Constructing a successful and sustainable career in the music industry is very similar to building an empire. An artist must establish a home base, gather his strength, and send out efforts until his influence expands – controlling more and more territory and conquering the hearts and minds of more people. However, it is equally important to build strong defenses to protect the assets that the artist’s empire is built upon. Specifically, a musician has to protect himself and his music if he wants to succeed in the music business.
Many different bricks go into building the foundation of a musician’s defenses, such as limiting his liability (LLC), securing his art (copyright), and establishing sources of revenue that announce his existence to the world (royalties and registrations). One of the most important pieces of this protection is the ability to protect the musician’s look and his brand or image. This image includes the musician’s name, both individually and the band’s name, his voice, and even the way he dresses on stage. Such protection is accomplished through a trademark.
What is a Trademark?
Under United States law, a trademark is a word, symbol, or device, used in commerce, which identifies the source of a good or service. As previously mentioned, this word, symbol, or device, can be your name, a logo, of even a particular look or display that is uniquely you own – i.e. your identifier. Most often this identifier is a musician’s band name and logo. When people see the identifier associated with a song or painting, they know exactly who made that particular piece of art. However, it is not enough to just think of a clever name or logo, but a musician must actually publically that name or logo it in a commercial manner before any trademark rights exist. This “use” can be playing a live gig under the band name or offering merchandise with the name and/or logo on it for sale. The band name is known as a service mark and the logo can be protected by both trademark and copyright law.
Much like copyrights, trademarks do not necessarily require registration. Trademark rights are established the first time the name or logo is used to sell something – the commercial use. Using “TM” next to the name or logo indicates that someone is claiming the trademark rights in an identifier but has not yet registered the trademark with the government. Once a band name or logo is registered with the government, the artist can use ® next to the name or logo. Notably, registering your trademark has several benefits: 1.) it announces to the world that someone has a right to that particular name or logo; 2.) it establishes a specific date when you acquired the rights in that name or logo; and 3.) it allows you to recover money and other remedies that are not always available without registration, such as filing a lawsuit in Federal Court. Often, just the threat of a lawsuit is enough to deter other bands from using your name or logo.
What is the Point of Trademarks?
Now, you should have an idea of what a trademark is, but the importance of a trademark is where things get interesting. If you hold a trademark in a name or logo, no one else can use that name or logo, with very few exceptions. Also, a trademark is a piece of property (intellectual property to be precise) that can be owned, bought, sold, or licensed. Musicians can even sell or rent the right to use their trademark for a specific geographic area. However, the place to start is choosing a name or logo that is not already owned by someone else.
For instance, a newly organized St. Louis rock band wants to pick a strong name that tells the public they love rock and Greek mythology. The group quickly picks “Minotaur.” However, before printing flyers, starting a website, or getting any new tattoos, the band realizes they need to make sure that no one else has a trademark in the name “Minotaur.” Otherwise, they run the risk of infringing that person’s trademark rights and open themselves up to a major lawsuit. The first place they check is the United States Patent and Trademark Office (www.uspto.gov), which reveals 30 different registered trademark records for the word “minotaur.” These registrations range from upholstery companies to engine parts. Next, the group checks Google (www.google.com), performing rights organizations (www.ascap.com – www.bmi.com), internet domains (www.internic.net), and any other source they can find where bands would list themselves.
Since there are so many people using the name “Minotaur,” the band consults with an entertainment attorney who helps them perform a comprehensive search and analyzes the options. He stresses that a band name cannot infringe another trademark but it also cannot infringe someone else’s copyrights. After careful review, the group decides to use “Minotaur” in a stylized format to make them stand out. They put the new logo and band name on their website, t-shirts, and file a formal registration with both the State of Missouri and the federal government Now Minotaur should be adequately protected, and the band can rest easy that one else can simply steal their band name without serious repercussions. In order to maintain exclusive rights in that name, Minotaur only needs to keep using the name when they sell their services or merchandise. Notably, if a musician does not use the trademark in commerce for 3 years, he loses his rights in that trademark, as it is considered abandoned.
Obtaining a trademark and using it to protect your music is a fairly simply process. However, much like any other area of music law, spending a little time and effort up front can save an endless amount of headaches and lost profits down the road. Trademark infringement leads to lengthy and expensive litigation, and “I didn’t know I couldn’t do that” is not a defense. If an artist is willing to take the take and put in the effort to understand the laws that affect his craft, then he can successfully build a sold protective wall around his music. Such protection forms the foundation of a long, sustainable career in a very chaotic and constantly changing industry. Everything starts with a song, but you must protect and nurture that song in order for it to grow.
Matthew T. Nagel is an entertainment attorney at Wuestling & James in St. Louis, Missouri and an adjunct professor at Fontbonne University and Washington University School of Law. If you have questions, you can reach him at Nagel@wuestlingandjames.com.
* Articles are primarily educational and do not purport to constitute legal advice. No attorney-client relationship is created between the author and any reader of this article. If you have legal concerns or questions be sure to consult with an attorney licensed to practice in your jurisdiction.
Tuesday, December 8, 2009
Trademarks - Protecting the Empire
Constructing a successful and sustainable career in the music industry is very similar to building an empire. An artist must establish a home base, gather his strength, and send out efforts until his influence expands – controlling more and more territory and conquering the hearts and minds of more people. However, it is equally important to build strong defenses to protect the assets that the artist’s empire is built upon. Specifically, a musician has to protect himself and his music if he wants to succeed in the music business.
Many different bricks go into building the foundation of a musician’s defenses, such as limiting his liability (LLC), securing his art (copyright), and establishing sources of revenue that announce his existence to the world (royalties and registrations). One of the most important pieces of this protection is the ability to protect the musician’s look and his brand or image. This image includes the musician’s name, both individually and the band’s name, his voice, and even the way he dresses on stage. Such protection is accomplished through a trademark.
What is a Trademark?
Under United States law, a trademark is a word, symbol, or device, used in commerce, which identifies the source of a good or service. As previously mentioned, this word, symbol, or device, can be your name, a logo, of even a particular look or display that is uniquely you own – i.e. your identifier. Most often this identifier is a musician’s band name and logo. When people see the identifier associated with a song or painting, they know exactly who made that particular piece of art. However, it is not enough to just think of a clever name or logo, but a musician must actually publically that name or logo it in a commercial manner before any trademark rights exist. This “use” can be playing a live gig under the band name or offering merchandise with the name and/or logo on it for sale. The band name is known as a service mark and the logo can be protected by both trademark and copyright law.
Much like copyrights, trademarks do not necessarily require registration. Trademark rights are established the first time the name or logo is used to sell something – the commercial use. Using “TM” next to the name or logo indicates that someone is claiming the trademark rights in an identifier but has not yet registered the trademark with the government. Once a band name or logo is registered with the government, the artist can use ® next to the name or logo. Notably, registering your trademark has several benefits: 1.) it announces to the world that someone has a right to that particular name or logo; 2.) it establishes a specific date when you acquired the rights in that name or logo; and 3.) it allows you to recover money and other remedies that are not always available without registration, such as filing a lawsuit in Federal Court. Often, just the threat of a lawsuit is enough to deter other bands from using your name or logo.
What is the Point of Trademarks?
Now, you should have an idea of what a trademark is, but the importance of a trademark is where things get interesting. If you hold a trademark in a name or logo, no one else can use that name or logo, with very few exceptions. Also, a trademark is a piece of property (intellectual property to be precise) that can be owned, bought, sold, or licensed. Musicians can even sell or rent the right to use their trademark for a specific geographic area. However, the place to start is choosing a name or logo that is not already owned by someone else.
For instance, a newly organized St. Louis rock band wants to pick a strong name that tells the public they love rock and Greek mythology. The group quickly picks “Minotaur.” However, before printing flyers, starting a website, or getting any new tattoos, the band realizes they need to make sure that no one else has a trademark in the name “Minotaur.” Otherwise, they run the risk of infringing that person’s trademark rights and open themselves up to a major lawsuit. The first place they check is the United States Patent and Trademark Office (www.uspto.gov), which reveals 30 different registered trademark records for the word “minotaur.” These registrations range from upholstery companies to engine parts. Next, the group checks Google (www.google.com), performing rights organizations (www.ascap.com – www.bmi.com), internet domains (www.internic.net), and any other source they can find where bands would list themselves.
Since there are so many people using the name “Minotaur,” the band consults with an entertainment attorney who helps them perform a comprehensive search and analyzes the options. He stresses that a band name cannot infringe another trademark but it also cannot infringe someone else’s copyrights. After careful review, the group decides to use “Minotaur” in a stylized format to make them stand out. They put the new logo and band name on their website, t-shirts, and file a formal registration with both the State of Missouri and the federal government Now Minotaur should be adequately protected, and the band can rest easy that one else can simply steal their band name without serious repercussions. In order to maintain exclusive rights in that name, Minotaur only needs to keep using the name when they sell their services or merchandise. Notably, if a musician does not use the trademark in commerce for 3 years, he loses his rights in that trademark, as it is considered abandoned.
Obtaining a trademark and using it to protect your music is a fairly simply process. However, much like any other area of music law, spending a little time and effort up front can save an endless amount of headaches and lost profits down the road. Trademark infringement leads to lengthy and expensive litigation, and “I didn’t know I couldn’t do that” is not a defense. If an artist is willing to take the take and put in the effort to understand the laws that affect his craft, then he can successfully build a sold protective wall around his music. Such protection forms the foundation of a long, sustainable career in a very chaotic and constantly changing industry. Everything starts with a song, but you must protect and nurture that song in order for it to grow.
Matthew T. Nagel is an entertainment attorney at Wuestling & James in St. Louis, Missouri and an adjunct professor at Fontbonne University and Washington University School of Law. If you have questions, you can reach him at Nagel@wuestlingandjames.com.
* Articles are primarily educational and do not purport to constitute legal advice. No attorney-client relationship is created between the author and any reader of this article. If you have legal concerns or questions be sure to consult with an attorney licensed to practice in your jurisdiction.
Many different bricks go into building the foundation of a musician’s defenses, such as limiting his liability (LLC), securing his art (copyright), and establishing sources of revenue that announce his existence to the world (royalties and registrations). One of the most important pieces of this protection is the ability to protect the musician’s look and his brand or image. This image includes the musician’s name, both individually and the band’s name, his voice, and even the way he dresses on stage. Such protection is accomplished through a trademark.
What is a Trademark?
Under United States law, a trademark is a word, symbol, or device, used in commerce, which identifies the source of a good or service. As previously mentioned, this word, symbol, or device, can be your name, a logo, of even a particular look or display that is uniquely you own – i.e. your identifier. Most often this identifier is a musician’s band name and logo. When people see the identifier associated with a song or painting, they know exactly who made that particular piece of art. However, it is not enough to just think of a clever name or logo, but a musician must actually publically that name or logo it in a commercial manner before any trademark rights exist. This “use” can be playing a live gig under the band name or offering merchandise with the name and/or logo on it for sale. The band name is known as a service mark and the logo can be protected by both trademark and copyright law.
Much like copyrights, trademarks do not necessarily require registration. Trademark rights are established the first time the name or logo is used to sell something – the commercial use. Using “TM” next to the name or logo indicates that someone is claiming the trademark rights in an identifier but has not yet registered the trademark with the government. Once a band name or logo is registered with the government, the artist can use ® next to the name or logo. Notably, registering your trademark has several benefits: 1.) it announces to the world that someone has a right to that particular name or logo; 2.) it establishes a specific date when you acquired the rights in that name or logo; and 3.) it allows you to recover money and other remedies that are not always available without registration, such as filing a lawsuit in Federal Court. Often, just the threat of a lawsuit is enough to deter other bands from using your name or logo.
What is the Point of Trademarks?
Now, you should have an idea of what a trademark is, but the importance of a trademark is where things get interesting. If you hold a trademark in a name or logo, no one else can use that name or logo, with very few exceptions. Also, a trademark is a piece of property (intellectual property to be precise) that can be owned, bought, sold, or licensed. Musicians can even sell or rent the right to use their trademark for a specific geographic area. However, the place to start is choosing a name or logo that is not already owned by someone else.
For instance, a newly organized St. Louis rock band wants to pick a strong name that tells the public they love rock and Greek mythology. The group quickly picks “Minotaur.” However, before printing flyers, starting a website, or getting any new tattoos, the band realizes they need to make sure that no one else has a trademark in the name “Minotaur.” Otherwise, they run the risk of infringing that person’s trademark rights and open themselves up to a major lawsuit. The first place they check is the United States Patent and Trademark Office (www.uspto.gov), which reveals 30 different registered trademark records for the word “minotaur.” These registrations range from upholstery companies to engine parts. Next, the group checks Google (www.google.com), performing rights organizations (www.ascap.com – www.bmi.com), internet domains (www.internic.net), and any other source they can find where bands would list themselves.
Since there are so many people using the name “Minotaur,” the band consults with an entertainment attorney who helps them perform a comprehensive search and analyzes the options. He stresses that a band name cannot infringe another trademark but it also cannot infringe someone else’s copyrights. After careful review, the group decides to use “Minotaur” in a stylized format to make them stand out. They put the new logo and band name on their website, t-shirts, and file a formal registration with both the State of Missouri and the federal government Now Minotaur should be adequately protected, and the band can rest easy that one else can simply steal their band name without serious repercussions. In order to maintain exclusive rights in that name, Minotaur only needs to keep using the name when they sell their services or merchandise. Notably, if a musician does not use the trademark in commerce for 3 years, he loses his rights in that trademark, as it is considered abandoned.
Obtaining a trademark and using it to protect your music is a fairly simply process. However, much like any other area of music law, spending a little time and effort up front can save an endless amount of headaches and lost profits down the road. Trademark infringement leads to lengthy and expensive litigation, and “I didn’t know I couldn’t do that” is not a defense. If an artist is willing to take the take and put in the effort to understand the laws that affect his craft, then he can successfully build a sold protective wall around his music. Such protection forms the foundation of a long, sustainable career in a very chaotic and constantly changing industry. Everything starts with a song, but you must protect and nurture that song in order for it to grow.
Matthew T. Nagel is an entertainment attorney at Wuestling & James in St. Louis, Missouri and an adjunct professor at Fontbonne University and Washington University School of Law. If you have questions, you can reach him at Nagel@wuestlingandjames.com.
* Articles are primarily educational and do not purport to constitute legal advice. No attorney-client relationship is created between the author and any reader of this article. If you have legal concerns or questions be sure to consult with an attorney licensed to practice in your jurisdiction.
Royalties: Getting Paid in the Music Business
For the third installation of our royalty’s discussion, we will walk through the flow of money for a main-stream radio song. So far we have outlined the major players and defined the various types of royalties that each may be entitled to. Let’s put those players to work and see who gets paid.
Jeffrey Mandain is an aspiring songwriter from St. Louis, Missouri and after years of toil and a few tears, he writes a song called “Whiskey For My Hound Dog.” Mandain cannot play a single chord on the guitar, so he calls his friend Jack Preacher to help put the song to music. Preacher puts together a sorrowful guitar melody that speaks to everyone that hears the rough track that he records in Mandain’s garage. Neither Mandain nor Preacher know anything about royalties, copyrights, or how to get the song from Mandain’s garage to the bright lights of show business, so they call S&E Entertainment, a local publishing company. Recognizing the potential of “Whiskey For My Hound Dog,” S&E agrees to work with Mandain and Preacher and pays them $10,000.00 for a 50/50 split of the copyrights to the song’s music and lyrics. Since S&E is a savvy publisher, they get the exclusive right to exploit Mandain and Preacher’s portion of the copyright, which means they can sign licensing contracts as if they owned 100% of the copyright.
Soon after signing the contract, S&E registers Mandain and Preacher as songwriters on ASCAP, a performing rights organization, and registers “Whiskey For My Hound Dog” as a musical composition with ASCAP. S&E also registers the song with the Harry Fox Agency, the mechanical rights agency that S&E prefers to use.
So far, we have established a few of the players:
- Songwriters: Mandain and Preacher
- Publisher: S&E
- Performing Rights Organization: ASCAP
- Mechanical Rights Agency: Harry Fox Agency
Preacher received $5,000.00 and Mandain received $5,000.00 from S&E in exchange for 50% of the copyright and the ability to license the music and lyrics (the musical composition).
S&E immediately goes to work and calls Buzz Village Records, a promising record label in St. Louis. Buzz Village recently signed a budding star in Leia Sonalta, a young pop singer with a sultry voice. S&E and Buzz Village agree that “Whiskey For My Hound Dog” would be the perfect single to break Sonalta into the mainstream music world, and the two companies sign a contract that grants Sonalta a recording license to record a version of the song. Buzz Village pays S&E $1,000.00 for the recording license, and Sonalta records the track at Buzz Village’s in-house studio, including Preacher’s guitar work in her version. The recording is wildly successful and Buzz Village immediately presses 1000 CDs to send out to local radio stations.
Now we have a few more players and more money involved:
- Record Company: Buzz Village
- Performer: Sonalta
S&E received $1,000.00 from Buzz Village for the recording license, and distributes $250.00, $250.00 to Preacher, and keeps $500.00. (Remember S&E owns 50% of the copyright now). Buzz Village now owns the copyright to the master recording of Sonalta’s version of “Whiskey For My Hound Dog,” based upon their contract with the artist. Finally, Buzz Village pays $91.00 to S&E in mechanical royalties because they press 1000 copies of the musical composition (1000 CDs x 9.1 cent statutory rate). S&E distributes this money to Preacher and Mandain based on their contract ($22.75 each and $45.50 to S&E).
For purposes of this example and ease of math, let’s assume that under Sonalta’s contract with Buzz Village, Buzz Village retains the copyrights to her recordings and they split all profits from her albums 50/50. Any discussion of recoupment by the record label or any other aspects of a recording contract are outside the scope of this article.
Totals
• Preacher: $5,272.75
• Mandain: $5,272.75
• S&E: -$9,454.50
• Buzz Village -$1,000.00
• Sonalta $0.00
Sonalta’s version of “Whisky For My Hound Dog” is a smash hit! It plays on the radio constantly and record stores are clamoring for the opportunity to carry Sonalta’s album in their stores. Buzz Village quickly presses 100,000 CDs that all sell out in a week (retail price - $15 per CD). Cover bands across the country start playing “Whiskey For My Hound Dog” in bars and small venues, and Sonalta goes on a nation-wide tour to support the album. Also, websites allow users to stream the song and download short snippets of the song. Buzz Village and S&E also assign a synchronization license with a major movie studio to feature the song as the main title. The studio pays $10,000.00, which S&E and Buzz Village split 50/50.
Things have started to get interesting. Buzz Village pays $9,100.00 to S&E in mechanical royalties for pressing the 100,000 CDs. S&E also receives $5,000.00 for the sync license. ASCAP pays S&E $20,000.00 in performance royalties for the radio play, the cover bands, and Sonalta’s nation-wide tour (yup, she has to pay too even though she made it famous). S&E and Buzz Village also agree that Buzz Village will pay 2 cents for every copy of the album because Sonalta demanded to have the lyrics printed in the album notes ($2,000.00). SoundExchange pays $5,000.00 to both S&E and Buzz Village for all of the digital streaming that occurred on the Internet and the Musical Works Fund pays S&E $1,000.00 in AHRA royalties for all the people that illegally copied the album at home.
When you work out the math and distribute the money according to the contracts, the totals are:
• Preacher: $14,297.75 (lyrics only belong to Mandain)
• Mandain: $15,297.75
• S&E: $9,095.50
• Buzz Village $742,900.00
• Sonalta $750,000.00
Clearly, I made up the amounts involved and I did not account for a tremendous number of costs that go into the activities described in this example, such as pressing costs, artwork, shipping, overheard, etc.. Not to mention, I did not account for any of the intricacies that are part of the licensing and recording contracts between these parties. However, this example does outline the different ways that the Players use the Royalties for the final Payoff. Moreover, this cycle continues forever until the copyright holder dies or sells the copyright to someone else.
Matthew T. Nagel is an entertainment attorney at Wuestling & James in St. Louis, Missouri and an adjunct professor at Fontbonne University and Washington University School of Law. If you have questions, you can reach him at Nagel@wuestlingandjames.com.
* Articles are primarily educational and do not purport to constitute legal advice. No attorney-client relationship is created between the author and any reader of this article. If you have legal concerns or questions be sure to consult with an attorney licensed to practice in your jurisdiction.
Jeffrey Mandain is an aspiring songwriter from St. Louis, Missouri and after years of toil and a few tears, he writes a song called “Whiskey For My Hound Dog.” Mandain cannot play a single chord on the guitar, so he calls his friend Jack Preacher to help put the song to music. Preacher puts together a sorrowful guitar melody that speaks to everyone that hears the rough track that he records in Mandain’s garage. Neither Mandain nor Preacher know anything about royalties, copyrights, or how to get the song from Mandain’s garage to the bright lights of show business, so they call S&E Entertainment, a local publishing company. Recognizing the potential of “Whiskey For My Hound Dog,” S&E agrees to work with Mandain and Preacher and pays them $10,000.00 for a 50/50 split of the copyrights to the song’s music and lyrics. Since S&E is a savvy publisher, they get the exclusive right to exploit Mandain and Preacher’s portion of the copyright, which means they can sign licensing contracts as if they owned 100% of the copyright.
Soon after signing the contract, S&E registers Mandain and Preacher as songwriters on ASCAP, a performing rights organization, and registers “Whiskey For My Hound Dog” as a musical composition with ASCAP. S&E also registers the song with the Harry Fox Agency, the mechanical rights agency that S&E prefers to use.
So far, we have established a few of the players:
- Songwriters: Mandain and Preacher
- Publisher: S&E
- Performing Rights Organization: ASCAP
- Mechanical Rights Agency: Harry Fox Agency
Preacher received $5,000.00 and Mandain received $5,000.00 from S&E in exchange for 50% of the copyright and the ability to license the music and lyrics (the musical composition).
S&E immediately goes to work and calls Buzz Village Records, a promising record label in St. Louis. Buzz Village recently signed a budding star in Leia Sonalta, a young pop singer with a sultry voice. S&E and Buzz Village agree that “Whiskey For My Hound Dog” would be the perfect single to break Sonalta into the mainstream music world, and the two companies sign a contract that grants Sonalta a recording license to record a version of the song. Buzz Village pays S&E $1,000.00 for the recording license, and Sonalta records the track at Buzz Village’s in-house studio, including Preacher’s guitar work in her version. The recording is wildly successful and Buzz Village immediately presses 1000 CDs to send out to local radio stations.
Now we have a few more players and more money involved:
- Record Company: Buzz Village
- Performer: Sonalta
S&E received $1,000.00 from Buzz Village for the recording license, and distributes $250.00, $250.00 to Preacher, and keeps $500.00. (Remember S&E owns 50% of the copyright now). Buzz Village now owns the copyright to the master recording of Sonalta’s version of “Whiskey For My Hound Dog,” based upon their contract with the artist. Finally, Buzz Village pays $91.00 to S&E in mechanical royalties because they press 1000 copies of the musical composition (1000 CDs x 9.1 cent statutory rate). S&E distributes this money to Preacher and Mandain based on their contract ($22.75 each and $45.50 to S&E).
For purposes of this example and ease of math, let’s assume that under Sonalta’s contract with Buzz Village, Buzz Village retains the copyrights to her recordings and they split all profits from her albums 50/50. Any discussion of recoupment by the record label or any other aspects of a recording contract are outside the scope of this article.
Totals
• Preacher: $5,272.75
• Mandain: $5,272.75
• S&E: -$9,454.50
• Buzz Village -$1,000.00
• Sonalta $0.00
Sonalta’s version of “Whisky For My Hound Dog” is a smash hit! It plays on the radio constantly and record stores are clamoring for the opportunity to carry Sonalta’s album in their stores. Buzz Village quickly presses 100,000 CDs that all sell out in a week (retail price - $15 per CD). Cover bands across the country start playing “Whiskey For My Hound Dog” in bars and small venues, and Sonalta goes on a nation-wide tour to support the album. Also, websites allow users to stream the song and download short snippets of the song. Buzz Village and S&E also assign a synchronization license with a major movie studio to feature the song as the main title. The studio pays $10,000.00, which S&E and Buzz Village split 50/50.
Things have started to get interesting. Buzz Village pays $9,100.00 to S&E in mechanical royalties for pressing the 100,000 CDs. S&E also receives $5,000.00 for the sync license. ASCAP pays S&E $20,000.00 in performance royalties for the radio play, the cover bands, and Sonalta’s nation-wide tour (yup, she has to pay too even though she made it famous). S&E and Buzz Village also agree that Buzz Village will pay 2 cents for every copy of the album because Sonalta demanded to have the lyrics printed in the album notes ($2,000.00). SoundExchange pays $5,000.00 to both S&E and Buzz Village for all of the digital streaming that occurred on the Internet and the Musical Works Fund pays S&E $1,000.00 in AHRA royalties for all the people that illegally copied the album at home.
When you work out the math and distribute the money according to the contracts, the totals are:
• Preacher: $14,297.75 (lyrics only belong to Mandain)
• Mandain: $15,297.75
• S&E: $9,095.50
• Buzz Village $742,900.00
• Sonalta $750,000.00
Clearly, I made up the amounts involved and I did not account for a tremendous number of costs that go into the activities described in this example, such as pressing costs, artwork, shipping, overheard, etc.. Not to mention, I did not account for any of the intricacies that are part of the licensing and recording contracts between these parties. However, this example does outline the different ways that the Players use the Royalties for the final Payoff. Moreover, this cycle continues forever until the copyright holder dies or sells the copyright to someone else.
Matthew T. Nagel is an entertainment attorney at Wuestling & James in St. Louis, Missouri and an adjunct professor at Fontbonne University and Washington University School of Law. If you have questions, you can reach him at Nagel@wuestlingandjames.com.
* Articles are primarily educational and do not purport to constitute legal advice. No attorney-client relationship is created between the author and any reader of this article. If you have legal concerns or questions be sure to consult with an attorney licensed to practice in your jurisdiction.
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