I have a question concerning a situation that my band is currently in.
I am in a band based in Tokyo, Japan. We were signed to an independent label last December and recorded a seven song album which we completed at the end of January. We also have a freelance producer who has been working very closely with us for over a year and in this particular project he received engineering and production credits. For the engineering he has received a flat out fee and for production he was due to receive a royalty of 3% (same as our artist's royalty of 3%).
Although we were supposed to release the album next April, due to business reasons (the record company was bought out by a larger entertainment company and seems to be going through massive restructuring), the band has decided to buy out the sound recording copyright and eventually either sell it or license it to another record company that can release our material. The label has already agreed to sell us the copyright and is currently calculating the selling price.
My question is this: now that we are planning to do a buy out, what is the fair/accepted rate of ownership? i.e. producer/artist ratio. Our producer wants to do a 50:50 buy out, where he gets (pays for) half and the members (there are three of us) splits the other half. I personally feel more comfortable with 25% each, but don't know if I would be pushing it if I ask for that much. Consequently our A&R man believes that the artists should hold 100% of the sound recording and that the producer has no right.... (urm.. A&R man and producer aren't exactly on happy terms)
This kind of situation is extremely rare, if non-existent, in Japan so I have no knowledge of previous cases to site... Could you tell me what's fair in cases like this?
Any form of advice would be greatly appreciated.