What you don't know about the music business Pt 1

  Terms you need to know about the music business.

-        Did you know that most record deals don't even require the record label to produce a record, let alone distribute it?

-        You don't really have to register with the Trademark Office to get a copyright?

-        If we compose a song jointly and you just write the lyrics and I only write the music, we each own a portion of the music and a piece of the words? And that neither of us can use the music or the lyrics without compensating the other?

-        Some film music composers can’t even write music, much less create the sorry arrangements for each instrument of an orchestra?

Now you have obviously asked a lot of questions on what a royalty is, how to sell rights of your music to anyone, the right agreement to execute and all. But you barely get the needed details and answers you need just because some people love to hoard information. Well, worry no more.

The music industry is a thriving one. Piracy is still prevalent, CD sales are declining, and digital sales are failing to compensate for the loss from CDs. Record labels are losing money, laying off employees, and generally panicking. Furthermore, the global economy is sucking the big one.

Don't worry, there's some good news on the way. Digital music delivery is becoming a greater part of the industry. Demand for music is at an all-time high (despite the fact that pirates provide a lot of it), and we are seeing new ways to transmit music (such as the internet and mobile phones), which means music is now available to individuals who would not go into a record studio. It also means that artists may communicate with their audience in ways never previously conceivable. Consider the music sites SoundCloud and Audiomack.

As new ways to exploit music emerge, you may be wondering how musicians get compensated. You've come to the correct spot, my buddy. Almost all record labels demand on a cut of artists' earnings from non-recorded sources. In other words, record labels want a cut of what musicians make through song writing, touring, merchandise, fan clubs, and so on. Why would record labels do anything like this? Why would artists consent to this? Is it necessary for artists to work with a record label now that digital distribution is easier than ever?

Then you are at the right blog.

WHAT IS A RECORD?

Let’s turn to the basics. What is a record?

The contractual definition of a record in almost every record deal covers both audio-only and audio-visual media (meaning ones with both sound and visual pictures), such as videocassettes and DVDs. The definition of recordings also includes (and continues to include) any other technology known now or in the future that is capable of transmitting sound alone or sound combined with visual pictures. More significantly, the existing agreements define “records” as any type of music transmission for consumer use, whether sound alone or with images. This is intended to detect internet and other electrical signals. As you can see from these definitions, record deals can make life a bit tricky if you’re a recording artist and also an actor or actress in films.

MASTERS

The word master has two meanings:

1.      The original studio recording is referred to as a master since it is the master (controlling entity) from which all copies are created (the machines that make the duplicates are referred to as slaves—get it?). Think about the Tidal music streaming service. Tidal provides Master Quality Authenticated (MQA) to its subscribers and it is also unique for giving artistes and songwriters higher royalties gotten from the masters recordings.

Master recordings are now mainly done on computer hard drives, with cassettes becoming obsolete (although digital audiotapes occasionally pop up). These are multi-track recordings, which means that each instrument and vocal component is recorded on a different track or channel: drums on one track, guitar on another, voice on another, and so on. There are two masters – the original multitrack, and the finished two-track.

      The term "master" can also refer to a single song's recording. As a result, you might argue that an album contains "10 masterpieces" (ten picks). Because each segment was historically "carved" into vinyl, these separate recordings are also known as cuts.

ROYALTIES

Straight to the money talk. What are royalties in the entertainment industry?

Let me give you a basic concept.

My cousin, Nneka, is in the used phone business. She’s famous throughout the city of Abuja because she trades phones for anything. At one point, she traded a Samsung S20 phone for a set of a makeup kit, a set of cinematography tools, and an iPhone 12 pro (jokes aside, this actually happened). She then traded these items along with a portrait painting of Davido, for a four-year-old Lassa arp dog named Sparkle.

About that time, my girl and I were looking for a dog. We planned on having kids, and we wanted to test our parenting skills on something that wouldn’t use drugs if we failed. In trying to decide what kind of dog we wanted, we used to take Sparkle for outings on weekends. In a perverted way, we began to think of her gnarled face and drooling as cute. Anyway, Nneka decided she was going to breed her, and we wanted a puppy. So, I helped her and got a stud dog, through a sophisticated referral system. I called a place named K9 Bulldogs, which conjured up images of some suburban squire’s dogs lounging around on velvet pillows. Well, it turned out to be a dilapidated house in Lokogoma, the most impressive feature of which was its bulldog smells. But K9 had a brown and-white champion stud named Winston, so Nneka hired Dapo's dog(mufasa), and Sparkle got pregnant.

About this time, Nneka decided she wasn’t interested in the headaches and stress of small puppies. So, she enlisted the help of her friend, Emmanuel. Emmanuel’s deal was that she would take care of Sparkle and the puppies, and when each dog was sold, she would get half of the sales price. So, if a dog sold for sixty thousand naira, Nneka would get thirty thousand naira, and Emmanuel would get thirty thousand naira.

What does this have to do with records you ask? Well, your record royalty is very much like Nneka’s share of the Lassa arp sales proceeds. In the case of records, the artist (Nneka) turns the recordings (pregnant Sparkle) over to the record company (Emmanuel), who then sells the finished product (puppies). For each record (puppy) sold, the artist gets a piece of the price, and the company keeps the rest to cover its cost and make a profit.

Royalties are paid for each record sold. Why do I emphasize the word sold? Well, the companies give away free goods, also known as special campaign free goods. This started when the companies wanted to push out large numbers of a particular artist’s album. To get the stores to stock more of it, they gave away   10%   or more of all records shipped. Originally, these were short-term deals (a few months), but they’ve evolved into a near-permanent arrangement.

These free goods are essentially a discount on the price. The record company doesn’t get paid for them, so they don’t bear royalties.

No company is giving away free goods for digital sales. That’s because there’s no need to incentivize a digital retailer to stock more units.

You need the following Agreements handy if you need to be prepared for the music business venture.

• Artist Recording deal agreement
• Music License Agreement
• Trademark and Royalty Agreement
• Artist Agent Agreement
• Distribution Agreement (can be edited to contain music distribution)

We will talk about music publishing in subsequent articles concerning the music industry.

 

Developing and wrting a grant proposal

 This article is targeted for Non-profit Organisations.

So if you run a Non-profit Organisation like a school, a home care, a training institute or research centre and the like or intend to run one, this article is for you.

Developing a grant proposal

 Preparation

 A successful grant proposal is one that is well prepared, thoughtfully planned, and concisely packaged. The potential applicant should become familiar with all of the pertinent program criteria related to the program from which assistance is sought. Refer to the information contact person listed in the program description before developing a proposal to obtain information such as whether funding is available, when applicable deadlines occur, and the process used by the grantor agency for accepting applications. Applicants should remember that the basic requirements, application forms, information and procedures vary with the Federal agency making the grant award. Individuals without prior grant proposal writing experience may find it useful to attend a grant writing workshop. A workshop can amplify the basic information presented here. Applicants interested in additional readings on grants and proposal development should consult the references provided in this product.

 

 Developing Ideas for the Proposal

 When developing an idea for a proposal it is important to determine if the idea has been considered in the applicant's locality or State. A careful check should be made with legislators and area government agencies and related public and private agencies, which may currently have grant awards or contracts to do similar work. If a similar program already exists, the applicant may need to reconsider submitting the proposed project, particularly if duplication of effort is perceived. If significant differences or improvements in the proposed project's goals can be clearly established, it may be worthwhile to pursue Federal assistance.

 

Community Support

 While many entrepreneurs may find it difficult to deal with, community support for most proposals is essential. Once proposal summary is developed, look for individuals or groups representing academic, political, professional, and law organizations, which may be willing to support the proposal in writing. The type and caliber of community support is critical in the initial and subsequent review phases. Numerous letters of support can be persuasive to a grantor agency. Do not overlook support from local government agencies and public officials. Letters of endorsement detailing exact areas of project sanction and commitment are often requested as part of a proposal to a Federal agency. Several months may be required to develop letters of endorsement since something of value (e.g., buildings, staff, services) is sometimes negotiated between the parties involved.

Many agencies require, in writing, affiliation agreements (a mutual agreement to share services between agencies) and building space commitments prior to either grant approval or award. A useful method of generating community support may be to hold meetings with the top decision makers in the community who would be concerned with the subject matter of the proposal. The forum for discussion may include a query into the merits of the proposal, development of a contract of support for the proposal, to generate data in support of the proposal, or development of a strategy to create proposal support from a large number of community groups.

 

Identification of a Funding Resource

 A review of the Objectives and Uses and Use Restrictions sections of the program description can point out which programs might provide funding for an idea. Do not overlook the related programs as potential resources. Both the applicant and the grantor agency should have the same interests, intentions, and needs if a proposal is to be considered an acceptable candidate for funding.

 Once a potential grantor agency is identified, call the contact telephone number identified in Information Contacts and ask for a grant application kit. Later, get to know some of the grantor agency personnel. Ask for suggestions, criticisms, and advice about the proposed project. In many cases, the more agency personnel know about the proposal, the better the chance of support and of an eventual favorable decision. Sometimes it is useful to send the proposal summary to a specific agency official in a separate cover letter, and ask for review and comment at the earliest possible convenience. Always check with the Federal agency to determine its preference if this approach is under consideration. If the review is unfavorable and differences cannot be resolved, ask the examining agency (official) to suggest another department or agency, which may be interested in the proposal. A personal visit to the agency's regional office or headquarters is also important. A visit not only establishes face-to-face contact, but also may

bring out some essential details about the proposal or help secure literature and references from the agency's library.

 Federal agencies are required to report funding information as funds are approved, increased or  decreased among projects within a given State depending on the type of required reporting. Also, consider reviewing the Federal Budget for the current and budget fiscal years to determine proposed dollar amounts for particular budget functions.

 The applicant should carefully study the eligibility requirements for each Federal program under consideration (see the Applicant Eligibility section of the program description). The applicant may learn that he or she is required to provide services otherwise unintended such as a service to particular client groups, or involvement of specific institutions. It may necessitate the modification of the original concept in order for the project to be eligible for funding. Questions about eligibility should be discussed with the appropriate program officer.

 Deadlines for submitting applications are often not negotiable. They are usually associated with strict timetables for agency review. Some programs have more than one application deadline during the fiscal year. Applicants should plan proposal development around the established deadlines.

 

 

Getting Organized to Write the Proposal

 Throughout the proposal writing stage keep a notebook handy to write down ideas. Periodically, try to connect ideas by reviewing the notebook. Never throw away written ideas during the grant writing stage. Maintain a file labeled "Ideas" or by some other convenient title and review the ideas from time to time. The file should be easily accessible. The gathering of documents such as articles of incorporation, tax exemption certificates, and bylaws should be completed, if possible, before the writing begins.

 

Review & Criticism

 At some point, perhaps after the first or second draft is completed, seek out a neutral third party to review the proposal working draft for continuity, clarity and reasoning. Ask for constructive criticism at this point, rather than wait for the Federal grantor agency to volunteer this information during the review cycle. For example, has the writer made unsupported assumptions or used jargon or excessive language in the proposal?

 

 Signature

 Most proposals are made to institutions rather than individuals. Often signatures of chief administrative officials are required. Check to make sure they are included in the proposal where appropriate.

 

Neatness

 Proposals should be typed, collated, copied, and packaged correctly and neatly (according to agency instructions, if any). Each package should be inspected to ensure uniformity from cover to cover. Binding may require either clamps or hard covers. Check with the Federal agency to determine its preference. A neat, organized, and attractive proposal package can leave a positive impression with the reader about the proposal contents.

 

Mailing

A cover letter should always accompany a proposal.  Make sure there is enough time for the proposals to reach their destinations. Otherwise, special arrangements may be necessary. Always coordinate such arrangements with the Federal grantor agency project office (the agency which will ultimately have the responsibility for the project), the grant office (the agency which will coordinate the grant review), and the contract office (the agency responsible for disbursement and grant award notices), if necessary.

How to create a joint venture

 

Standard Operation Procedure

 

 

Purpose: A joint venture is a strategic alliance or partnership between two or more parties that allows both parties, usually companies, to increase their ability to build their separate businesses. Joint ventures are commonly used by companies to become active in a new territory and return higher profits by expanding the company’s network. This should not be confused with partnership. 

 A joint venture can be described as a contractual arrangement between two or more entities that aims to undertake a specific task. A partnership involves an agreement between two or more parties wherein they agree to share the profits as well as any loss incurred in a single venture.

 

Frequency: When needed

 

Procedure:

 

1)     Determine your need for a joint venture.

 

2)     Define your business objective.

 

3)     Research potential partner.

 

4)     Determine if the partner represent a good fit.

 

5)     Prepare and sign a non-disclosure agreement.

 

6)     Decide the format of the joint venture.

 

7)     Draft the joint venture agreement.

 

8)     Determine the management of the joint venture.

 

9)     Define the role of the employees in the new entity.

 https://www.entrepreneur.com/article/77730

Definition/Explanation:

 

            I.     Need: It appear when in your regular business operations, you reach a point when you realize that your business doesn’t have the expertise, technology or operations in a specific area. One way to solve this is through a joint venture with another company that has expertise or operations in that missing area.

 

          II.     Business objective: What will be the purpose of this new business? When you have an idea, you must determine the business objectives. They must be clear. Describe the purpose of the joint venture that you foresee and identify its goals. This will need to be a document that you can share with potential partners to generate interest. The need for the joint venture should be compelling and self-evident.

 

         III.     Partner: You must identify some potential partners. They must be able to complementary to your activities. Maybe it’s a competitor or a distributor. Networking in the business community is a useful way to find potential partners. Shop around, meet with other business leaders, and focus on entities that provide the services or already have the expertise that you need.

 

        IV.     Good fit: Examine the operating structures of the two companies to see if they are compatible. Both companies must be able to work together efficiently and frictionless. Both companies must be committed to success, same things for their employees. Also, it’s important that both companies are financially strong to support the joint venture.

 

          V.     Non-disclosure agreement (NDA): This is a form of a contract by which both parties agree not to disclose or take advantage of anything obtained from the other company. Because of the nature of a joint venture, it’s important to sign an NDA, because your business will share sensible information with another entity. You may choose to prepare an NDA, or confidentiality, agreement before you begin the joint venture.

        VI.     Format: Depending the project (type and size), the format on the joint venture could be different. Sometimes it’s a new corporation, a partnership, or a simple contractual agreement. Sometime, the help of an attorney could be beneficial to determine the format that suit well.

 

      VII.     Joint venture agreement: When drafting the contract, be sure to name the parties to the agreement, with a brief description of each party’s operations. Then introduce the name of the new joint venture and include a brief statement of its intended purpose. The purpose is often stated early in the joint venture agreement. Also, define terms that should be clearly defined. Identify the business objectives of the joint venture. The statement of the objective must be clear and defined, so that the parties to the contract can identify when their task has been met. Finally, define the structure of the joint venture.

 

    VIII.     Management: For the success of the joint venture to succeed, both entities need to agree how they will run the new business. You need to decide if you will create a separate board of directors, elect officers, or set up a team of representatives.

 

        IX.     Role: You need to consider which workers will contribute to the joint venture, and in what proportions. The agreement needs to identify which employees will perform specific functions and how the work of the joint venture will get done.