The Talent Agency Act and You

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Biletsky Law - TAA“Procure employment.” These two words are something every artist and manager (and possibly others acting on behalf of an artist) should be aware of. In 1978 the Talent Agency Act was passed in California which required that any person acting as an artist’s agent be licensed. Most importantly, these laws broadly defined those who act as agents as those who “procure employment” for another. Also important is the repercussions for those who violate the Talent Agency Act (TAA).

One of the most famous of these cases is the 1996 case of the musical band the Deftones versus their former manager, Dave Park. Dave Park had sued the Deftones for failure to pay earned commissions. In return, the Deftones filed a complaint with the California Labor Commissioner regarding Park’s violation of the TAA. The Labor Commissioner’s investigation found that Park had violated the TAA on 84 occassions by procuring employment without a license. The result? All commissions earned by Park in relation to the Deftones was disgorged and returned to the Deftones and all management agreements were cancelled.

This hasn’t been the only instance where the TAA has caused headaches for managers though. Matthew Katz, the former manager of Jefferson Airplane, forfeited more than $12,000,000 resulting from his violation of the TAA. Other sizeable cases can be found in almost every corner of the entertainment industry from music, to movies, to theatre.

From the above examples, you would think that managers across the board would be inclined to attempt to keep their distances from any kind of activity that could potentially violate the TAA. But, that’s not necessarily the case. The roles of managers between industries are very much the same, yet vastly different, depending on the industry.

In the motion picture and television industry, the role of a manger is more confined to that of how the role of the manager is defined. The manager will look after the day-to-day operations, ensure that all of the projects are lined up and running smoothly, and make sure that all of the jobs that the agent had obtained for you are on your calendar and ready to go.

In the music industry, the role of the manager can sometimes be a bit more blurred. Your manager will do similar tasks such as ensuring that your recording projects are lined up and going smoothly, but from time to time, a manager may be able to book you a gig or an appearance. Although this seems to be within the normal realm of a manager’s duties, you can see why “procuring employment” could be as simple as booking a gig for your client or arranging an appearance where the client gets paid (autograph signing, product sponsorship, etc.).

So, after all the problems that the TAA can cause a manager, you may be asking yourself, why don’t these managers just obtain a Talent Agency license to make it so that they don’t have to deal with these sort of problems? In many instances, companies may offer both managerial and agency services and may be equipped with the necessary licenses. But for the most part, it is usually a pretty good bet that your manager does not also simultaneously have their agency license.

California has enacting somewhat strict guidelines and regulations for agents to be licensed. Although not prohibitively expensive or complex, the process is somewhat costly and lengthy enough to deter your average manager from also pursuing an agency license without having a legitimate agency business to run.

So where does this leave you? Well, if you are on the talent side, you can rest assured knowing that the law is usually on your side when it comes to keeping your team compliant with the law. On the management side, you need to walk a thin line in providing your services to your client to ensure that you do not run afoul of the TAA.

For more information on the Talent Agent Act or for assistance in a matter related to the TAA, contact Biletsky Law.

Live Performance Agreements

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Biletsky Law - Live PerformanceWhile making music is certainly one of the life lines of an artist’s music career, it is the live performances that many rock stars, DJs, singers, and other musicians dream about. Nowadays, the way the industry works has shifted in such a way that live performances have become even more essential than they used to be.

What was once the complement to album sales is now the bread and butter for some artists. Although the performance aspect of a musicians career is exciting, it is also one of the most important agreements that needs to be negotiated for an artist. Without negotiating the proper terms and conditions of the agreement, an artist may end up losing or owing money after going on tour. So what are some of the more important parts of a live performance agreement that you need to be aware of?

Place of Performance

The place of performance is important for many reasons. For one, you need to know where you are playing (and also if it is an acceptable venue for you), second you will likely be receiving complimentary tickets and kills (seats or spots that are unable to be occupied for some reason) based on the net capacity of the venue.

Date of Performance

The date of the performance will also cover the number of performances (if multiple), the time of performance, and the length of performance. Related to the date of performance, but not necessarily included in this provision, may also be a restriction on where else an artist is able to perform for a certain length of time. These restrictions may be based geographically or by the type of venue.

Billing

For some arists, the billing aspect of the performance is as important, if not more important, than the compensation. Billing is essentially how the artist’s name or likeness is displayed in advertisements for the performance. The billing provision of the agreement will state whether the artist is headlining, whether billing is sole or shared, and may even include how the artist’s name or logo is to be displayed.

For certain events, headlining artists are able to receive a percentage of tickets sold, so it is important that the billing provisions include that the artist is headlining.

Compensation

How and what you get paid can be the determining factor of whether an artist will perform at an event or not. Compensation can come in various ways but is generally either a flat fee, a versus deal, a guarantee and door split, or profit percentage.

A flat fee, as it sounds is where an artist is given a flat rate for their peformance.

A versus deal is where the artist is given two figues, a flat fee guaranteed amount and a percentage of the net ticket sales. The artist will be given whichever amount is higher.

A guarantee and door split is where the artist is guaranteed a certain flat fee, but also recieves a portion of net ticket sales.

Lastly, a percentage deal will be where the artist receives an overall percentage on the ticket sales, usually with the house nut (what the venue has to earn to break even) subtracted.

There are of course other compensation methods, but these are some of the more common ones.

Rider

While billing and compensation are amongst the most important provisions in a live performance agremeent, the rider can be the most exciting part. The rider can be seen as the artist’s lists of demands in exchange for playing the venue.

As you can imagine, what goes into a rider varies greatly depending on the type of event, the venue, and most importantly…the artist. Riders may include everything from airplane and hotel accomodations to catering and meal requirements. Riders can specify almost everything from how the stage will be set up, to how advertising will be conducted and how opening acts will be selected. Those artists at the very top of the industry can, and have been known to, include more outrageous demand including everything from what color M&Ms are allowed, specifics on the furniture to be included in the green room, and even to have people dress as the Seven Dwarves.

Other – Exclusivity and Cancellation

There are many other imporant provisions to a live performance agreement. Two of these such provisions are exclusivity and cancellation. As mentioned above, exclusivity relates to the date of the performance in that there may be a black out provision where the promotor wants to have a monopoly of the venues that the artist plays. A restriction such as one that prohibits the artist from playing within a certain region (or at all) for 90 days prior to the event may be common to help build anticipation for the performance.

On the other hand is also cancellations. Things do happen and there are certain situations where the event must be cancelled. Generally, these are separated by those where the cancellation was due to force majeure (an act outside the control of the parties) where everyone losses, or where the artist has cancelled purposefully. In the event that the artist has cancelled, the artist will have materially breached the agreement and the venue’s remedies will be dependent on what terms were negotiated.

As you can see, the importance of knowing the terms of a live performance agreement can make or break your touring success. For more information on live performacne agreements or for assistance in your entertainment career, contact Biletsky Law.

Music Synchronization

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Biletsky Law - Music SyncMusic that is featured in your favorite television show, motion picture, or even commercial can create a unique connection between you and the production. In many instances, you may identify the production through the song or visa-versa. The fact that such a connection can be created just by synchronizing a song with a particular production makes certain songs that much more valuable to a production.

And herein lies the synchronization license. A synchronization license is an agreement that allows the creator or producer of a type of visual media to use a particular song, or part of a song, in synchronization with a visual media project, or in the form of advertising for the visual project.

If you are either the creator or owner of a song or a visual production, there are several factors that you need to consider:

The Length of Use

The cost of a synchronization license will depend upon the length of the song and whether the entire song is being used or just a few seconds of a song. The length that the song is being featured in the visual production will largely dictate what kind of influence the song will have. Having a song featured in its entirety will often leave a bigger association between the song and the visual production.

In some instances, where an entire song is to be featured in a visual production, a hybrid license is used where the producer of the visual media pays for the entire cost of a song for the privilege of being the first to use the song. After the song’s use, the ownership of the song will then go back to the owner of the song.

Where is the Song being Used?

Another issue to be considerate of is where the song is being used. The impression that a song gives when being featured in the opening or closing scenes is substantailly different from the situational impression that a song being used only in a specific scene gives. Since music that is being featured in the opening and closing scene of a television show or movie commands such an important role, there are premiums that must be paid for obtaining permission to use the song in such a position.

On the other hand, music that is being used for small durations will vary in cost depending on the actual length of the use and the type of use. For the use of a song in certain controversial or explicit scenes, there may need some negotiation to use more popular songs in such a scene.

The Type of Synchronization

In addition to where the song is being used and how long of the song is being used, another pivital concern is the type of use. Type of use generally refers to how the song is going to be used in the production.

Background Instrumental
Generally, instrumental music is cheaper to license than music that has a singing component to it. With a background instrumental sync, the viewers cannot see where the music is being played from and only the viewers, not the characters, can hear the music.

Background Vocal

Slightly more expensive than background instrumental is background vocal. This type of synchronization is where there are words being sang, but you cannot see where someone is singing. This is music that only the viewers can hear but the characters in the movie cannot.

Source

More expensive than background sync is a source synchronization where again, you can hear the singing, but you cannot see the the singer. However with this type of synch, the characters in the movie can hear the song. This plays a different role in the production since the characters are able to interact with the music.

Visual Instrumental

In contrast to the types of synchronization mentioned above are visual synchs. Visual instrumental is a type of synchronization where the viewer can hear the music and also see where the music is coming from.

Visual Vocal

Probably the most expensive type of sync license is a visual vocal license where you can see the person who is singing the song that is being played. The license will be even more expensive where the original singer or band of the song is playing the music.

Visual Dance

Yet another type of licensing is a visual dance sync license. This license, as it sounds, has dance components which are visable to the viewer.

As you can see, there are many different issues that come together when negotiating a synchronization license. Before you decide upon what kind of music to use in your visual production, take into consideration exactly how you plan to use the song.

For more information, or for assistance with a synchronization license, contact Biletsky Law.

Electric Daisy Carnival Trademark Battle

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Biletsky Law - EDCIn 2009, a trademark application for the mark “Electric Daisy Carnival” was filed on behalf of Pasquale Rotella of what is now Insomniac Holdings LLC. The trademark application alleged use as early as 1997. On April 20, 2015 Gary Richards of HARD Events filed a lawsuit seeking to cancel Insomniac’s trademark. Before diving into who owns what, it is important to understand where this lawsuit is coming from.

Starting as early as 1991, Gary Richards and Stephen Enos (also known as Dr. Kool-Aid) began hosting events under the name “Electric Daisy Carnival” in Southern California. It wasn’t until 1997 when Rotella began using the name for Insomniac’s flagship festival.

For nearly six years, Insomniac’s use of the “Electric Daisy Carnival” trademark went uncontested. Then, on June 5, 2013 Enos filed an Australian trademark application for “Electric Daisy Carnival.” After that trademark was filed, on June 21st, Insomniac filed an Australian trademark application for “Electric Daisy Carnival” as well. In addition to the filing, Insomniac also opposed Enos’ application. Taking the legal battle closer to home, some five years after the initial U.S trademark application for “Electric Daisy Carnival” was submitted, Enos filed suit in California against Insomniac claiming prior use of the mark.

While the outcome of the Australian trademark opposition and the U.S lawsuit is uncertain, Richard’s claim for ownership of the mark has thrown Insomniac back into the courts. Even though this lawsuit is likely to last for several months before any major developments occur, there is plenty of time to speculate what will happen.

Although Richards may not have federally registered the trademark, a person or a company receives “common law” trademark rights to the mark just by using the mark in commerce. However, unlike other intellectual property rights such as copyrights and patents, the user of a trademark only owns the rights to that mark so long as they are using the mark in commerce. What this means is that although Richards may have been the initial user of the mark, if Insomniac is able to show that Richards “abandoned” or failed to continuously use “Electric Daisy Carnival,” then Richards argument that he is the rightful owner to the mark will likely be met with rejection.

While the battle over the rights to the “Electric Daisy Carnival” wages on, Insomniac will continue to use the brand and has its’ flagship festival in Las Vegas lined up for next month with revenues expected to surpass the record-breaking receipts of previous years.

For more information about trademarks or to have a trademark of your own registered, contact Biletsky Law.