10
Music contracts
Culture Sector
United Nations Educational, Scientific and Cultural Organization
10 Music Contracts Written Writt en by JEAN VINCENT in collaboration with GERARD LOUISE
Layout and graphic design : Christine Hengen
The ideas and opinions expressed in this guidebook are those o the authors and they do not necessarily reect UNESCO’s views.
Published by the United Nations Organization or Education, Science and Culture 7 place de Fontenoy Fontenoy,, 7535 Paris 07 SP © UNESCO 009 CLT/CEI/DCE/009/PI/141
10 Music Contracts Written Writt en by JEAN VINCENT in collaboration with GERARD LOUISE
Layout and graphic design : Christine Hengen
The ideas and opinions expressed in this guidebook are those o the authors and they do not necessarily reect UNESCO’s views.
Published by the United Nations Organization or Education, Science and Culture 7 place de Fontenoy Fontenoy,, 7535 Paris 07 SP © UNESCO 009 CLT/CEI/DCE/009/PI/141
Index
Why this Guidebook ? 4 ............................................................................ Why 10 Contracts ?........................................................................ 5 1.
PhonogramR Phonog ramRecor ecordingC dingContrac ontract,Exc t,Exclusive lusive ................................... 6
2.
PhonogramR Phonog ramRecor ecordingC dingContrac ontract,Non t,Non-Exc -Exclusive lusive .......................... 9
3.
ContractorHire Contracto rHireoM oMusician usicianorBa orBackupSi ckupSinger nger or o rPh Phon onog ogra ram mPr Prod oduc ucti tion on ...................................................... 12
4.
ContractorHire Contracto rHireoAr oArtist,M tist,Musician usicianorBa orBackupSi ckupSinger nger or or L L iv iv e e Pe Per o or ma ma nc nc e .............................................................. 14
5.
RecordingC Recor dingContrac ontractoAr toArtistDu tistDuringL ringLivePer ivePerorma ormance nce .................. 16
6.
Broadcastin Broa dcastingCont gContracto ractoArtis ArtistDurin tDuringLive gLivePero Perormanc rmance e .............. 19
7.
LicensingContract LicensingCo ntractbya byaProduc Produceror erortheM theManua anuacturin cturing g and an dMa Mark rket etin ing go oa aP Pho hono nogr gram am ................................................ 21
8.
Commercial Comme rcialPhono PhonogramD gramDistribut istributionCo ionContrac ntract t ............................ 25
9.
ContractBetween ContractBe tweenaLe aLeadArti adArtistand standaPro aProducer ducer Auth Au thor orizi izing ngS Spe peci cifc fcU Use ses so oa aP Pho hono nogr gram am .................................28
10. ContractBetweenaLeadArtistandaManager ..........................30
Collective Management .............................................................. 33 Glossary ...................................................................................... 35
3
Whythis Guidebook? To eectively fght against music piracy, good proessional practices must be created or artists and other proessionals in the music sector - producers, managers, broadcasters and so orth.
First and oremost, the fght against music piracy involves the use o contracts drated in compliance with good proessional practices. In order or music contracts to achieve their desired eect and be used on a widespread basis, artists, themselves, must be convinced o contracts’ useulness. Thereore, UNESCO, trusted by artists rom around the world due to its ceaseless eorts to promote creativity, cultural industries and cultural diversity, believed it important to produce this guidebook in order to assist artists and music proessionals in overcoming their distrust o current music contracts and to provide them with inormation about their rights and good proessional practices. The model contracts ound in this guidebook simply are useul basic tools and thereore should not be viewed as the ultimate answer to every possible contractual relationship or situation. The provided contracts are based on established common practices and have been drated in a way to suit artists in many dierent countries. Nonetheless, users o the guidebook should note that their national legislation may contain specifc clauses that need to be taken into account. In such cases, artists should not hesitate to contact their respective musician associations or collective management organizations in order to obtain needed advice or urther inormation. By improving proessional practices, and by mitigating the circumstances o the inormal sector that allow piracy to thrive, artists, producers and publishers can rapidly achieve increased revenue rom their activities, in their own country and throughout the world. Increases in revenue would also lead to improvements in the quality o cultural products. Mr. Jean Vincent, a lawyer and member o the Barreau des Hauts de Seine (France) , wrote this guidebook. Mr. Vincent has held high-level positions in organizations that aim to protect the rights o artists and producers, and he has extensive international experience due to his service as Secretary General o the International Federation o Musicians (FIM). Mr. Gerard Louise, Director General o MASA, the Mauritius Society o Authors, collaborated with Mr. Vincent in fnalizing this guidebook.
4
Why10 Contracts? The contracts are adapted to dierent situations that might arise in the feld o music.
These contracts are used throughout the world, usually in a much longer and less comprehensible ormat. We have thereore simplifed the contracts in the hope o making them more user-riendly. It is essential that artists no longer ear utilizing music contracts, as contracts are there to protect them. This assumes, o course, that the contracts set air terms and conditions. The purpose o this guidebook is to propose a model or specifc contracts, taking into account the interests o the respective parties. The aim is to ensure that in each country the most comprehensible version is used by all proessionals. This is particularly important in countries where piracy has grown largely due to a lack o contracts. Additionally, a chapter o this guidebook is devoted to the collective management o rights, the collection and distribution o royalties payable by users o music (such as radio, television etc.). Collective management is an essential complement to individual contracts. Thus, we have ound it pertinent to include a separate chapter on this topic.
5
1.
Phonogram RecordingContract, Exclusive
This contract between the lead artist and the producer es tablishes an exclusive agreement or recording o phonograms to be commercially published. Where a permanent group o artists exists, the contract must be signed by all members o the group. This contract guarantees a balanced relationship, ensuring that artists are airly paid and that producers can exploit phonograms with the greatest chance o success.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER)
ART IC LE 1 - Object The PRODUCER hires the ARTIST to record one or more phonograms that will be exploited individually or as part o an Album. The work(s) to be recorded include the ollowing:
NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Territory, Exclusivity and Duration The present contract is made or the purpose o worldwide exploitation o the phonograms produced in execution o this contract. The ARTIST grants the PRODUCER the exclusive right o fxation o the ARTIST’s perormances in a phonogram, during a period o year(s).
NOTE : The exclusive right o fxation means that the ARTIST cannot record phonograms or another producer during the agreed upon period o exclusivity. Ater this time period, the PRODUCER shall be authorized to exploit the relevant phonograms recorded in execution o this contract, subject to payment o royalties due to the ARTIST under this contract.
ART IC LE 3 - Authorization of Exploitation The ARTIST authorizes, or purposes o public commercialization throughout the world, the fxation and reproduction by the PRODUCER o the phonograms defned in Article 1.
Thereore, the PRODUCER shall have the right to manuacture, publish, sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via o nline communication networks (Internet and others), and communicate to the public in any ormat the phonograms defned in Article 1. The PRODUCER may do so under the heading, label or mark o the PRODUCER’s choice and throughout the world. The PRODUCER must publish each phonogram in compliance with the production and exploitation timetable set below :
ART IC LE 4 - Recordin Sessions The choice o date and location o recording sessions, including those o the musicians and artistic directors, will be made upon mutual agreement between the ARTIST and the PRODUCER. The fnal version o each phonogram, which both parties shall fnd satisactory (including mixing), will be determined upon mutual agreement between the parties.
ART IC LE 5 - Remuneration for the Recordin Sessions The PRODUCER must pay the ARTIST a remuneration o
per recording session.
ART IC LE 6 - Royalties As compensation or granting the ARTIST’s rights under this contract, the PRODUCER must pay royalties to the ARTIST as calculated below : 6-1 Sales o Carriers in Stores or by Mail Order a) or sales in the country o production (name o country ), royalties shall be calculated on the basis o the wholesale price, beore tax, o each copy o the phonogram sold, at the appropriate rate set below : · ·
% o the sales between 0 and 0.000 copies (depending on the size o the market ) ; % o the sales greater than 0.000 copies (depending on the size o the market ) ;
NOTE : The average rates vary between 8% and 12%. “Wholesale price” means the catalogue price, beore tax, as published by the PRODUCER during the year o the sale. b) or sales abroad, the rate o royalties shall be 0 % o the rate determined in paragraph a), unless otherwise specifed in the domestic law o the country where the contract is established (e.g. in some countries the rate is 50%) ; c) when manuactured abroad, royalties shall be calculated based on the wholesale price used in the respective oreign country ; d) in cases o direct export, royalties shall be calculated based on the wholesale price as used in the country o production ; e) all copies returned or destroyed, promotional and ree copies, and copies sold at a price lower than 70% o the normal price shall be excluded rom the calculation o royalties ; g) the ARTIST accepts, in advance, that the phonograms produced in execution o the present agreement be exploited as part o compilations, including multi-artist compilations. In such cases, royalties shall be calculated prorata numeris .
NOTE : “Prorata numeris” means that royalties generated by the sale o a compilation album are divided in equal shares according to the number o phonograms included in the compilation. Thus, or instance, i the compilation comprises 10 phonograms, the lead artist o each phonogram receives 1/10 th o the overall royalties.
7
6-2 Online Sales (Internet and others) Where sales occur via online communication networks (Internet and others), royalties payable to the ARTIST shall be o the amount received, beore tax, by the PRODUCER.
%
NOTE : The average rates vary between 15% and 30%. 6-3 Broadcasting and Communication to the Public Unless otherwise specifed by national law, in the case o broadcasting or communication to the public, royalties payable to the ARTIST shall be % o the amount received, beore tax, by the PRODUCER, except when the broadcasting or the communication to the public is subject to remuneration paid directly by the relevant organization(s) to the collective management organization that administers the rights o artists in the country in which the broadcasting or the communication to the public occurs. In such situations, the distribution rules o the collective management society shall apply.
NOTE : The usual rate is 50% or all perormers (lead artist and accompanying artists). 6-4 Other Uses Any exploitation other than the uses mentioned in articles -1, - and -3, above, including uses in advertising, flm or live perormances, and with respect to special products, shall be subject to the prior written authorization o the ARTIST and to payment o a specifc remuneration to the ARTIST. Where these rights have been assigned by the ARTIST to a collective management organization, the prior authorization must be granted by the collective management organization.
ART IC LE 7 - Accounts and Payment of Royalties Royalty statements shall be established on 30 June and 31 December o each calendar year. The PRODUCER shall send the statements to the ARTIST within three months ollowing each o the above dates, together with the payment o royalties. I the ARTIST entails several physical persons (a group), the PRODUCER shall send royalty statements and the corresponding payments distributed in equal shares to each o the benefciaries, individually. The ARTIST shall be entitled to request any documentation relating to the royalty accounts and statements.
ART IC LE 8 - Promotion and Advertisin The PRODUCER shall carry out the promotion o the phonogram(s) in accordance with the customary practices o the proession. In so doing, the PRODUCER shall be able to reely use the name o the ARTIST, as well as the photographs and pictures depicting the ARTIST. These photographs and pictures shall be chosen upon mutual agreement between the ARTIST and the PRODUCER. The ARTIST must participate, during the period o exclusivity and subject to the ARTIST’s availability, and as ar as it is reasonably practicable, in any radio or television show, photoshoot and interview intended to promote the phonogram(s). The PRODUCER shall negotiate with the broadcasting and press organizations a air and special remuneration or the ARTIST in compensation or the ARTIST’s participation. Further, the PRODUCER shall assume any expense incurred by the ARTIST related to the promotional activities, including transportation and accommodation expenses. The PRODUCER must provide the ARTIST, including all parties to this present contract, 5 ree copies o any Single or Album that the PRODUCER will have published in execution o the contract.
ART IC LE 9 - Transfer of Contract The rights and obligations under this contract may not be transerred by the PRODUCER to a third party without the prior written authorization o the ARTIST.
ART IC LE 10 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at , on in original copies. The ARTIST The PRODUCER
2.
Phonogram RecordingContract, Non-Exclusive
This contract organizes the relationship between the lead artist and a producer or the recording o phonograms to be commercially published on a non-exclusive basis. Where a permanent group o artists exists, the contract must be signed by all members o the group. This contract guarantees a balanced relationship, ensuring that artists are airly paid and that producers can exploit phonograms with the greatest chance o success.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER) ART IC LE 1 - Object The PRODUCER hires the ARTIST to record one or more phonograms that will be exploited individually or as part o an Album. The work(s) to be recorded include the ollowing :
NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Territory, Duration and Absence of Exclusivity The present contract is made or the purpose o worldwide exploitation o the phonograms produced in execution o this contract. The ARTIST shall be at the PRODUCER’s disposal in order to record the phonograms defned in Article 1 or a period o
year(s).
Under this contract, the ARTIST is not subject to any exclusivity concerning the recording o phonograms. The ARTIST shall thereore be ree to record or another producer any phonogram, including or the works which have been the subject o a phonogram produced in the execution o the present contract. Ater the recording o the phonograms defned in Article 1, the PRODUCER shall be authorized to exploit the phonograms recorded in execution o this contract, subject to payment o royalties due to the ARTIST under this contract.
ART IC LE 3 - Authorization of Exploitation The ARTIST authorizes, or purposes o public commercialization throughout the world, the fxation and reproduction by the PRODUCER o the phonograms defned in Article 1.
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Thereore, the PRODUCER shall have the right to manuacture, publish, sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via o nline communication networks (Internet and others), and communicate to the public in any ormatthe phonograms defned in Article 1. The PRODUCER may do so under the heading, label or mark o the PRODUCER’s choice and throughout the world. The PRODUCER must publish each phonogram in compliance with the production and exploitation timetable set below :
ART IC LE 4 - Recordin Sessions The choice o date and location o recording sessions, including those o the musicians and artistic directors, shall be made upon mutual agreement between the ARTIST and the PRODUCER. The fnal version o each phonogram, which both parties shall fnd satisactory (including mixing), will be determined upon mutual agreement between the parties.
ART IC LE 5 - Remuneration for the Recordin Sessions The PRODUCER must pay the ARTIST a remuneration o
per recording session.
ART IC LE 6 - Royalties As compensation or granting the ARTIST’s rights under this contract, the PRODUCER must pay royalties to the ARTIST as calculated below : 6-1 Sales o Carriers in Stores or by Mail Order a) or sales in the country o production (name o country ), royalties shall be calculated on the basis o the wholesale price, beore tax, o each copy o the phonogram sold, at the appropriate rate set below : · ·
% o the sales between 0 and 0.000 copies (depending on the size o the market ) ; % o the sales greater than 0.000 copies (depending on the size o the market ) ;
NOTE : The average rates vary between 8% and 12%. “Wholesale price” means the catalogue price, beore tax, as published by the PRODUCER during the year o the sale. b) or sales abroad, the rate o royalties shall be 0 % o the rate determined in paragraph a), unless otherwise specifed in the domestic law o the country where the contract is established (e.g. in some countries the rate is 50% ) ; c) when manuactured abroad, royalties shall be calculated based on the wholesale price used in the respective oreign country ; d) in cases o direct export, royalties shall be calculated based on the wholesale price as used in the country o production ; e) all copies returned or destroyed, promotional and ree copies, and copies sold at a price lower than 70% o the normal price shall be excluded rom the calculation o royalties ; g) the ARTIST accepts, in advance, that the phonograms produced in execution o the present agreement be exploited as part o compilations, including multi-artist compilations. In such cases, royalties shall be calculated prorata numeris .
NOTE : “Prorata numeris” means that royalties generated by the sale o a compilation album are divided in equal shares according to the number o phonograms included in the compilation. Thus, or instance, i the compilation comprises 10 phonograms, the lead artist o each phonogram receives 1/10 th o the overall royalties.
10
6-2 Online Sales (Internet and others) Where sales occur via online communication networks (Internet and others), royalties payable to the ARTIST shall be o the amount received, beore tax, by the PRODUCER.
%
NOTE : The average rates vary between 15% and 30%. 6-3 Broadcasting and Communication to the public Unless otherwise specifed by national law, in the case o broadcasting or communication to the public, royalties payable to the ARTIST shall be % o the amount received, beore tax, by the PRODUCER, except when the broadcasting or the communication to the public is subject to remuneration paid directly by the relevant organization(s) to the collective management organization that administers the rights o artists in the country in which the broadcasting or the communication to the public occurs. In such situations, the distribution rules o the collective management society shall apply.
NOTE : The usual rate is 50% or all perormers (lead artist and accompanying artists). 6-4 Other Uses Any exploitation other than the uses mentioned in articles -1, - and -3, above, including uses in advertising, flm or live perormances, and with respect to special products, shall be subject to the prior written authorization o the ARTIST and to payment o a specifc remuneration to the ARTIST. Where these rights have been assigned by the ARTIST to a collective management organization, the prior authorization must be granted by the collective management organization.
ART IC LE 7 - Accounts and Payment of Royalties Royalty statements shall be established on 30 June and 31 December o each calendar year. The PRODUCER shall send the statements to the ARTIST within three months ollowing each o the above dates, together with the payment o royalties. I the ARTIST entails several physical persons (a group), the PRODUCER shall send royalty statements and the corresponding payments distributed in equal shares to each o the benefciaries, individually. The ARTIST shall be entitled to request any proo relating to the royalty accounts and statements.
ART IC LE 8 - Promotion and Advertisin The PRODUCER shall carry out the promotion o the phonogram(s) in accordance with the customary practices o the proession. In so doing, the PRODUCER shall be able to reely use the name o the ARTIST as well as the photographs and pictures depicting the ARTIST. These photographs and pictures shall be chosen upon mutual agreement between the ARTIST and the PRODUCER. The ARTIST must participate, subject to the ARTIST’s availability, and as ar as it is reasonably practicable, in any radio or television show, photoshoot and interview intended to promote the phonogram(s). The PRODUCER shall negotiate with the broadcasting and press organizations a air and special remuneration or the ARTIST, in compensation or the ARTIST’s participation. Further, the PRODUCER shall assume any expense incurred by the ARTIST related to the promotional activities, including transportation and accommodation expenses. The PRODUCER must provide the ARTIST, including all parties to this present contract, 5 ree copies o any Single or Album that the PRODUCER will have published in execution o the contract.
ART IC LE 9 - Transfer of Contract The rights and obligations under this contract may not be transerred by the PRODUCER to a third party without the prior written authorization o the ARTIST.
ART IC LE 10 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at , on in original copies. The ARTIST The PRODUCER
11
3.
ContractorHireo MusicianorBackupSinger orPhonogramProduction
This contract defnes the terms or hiring a musician or a singer or the recording o one or more phonograms to be commercially published. It specifes the obligations o the producer, musicians and singers.
The MUSICIAN or the BACKUP SINGER (hereinater reerred to as the MUSICIAN) The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER)
ART IC LE 1 - Object The PRODUCER hires the MUSICIAN in the MUSICIAN’s proessional capacity to record one or more phonograms. These phonograms will be exploited individually or as part o an Album. The work(s) to be recorded include the ollowing :
NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Authorization of Exploitation The MUSICIAN authorizes, or purposes o public commercialization throughout the world, the fxation and reproduction by the PRODUCER o the phonograms defned in Article 1. Thereore, the PRODUCER shall have the right to manuacture, publish, sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via online communication networks (Internet and others), and broadcast in any ormat the phonograms defned in Article 1. The PRODUCER may do so under the heading, label or mark o the PRODUCER’s choice and throughout the world. Any exploitation other than the uses defned above, including uses in advertising, flm or live perormances, and with respect to special products, shall be subject to the prior written authorization o the collective rights management organization representing the MUSICIAN. The PRODUCER must have the MUSICIAN sign a Recording Session Sheet , in accordance with customary proessional practices, and to provide a copy o this Recording Session Sheet to the collective management organization that administers the rights o musicians and backup singers in the country o production o the phonograms. The MUSICIAN hereby urther grants the right to use the MUSICIAN’s name and photograph, i needed, in connection with the exploitation o the phonograms.
1
ART IC LE 3 - Obliations of the PRODUCER The PRODUCER must complete all obligations imposed by labour laws and other relevant national laws with respect to the hiring o the MUSICIAN. The PRODUCER must pay the MUSICIAN a remuneration o per recording session, as compensation or the MUSICIAN’s participation in the phonogram recording, as well as or the publishing and sale o the phonograms via any medium (audio cassette, CD, DVD audio or other existing ormats) or via online communication networks (Internet or others). The broadcasting o the phonograms is subject to a remuneration paid directly by the broadcasting organization to the collective management organization that administers the rights o musicians and backup singers in the country o the broadcasting.
ART IC LE 4 - Obliations of the MUSICIAN The MUSICIAN, i oreign, confrms that the MUSICIAN is authorized to work in the country o production o the phonograms. The MUSICIAN must submit proo thereo. The MUSICIAN must be present : rom (date)
to (date)
at the ollowing location(s) : to participate in recording sessions, which shall take place according to the ollowing schedules :
ART IC LE 5 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The MUSICIAN
original copies. The PRODUCER
13
4.
ContractorHireoArtist, MusicianorBackupSinger orLivePerormance
This contract defnes the terms or hiring a lead artist, musician or backup singer or his or her participation in a live perormance. It specifes the obligations o the producer o the live perormance, as well as the obligations o the artists, musicians and backup singers.
The ARTIST, the MUSICIAN or the BACKUP SINGER (hereinater reerred to as the ARTIST) The LIVE PERFORMANCE PRODUCER (hereinater reerred to as the PRODUCER)
ART IC LE 1 - Object Mr./Mrs./Ms.
is hired as
to participate in the ollowing live perormance
.
NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Date(s) and Place(s) Date(s) and place(s) o the rehearsals : Time : Date(s) and place(s) o the live perormances: Time :
ART IC LE 3 - Punctuality The ARTIST must be at the place o rehearsal or at the place o live perormance at the scheduled time.
ART IC LE 4 - Remuneration The ARTIST shall receive the ollowing remuneration rom the PRODUCER per rehearsal : The ARTIST shall receive the ollowing remuneration rom the PRODUCER per live perormance :
14
ART IC LE 5 - Travel, Accommodation Expenses and Per diem Where the ARTIST incurs travel and accommodation expenses in the execution o this contract, the PRODUCER must : a)
reimburse the ARTIST or any travel ees; and
b)
book and pay directly or the ARTIST’s single hotel room, breakast included.
Where the ARTIST needs to have meals outside the ARTIST’s domicile and during the execution o the present contract, the PRODUCER must pay the ARTIST a at ee o per travel day and/or work day.
ART IC LE 6 - Recordins and Radio or Television broadcast Any recording or any radio or television broadcast shall be subject to a specifc contract between the ARTIST and the PRODUCER, except when the broadcast is made exclusively or promotional purposes. The broadcast is considered to be made “exclusively or promotional purposes,” and thereore is accepted by the ARTIST as such, where the time o the communication to the public does not exceed minutes. The PRODUCER must obtain rom the broadcaster a guarantee that any recording exceeding unless a specifc contract between the PRODUCER and the broadcaster allows otherwise.
minutes shall not be preserved,
ART IC LE 7 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The ARTIST
original copies. The PRODUCER
15
5.
RecordingContract oArtistduring LivePerormance
This contract establishes the relationship between the lead artist and a producer or the recording o a live perormance. Where a permanent group o artists exists, the contract must be signed by all members o the group. This contract allows the artist to control the recording o the artist’s live perormance and to be paid in case o commercial exploitation o such recordings. This contract covers only sound recordings and audiovisual fxations.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The PHONOGRAM OR AUDIOVISUAL FIXATION PRODUCER (hereinater reerred to as the PRODUCER)
ART IC LE 1 - Object The PRODUCER shall carry out the sound or audiovisual fxation o and during the ARTIST’s live perormance listed below, with the purpose o recording a phonogram or audiovisual recording that will be exploited individually or as part o an Album : Date :
Place :
Title (i any ) :
NOTE : I the recording concerns sounds only, without fxation o images, it is reerred to as a “phonogram”. I the recording concerns both sounds and images, it is reerred to as an “audiovisual fxation.” The distinction is important because copyright in a “phonogram” and copyright in an “audiovisual fxation” are not the same at the international level. NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Territory and Absence of Exclusivity This contract is made or the worldwide exploitation o the (select one) [phonogram] / [audiovisual recording] produced in execution o this contract. The ARTIST shall not be subject to any exclusivity limitations under this contract. The ARTIST shall thereore remain ree to record with another producer any phonogram or audiovisual fxation, including or the works which have been included in the phonogram or audiovisual fxation produced in execution o this contract.
1
ART IC LE 3 - Authorization of Exploitation The ARTIST authorizes, or purposes o public commercialization throughout the world, the fxation o the ARTIST’s live perormance as defned in Article 1. Thereore, the PRODUCER shall have the right to manuacture, publish, sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via o nline communication networks (Internet and others), and communicate to the public in any ormat the phonogram(s) or audiovisual fxation(s) defned in Article 1. The PRODUCER may do so under the heading, label or mark o the PRODUCER’s choice and throughout the world. The PRODUCER must publish the phonogram or the audiovisual fxation within 1 months ollowing the live perormance.
ART IC LE 4 - Remuneration for the Recordin The PRODUCER must pay the ARTIST a remuneration o
or the recording o a phonogram.
The PRODUCER must pay the ARTIST a remuneration o
or the recording o an audiovisual fxation.
ART IC LE 5 - Royalties As compensation or granting the ARTIST’s rights under this contract, the PRODUCER must pay royalties to the ARTIST as calculated below : 5-1 Sales o Carriers in Stores or by Mail Order a) or sales in the country o production (name o country ), royalties shall be calculated on the basis o the wholesale price, beore tax, o each copy o the phonogram sold, at the appropriate rate set below : · ·
% o the sales between 0 and 0.000 copies (depending on the size o the market ) ; % o the sales greater than 0.000 copies (depending on the size o the market ) ;
NOTE : The average rates vary between 8% and 12%. “Wholesale price” means the catalogue price, beore tax, as published by the PRODUCER during the year o the sale. b) or sales abroad, the rate o royalties shall be 0 % o the rate determined in paragraph a), unless otherwise specifed in the domestic law o the country where the contract is established (e.g. in some countries the rate is 50%) ; c) when manuactured abroad, royalties shall be calculated based on the wholesale price used in the respective oreign country ; d) in cases o direct export, royalties shall be calculated based on the wholesale price as used in the country o production ; e) all copies returned or destroyed, promotional and ree copies, and copies sold at a price lower than 70% o the normal price shall be excluded rom the calculation o royalties ; g) the ARTIST accepts, in advance, that the phonograms produced in execution o the present agreement be exploited as part o compilations, including multi-artist compilations. In such cases, royalties shall be calculated prorata numeris .
NOTE : “Prorata numeris” means that royalties generated by the sale o a compilation album are divided in equal shares according to the number o phonograms included in the compilation. Thus, or instance, i the compilation comprises 10 phonograms, the lead artist o each phonogram receives 1/10 th o the overall royalties. 5-2 Online Sales (Internet and others) Where sales occur via online communication networks (Internet and others), royalties payable to the ARTIST shall be o the amount received, beore tax, by the PRODUCER.
NOTE : The average rates vary between 15% and 30%.
17
%
5-3 Broadcasting and Communication to the Public Unless otherwise specifed by national law, in the case o broadcasting or communication to the public, royalties payable to the ARTIST shall be % o the amount received, beore tax, by the PRODUCER, except when the broadcasting or the communication to the public is subject to remuneration paid directly by the relevant organization(s) to the collective management organization that administers the rights o artists in the country in which the broadcasting or the communication to the public occurs. In such situations, the distribution rules o the collective management society shall apply.
NOTE : The usual rate is 50% or all perormers (lead artist and accompanying artists). 5-4 Other Uses Any exploitation other than the uses mentioned in articles 5-1, 5- and 5-3, above, including uses in advertising, flm or live perormances, and with respect to special products, shall be subject to the prior written authorization o the ARTIST and to payment o a specifc remuneration to the ARTIST. Where these rights have been assigned by the ARTIST to a collective management organization, the prior authorization must be granted by the collective management organization.
ART IC LE 6 - Accounts and Payment of Royalties Royaly statements shall be established on 30 June and 31 December o each calendar year. The PRODUCER shall send the statements to the ARTIST within three months ollowing each o the above dates, together with the payment o royalties. I the ARTIST entails several physical persons (a group), the PRODUCER shall send royalty statements and the corresponding payments distributed in equal shares to each o the benefciaries, individually. The ARTIST shall be entitled to request any proo relating to the royalty accounts and statements.
ART IC LE 7 - Promotion and Advertisin During the promotional campaign o the phonogram(s) or audiovisual fxation(s), the PRODUCER shall be able to reely use the name o the ARTIST, as well as photographs and pictures depicting the ARTIST. These photographs and pictures shall be chosen upon mutual agreement between the ARTIST and the PRODUCER. The PRODUCER must provide the ARTIST, including all parties to the present contract, 5 ree copies o any sound or audiovisual recording that will be published in execution o the contract.
ART IC LE 8 - Transfer of Contract The rights and obligations under this contract may not be transerred by the PRODUCER to a third party without the prior written authorization o the ARTIST.
ART IC LE 9 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The ARTIST
original copies. The PRODUCER
1
6.
BroadcastingContract oArtistduring LivePerormance
This contract establishes the relationship between the lead artist and a broadcasting body concerning the fxation and broadcasting o a live perormance. Where a permanent group o artists exists, the contract must be signed by all members o the group. This contract allows the artist to control the recording o his or her live perormance by a radio or television broadcasting body and to be paid when broadcasting o such recording takes place.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The BROADCASTER
ART IC LE 1 - Object The BROADCASTER shall carry out the sound or audiovisual fxation o the ARTIST’s perormance during the event listed below, with the purpose o broadcasting the given perormance, either live or not, and in part or whole, by the ollowing radio or television channel (name ): Date :
Place :
Title (i any ) :
Number o hours o recording :
NOTE : The contract must include, where appropriate, the requirements o the labour/contract/copyright laws o the country in which the contract is enacted.
ART IC LE 2 - Absence of Exclusivity The ARTIST shall not be subject to any exclusivity limitations under this contract. The ARTIST shall thereore remain ree to grant broadcasting rights concerning the ARTIST’s live perormances to other radio or television channels.
ART IC LE 3 - Authorization of Exploitation and Remuneration The ARTIST authorizes the fxation o the ARTIST’s live perormance as defned in Article 1, as well as radio or television broadcasts o the ARTIST’s recording by the radio or the television channel as defned in Article 1. The BROADCASTER shall pay the ARTIST a remuneration o
(number )
or such exploitation.
NOTE : The practice varies rom one country to another. In other words, some laws limit the authorized broadcasts to a certain maximum number, while others do not provide or such limitations.
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Any other use not defned in this contract shall be subject to the prior written authorization o the ARTIST and to a payment o a specifc remuneration.
ART IC LE 4 - Miscellaneous The BROADCASTER must provide the ARTIST, ree o charge, one copy o the entire radio or television broadcast made in execution o the present contract. The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The ARTIST
original copies. The BROADCASTER
0
7.
LicensingContract byaProducer ortheManuacturing andMarketing oaPhonogram
This contract allows the producer o a phonogram to entrust the manuacturing and commercial exploitation o a phonogram to a contractor called a “licensee.” The contractor shall, in general, be granted the exclusive marketing rights or the duration agreed upon in this contract, excluding the territories in which the licensee ails to distribute the phonogram. This contract creates rules guaranteeing the remuneration o the producer (and thus o the lead artist via the producer) and ensures the greatest chance o success or the marketing concerning the phonogram.
The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER) The LICENSEE
ART IC LE 1 - Object The PRODUCER grants to the LICENSEE, or the duration o the present contract and throughout the world (i this contract contains geographical limitations, speciy the region or countries or which rights are granted ), a license to exploit one or more phonograms, either individually or a as part o an Album. These phonograms are (title o the phonogram, name o the lead artist and other relevant inormation) :
ART IC LE 2 - Duration, Territory and Exclusivity This contract applies or a period o
year(s) starting rom the date o signing.
Exclusivity o exploitation is granted or each country in which the LICENSEE succeeds in commercially publishing the phonograms as detailed in Article 1 and succeeds in organizing the online sale o the phonograms as detailed in Article 1 via at least one online communication network (Internet and others) within 1 months ollowing the receipt o each phonogram by the LICENSEE in conormity with Article 4 hereunder.
1
The PRODUCER must rerain rom entering into other licensing contracts or the exploitation o the phonograms and in the territories as defned in Article 1, except or the countries in which the LICENSEE has not succeeded in making the phonograms available to the public within the 1 month-period defned in the previous paragraph.
ART IC LE 3 - Authorization of exploitation The PRODUCER authorizes the reproduction and the making available to the public o the phonograms defned in Article 1. Thereore, the LICENSEE shall have the right to manuacture, publish, sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via o nline communication networks (Internet and others), and communicate to the public in any ormat the phonogram(s) defned in Article 1. The LICENSEE may do so under the heading, label or mark o the PRODUCER’s choice and throughout the world concerning the phonogram(s) defned in Article 1. Any exploitation other than the uses mentioned in the previous paragraph, including uses in advertising, flm or live perormance, and with respect to special products, shall be subject to the prior written authorization o the PRODUCER. The LICENSEE must publish each phonogram according to the ollowing timetable o exploitation :
ART IC LE 4 - Supply of the Phonorams by the PRODUCER The PRODUCER must provide the LICENSEE with the phonograms defned in Article 1 in the timerame set below :
The master tapes o the phonograms shall be delivered on DAT, in their fnal version and ready or commercialization. The PRODUCER must simultaneously provide the LICENSEE with the graphic elements (photos, etc.) needed or printing covers, booklets and, more generally, all graphic elements needed or the commercial exploitation in accordance with customary practices. Where appropriate, the parties may enter into a special agreement concerning payment or costs o mastering ees and graphic elements.
ART IC LE 5 - Copyriht The LICENSEE shall be entirely responsible or the payment o royalties due to the artist(s) or the acts o reproduction and o making available to the public o the phonograms defned in Article 1. The broadcasting o the phonograms will be subject to remuneration paid directly by the broadcasting organizations to the collective management organization that administers the rights o artists in the country o the broadcasting.
ART IC LE 6 - Royalties The LICENSEE must pay royalties to the PRODUCER, as calculated below : 6-1 Sales o Carriers in Stores or by Mail Order a) or sales in the country o production (name o country ), royalties shall be calculated on the basis o the wholesale price, beore tax, o each copy o the phonogram sold, at the appropriate rate set below: · ·
% o the sales between 0 and 0.000 copies (depending on the size o the market ) ; % o the sales greater than 0.000 copies (depending on the size o the market ) ;
NOTE : The average rates vary between 20% and 30%. “Wholesale price” means the catalogue price, beore tax, as published by the LICENSEE during the year o the sale. b) or sales abroad, the rate o royalties shall be 0 % o the rate determined in paragraph a), unless otherwise specifed in the domestic law o the country where the contract is established (e.g. in some countries the rate is 50%) ; c) when manuactured abroad, royalties shall be calculated based on the wholesale price used in the respective oreign country ; d) in cases o direct export, royalties shall be calculated based on the wholesale price as used in the country o production ; e) all copies returned or destroyed, promotional and ree copies, and copies sold at a price lower than 70% o the normal price shall be excluded rom the calculation o royalties ; g) the PRODUCER accepts, in advance, that the phonograms produced in execution o the present agreement be exploited as part o compilations, including multi-artist compilations. In such cases, royalties shall be calculated prorata numeris .
NOTE : “Prorata numeris” means that royalties generated by the sale o a compilation album are divided in equal shares according to the number o phonograms included in the compilation. Thus, or instance, i the compilation comprises 10 phonograms, the producer o each phonogram receives 1/10 th o the overall royalties. 6-2 Online Sales (Internet and others) Where sales occur via online communication networks (Internet and others), royalties payable to the PRODUCER shall be o the amount received, beore tax, by the LICENSEE.
%
NOTE : The average rates vary between 25% and 40%. 6-3 Broadcasting and Communication to the Public Unless otherwise specifed by national law, in the case o broadcasting or communication to the public, royalties payable to the PRODUCER shall be % o the amount received, beore tax, by the LICENSEE, except when the broadcasting or the communication to the public is subject to remuneration paid directly by the relevant organization(s) to the PRODUCER or to the collective management organization that administers the rights o producers in the country in which the broadcasting or the communication to the public occurs.
NOTE : The usual rate varies between 60% and 75%. 6-4 Other Uses Any exploitation other than the uses mentioned in articles -1, - and -3, above, including uses in advertising, flm or live perormances, and with respect to special products, shall be subject to the prior written authorization o the PRODUCER and to payment o a specifc remuneration to the PRODUCER.
ART IC LE 7 - Accounts and Payment of Royalties Royalty statements shall be established on 30 June and 31 December o each calendar year. The LICENSEE shall send the statements to the PRODUCER within three months ollowing each o the above dates, together with the payment o royalties. The PRODUCER shall be entitled to request any proo relating to the royalty accounts and statements.
ART IC LE 8 - Promotion and Advertisin The LICENSEE shall be in charge o the promotion o the phonogram in accordance with the customary practices o the proession. The parties are ree to set a minimum budget to be allocated by the LICENSEE or the promotional activities, by indicating hereinater the amount o this budget :
3
The LICENSEE shall be able to reely use the name o the artist, as well as photographs and pictures depicting him or her. These photographs and pictures shall be chosen upon mutual agreement between the LICENSEE and the PRODUCER, the latter also needing to obtain the artist’s acceptance.
The PRODUCER shall ensure that the artist(s) participates, subject to the artist’s availability and with reasonable notice, in any radio or television show, photoshoot and interview intended to promote the phonograms. The LICENSEE shall assume the expenses related to the promotional activities, including transportation and accommodation costs o the artist(s). The LICENSEE must provide the PRODUCER with 0 ree copies o any Single or Album published in execution o this contract.
ARTICLE 9 - Transfer of Contract The rights and obligations under this contract may not be transerred by the LICENSEE to a third party without the prior written authorization o the PRODUCER.
ARTICLE 10 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The LICENSEE
original copies. The PRODUCER
4
8.
CommercialPhonogram DistributionContract
This contract allows a producer o phonograms to entrust the sale o phonograms to a company or person called a “distributor.” The distributor shall, in general, be granted the exclusive distribution rights during the term o the contract, however only or the territories where the distributor makes the phonograms available or sale. This contract is suitable or the sale o small quantities o phonograms produced by artists themselves.
The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER) The DISTRIBUTOR
ART IC LE 1 - Object The PRODUCER entrusts to the DISTRIBUTOR, or the duration o this contract, the sale o one or more phonograms that will be exploited individually or as part o an Album. These phonograms are (title o the phonogram, name o the lead artist and other relevant inormation) :
ART IC LE 2 - Duration, Territory and Exclusivity This contract applies or a period o
year(s), starting rom the date o signing.
Exclusivity o exploitation is granted or the ollowing country or countries :
The DISTRIBUTOR must provide or sale to the public a sufcient number o material copies o the phonogram(s), as well as to make them available or online sale, except in cases o reusal by the respective websites, within months, starting rom date on which the PRODUCER supplies the DISTRIBUTOR with each phonogram in compliance with Article 4 hereunder.
5
ART IC LE 3 - Authorization of Exploitation The PRODUCER authorizes the distribution and making available to the public o the phonograms defned in Article 1. Thereore, the DISTRIBUTOR shall have the right to sell by way o any medium (audio cassette, CD, DVD audio or other existing ormats) or via online communication networks (Internet and others) in any ormat, under the heading, label or mark o the DISTRIBUTOR’s choice and in the territories detailed above concerning the phonograms defned in Article 1. Any other exploitation shall be subject to the prior written authorization o the PRODUCER.
ART IC LE 4 - Supply of Phonorams The PRODUCER must provide the DISTRIBUTOR with the phonogram(s) defned in Article 1, as ollows : · a copy on DAT or sale via online communication networks; and · the stock o material copies to be put on sale, in their fnal version intended or the public (covers with photos, booklet and, more generally, the graphic elements needed or commercial exploitation in accordance with customary practices); this stock shall be renewed according to the needs and the demands o the DISTRIBUTOR. Where appropriate, the parties may enter into a special agreement concerning the payment or costs o mastering ees and graphic elements.
ART IC LE 5 - Copyriht The PRODUCER shall be entirely responsible, directly or through a collective management organization, o payment o royalties due to the artist(s) or distribution o the phonograms in accordance with this contract.
ART IC LE 6 - Royalties The DISTRIBUTOR must pay royalties to the PRODUCER, as calculated below : 6-1 Sales o Carriers in Stores or by Mail Order a) or sales in the country o production (name o country ), royalties shall be calculated on the basis o the wholesale price, beore tax, o each copy o the phonogram sold, at the appropriate rate set below : · ·
% o the sales between 0 and 0.000 copies (depending on the size o the market ) ; % o the sales greater than 0.000 copies (depending on the size o the market ) ;
NOTE : The average rates vary between 65% and 75%. “Wholesale price” means the catalogue price, beore tax, as published by the DISTRIBUTOR during the year o the sale. b) or sales abroad, the rate o royalties shall be 0 % o the rate determined in paragraph a), unless otherwise specifed in the domestic law o the country where the contract is established (e.g. in some countries the rate is 50%) ; c) when manuactured abroad, royalties shall be calculated based on the wholesale price used in the respective oreign country ; d) in cases o direct export, royalties shall be calculated based on the wholesale price as used in the country o production ; e) all copies returned or destroyed shall be excluded rom the calculation o royalties.
6-2 Online Sales (Internet and others) Where sales occur via online communication networks (Internet and others), royalties payable to the PRODUCER shall be o the amount received, beore tax, by the DISTRIBUTOR.
%
NOTE : The average rates vary between 70% and 80%.
ART IC LE 7 - Accounts and Payment of Royalties Royalty statements shall be established on 30 June and 31 December o each calendar year. The DISTRBUTOR shall send the statements to the PRODUCER within three months ollowing the above dates, together with the payment o royalties. The PRODUCER shall be entitled to request any documentation relating to the royalty accounts and statements.
ART IC LE 8 - Promotion and Advertisin The DISTRIBUTOR shall be able to reely use the name o the relevant artist, as well as the photographs and pictures depicting the artist.
ART IC LE 9 - Transfer of Contract The rights and obligations under this contract may not be transerred by the DISTRIBUTOR to a third party without the prior written authorization o the PRODUCER.
ART IC LE 10 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The DISTRIBUTOR
original copies. The PRODUCER
7
9.
Contractbetween aLeadArtist andaProducer AuthorizingSpecifcUses oaPhonogram
This contract supplements the recording contract signed by the lead artist and a producer o a commercial phonogram, where the phonogram is the subject o a special use (an additional use in advertising flm, live perormance and so orth). Where a permanent group o artists exists, the contract must be signed by all members o the group.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The PHONOGRAM PRODUCER (hereinater reerred to as the PRODUCER)
ART IC LE 1 - Object The ARTIST grants the PRODUCER the right to authorize a specifc use o the ollowing phonogram : Title : Date and place o fxation : This specifc use is the ollowing (check the correct box and cross out the others) : · incorporation in an audiovisual work (cinematographic flm, TV flm, documentary, music video, etc.) or the purpose o exploitation by any means ; · incorporation in a live perormance ; · incorporation in an advertisement or an exclusively audio broadcast ; · incorporation in an advertisement or an audiovisual broadcast ; or · other (to be defned) :
.
ART IC LE 2 - Exclusivity, Duration and Territory The present contract, which is signed on an exclusive basis, applies or a period o The specifc use is authorized or the territories listed below :
year(s) starting rom the date o signing.
ART IC LE 3 - Royalties As compensation or granting the ARTIST’s rights under this contract, the ARTIST shall receive rom the PRODUCER o the phonogram royalties o % o the amount received, beore tax, by the latter or the specifc use. Royalty statements shall be established on 30 June and 31 December o each calendar year. The PRODUCER shall send the statements to the ARTIST within three months ollowing each o the above dates, together with the payment o royalties. I the ARTIST entails several physical persons (a group), the PRODUCER shall send royalty stateme nts and the corresponding payments distributed in equal shares to each o the benefciaries, individually. The ARTIST shall be entitled to request any documentation relating to the royalty accounts and statements.
ART IC LE 4 - Miscellaneous The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country o production. Completed and signed at
, on
in
The ARTIST
original copies. The PRODUCER
9
10.
Contractbetween aLeadArtist andaManager
This contract sets the conditions under which a manager can be entrusted to represent a lead artist and to manage various aspects o the artist’s career. Where a permanent group o artists exists, the contract must be signed by all members o the group. This contract imposes rules o transparency or managers with respect to artists and defnes the remuneration o the manager. More generally, it defnes the obligations o each party, as well as the rules or using an artist’s revenue that a manager receives on behal o an artist.
The ARTIST or the PERMANENT GROUP OF ARTISTS (hereinater reerred to as the ARTIST) The MANAGER
ART IC LE 1 - Object The ARTIST entrusts the MANAGER with the management and deense o the ARTIST’s proessional activities and interests. Thereore, the MANAGER shall be responsible or representing the ARTIST in any action, decision and negotiation relating to the ARTIST’s proessional career.
ART IC LE 2 - Term and Territory The present contract applies or a period o
year(s).
No end-o-contract remuneration shall be payable by the ARTIST to the MANAGER at the end o the ARTIST’s period. The period can be extended, provided that a new contract is signed between the Parties. The contract covers, on an exclusive basis, the ollowing territory or territories :
ART IC LE 3 - Obliations of the MANAgER The MANAGER shall act on beh al o the ARTIST with respect to the ollowing tasks : · search or, book and arrange engagements, including live perormances, phonograms or videograms, and radio and television shows. Where the ARTIST is also a composer, the MANAGER shall approach companies or other entities likely to be interested in exploiting the composition(s) o the ARTIST ;
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· examine any proposal o proessional nature made to the ARTIST, assist and represent the ARTIST in all negotiations, ensuring that the contracts signed by the ARTIST do not conict with the ARTIST’s interests and include a reasonable remuneration in compliance with industry standards ; · see to the proper execution o the contracts signed by the ARTIST ; · provide the ARTIST with all legal inormation that the ARTIST might need ; · receive the amounts payable to the ARTIST or the ARTIST’s activities under this contract, and transer, in the shortest amount o time, these amounts to the ARTIST ater deduction o the commission defned in Article 5 ; · keep precise accounts o all payments and transers o unds related to the proessional activity o the ARTIST and provide inormation to the ARTIST at any time upon the ARTIST’s request. No decision shall be taken by the MANAGER without the prior agreement o the ARTIST. In cases o disagreement between the ARTIST and the MANAGER, the fnal decision shall be made by the ARTIST.
ART IC LE 4 - Obliations of the ARTIST The ARTIST must acilitate the work o the MANAGER. More specifcally, the ARTIST shall : · keep the MANAGER inormed o all proposals o proessional nature made to the ARTIST ; · respect the engagements made on the ARTIST’s behal by the MANAGER ; and · not receive directly amounts paid or the ARTIST’s proessional activities, except when impossible to do otherwise, in which case the ARTIST will immediately inorm the MANAGER.
ART IC LE 5 - Remuneration of the MANAgER The MANAGER will receive remuneration (commission ee) o % o all amounts paid with respect to the ARTIST’s proessional activities and or the exploitation o the recorded works or perormances o the ARTIST, during the period o the present contract and during the three months ollowing the end o the contract.
NOTE : The usual average rates vary between 10% and 20%, provided that there is no capped maximum stipulated by the law or by a proessional agreement. This remuneration also covers the expenses assumed by the MANAGER. However, when the expenses paid by the MANAGER are o an exceptional nature and have been made upon agreement between the MANAGER and the ARTIST, the latter will reimburse the MANAGER independently o the commission ee. The ollowing expenses shall be considered to be o an exceptional nature :
NOTE : Usually, the expenses that are considered to be o an exceptional nature are expenses related to the production o CD or DVD demos, the making o blogs presenting the work o the ARTIST and some particularly expensive travel costs. With regard to territories not covered by the exclusivity o this contract, the amounts generated by the activities and the sound and audiovisual recordings o the ARTIST in these territories (including remunerations paid or live perormances taking place in these territories) shall not be received by the MANAGER and shall not be subject to payment o a commission ee to the MANAGER.
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ART IC LE 6 - Miscellaneous The ARTIST authorizes the MANAGER, during the period o this contract, to use the ARTIST’s name and photos (upon agreement o the ARTIST concerning the choice o photographs) or all promotional activities. The parties shall inorm each other o any change o address. This contract shall be governed by the law o the country in which it was signed. Completed and signed at
, on
in
The ARTIST
original copies. The MANAGER
3
Collective Management · Individual contracts are essential, but not sufcient ! Individual contracts signed by authors, perormers and producers are an essential step as they help to establish and clariy their rights. Nevertheless, collective management is a necessary complement to individual contracts.
· What is collective management ? “Collective management” involves the intervention o one or more agencies in charge o collecting and distributing royalties to authors, perormers and producers. The name given to these agencies varies rom one country to another, such as “Copyright Ofce,” “Collecting Society,” “Royalties Collecting and Distributing Society,” and so orth. In some countries, one organization can represent several categories o rights owners (authors, perormers, producers) and several categories o rights (reproduction rights, broadcasting rights, etc.). With collective management, royalties are paid by users o works or recordings to one o these agencies; the agencies then distribute royalties to the respective rights owners.
· Why collective management ? In the feld o music, the number o uses is extremely large, notably due to technological advancements. This is the case at all stages o creation, such as recording, reproduction and broadcasting , and the number o uses is greatly amplifed by the globalization o new media (satellite, Internet, new digital storage carriers, etc.) and o international trade. As a result, it is most oten practically impossible or authors, perormers and producers to deend their rights on their own.
· What do rights owners have to do or collective management ? Rights owners (authors, perormers and producers) must be members o a collective management organization, which means accepting the ollowing : ·
Act o Afliation to the collective management organization ;
·
Bylaws o the collective management organization ; and
·
Registration Act o works or recordings.
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· Reciprocal agreements Music travels beyond borders. Thus, or rights owners to be represented across borders, it is necessary that the relevant collective management organizations also be signatories to agreements with similar organizations in other countries. Similarly, in order to be able to collect royalties rom domestic users (radios, televisions, show and dance premises, etc.) and to allocate royalties to the respective oreign rights owners, the collective management organization must be mandated to do so by the collective management organization in the respective oreign country. To achieve their intended unctions, collective management organizations sign agreements that entitle them to act on behal o each other across borders.
· Prospects or progress To achieve eective protection o rights, and thus eradicate piracy, it is necessary to reinorce and improve the collective management system, through : ·
Rules o operation and control that are completely transparent and allow rights owners to be ully inormed ;
·
Important administrative practices to acilitate collective management organizations’ objectives, particularly in relation to :
(i) electronic identifcation systems o rights owner in order to allocate the money collected ; (ii) international relations through the eective implementation o reciprocal agreements ; (iii) judicial actions Moreover, collective management organizations with a signifcant number o members are much more inuential when it comes to collecting royalties rom users who reuse to pay. It is also essential to promote the signature and implementation o bilateral reciprocal agreements with the collective management organizations o all other countries. The proper and eective unctioning o collective management organizations contributes to the enhancement and development o cultural diversity and cultural industries. In order to be able to perorm their unctions in an efcient manner, collective management organizations need the collaboration o producers and artists, especially with regard to playlists or log sheets, which should be duly flled by the users and sent to the collective management organizations. Consequently, such practices clearly identiy the works used and include distributing thereater royalties to the authors, artists and other rights owners.
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Glossary · Audiovisual Fixation : Any fxation that does not exclusively consist o sounds. It is important to distinguish between this concept and a phonogram (fxation o sounds exclusively) because the rights attached to these two types o recordings are not the same at the international level.
· Author : A person who creates a work. In the feld o music, an author creates the lyrics or composes the song. It is also possible to be an author o an arrangement o a pre-existing work.
· Broadcasting : Broadcast by wireless means or reception by the public.
· Communication to the Public : Communication to the public by any means, including by wire or wireless means, except the making available to the public via an online communication network.
· Country o production : The country where the majority o the production budget is spent.
· Distribution : Sale to the public o physical (material) copies (CD, etc.) o a phonogram.
· Exclusivity : This term means that a party to a contract which has granted to the other party exclusive rights, relating to an activity or a type o use, cannot, during th e contractually agreed period o time conclude any contract with a third party concerning such activity or such type o use.
· Fixation : Act o recording or incorporating a perormance on or in any medium.
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