\n

This is the final installment of \u00a0a 3-part series on the importance of collaboration agreements for every writing or other creative team. \u00a0In Parts 1 and 2, I analyzed some of the important provisions found in properly negotiated and drafted collaboration agreements. \u00a0Here, I\u2019ll continue that discussion, and explain the advantages of using entertainment lawyer -drafted agreements.<\/em><\/p>\n

G. \u00a0Division of Royalties and other revenues\/expenses<\/strong><\/p>\n

Generally, the authors of a collaborative work \u00a0share in the Net Income derived from exploitation of the work. \u00a0The definition of Net Income, while \u00a0sometimes a hotly contested issue in negotiations with third party purchasers, shouldn\u2019t be a major point of contention among collaborators. \u00a0It\u2019s usually a relatively simple formula\u2026 Income, less expenses and commission equals Net Income, which is then divided according to the agreed splits among the collaborators.<\/p>\n

H. \u00a0Small\/Grand Rights<\/strong><\/p>\n

Since Musical Theatre projects consist of both musical and literary material, it\u2019s important to distinguish between the sources of revenue for the musical components of the work.<\/p>\n

Songs, for example may, in addition to being performed as part of the show, be re-recorded by other artists, played on radio, tv, over the internet, etc.<\/p>\n

The rights in such non-dramatic performances of musical works are typically referred to as \u201csmall performing rights\u201d, while \u201cGrand Rights\u201d refers to performances within the dramatic context of a staged production.<\/p>\n

Since there are different sources of revenue, it\u2019s important that the collaboration agreement address the manner of accounting \u00a0for each. \u00a0 \u00a0 As a general rule, the small performing rights are controlled by the lyricist and composer (or their publisher). \u00a0The big question, then, is whether the bookwriter\/librettist should participate in such revenues, and if so, to what extent?<\/p>\n

Other considerations might include \u00a0revenues from merchandise focusing on a particular element, say a song-title on a T-shirt, or a lyric printed on a greeting card.<\/p>\n

Similarly, \u00a0what about subsidiary uses of only a single element. \u00a0(i.e., the publication of the book only, or music only?)<\/p>\n

Still further consideration should be given to the inclusion of a buy-sell provision. \u00a0This would require that if a collaborator wishes to sell his\/her interest in the show, the other parties might \u00a0have a right of first refusal, last refusal, or even an absolute right to bar the sale to any third party. \u00a0As with many provisions of the collaboration agreement, the better spelled-out the mechanisms, time frames, and procedures are, the less likely that misunderstandings will arise.<\/p>\n

J. \u00a0Resolving Disputes<\/strong><\/p>\n

Historically, parties have relied on court proceedings to resolve disputes that arise out of collaborations\u2026 but the expense of such proceedings \u00a0is considerable and is often a deterrent to pursuing \u00a0the issue. \u00a0Many collaboration agreements now contain provisions for less formal methods of dispute resolution, such as mediation, and failing agreement following a mediation, arbitration of the dispute. \u00a0Care should be taken to select mediators and arbitrators familiar with the particular industry involved, so you get an informed and meaningful result.<\/p>\n

Special Situations with Company-Created Works<\/strong><\/p>\n

While a typical collaboration agreement \u00a0can deal adequately with a 2- or 3-member team of collaborators, it is not well suited to the situation of Company Created Works.<\/p>\n

A Company Created Work is a \u00a0work that is authored by a collective, such as a theatre company, acting class or improv group. \u00a0 \u00a0The questions \u00a0(ownership, control, merger, division of revenues, etc.) that arise in such situations are similar to those of collaboration, but the way they\u2019re handled can differ greatly. \u00a0I\u2019ll make this the subject of a future article. \u00a0Stay tuned.<\/p>\n

Why agreements should be drafted by an Entertainment Lawyer, and not simply copied from books or the internet.<\/strong><\/p>\n

While there are plenty of \u201cform\u201d collaboration agreements available on the internet, in books, and elsewhere, entering into a collaboration agreement should be looked at in the same way someone would view starting any other new business. \u00a0The advice and counsel \u00a0of a knowledgeable, experienced entertainment attorney is invaluable in protecting the interests of all concerned. \u00a0The cost of preparing such an agreement is negligible compared to the losses that can be suffered if a project is abandoned, or winds up mired in litigation.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

This is the final installment of \u00a0a 3-part series on the importance of collaboration agreements for every writing or other creative team. \u00a0In Parts 1 and 2, I analyzed some of the important provisions found in properly negotiated and drafted collaboration agreements. \u00a0Here, I\u2019ll continue that discussion, and explain the advantages of using entertainment lawyer […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,8,15,16],"tags":[],"yoast_head":"\n