The importance of written band agreements
So you’re all best friends now and, in any case, it’s all about the music, man!
However, as members of The Smiths would probably tell you, it’s worth taking some time to think about your legal relationship with your fellow band members, preferably before the band is making any serious money. In fact, this can be a very positive and reassuring exercise, helping to clarify issues which may be at the back of all the band members’ minds. It may also stop unwanted tensions from creeping in and, once a written band agreement is drawn up, prevent or reduce future disagreement between band members.
As a result of English partnership law, various legal rights and obligations are implied when a band starts to write or perform together. Although it is possible to amend many of these by a written band agreement, in the absence of such an agreement the following implied rights and obligations will apply:
- All band members are jointly and severally liable. This means that, for example, if your guitarist goes back to the studio and racks up costs by spending hours adding numerous overdubs to your demo, then the studio may sue the guitarist, you or any other band member for any unpaid bills.
- A departing band member will continue to be liable, even after leaving the band, if the liability arose when he or she was still in the band.
- Each band member must contribute equally to band losses and is entitled to share equally in band profits.
- If a band member makes a profit from an activity connected with or competing with the band (e.g. session work or solo/side projects), then this profit must be shared with the other band members.
The above demonstrates why careful consideration must be given to the rights and liabilities of each band member at a very early stage in any band’s career. However, while it is important to record these rights and liabilities in a written band agreement, it is also recommended that a written band agreement is used to help organise the band as a business by dealing with matters such as the following:
- the responsibilities of each band member (e.g. to arrange rehearsals and van hire, or to update social media pages and profiles);
- the assets (e.g. musical or recording equipment) which are band assets;
- split of band income from live performance, songwriting and other revenue streams;
- band decision-making process (e.g. to enter into contracts or buy equipment);
- ownership of band intellectual property (e.g. music, lyrics, band name or domain names); and
- departing or joining band members.
For more information on written band agreements or for any other music law advice please contact us today.
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