Posts Tagged ‘conflict’

Is The Term “Work-For-Hire” A Magic Phrase?

Thursday, December 12th, 2013

By Brian Taylor Goldstein, Esq.

An orchestra wants to commission a composer we represent to create an arrangement of a piece they want to perform. We were hoping that our composer would retain ownership of the arrangement so that in the future if the orchestra, or anyone else, ever wanted to play his arrangement, he would get a royalty. However, the most important thing is that we want the composer get credit for the arrangement whenever it is performed. In the commission agreement they sent us it says that the orchestra will get the right to perform the arrangement for one year, but it also says that: “Artist agrees that this work stated above shall not generate further monetary remuneration to the Artist (ie: a “work for hire”).” This doesn’t make any sense. If we agree to this, would our composer at least get credit ever time his arrangement is performed?

You’re correct. The commission agreement contains conflicting terms. It’s bad enough when attorneys use “legalese”, but when normal people try to use legal phraseology that they do not understand–or, worse, that they “think” they understand—chaos, rather than clarity, often ensues.

As a general rule, the person who creates something automatically owns it and controls all rights. The mere fact that you pay someone for their services does not inherently mean that you own the work they produce or have any rights to the work. For example, paying someone to design your website does not mean you also purchase ownership of the design or have any rights to use the design. Similarly, commissioning someone to provide creative services (such as composing music) does not mean that you own the material they create or have any rights to perform the composition. All rights remain with the author of the work unless either there is an agreement between the parties specifying rights and ownership or the work constitutes a “work for hire.”

A “work-for-hire” means that the person who paid for the work is considered to be the author and owns all rights to the work. However, under U.S. copyright law, a “work-for-hire” occurs in only one of two very specific scenarios:

1)         When an employee creates material for an employer within the scope of the employee’s employment, the employer and not the employee is considered to be the author and the employer automatically holds the copyright. The employee gets nothing but a pay check; or

2)         A work is specially ordered or commissioned for use as a contribution to a collective work; a part of a motion picture or other audiovisual work; a translation; a supplementary work; a compilation; an instructional text; a test; answer material for a test; or an atlas AND the parties expressly agree in a written contract signed by both parties that the work shall be considered a work made for hire.

In your case, I am sure that the orchestra believe that merely using the magic words “work for hire” will automatically transfer all rights and ownership in the arrangement to them. It does not. Why? Because although there is a written contract, the arrangement will not be used as a contribution to a collective work; as part of a motion picture or other audiovisual work; a translation; a supplementary work; a compilation; an instructional text; a test; answer material for a test; or an atlas. (Yes, this is a very odd and restrictive list. Blame Congress…while you’re at it, blame the lobbyists for the motion picture industry, text book industry, etc.) Unless both elements are present, it does not create a “work for hire.” If the orchestra wanted to own the arrangement, the commission agreement would need to include an assignment of copyright and a grant of all rights and title. As it doesn’t, if you were to sign the agreement, the orchestra would, in fact, have no rights to the arrangement. However, you’d also be taking advantage of the orchestra’s obvious lack of knowledge of copyright law as, clearly, they believe they would be owning the arrangement. Should they ever attempt to assert their rights, your composer would need to bring a lawsuit to assert his ownership and nullify their claims. This would not only result in needless legal expenses, but probably make any other orchestra think twice about commissioning your composer.

Rather than engage in legal games, if your composer is not willing to transfer ownership to the orchestra, I would strongly advise you to bring that to the orchestra’s attention and discuss the matter. If the orchestra insists on owning the arrangement, then you can decide whether or not to decline the commission or edit the commission agreement to specify the parties’ intentions. Should your composer decide to assign ownership to the orchestra, the parties can always agree that your composer would be given credit as the composer. However, that must also be specified in the contract! Preferably, in English.

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For additional information and resources on this and otherGG_logo_for-facebook legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

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THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

 

Back Away From The Email!

Wednesday, December 4th, 2013

By Brian Taylor Goldstein, Esq.

Dear Law and Disorder

I recently had to cancel an engagement. We had a signed contract with the venue, but circumstances arose where we had no choice. I sent a very cordial and professional email to the venue, but got a very threatening and aggressive response. I wrote back and explained our situation, then I received a nasty email from the venue’s attorney threatening to sue us. This doesn’t seem very professional to me. We could have worked this out and now they are demanding either a written assurance that we will perform or else they will sue us for damages.

In an industry that depends on relationships and communication, email, more often than not, facilitates neither. Too many folks use email as convenient way to avoid what they perceive will be difficult or unpleasant conversations. What you perceived as a “cordial” and “professional” email may have been misread as dismissive and aggressive. Why? Because emails cannot convey tone or emotion or sincerity.

This is yet another example of why everything I needed to learn, I learned in theater. Emails are like scripts. Without an actor or stage directions to assist in interpreting them, they are just words on a page and subject to multiple interpretations and readings. “I loved your performance” can be read equally with deep sincerity or with eye-rolling sarcasm. Even something as simple as “I’ll respond as soon as I can” could be interpreted as “This isn’t important enough to me to demand my immediate attention.” Especially when you are delivering information you know the listener will not be receptive to hear, don’t be surprised when they do not give you the benefit of the doubt. Emails are great tools for confirming information or clarifying understandings, but lousy for any communication that calls for nuance or delicacy at the outset.

In this situation, if you had a signed engagement agreement, then you probably had no right to cancel. Thus, regardless of legitimacy of your circumstances, a cancellation is a breach of contract. Using an email to notify someone that you intend to breach your contract is like texting your wife that you want a divorce. How did you expect them to respond? It was unrealistic to think that your missive would be met with joyous rapture and a “thank you” note.

However, the venue is equally as culpable in the escalation. When the venue received your email, they could just as easily have responded with a phone call rather than respond with their own email. Certainly, when you received the venue’s angry response, you could have used that as an opportunity to reach out to them with a personal phone call rather than yet another email. There is no guarantee that a personal phone call would have resulted in a better outcome, but more often than not the sound of a plaintive voice acknowledging responsibility accompanied by contrite offers of reasonable solutions will offer both parties better odds of avoiding unproductive conflict. You can always follow up with an email after you have had a chance to make a personal connection.

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For additional information and resources on this and otherGG_logo_for-facebook legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

Your Move or Mine?

Wednesday, June 19th, 2013

By Brian Taylor Goldstein, Esq. Dear Law and Disorder: If I am booking an artist, whose job is it to draft the contract? Some venues ask me to send them my contract, but other venues seem to have their own. What’s the normal practice? Since you asked for the “normal” practice, I shall tell you: the normal practice is that some venues will ask you to send them your contract and other venues will have their own. It all depends on the circumstances and the venue. You should always have a basic engagement contract that you can tailor for each artist and send to a venue who wants your contract. However, you should expect larger venues to prefer to use their own contracts just as most venues understand and expect that major artists will insist on using the artist’s contract. It really doesn’t matter as both parties will need to review the proposed contract and, if necessary, proposed changes, additions, and amendments. Its unrealistic to presume that the venue’s contract will address all the issues important to the artist and that artist’s contract will address all the issues important to the venue. Negotiation is not just about date, time, and fee. Negotiations include ALL of the terms which will be in the final contract. What you want to avoid at all costs is a situation where, in lieu of taking the time to review and negotiate a single contract, the manger or agent just attaches the artist’s contract as a rider to the venue’s contract (or visa versa) and the parties proceed. Almost always the two contracts will have conflicting terms which will operate to negate the entire contract, making neither one legally enforceable. (And, no, it doesn’t help to use a rubber stamp that says “in the event of a conflict, mine governs.” That only benefits the folks who sell rubber stamps.) Even more important, regardless of who goes first, is to never ever ever ever ever send anyone a signed contract at the outset. The contract should be signed only after all parties have had a chance to review, make comments, propose changes, attach riders, and agree upon a final version. Otherwise, the party receiving the signed contract will simply strike out or amend the language they don’t like…or, worse, attach a rider…sign it, and return it…which, legally, constitutes a counter-offer and not an enforceable contract. (Actually, it “could” be enforceable, but this gets into complex legal issues which could all be avoided if everyone just sent one another blank contracts and waited until all issues had been resolved before anyone signed anything!) I realize that it takes time to review, negotiate, and amend every contract. However, that’s what contracts are for. It gives each party a chance to make sure that all important issues have been addressed and that there will be no unstated expectations or assumptions. Contracts are not about enforcement…they are about avoiding conflicts and disappointment. Without question, life would be easier if there were standard contracts and terms that worked for every engagement. However, we work in the arts. Nothing is normal and nothing is customary. If you are looking for consistency, go work in a bank. Otherwise, learn to embrace the chaos. __________________________________________________________________ For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com To ask your own question, write to lawanddisorder@musicalamerica.org. All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously. __________________________________________________________________ THE OFFICIAL DISCLAIMER: THIS IS NOT LEGAL ADVICE! The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

What Attorneys Won’t Tell You

Wednesday, July 25th, 2012

By Brian Taylor Goldstein

I recently attended an arts conference where there was a panel discussion on music contracts. An attorney said that artists don’t really need to read or review contracts because you can always declare them null and void later and get a new contract. Is this true?

This is why 99% of most attorneys give the rest of us a bad name. No. It’s not true. That is, its bad advice. However, there are many attorneys out there who like to believe otherwise.

You may…or may not…be surprised to learn that any attorney with even the most minimal amount of skill can create some plausible “theory” on which to sue someone else. That’s all it takes to file a lawsuit in a US court: a plausible “theory.” Your theory might be the world’s dumbest theory, but everyone is entitled to his or her day in court. And, under what’s called the “American Rule”, unless there is a contract requiring the loser to pay for attorney’s fees and costs, everyone is responsible for their own attorney’s fees regardless of who wins or loses. So, unless you and I have a contract requiring the loser in a lawsuit to pay the winner’s attorney’s fees, I could technically file a lawsuit against you right now (assuming I knew who you were) and you would have to spend your own money to defend it. (If you don’t like the “American Rule”, blame George Washington. The “English Rule”, of course, is the exact opposite!)

Because of this situation, many attorneys believe that the answer to every conflict is to file a lawsuit and use that as leverage to get a better deal. The argument goes something like this: If an artist signs a contract and later wants to get out of it, just file a lawsuit claiming that the other side is in breach. Even if the artist has absolutely no legal basis for such a claim, the other side will need to hire their own attorney, file a motion, appear in court, and have the claim dismissed. As this will cost them thousands of dollars, the other side just might re-negotiate with rather than spend all that money. Here’s the catch: the artist will ALSO have to spend all that money hiring an attorney to file the lawsuit in the first place. And if you think that a large recording label, or a successful producer, or even a presenter with access to a free board attorney is simply going to roll over to avoid a lawsuit, think again. Why? Because their own attorneys will advise them to fight.

There’s another consideration, too: your reputation. One of my clients once received a letter from an attorney who represented an artist who was part of my client’s roster. Even though his contract was not up for another year, the artist wanted to be released early so he could negotiate a potentially lucrative deal directly with one of the producers we were already working with on his behalf. His lawyer raised several legally weak arguments and threatened a multi-million dollar lawsuit. After several efforts to resolve the matter ended in screaming phone calls and more threatened litigations, we decided to release the composer, even though, ultimately, I felt we would win in court. It simply wasn’t worth it. My client had other artists and business to focus on and could afford neither the money nor the time and distraction. While you may conclude that the artist got what he wanted and won, think again. There’s more: of course, we had to advise the producer that we no longer represented the artist and what had happened. As a result, the producer determined that the artist’s talents were not worth the risk of dealing with someone who sues their way out of a dispute and selected another artist for the project. It wasn’t long before word spread that this artist would sue anyone at anytime and other producers refused to work with him either. In the end, the artist’s lawyer wound up suing the artist for unpaid attorney’s fees. Not a happy ending.

If you haven’t figured out the game yet, an attorney will always advise you to file a lawsuit. However, regardless of the outcome, only the attorneys win. So, unless you have an endless supply of money, energy, time, and spirit do not play this game! Take the time to draft meaningful contracts, take the time to read them, and take the time to establish a relationship with the people you will be working with. You may not always get what you want in a negotiation, but at least you can make an informed decision by asking questions and evaluating the pros and cons of the deal before you. While there are many reasons you might agree to unfavorable terms, believing that you can sue your way out of a bad situation is not among them…unless you’re an attorney!

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For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!