| "Record
earning" deemed oxymoronic
Can record deals
ever be fair?
By Terry Noone
& David James
The
chief executive and chairman of EMI, Alain Levy, recently penned an article
in the Financial Times citing a conversation with a newspaper editor who
was "terrified" of the online world. "That is exactly how
we in the record industry felt five years ago," writes Levy. He cites
what he regards as the competitive advantage of record companies: "Getting
a record deal is as important as ever to musicians - not only because
of the investment a record company commits to you, to the production of
your record, to marketing spend in 70 countries, but because someone will
work hard to generate all kinds of income out of your work."
| Part
of an interview with Mr Grant, lawyer with solicitors Nanscowan &
Grant:
The
Dues: I understand you recently gave advice to two young
musicians names Steve Mackay and Heath King from a band called "Flow".
Grant: Right.
The Dues: Is it true that you said those contacts
were industry standard?
Grant: Ah… can I just make a …. I can't
answer these questions cause I don't have the consent of [record
company] to tell you what my advice was. So, I better be fairly
cautious that what I say here cause the information that…
the advice that I gave them was confidential and privileged and
I do… haven't been authorised to release that to anyone else
so…
The Dues: All right. OK well look we're going ahead
as I say….
Grant: Yeah, sure.… I recall … I know
the … the contract and I must say I don't…one thing
I can say is that I would never use the term "industry standard"
about recording or publishing contracts because there is no such
thing as the industry standard.
The Dues: All right.
Grant: Yeah… no.
The Dues: Now are you aware if… if Killing
Heidi has got similar sorts of contracts with [the record
company]?
Grant: Again I can't… I can't comment about
that 'cause I was involved in that… in that project as well…
The Dues: OK.
Grant: So I…again that information that I
had… I don't have authority to say anything about that I'm
sorry, yeah … What's this article all about because…?
The Dues: Well we're writing about the way that
music contracts are ... we've come across some very interesting
things … and that's what we are going to write this article
about….give you the opportunity to say something.
Grant: I can tell you no I was not engaged by [the
record company] … I was … I was the… I was paid
by… by the guys from Flow but their … their… the…
because… that they were paid… the funds that I was paid
were paid by way of an advance against their recording and publishing
deal. And that's quite a common situation … that occurs with
a number of recording artists. Yeah. But I'm completely independent
from them and the advice I provide to them was… was absolutely
on the basis of it being independent and… I have no connection
otherwise with … with any of the recording companies that
… that my clients … that any of the recording artists
are involved with. Yeah. … I've certainly expressed the view
to clients about… recording contracts and management and publishing
contracts generally and this is, if I may say, about any other specific
recording company, that I think recording and music industry contracts
in some ways in Australia and throughout the world are, I think,
unfair and unreasonable in some ways and I certainly think [that
if there were] an artist in Australia who had the financial capacity
to fight a record or a recording or publishing company on the unconscionability
and unfairness grounds that are in the trade practices act and now
in the fair trading act [it] would certainly be an interesting case
to run.
I wouldn't guarantee you'd win it but I think it would be a good
case to run.
The Dues: Why Trade Practices?
Grant: There's the trade practices act and the
fair trading act. There have been what are called unconscionability
provisions in the trade practices act since it was introduced basically,
but the Victorian Government has recently come into line with some
of the other states in Australia and introduced the similar sorts
of provisions into the fair trading act.
The Dues: And you think this is something that
could clean this whole…
Grant: Well I don't know about clean it up. I think
it would be an interesting legal argument to run. It would need
a lot of work and a lot of addressing but I think it could certainly
be worth a try. Particularly with young musicians who are not signed
(and I've put this on record too) I think there is an unfavourable
bargaining power between unsigned artists and publishing and recording
companies. I think there at times they are very unequal and the
recording and publishing companies use that to their advantage and
one of the aims of the fair trading legislation, particularly the
unconscionability provisions is the inequality of the bargaining
power between the parties so yes it could serve but the problem
is again that you've got to have an artist who's got some money
to run a case, to fight it unfortunately, that old problem, and
if they haven't got any money then you're not going to run it but
I think that certainly its an argument worth running and yes I think
there is an unfairness about these things sometimes.."
|
It sounds good, but there is an obvious difference between what happens
to journalists and what happens to musicians. Journalists are employed;
even when they are just casuals or freelancers, they are paid and treated
as an up-front expense. Musicians typically enter into a joint venture
arrangement whose main characteristic is a lack of equality. They are
often not paid, and routinely finish their contract in debt. When inexperienced
teenagers strike an alliance with a large corporation; the outcome is
wholly predictable.
Witness the following comment from Stephen Grant, a lawyer with Nanscowan
Grant solicitors (see the sidebar for more of this interview). It was
in relation to some advice given to two young musicians, Steve Mackay
and Heath King from a band called "Flow".
"I can tell you no, I was not engaged by [the record company] I was
paid by the guys from [the band]," he says.
Look a little closer, however, and the money trail becomes quite interesting.
Grant says: "The funds that I was paid were paid by way of an advance
against their recording and publishing deal. And that's quite a common
situation that occurs with a number of recording artists… but I'm
completely independent from them and the advice I provide to them was
absolutely on the basis of it being independent and I have no connection
otherwise with any of the recording companies that my clients …
that any of the recording artists are involved with."
It looks suspiciously like the advance came from the record company. It
certainly was not seen by the musicians. Is it an advance paid against
a recording and publishing deal that hasn't even been signed yet? Grant,
with perhaps unconscious irony says: "I think recording and music
industry contracts in some ways in Australia and throughout the world
are, I think, unfair and unreasonable in some ways."
No argument there. Neither is it news that musicians rarely if ever get
a good deal when negotiating contracts. Unfortunately, the signs are that
things are getting worse. Management contracts in which 20% of the gross
earnings of artists go to the manager are increasingly common. Such a
deal makes it virtually impossible for musicians to make any money at
all and usually leaves them in debt. To add insult to injury many of these
contracts tie up musicians for years with no chance of renegotiation until
their careers are effectively over.
Recording and publishing contracts are similar. Unfair royalty splits,
extremely long terms and no effective termination or performance clauses
- and once signed, musicians just have to cop it sweet. Most publishing
contracts give the publisher a hefty slice of royalties from any source
for the privilege of collecting them.
Formerly, publishers would plug compositions and generate income. Many
contracts actually state that the artist has engaged independent legal
advice before signing the contract. On a musician's income, this is less
than likely to be self-funded. So who often arranges the legal advice?
The record company, of course.
None of this should be a surprise. When young musicians, with little or
no business knowledge, attempt to negotiate a deal with a big company,
or, worse, a global corporation, it is hard to imagine how the result
could be equitable.
So what about a really radical idea for a record company? Employ musicians.
Give the artists some residual sharing of any rewards, but make sure the
bulk of the gains and the risks are borne by the entity most able to bear
it - the record company.
This is not about to happen any time soon. It is an unfortunate side effect
of the war over file sharing and digital piracy that the record companies
are used to owning what musicians produce while the pirates regard it
as free, with financial rewards going elsewhere. If there is concern shown
for musicians by either side, it tends to be an afterthought. But at least
with less money around, there might be fewer funds available to hire lawyers
representing your interests.
Terry Noone and David James are definitely not funded
by any record company. Oh, you mean does the record company pay
them...um... yeah...well, that's different....
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Gray
on Browne
...continued
from front page
Far better to show these insincere qualities to the outside world than
to frighten the horses of public life by continually demonstrating the
psychological and moral blackness that lurks deep, but not too deep, within.
One thing I am sincere about, however, is loving a particular woman.
I have been married to this girl for many years, and she grows more beautiful
with age, which is a remarkable thing, considering what she is married
to.
At times I am convinced that she, too, is not doing a complete Walter
Cronkite act when she professes to feel similarly towards me. I know,
however, that there is another person who stirs her in a way that I will
never be able to do, unless I somehow miraculously straighten my hair,
master several musical instruments, begin writing classy poetry that rhymes
and learn how to move women on all sides of the English-speaking world.
Even Bruce Springsteen's wife loves him. He is Jackson Browne.
The
above is only a partial list of Browne's accomplishments. If my wife were
writing the column, she may add harmony and melody, a lovely singing voice,
a gorgeous face that never ages, the ability to draw together some of
the world's most interesting musicians and an amazing facility with song
lyrics.
For myself, I think Browne's lyrics come under the heading of classy
poetry that rhymes. To successfully fill this category is no small accomplishment
in the rather long historical era we occupy, in which it is widely believed
that a necessary condition of classy poetry is that it should never rhyme.
That is, of course, bollocks. But it is culturally powerful bollocks,
and therefore no surprise that today, it is popular songwriters, and popular
songwiters alone, who are able to create the verbal images which speak
most powerfully to the modern soul. (One example, plucked randomly from
Browne and suggesting, I think, the adult search for intimate love:
Everyone's just waiting to hear from the one
Who can give them the answers
And lead them back to that place in the warmth of the sun
Where sweet childhood still dances.
Browne does this, and does it well. From my observation, he does it particularly
well for women.
There is no jealousy about what I'm saying here. Not much, anyway. I
bought my first Browne album, The Pretender, on vinyl, years
before I met my future wife. This fact now causes strange moments to occur,
when, from the other end of the house, I hear her singing Browne, and
I know all the words.
There are times when certain Browne lines -- "we'll fill in the
missing colors in each other's paint by number dreams" is one -- vividly
brings to mind the faces of friends, long gone, with whom I once held
long, agonised conversations about love and the future, as Jackson rotated
in the background.
The Pretender, I must note in passing, holds one of the best
proofs in existence of the artistic non-corniness of rhyme, when Browne
strings together a remarkable six lines with words ending in "end-er",
to match the title of the song. Not one of the six is forced. Great couplet-eers
like Dryden and Pope would take their hats off to this. If you do not
believe, listen to the song again.
You may gather from all this that I am not seriously, or even significantly
anti-Jackson Browne. Tolerant as I am, I do not even object to Browne's
Californian liberal politics. For example, I enjoyed the No Nukes concert
and movie package which he helped inspire in the 1970s, and though the
threat of nuclear conflagration appears so far to have been be over-rated
as a civilisational danger, with the likes of Osama bin Laden hanging
around, you never really know. Browne's politics, though, are more anti-American
than anti-Osama, in a George Clooney-Motion Picture Academy kind of way.
But Browne is better -- unapproachable, in fact -- when he concentrates
on his core business, which I would define as lyrically moving women.
As someone else has told me, he really understands women. Songs like Sky
Blue and Black prove this, with their evocation of such realities
as the place in a relationship where "the touch of a lover ends And
the soul of a friend begins." You mean, it ain't just all about sex?
What kind of a man writes songs like this? JB does.
So here is the critical question. When Browne performs these songs, is
he being sincere? Or is he just faking it? Can a man sing with the same
passion about love's tragedies, life's hopes and the unquenchable desire
for life that he expressed in his 30s, when he's nearly 60?
I can't answer this question, but I hope to form an impression one way
or the other, when I see him perform in April. I'll be there with my loved
one.
I want to keep an eye on her.
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