As a musician, you are certainly familiar with the frequency of band break-ups, disputes over royalties, and fights over creative control in the music industry.  Whether you view these as the inevitable consequences of clashing, creative personalities, or, on the contrary, pettiness to which your band would never succumb, a band agreement is a must.

Group contracts, or band agreements, can cover countless facets of your group’s business ventures, and should be drafted early on in the band’s formation.  Until you make it really big, a basic partnership agreement is probably best, whereby each member of the group is a co-equal partner with regard to sharing revenues, control, and any group decision making.

Beyond the basic structure, there are a few provisions that you should have in your band agreement.  First, the name of a successful band becomes a brand that sells, so an agreement should specifically address the rights to your band name should the band break up, or if a member were to leave the band.  For example, an agreement could preclude the use of the band name unless at least two of the original members still comprise the band.

Your band agreement should also account for compensating a departing band member.  Depending on the circumstances of the departure, the agreement could provide for a lump sum buy-out, in which case the departing band member would forego any future royalties or other band-generated revenue in exchange for one-time compensation.  Another option might be for the departing band member to receive a reduced percentage of royalties derived from CD sales or merchandise created prior to the departure.

Finally, imagine a four-person band that is voting on whether to sign to a new record label, and there is deadlock.  The band agreement should account for resolving such a scenario, and, in general, how control of the band is to be exercised.  For example, routine decisions could be handled by a simple majority vote, while critical decisions such as adding a new member to the group, or whether to amend the band agreement, might require a unanimous vote.  And how would you break that tie in the above case?  One possibility is for the band manager to cast the deciding vote.

These are just the basics of a band agreement.  Ultimately, what to include in your agreement depends on the band’s personality and professional aspirations.  With an attorney, and before the road gets rocky, draft your band agreement in order to minimize conflict and streamline your path to success.