A Couple of Business Considerations

Over the past few weeks, some information has been presented to me that has opened my eyes. The entertainment industry is a business, and there are a number of things a band can do to look after their interests in this highly competitive field.

One of the main catalysts for this enlightenment came from seeing a 2008 video featuring Maggie Lange, an attorney and Professor of Music Business at Berklee College of Music. She discusses the two things that every band should accomplish in their early stages of development.   Her example centers on a group of people who decide that their project is worthy of moving forward.

The two items Lange recommends that every serious band should put on their to-do list is: “Check out getting a trademark in your group name” and establish a band agreement. She makes the point that once the members decide to take their project seriously, the members are business partners and need to establish an agreement that addresses how they will conduct this business.

Some of the items to consider in the agreement are the way decisions will be made and how the money will be allocated. One of the more tricky considerations is songwriting income distribution. Additionally, an important issue to address will be the ownership of trademarks. It is also important to address the way that existing members would be removed or new members added. The agreement should clearly state the rights of the member being removed. Lange also asserts that whether the entity is a partnership, Limited Liability Company or corporation, the primary questions are all the same.

In researching trademarks and band agreements, I discovered numerous resources online. The trademark is the trickier of the two items, but The United States Patent and Trademark Office offers a massive amount of resources for the individual. If you are a brave soul, you can file directly with the USPTO for as little as $275 per filing. The process appears to be complex, and corrections to the application may cost you additional fees.  With that in mind, it might be less expensive to hire an attorney who specializes in trademarks to help you.

The band agreement is far less complicated. There are a number of band agreements online, and many are free. However, there are also services provided by LawDepot in the form of fill-in-the-blank questionnaires that walk you through the process. At the end of the process, the software completes the agreement in the proper format. The fee for the LawDepot band agreement is $24.50. This fee is rather inexpensive and establishes the ground rules for how the band will conduct business.  It is a great preventative measure and can prepare a group for success.