NEW PEAK BODY FOR VICTORIAN MUSIC

Yesterday the Victorian Government announced the formation of a new peak body - MUSIC VICTORIA!

Over the last few months I have been part of the Steering Committee pushing for the establishment of an active body representing the Victorian music industry.

Music Victoria exists to support the growth, participation and development of the Victorian contemporary music industry. It aims to be broadly inclusive and accessible to all people involved in the contemporary music industry across Victoria. In all its activities, it aims to add value to music makers.

For all the details go to musicvictoria.com.au.

MEDIA RELEASE

GOVERNMENT ANNOUNCES NEW PEAK BODY FOR VICTORIAN MUSIC

From the Minister for the Arts
Thursday, 18 February 2010

Victoria’s contemporary music sector received a boost today with Arts Minister Peter Batchelor announcing the formation of a new peak body – Music Victoria.

The announcement follows the establishment of a Live Music taskforce that is meeting regularly to resolve a number of concerns about the impact current liquor licensing arrangements were having on some small music venues.

Mr Batchelor said the Brumby Labor Government would provide seed funding of up to $250,000 to support the establishment of an independent body, Music Victoria.

“Melbourne and Victoria play a key role Australia’s music scene and contemporary
music is an important economic and social driver in our community,” Mr Batchelor said.

“From dedicated musicians, iconic festivals and passionate audiences, Victoria is renowned as being the place for music.

“Music Victoria will represent the sector’s interests on a local, national and even an international level and ensure Victoria’s contemporary music credentials remain strong.”

Mr Batchelor said that in 2009 music industry organisations, The Push, The Australian Performing Rights Association, the Australian Independent Records Label Association and the Australian Music Industry Network joined with Arts Victoria to form a Steering Committee to determine if there was a case for the establishment of a peak body for Victoria.

“After consultations with more than 650 Victorian artists, business owners and music industry workers, support for a peak body in this state was resounding,” Mr Batchelor said.

“Music Victoria will provide a unified voice and will play a role in advocacy and industry development by providing support services for music makers and small businesses as well as a knowledge-hub and on-line resources.

“But most importantly, Music Victoria will celebrate and promote our fantastic contemporary music scene.”

Music Victoria representative Peter Chellew said: “Music Victoria is delighted to have the support of the Victorian government at this important time for contemporary music in our state.

“We look forward to working with the Victorian Government to ensure that the talented artists, businesses and creative workers who make up our music community continue to flourish.”

The Music Victoria Committee will seek the involvement of the media industry to establish the body and will start the search for a director.

A detailed funding agreement with milestones will be established over the coming weeks between the Government and Music Victoria.

Get it in Writing!

I am often asked by young bands whether they should enter into an agreement among themselves. Whilst my legal training says “Yes”, I am also conscious that this may open a “can of worms”.

Recently my client, the charismatic lead singer of a well known act, no longer wanted to be part of the band, citing irreconcilable differences between the members. Instead, he wanted to leave, find himself a new backing band, continue to use the same band name, play the same music and perform an almost identical “live show”. Now there’s a can of worms!

He believed that as a founding member, lead singer and principle lyricist, he should be entitled to do so. The band had a strong following, was making good money touring, and was about to release their debut album. Naturally, the remaining members of the band were mortified and wanted to continue business as usual, and simply find themselves a new lead singer. Thus began a long and spiteful dispute.

What many people don’t realise is that without an agreement in writing, then the Partnership Act applies. Partnerships are defined as “persons carrying on a business in common with a view of profit”. “Business” is defined as “every trade or occupation”. So if your band is more than a “hobby”, it will be considered a partnership under the law. As my client did not have an agreement in writing we were forced to rely on the Act.

So what were the key provisions of the Act that applied and how could a Band Agreement have helped resolve the issues?

Firstly, the Act assumes that all partners are equal. This surprises many bands and may be contrary to a band’s intention. The Act also states that subject to any agreement to the contrary, a partnership can be dissolved by any partner providing notice to the other partners of his/her intention to do so. My client’s actions and emails clearly conveyed his intention to dissolve the partnership. Once this was done, the issue became who had best right to the band’s name, and who should have the right to perform their songs?

Aside from physical assets such as music equipment, pa’s, etc, a band’s primary assets are its name and its songs. Generally speaking, the Act provides that upon dissolution of a partnership, each partner has an equal right in all assets (including the band name and song catalogue) and no one partner has a greater right to the assets than the others.

The Act also provides that any partner can apply to have the partnership wound up with assets sold-off and the funds distributed amongst the partners (ie equally). In my client’s case we needed to strike a deal as to who would get what under threat of such a court application. Much time and money was spent on ascertaining the “value” of the “business”. The matter was eventually settled by way of pay-out ie my client agreed to forgo any rights to the name and ownership of the songs (subject to him continuing to receive his cut of publishing royalties) in return for a fee.

There are often clauses in a Band Partnership Agreement that cover band members who want to leave. Such a clause would have spared my client much angst. “Leaving member clauses” usually provide that appropriate notice must be given by leaving members. They also provide that if a member leaves the Band, the remaining members may continue to perform under the Band’s name. It may also provide that a leaving member is entitled to a pay-out of sorts, for ongoing royalties and how such amounts should be calculated. This can be vital when a band has had success and there are ongoing royalties to be claimed.

A Band Agreement forces a band to consider a host of issues such as:

• how many partners are there;
• the roles and obligations of each partner;
• song ownership splits;
• division of income from different sources;
• decision making processes;
• ownership of the band name;
• leaving member processes; and
• admitting new members.

Given the gravity of writing a Band Agreement, some bands will put it in the “too hard basket”. Whilst no bands are alike, I would advise all bands to consider entering into a Band Agreement.

Feel free to contact our office to further discuss.