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Sound Recording Buyout? #1626433 03/10/01 11:58 AM
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Andre_dup4 Offline OP
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hello,

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.

Thank you.

andre

http://www.faridascafe.com

Re: Sound Recording Buyout? #1626434 03/11/01 02:17 AM
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PlatEar1@aol.com_dup1 Offline
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Quote:
Originally posted by andre:
hello,

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.

Thank you.

andre

http://www.faridascafe.com



I'd agree with you on the 25%. By doing that you're cutting him in the same as a band member, an equal. by going to a 50/50 split, in essence he's saying he's more important than any one band member. No matter how good he is, I don't buy it.......and I say this as a producer.

Re: Sound Recording Buyout? #1626435 03/11/01 05:24 AM
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Andre_dup4 Offline OP
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Thank you for the advice. I'm still wondering if anybody knows of any specific, similar cases to back up my argument....
I wouldn't want to bulldoze my way with what I think is right, thereby putting our relationship in jeopardy....

andre

Re: Sound Recording Buyout? #1626436 03/11/01 04:05 PM
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Doctor Al Offline
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This is ultimately a moral question. Is the producer invaluble? Did he contribute as much as any one band member to the 7 song album ? Could it have been made as well without him? Actually, a normal split in the real world is: The artist gets 10 - 15% royalties, the producer gets 3 - 5% royalties, if that helps. If he was in on the ground floor, made financial sacrifices to get the album done and is a true friend, than dont jeopardize your relationship with him over money. Sit down and talk it out based on friendship. Basically, if his greed exceeds his friendsahip, fuck em. And I say that as a producer myuself.

Re: Sound Recording Buyout? #1626437 03/15/01 10:06 PM
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Andre_dup4 Offline OP
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Thank you al for your advice. I will have a friendly talk with the producer when the chance arises.
However the part where you say that:
" a normal split in the real world is: The artist gets 10 - 15% royalties, the producer gets 3 - 5% royalties,".
kinda confuses me even more as to what's fair and what's not....
I've known that in the case of royalties Japan and the US have different systems. Japan gives a much lower percentage rate (1% to 3%) but guarranties a payment from the first unit sold. Where as in th US a higher percentage is given but only paid out after the label has recouped its costs...


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