Music
Business issues regularly pop up in the music sector.
We advise and represent musical artists, bands and orchestras, event managers, agencies, festivals and organisations in all matters, in particular concerning contract, copyright, trademark and corporate law, and in sponsoring and advertising issues. We establish the optimal legal structure (civil-law partnership, limited-liability partnership, foundation, association etc) and draft the necessary partnership contracts or articles of association.
Labels and producers ask us to prepare standard contracts, artists want us to represent their legal and invoicing interests versus record companies, agencies, broadcasting stations, performance rights societies (GEMA, GVL, SUISA and others), event organisers and the German social security system for artists. Our regular tasks include drafting and negotiating contracts for the national and international marketing of music, such as artist, staging, performance, record, guest performance and tour contracts, contracts with authors (composers, songwriters, lyric writers etc) and contracts between phonogram producers.
In addition, we take care of the privacy rights of artists, which may be affected by reports in the press, on the radio, on TV or on the internet or by advertising.
Since the traditional business models in the music sector have started to come under pressure, one of the key questions is how to earn money with music in the current environment. The internet is a key issue in this respect. Music has a significant share in overall internet content. However, the creative artists never get anything for their efforts. In addition, the internet is becoming an ever more important medium for bands which want to offer web streaming for their concerts. The SKW Schwarz music team supports artists, bands, musical ensembles and orchestras in developing business models for music which are economically viable under the current conditions. The legal questions arising from the online distribution of music can be answered on the grounds of our online and e-business expertise.
Our music specialists have been observing the market for classical and popular music in Germany and Europe for years and have close contacts to the relevant associations.
Examples
On behalf of one of the large German orchestras we examined the legal structures of an internet presence which allows internet users to download recordings after concerts. In addition, we discussed and negotiated with the Gesellschaft zur Verwertung von Leistungsschutzrechten (GVL) how the individual musicians can financially benefit from this business model via the GVL.
We were asked by a successful German-language band to prepare the follow-up contracts for the current exclusive contracts. The main issue was which utilisation rights should be granted to the former record company. This included the question of which rights the label held concerning new forms of utilisation via the internet and mobile distribution channels and how such utilisation should be paid for in the future. By negotiating with the label we could clarify this point in the best interests of all those concerned and considerably improve the revenue situation of the band, even in retrospect. The new clarity about the legal and economic situation helped to terminate the cooperation constructively; moreover, the band can now manage itself with the help of distribution agreements.
On behalf of two conductors and in different cities we are currently negotiating contracts with the authorities that finance the orchestras. The problem is that states and cities increasingly try to subordinate chief conductors to artistic directors or to limit their artistic freedom. However, it is a key interest of chief conductors to protect their artistic influence.
On behalf of a medium-sized media consulting company we have developed and implemented a holding participation concept over a one-year period. Under the new company structure existing participations were merged, the owner’s control was improved and the basis for new, flexible corporate participations was created. Particular attention was given to risk protection and different scenarios of a potential exit of the main shareholder.
On behalf of a well-known German orchestra with a very specific profile we developed a legal structure which allows it to have control over its own business interests and organise concerts for its own benefit. Moreover, we have created the necessary internal and external contract structures and implemented them. We regularly present tasks and projects for orchestras in orchestra meetings.
In the framework of Europe-wide acquisitions efforts of an international media group, which aimed to extend its portfolio of rights, we have conducted a comprehensive due diligence for a German music publisher. Following a successful initial examination we drafted the purchase and transfer agreement in English and recorded it. During the whole transaction we paid particular attention to tax aspects. The seller wanted to use existing GEMA valuations for future own publishing activities and the purchaser was interested in excluding risks from the non-publishing activities of the acquired company from the contract. Moreover, legal relations with individual copyright holders and performance rights companies had to be taken into account.