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ISBN-10: 1-4133-1056-7 (pbk.) 1. Band musicians--Legal status, laws, etc.--United States--Popular works. 2. Performing arts-- Law and legislation--United States--Popular works. I. Title. KF390.E57S87 2009 344.73'097--dc22 2009011904 Copyright © 1998, 2001, 2003, 2004, 2006, and 2009 by Richard Stim. All rights reserved. Th e NOLO trademark is registered in the U.S. Patent and Trademark Offi ce. Printed in the U.S.A. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use. For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. Nolo, 950 Parker Street, Berkeley, California 94710. Please note We believe accurate, plain-English legal information should help you solve many of your own legal problems. But this text is not a substitute for personalized advice from a knowledgeable lawyer. If you want the help of a trained professional—and we’ll always point out situations in which we think that’s a good idea—consult an attorney licensed to practice in your state. Acknowledgments Thanks to those who provided me with helpful information in various chapters: Craig Leon, Kathryn Roessel, George (area 51) Earth, Frank Gallagher, Andrea Ross, Andy Olyphant, Lindsay Hutton, Howard Thompson, Don Ciccone, and Marc Weinstein. This book is dedicated to Joseph D. Stim and Roberta Stim. About the Author Richard Stim is a lawyer and musician who has performed with two bands, angel corpus christi (www.angelcorpuschristi.com) and MX-80 (www.MX- 80.com). He is also the author of other books including Getting Permission (Nolo), Wow! I’m in Business (Nolo), and Patent, Copyright & Trademark: An Intellectual Desk Reference, (Nolo). Downloading Forms and Other Materials The printed version of this book comes with a CD-ROM that contains legal forms and other material. You can download that material by going to www.nolo.com/back-of-book/ml.html. You’ll get editable versions of the forms, which you can fill in or modify and then print. Table of Contents Your Legal Companion ...............................................................................................1 Yes, Your Band Is a Business!.................................................................................3 1 Taking On the Music Industry ............................................................................................4 Your Band Is a Business ...........................................................................................................4 Apathy Is Not the Answer .....................................................................................................5 Common Band Issues ..............................................................................................................5 Written Agreements: Your First Line of Defense ......................................................7 What’s New in This Edition? .................................................................................................8 Band Partnerships and Beyond .........................................................................9 2 Who Needs a Band Partnership Agreement? ...........................................................12 Using a BPA to Avoid Getting Screwed ........................................................................14 Abbreviated Band Partnership Agreement................................................................16 Full-Length Band Partnership Agreement ..................................................................21 What’s the Right Business Entity for Your Band? ................................................... 38 Converting From a Partnership to an LLC ................................................................. 48 Management .......................................................................................................................53 3 What Is a Manager? .................................................................................................................55 Avoiding Common Management Problems ............................................................. 56 Abbreviated Management Agreement ........................................................................62 Full-Length Management Agreement ......................................................................... 68 Variations on Management Arrangements ...............................................................81 Attorneys ............................................................................................................................... 83 4 Entertainment Attorneys ................................................................................................... 84 Locating, Hiring, and Firing an Attorney .................................................................... 84 How to Avoid Getting Screwed by Your Attorney ............................................... 89 Having an Attorney Shop Your Music ..........................................................................91 Label-Shopping Agreement ............................................................................................... 94 Band Equipment ..........................................................................................................105 5 Equipment Ownership .......................................................................................................106 Buying Band Equipment ....................................................................................................107 Insurance, Maintenance, and Inventory of Your Equipment .........................109