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Part
Seven
By Harlington L. Hanna
Jr.
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Business & Contractual Readiness
Artists tend to be artistic in the way they deal with
business and caught up in their artistic ideals. While
this is good for production it usually leaves them
unready to conduct business and usually not ready to
conduct effective negotiating and contracting. Therefore
it is important that the entertainment entrepreneur not
be distracted or otherwise put off by this business and
contractual unreadiness by artists or producers who they
may be attempting to do business with. In fact this very
unreadiness on the part of one negotiator is usually a
blessing in disguise for the prepared negotiator. However
many deals are lost on the artist or producers behalf
because they are not ready to move forward and the
entertainment entrepreneur simply moves on to the next
seller or producer of product in order to avoid a waste
of resources and efforts dealing with an unprepared
seller. It is incumbent upon a seller to be prepared in a
buyer's market opportunity knocks seldom if at all.
Sellers cannot afford to miss opportunities for deals,
which can effectively exploit their productions. If they
do they are left with the prospect of having their
beautifully and hard earned production sit on the shelf
forever. Unfortunately this is the case for most
productions. The fact is that for the vast majority of
productions there is never even a substantial knock on
the door. The product is produced and that is usually the
end of it. To throw away the opportunity that may knock
once in a lifetime is a tremendous waste of opportunity
presented, especially if the knock came and you were
unready.
The following checklist should help in preparing the
stage for final closing on entertainment contracts.
CHECKLIST FOR CONTRACT CLOSING
Artists seeking a contract must secure the requisite
legal ownership and documentation of such before the
execution of the contract. The following list includes
items and information which an artist must typically
provide, if applicable, when signing any major publishing
and/or distribution contract. These items should be
provided by artist(s), producer(s), owner(s) or the
applicable party or parties to the contract at or before
the time of closing.
Name of owner(s).
Name of producer(s).
Names of any collaborators.
Name of copyright holder(s)
Names of songs
Names of artists & musicians appearing on product
Number and names of lien holders
Prior publishing, distribution, or label affiliation
Dates of beginning & completion of writing and
production
Lyric sheets for all songs
Music sheets for all songs
Copyright certificates for all compositions and sound
recordings
Copies of all written agreements used in development
& production
Two copies of master tapes or manuscript
One copy of work tape(s) or disc(s)
All product inventory
Copies of prior reviews
Copies of prior sales figures
Copies of prior royalty receipts
Copies of prior airplay logs
Number and names of cover songs
Number and names of samples used
Copies of clearances or licences obtained
Copies of clearances or licenses granted
Most artists often produce their creations in a
non-business secured manner and that many of the above
items may not be fully available. In some cases the
Company may assist the artist in resolving outstanding
legal and business issues. Although almost always
overlooked by artists, the business capability, and legal
protection, defense and prosecution against infringement
and other use of the productions is one of the most
valuable assets an artist gains in signing a reputable
publishing and distribution contract. The items on this
checklist will help the acquiring entity and the I.P.
holder to more effectively control, administer and
exploit their assets.
Part Six
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Eight 