Ellard

Interesting update to the post below: negotiations continue. The time limit has been dropped and they are going to talk to EMI about licensing. On the positive side, that shows they are aware that the agreement needs some fixing, which is commendable. On the negative side, I wonder what would be the case if I didn’t have a publisher? I can’t help but cartoon the upcoming discussion: North West USA Clothing Corporation VS Ye Olde English Publishing Company.

Yesterday I was sent a Licensing Agreement in the mail. Depending on what mood you are in, the whole thing is hilarious or a good reason to punch the next CEO you meet in the face. Probably they would chuck a tantrum if I just reproduced what they laughingly describe as an offer but they can’t stop me discussing the general ideas. Keep in mind I AM NOT EXAGGERATING only simplifying the gobbledegook. If this is the kind of shit that kids are signing, then it’s evil.

• We are a large company that sells ‘clothing items’.
• You are somebody that owns the entire rights in every respect of a piece of music (note the assumption that musicians don’t have a publishing deal in place. As much as I hate being tied to EMI, every time I get one of these ‘offers’ speaking their name causes amusing consternation – what, your music is worth something?)
• We are making some kind of online advertising campaign where we pretend to be cool and hip.
• We might also reproduce this in other ways, don’t know yet (‘any manner or medium now known or later developed’)
• In consideration of the publicity that you might get out of this (‘the potential promotional benefits’)
• You grant us the worldwide right to do with your track anything we can think of – transmit, exhibit, synchronize, sub-license, mix up with other people’s artworks … and things we haven’t even thought of just yet. (yep – sub-license, as in they can contract out your assigned rights to anyone)
• You represent that there is no sampling. Not one sample. No infringements of any kind. Pure as the driven snow. Or we dump your ass immediately. (Lots of luck with this guys)
• You are not a member of any music rights organization, or union that might fight for your rights.
• We have the right to use your likeness and bio. You will not complain about invasion of privacy.
• You don’t get the master back.
• You indemnify us against any claims that might be launched because of the track (fair enough)
• The term is one year.
• Any disputes have to be settled in our home state.
• We need you to sign and return this TODAY because we are behind schedule. Just do it.

I want to reiterate – I am not exaggerating this pathetic offer. For no payment, they get worldwide rights to use a track in an advertising campaign for a year. They probably don’t intend for it to be the highlight of the campaign and in this particular instance the target region is South America, but if it did become an important piece, you just gave it to them for free. To put that in context I would not ask much for a South American synch license, but I would also limit the use region by region. A worldwide buyout license I would expect to be paid up to $5000 per region.

So in this liberated age where kids are being protected by pirates from having a recording and publishing contract, it’s possible for a deal like this to get waved in front of a young band who have no other venue for their music. They are used to YouTube & MySpace – no money, only potential promotion, and the whole thing seems normal. Maybe they can get their track published on the basis of the publicity generated. It’s non-exclusive, so you could try that. If of course the publishers stay open in the face of so much openness. This is an example of how the YouTube model leads to evil.

My refusal is immediate, the music is encumbered and that’s it. But really, anyone who is asked to sign a contract THE SAME DAY should laugh at them. In this state of Australia that’s pretty much illegal, I expect that is true in many places. No solicitor is going to be able to examine it in that time. Seriously – when people complain about record companies, don’t they realise that just plays in the hands of even bigger corporations?