Brief Introduction About the Band Partnership Agreement
A Band Partnership Agreement is a contract that is made between the band members, much like a partnership agreement is to a partnership. It simply states how the band business would be run.
You must use this agreement if:
- You are a musician who wants the security of an agreement.
- You are hiring musical talent as well as need a professional agreement.
Who Takes the Band Partnership Agreement?
You should use this agreement when the members of a Band want to establish themselves as a general partnership. This agreement states the rights and responsibilities of each band member. It would offer you with strong legal recourse if there is a misunderstanding arising and/or other band members fail to meet their responsibilities while under contract.
Purpose of the Band Partnership Agreement
A formal agreement is a basic contract. It could be in a variety of formats, but the aim is to safeguard that you and your bandmates’ expectations are met. A band agreement also assists in maintaining levels of commitment to the group. It will clarify everyone’s parts, duties, and levels of ownership. Also, it would assist in addressing any fiscal concerns, such as who would be paid what percentage of royalties from recordings, publishing, and performances.
Contents of the Band Partnership Agreement
Your Band Partnership Agreement must act as a guide to explain any questions you or your band members have now and also to handle any concerns that you think could arise in the future. The agreement must cover:
- who owns the compositions
- who owns the master recordings
- who owns the brand name
- what takes place if a member leaves
- how decisions are made (that is, majority vote, unanimous decision, etc.)
- How revenue is alienated from touring, record sales, publishing revenue, etc.
- who owns the music equipment (band or individual members)
- who could sign contracts and cheques on behalf of the band
- who could hire/fire members and so forth
How to Draft the Band Partnership Agreement?
In case you are investing a lot of time, money, or equipment in your band, you might want to consider writing a band agreement amongst the group members. A band agreement typically addresses the following concerns:
Band Name
- Who owns the brand name and logo?
- What takes place to the band name if the band breaks up or a band member quits or is fired?
- In case the band breaks up, who could still perform using the name?
Money
- How would band profits/debts be distributed?
- How are performance fees as well as royalties distributed amongst members?
- What would happen when one band member contributes more/less time/money than estimated?
- Who keeps track of the cash, and how?
Business Decisions
- How would band business decisions be made?
- Are decisions made by majority or unanimous vote? Do any band members own veto power?
- How would the band resolve disputes?
Acquisition of Equipment
- How would the band purchase equipment?
- How would it be stored and transported?
- Do we requisite insurance?
Creative Decisions
- Who owns the songs we write?
- Who decides which songs to perform or record?
- How is the songwriting credit determined?
- Who owns the master recordings we make?
Touring/Performing Decisions
- Who settles on what gigs to play?
Band Members
- What takes place when a new member joins or an existing member leaves the band?
Type of Business Entity
- Which legal structure is right for the band?
- What are the tax as well as personal liability and start-up expenses related to operating as a sole proprietor, partnership, and limited liability company (LLC), company or nonprofit organization?
Benefits and Drawbacks of the Band Partnership Agreement
Benefits
This agreement is one of the important documents musicians could have to make certain that things in the group run smoothly as their career progresses. Whether you are a new brand or a well-established brand, you must make this agreement. Most of the legal concerns that may arise could have been avoided with a proper Band Agreement in place.
Drawbacks
Without this agreement prepared, any one member of your band may be able to stop you from utilizing the band name if he/she chooses. Also, they may be able to start their own band and make use of your existing brand name. They could also stop you from exploiting the songs that you have worked hard to write and record. They may be able to withdraw band money from the band bank account, as well.
[Also Read: Music Contracts ]
What Happens in Case of Violation?
If the band wants to cancel the band agreement, you will want to contact the person you agreed with and see what could be worked out politely. If your contract stated that you need to meditate before arbitration, you might need to start that procedure. If you have a contract and cannot reach an agreeable solution quickly, you might need to send a Breach of Contract Notice(1). This notice mainly states that one side did not hold up their end of the agreement and describes how.
Thus it could be concluded by saying that it just takes one no-show or one venue not paying your band for both parties to learn that band partnership agreement is a good idea. Band Partnership agreement summaries the details of the performance agreement, for example, time and location, performance expectations, payment as well as deposits, cancellation policies, etc.