☂️ 17 key aspects to make an INTERNAL AGREEMENT of a BAND or Musical Group


El ACUERDO INTERNO de BANDA ✅ es un documento que servirá para establecer el manejo de las responsabilidades, ganancias, deudas y aspectos clave.


In this post, I will show you a list of basics to carry out a Band Agreement .

In fact, this happens because we get many stories of bands that break up and a real chaos begins:

Who will be left with the purchased equipment? Who will pay the loan made to produce the album? Who will continue to claim the royalties that the songs are generating? etc.

A true struggle that becomes a constant in almost all musical projects regardless of the level they are at.

That is why today we will answer the basic questions on the subject:

What is a band deal? What are the basic elements of that agreement? And how do you make and implement a band deal?

So, if you don't have a Band Agreement yet in your hands, now is the time to sit down and write it and build it based on these 17 key aspects :

Welcome!

🎯 What is an internal band deal?


A band agreement is simply a formal contract , it is an agreement between the members of the band regarding how they are going to conduct the affairs of the band either in general, or only in relation to certain issues.

It can be based on a variety of formats, but the idea is to ensure that everyone in the band is aligned towards the same management parameters .

This agreement also helps to maintain levels of commitment to the group, makes clear the roles , responsibilities and levels of ownership of all members.

It will help address any financial concerns such as who will be paid what percentage of royalties from recordings, posts, and live performances etc.

Some of the main issues covered in the band agreement include:

  • Who owns the compositions
  • Who owns the master recordings
  • Who owns the name of the band
  • What happens if a member leaves
  • How decisions are made (i.e. majority vote, unanimous decision, etc.)
  • How income from touring, record sales, merchandising sales, publishing income, etc. is divided.
  • Who owns the stereo (band or individual members)
  • who can sign contracts and checks on behalf of the band
  • Who can hire / fire a member and much more ...

Share with a Tweet the keys to make an Internal Band Agreement


⚖️ Why do you need to have a written agreement?


Complications and disagreements will undoubtedly arise at some point in your band's career, so having an agreement will come in handy when you need to smooth things over.

For example, how are important decisions of the band determined? Is it an equal vote, or do certain members have more voice than others? What are the consequences if a band member misses a certain number of shows or rehearsals?

Start thinking about the types of problems that could affect your band at some point and do your best to come to a compromise on how best to handle it.

This process may sound a bit boring or uncomfortable, but that doesn't mean it takes the fun out of playing music together!

When all is said and done, the band deal will really help you keep the experience harmonious and allow you to focus on the music instead of worrying about how to deal with every little dispute along the way.

If your band is new or well established, YES or YES you need this agreement , most of the legal problems that arise, can be avoided with a suitable band agreement .

However, many bands don't think about setting up and signing one until it's too late.

El ACUERDO INTERNO de BANDA ✅ es un documento que servirá para establecer el manejo de las responsabilidades, ganancias, deudas y aspectos clave.

⏳ What if you don't have a band agreement?


Often times when a gang member quits, he threatens to sue or simply refuses to let the other members continue as a gang.

Without an established band agreement, any member of the band might be able to prevent using the band name, if he or she so chooses.

In fact, they could start their own band and use the existing name, they can also prevent you from managing the songs that they have worked on for a long time. It is even possible that they can withdraw money from the band's bank account.

⚗️ Is an internal deal worth it?


Some examples of high-profile legal disputes between band members include Pink Floyd (both David Gilmour and Roger Waters claimed the use of the band's name and for a time there were two versions of the Pink Floyd tour simultaneously) and Guns n Roses (Axl successfully established his right to the band name, although many of the original members were together in another band, Velvet Revolver , of course).

Members of both gangs spent hundreds of millions of dollars for a judge to determine what could have been determined early on in a Gang Agreement.

So how do you have that awkward conversation with your bandmates?

As soon as you feel that the band is " stable ", you should talk to everyone about what the level of commitment really is.

Bring up the idea of ​​a band deal for the group, explain why it is important and how will it help? In fact, it might make people happy to know exactly what they're guaranteed to be a band member.

Important note : although making music is for fun and does not seem like a regular job, taxes are paid and money is invested all the time, responsibilities are acquired including money and loans, so with an agreement, the band will work better.

El ACUERDO INTERNO de BANDA ✅ es un documento que servirá para establecer el manejo de las responsabilidades, ganancias, deudas y aspectos clave.

📝 What aspects should this agreement cover?


The band agreement should act as a guide to clarify any questions that you or your band members have and also to address any issues that you think may arise in the future.

At the very least, be sure to cover topics like:

  • Who owns the rights to the band's name?
  • Who owns what songs?
  • If someone leaves the band, can the remaining members continue to use the same band name and play the same songs?
  • How will the band's expenses be financed?
  • Where does the income go? (For example, does the band divide the income or put it into a collective band fund?)
  • Who makes the business decisions?


One of the most important parts of the deal is determining what will happen if a member leaves the band, although that is not fun to think about, you really don't want any loose ends.

For example, if the band wants to use a music video that they all made together, the member could say that they cannot use their image if there is no prior written agreement.

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🧰 How do you create an internal band deal?


Spend a few hours together without distractions, make a list of areas to cover.
Review each component and define commitments, once the agreement is drawn up, have a lawyer review it and give the go-ahead to be able to sign it among all the members.

🎁 These are the 17 most important aspects to establish in a Band Agreement / Internal Music Group Agreement.

Include in your agreement those that best suit the dynamics of your band or musical project 👇🏽


✅ 1 - Copyright ownership:


If there is a set formula that the band wants to apply to determine the percentages of copyright ownership of any song written by the band this should be specified.

As an example: Coldplay divides each song equally into 4 parts, regardless of who wrote the song. The Beatles did not. How will you divide the credit for the compositions?

✅ 2 - Earnings:


The basis on which the income generated by the band will be divided should be quite clear.

It can be agreed that the profits are reinvested back into the band or alternatively the band members may prefer their share for their own use.

Steps should also be taken to deal with the situation of abandoning all rights and benefits earned by the particular band if it has been previously agreed that their share of the profits will be reinvested in the band.

For compensation it is better to divide all income (other than composition) equally.

Make sure you designate a percentage of the net income (after all expenses) to keep in the band's bank account and designate a percentage that will be paid to each. Please review this breakdown every six months.

✅ 3 - Obligations and responsibilities:


The role of each member of the band includes any specific responsibilities and goes beyond the simple fact of playing the music.

Responsibilities such as the organization of the promotion of the concerts, the maintenance of the website and social networks, promotional actions, obtaining key contacts and other activities that strengthen the project should be made clear, leave this in the agreement band will make everyone clear what their role is.

✅ 4 - Essays and commitments:


All band members must agree to attend required rehearsals, performances, promotional events, and recording sessions.

Include that everyone will follow reasonable instructions from the band manager or representative and will diligently carry out agreed-upon tasks.

You should describe some general activities that each member will do like showing up on time, getting songs to work ready, and that sort of thing.

✅ 5 - Termination:


How much notice does a member have to give if they want to leave the band?

If a member resigns , they lose all rights to future earnings of any kind (except for songwriting royalties made by them) and they will not have to cover any current expenses or debt.

It should also be specified what the process will be if a majority of the band members determine that a member should cease to be a member of the band.

If a member is voted out , you must give them their percentage of the current cash available. If the band separates, divide everything equally.


✅ 6 - Accounting:


Provision should be made for proper accounting records to be kept and someone given responsibility for ensuring that this occurs.

Such accounts should be able to be inspected by each member of the band if they wish.

✅ 7 - Bank account:


Steps should be taken to establish a bank account, with at least two gang members named as signatories.

✅ 8 - Loans:


Any gang member who lends money must be paid back, clearly stated.

It should also be clarified in such a situation when a loan is provided to finance the making of any recording of the band, if the intention is that the member of the band making the loan will become the owner of such recordings instead of the recordings being owned. of all the members of the band together.

✅ 9 - Expenses:


It should be clarified if there are any personal expenses of the band towards any of the members, which will be reimbursed with the income of the band. For example, new drumsticks or guitar strings.

The conditions under which such reimbursement will be made must also be detailed, including whether specific invoices and receipts have to be provided.

✅ 10 - Band assets:


It should be clearly stated who will own the recordings and videos paid for by the band and also who will be the owner of the rights to the domain names that the band has registered.

Although such ownership will generally rest with the society or company that the band is running, problems with ongoing ownership may begin to arise when a member leaves the band.

✅ 11 - Team:


The idea at this point is that each member of the band covers 100% of the costs of their personal equipment such as (strings, patches, amplifiers, etc.) and between all the general equipment expenses of the band are divided equally ( PA, lights, transport, etc).

When a member leaves the band, they must renounce the rights to the equipment purchased with the band's income.

✅ 12 - Power of authority:


A person must be appointed who has the authority to sign contracts on behalf of the band, but requires that nothing be signed without the consent of the group.

✅ 13 - Decisions:


Any decision made regarding the affairs of the band should not be carried out without a specific majority, for example 50% of the band members.

Some decisions, particularly financial ones, may even require a unanimous agreement, for example, asking for a loan in the name of the band or incurring expenses that exceed a certain amount.

A veto right by gang members can also be considered.

✅ 14 - External presentations:


It is prudent to provide whether or not any member of the band wishes to perform or record independently in the band if they need to obtain the consent of the other band members and if not, if there are any general conditions that apply to such external side projects.

A good question to ask yourself is: Are members allowed to participate in side or individual projects?

✅ 15 - Incoming members:


All new members of the band upon joining must be bound by and respect and follow the current form of the band agreement.

Make it clear that all new members are entitled to new income (including all future royalties from previous albums), but not ownership / compensation for songs they did not write.

✅ 16 - Band name:


If ownership of the band name is not divided equally among all band members, then these rights are even more specific.

Limits may be placed on the use of the name by individual members, as is the case when a member leaves the band.

Who has the right to use the name of the band? You should have an important clarification that if a member leaves (or is fired), that person loses all rights to the name of the band.

✅ 17 - Advice and clarity:


Each member of the band must acknowledge that they have been advised and that if they feel the personal need they should seek independent and expert legal advice on the content of the band agreement before signing it.

conclusion


There is no limit to the number of issues that can be mentioned and covered in a band agreement, but in any case you must make sure that the band agreement reflects in practice how the band works or how the band members want things to be. they work.

If there are any fundamental changes in this regard over time, then the band agreement will need to be updated to reflect these changes.

From a manager's perspective, band agreements are quite important so you need to ensure that such agreements are well written and well understood by all members of the band.

Also when disputes arise between gang members, it is usually the manager who is initially considered responsible for helping to resolve this situation.

As this is not usually an easy task, having a gang agreement in place can provide some answers or at least some guidance in resolving such disputes and this can be of great help.

💬 Tell us what has happened to you for not having an Internal Band Agreement or how well you have been having one. 👇🏼


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