable for any kind breach and damages. Apart from all
this if any party of the contract breaches any terms and condition of the contract such
party will be liable for the damages. The company will have all rights to seek the remedy
in the matter of breach by the artist enter a clause in the contract between the artist and
company so as to prohibit the artist to perform or to enter into a contract for a
performance for a third party. Accordingly if the artist breaches this clause he may
initiate arbitrator proceeding for the breach as above mentioned by the company and
company will also have a right to seek the remedy in the case of breach by the supplier
through the entering another clause in the contract of the supplier and the company in
which if the supplier will not supply music CDs within the given time which have
mentioned in the contract. The supplier will do specific performance for the company
within the given time.
the company has to singed a CG (general catalogue) agreement with the music
publisher for the registration of the musical work but Before registering for the copyright

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company has to introduce the type the musical work and it has to understand the
copyright ownership facts.4 Songwriters, creator and all persons who contributes in the
musical work for their living has to follow all the provision of copyright.5 Copyright is
major rule to getting money in the field of music industry thus the provision related to
copyrights provides certain legal rights to the copyright owner for their work.6 These
rights give them control over their work and in payment negotiation when other person
wishes to utilize their work. The right related to music and lyrics, recordings,
performance, distributed edition along with the rights covering merchandising are
examples of earning money that runs by the music industry. All the artist and consultants
should understand the basic rule of copy rights.7
The Copyright Act of Australia provides certain rights to copyright owners in their musical
works and lyrics which are as follows:
• Reproduction of the work: through recording, photocopying, or online downloading
• publication: produce it publically first time;
• give the performance in public;
• connect it to the public: via radio, TV and online
• interpret it for lyrics
• manage or transcribe it for music8
4 APRA AMCOS, Registration Works (2017) <
http://apraamcos.com.au/music-creators/writer-portal/registering-works/>.
5 Australian Government, Copyright Act 1968 < https://www.legislation.gov.au/Series/C1968A00063>.
6Music Rights Australia, Copyright FAQS (2017) < http://www.musicrights.com.au/antipiracy/what-is-
copyright/>
7 Art Law Center of Australia, musicians &Composers: Useful Resources (2015) <
https://www.artslaw.com.au/images/uploads/Musicians_and_composers_-
_useful_resources_upload_17_03_15.pdf>.
8 Australasian Music Publishers Association, Owners (2017) < https://www.ampal.com.au/about-music-
rights/>.

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The music business access the terms to describe the rights includes mechanical right to record a
song on CD, synchronization right to recreate tune onto soundtrack and performance right to
perform publically (live or via recording and to connect it publically (playing it online or via
broadcast). Mostly copyright is held by the owner of the music but in some cases the owner
license and allocate their rights to another person who utilize them on their behalf. All the
performance and communication rights of the composer are managed by The Australian
performing Right Association.
The composer gets the copyright for his lifetime plus 70 years after death of the
composer. Copyright also protects music and lyrics under a sound recording separately. The
copyright also gives protection for the investment related to music that is possessed by an
organization or individual that contributed money for the recording. Recording music also
includes its reproduction. The reproduction of musical work in song recording for selling
purpose is administered by the copyright. These provisions give permission for the song
recording but the owner of the copyright should be informed about the sound recording and
royalty.9
Australasian Music Publishers Association, Owners (2017) < https://www.ampal.com.au/about-music-
rights/>. 9 Simpsons, Copyright & Music- The Basic < http://simpsons.com.au/wp-content/uploads/Music-Business-
Chapter-8-Copyright-and-Music-The-Basics.pdf>.

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Conclusion
The company cox music limited has to abide all the provision of copyright and it has to
register it musical work also. Apart from all this it has to abide the provision related to the
contract and form the contract with the artist publishers and suppliers and it should also explain
all the terms, conditions and requirement related to contract during formation of contract with
another party.

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References
APRA AMCOS, Registration Works (2017) < http://apraamcos.com.au/music-
creators/writer-portal/registering-works/>.
Art Law Center of Australia, musicians &Composers: Useful Resources (2015) <
https://www.artslaw.com.au/images/uploads/Musicians_and_composers_-
_useful_resources_upload_17_03_15.pdf>.
Australian Government, Copyright Act 1968 <
https://www.legislation.gov.au/Series/C1968A00063>.
Harold Stock & Co, When is a Contract Legally Binding (September 2013) <
https://www.haroldstock.com/contracts/contract-legally-binding/>.
Music Rights Australia, Copyright FAQS (2017) <
http://www.musicrights.com.au/antipiracy/what-is-copyright/>
Nolo, What makes a Contract Valid? (November 2006) Forbes <
https://www.forbes.com/2006/11/20/smallbusiness-statelaw-gifts-ent-law-
cx_nl_1120contracts.html>.
Simpsons, Copyright & Music- The Basic <
http://simpsons.com.au/wp-content/uploads/Music-Business-Chapter-8-Copyright-and-Music-
The-Basics.pdf>.

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Small Business Development Corporation, Contract and agreements (2016)
<https://www.smallbusiness.wa.gov.au/business-advice/legal-essentials/contracts-and-
agreements>.