Before we get into the article, you may be curious about a partnership. A partnership is a contract that you can sign with other group members to bind you together with the common goal of creating or selling music. Partners are ultimately responsible for one another, so it is good to clarify the roles and responsibilities in an agreement specific to your band. Partnership agreements can reduce risk and provide solutions for problems your band may face in the future.
Although it might not be the most exciting aspect of being in a band or creating a partnership agreement, I can guarantee you that they will be very useful in the long term. These are five tips for anyone thinking of drafting a partnership agreement.
A band automatically becomes a partnership.
The law will automatically recognize your brand as a partnership if you earn income as a band without a formal written partnership contract. Unless you agree to your terms, you will be subjected to all laws and obligations. These general laws may not be the best for your band’s future endeavours or needs. Why not take control of your destiny and avoid these general laws? You can make sure everything you agree to is written down and legally formalized by writing your partnership agreement.
Start having hard conversations early.
It isn’t easy to create a partnership agreement. Brett Oaten is the principal lawyer at Brett Oaten Solicitors. He notes that many bands tend to ignore band tensions early on to hope they will resolve later.
Bands need to have difficult conversations now and create partnership agreements. The stakes are lower at the beginning stages of your band’s journey. The money might not be as plentiful, and the band members may not have spent a significant amount of time and effort. You might discover band tensions early on, making it difficult to join a particular band. Brett Oaten recommends that you “suck it up”. Talk hard today to reach a partnership agreement. It might pay off later.
Treat your brand like a business.
It’s boring, I know. It’s also extremely uncool to refer to your brand as a company. It’s what it is. You must plan and do the work early if you want your businesses to succeed. This, even if it is not cool, the mentality will guide your band’s success. It is easier to get rid of the boring and difficult work early, and it will give you a framework for how you want your band to operate. This allows you to focus on the important things to you and not worry about what is being done. It is not good to get into the same arguments as band members about how things should work.
Consider every scenario and put together a plan.
It would be best to make sure that all issues are addressed in any business venture you enter into. These prompts will help you think about the terms of your partnership agreement.
What are the members of the band?
If you attend a live gig, it is not uncommon to see up to 10 musicians on stage. Does that mean they all perform as part of the band? They might be only session musicians. It is important to identify who the parties are in agreement (i.e., to establish who the parties are (i.e., the band members), you need to clarify the agreement.
Who decides?
Most bands operate as democracies. You need to be clear if this is true for your band. You might consider some decisions more important than others. For example, borrowing large amounts of money. These situations might have different rules. Do these situations require a unanimous decision? What happens if more than one member of your band disagrees? Is it possible for a founding member to have more control? There are many options, and there are no rules. No matter what you choose, it is important to be clear.
How can you divide your income?
Bands can earn income from many revenue streams, including publishing, record sales, live performance, merchandise, etc. It is beneficial to examine each revenue stream individually and evaluate its merits. Splitting revenues may be more difficult for some revenue streams than others, like merchandise and live performance. This can be not easy when it comes to songwriting and publishing. Usually, only one or two people are considered the principal songwriters. When other band members claim they are working as hard but receive less income, this can cause tension. How can you share those costs so that everyone is satisfied with their earnings?
Are you able to resolve conflicts?
Band members change all the time. Are there any processes to determine when partners will leave and come back? Who decides who is in the band? How do you handle a grievance from a partner? What happens if someone becomes ill while on tour? What conflict resolution procedures can you use if a partner refuses performance?
When drafting a partnership agreement, make sure you list the activities of each member of your band. This will help you see the whole picture and understand how things are being handled. It doesn’t matter if you have a manager responsible for the business flow; it is important to establish a list of all band members responsible early to ensure fairness throughout applying your partnership agreement.
Get Specialist Advice
Some people make great ‘bush’ lawyers. Most people are not. Brett Oaten points out that specialization is the hallmark of civilized society. A legal professional can review your partnership agreement. Although they can be tedious, partnership agreements are generally quite straightforward. An attorney can help you see the big picture and give you advice on what to include, the implications of the agreement and the best way for you and your band to benefit.