Attorney At Law (Part I)

In an effort to stay current with some of the legal issues surrounding the entertainment industry, I was able to catch up to and have a conversation with attorney Adrian D.Cranford, Esq.  Attorney Cranford has had the opportunity to work at a prestigious entertainment law firm here in the city of Detroit where cases were brought against DMX and Sean Puffy Combs. After a successful association with the Detroit Law firm, Attorney Cranford opened his own law firm. He has since negotiated film and television contracts, distribution, copyright, trademark, financing, and a wide range of music law transactions. In our conversation I was able to get some great insight on what to be aware of in the entertainment industry as I navigate through my own career.

I asked attorney Cranford what resources he would recommend for anyone to use to better equip themselves with business as well as legal information about the entertainment industry. He shared that he does not have a book that he recommends because there are so many books on the subject; however, he would recommend anyone serious about learning the music business to intern with an entertainment firm. I totally understand and agree with this approach. In most situations, experience can become your best teacher. Also, the skills you gain from an intern can give you qualifications that you can add to your resume and use to establish your career.

Another important question that I was able to ask attorney Cranford was how important the role of an attorney is to the success of an entertainment career? He explained that an attorney who understands the music business is very important because the attorney ensures that everyone on the team is under proper contract, which the attorney may have to enforce from time to time. In essence, he explained to me that an attorney is extremely important to an entertainment career. As I have talked about in the past the importance of understanding a contract before entering into one, an attorney can help make that process even smoother. 

Lastly, I asked attorney Cranford when in an entertainer’s career would he advise them to seek counsel from an attorney? He suggests that the attorney is the first person that needs to be added to the team because of all of the contracts that may have to be signed up front (booking agent, personal manager, accountant, etc.) This makes a lot of since. The attorney can really make a huge difference in how those other contracts come about and the quality of the contracts that have to be signed by each individual on the entertainer’s team.

It was great having the opportunity to be able to listen to attorney Cranford share his in-depth knowledge about the industry. He is definitely qualified in the area of entertainment law and the information he shared is very true. I plan to use what he shared in my own business practices and consult with him as well for his services. I would encourage you to check out his website. Again, it was truly a pleasure to interview attorney Adrian Cranford.

Lawsuits and Music

Lawsuits in the entertainment industry are a big part of this industry. Individuals as well as companies get sued for all sorts of things including royalties and compensation, performance rights, and contractual disputes just to name a few. It is really not enough to only be good at entertaining, but it is also equally important to understand the business of entertainment. Along with understanding the business, you should also know some of the laws associated with the doing business in the entertainment industry. Let’s take a look at a few recent legal controversies and explore some of the lawsuits that take place in the entertainment industry.

The first controversial lawsuit I would like to look at is a lawsuit filed by Marvin Gaye’s family against a company owned by Sony over a Grammy nominated song performed by Robin Thicke.  Marvin Gaye was is considered an R&B legend from the ‘70s and ‘80’s and his career was cut short when he was killed by his father in 1984. Robin Thicke is a current R&B star that is a singer-songwriter, musician, and actor. He is also the son of Alan Thicke who played on the hit TV show Growing Pains. Robin Thicke and his collaborators T.I. and Pharrell Williams produced a song called, “Blurred Lines”.  The Gaye Family claims that this song copied elements from Marvin Gaye’s original song, “Got To Give It Up”. This was a case dealing with copyright infringement. The two parties were recently able to settle the dispute and the terms of the settlement were confidential. During this controversial lawsuit I was speaking with a friend of mine who is also a producer and he suggested that the Robin Thicke song did not sound like it was copied to him. Whether or not the song was actually copied or not, the main thing to be aware that cases like these arise often in the music industry. Whenever possible it doesn’t hurt to get the proper permission to avoid having to be sued over it latter. It’s also important to understand what could happen if you produce a song that is significantly successful and that song closely resembles another popular song. Robins Thicke’s song “Blurred Lines” is estimated at selling 6.6 million tracks. The success of the song may be one of the major reasons why the family decided to go after him.

Another controversial legal dispute happened a few years ago. In this dispute rap artist Eminem sued his record label, Universal Music Group over the way royalties were computed for digital music. More of the recent record labels have revised their record contracts to include digital sales. Unfortunately, when Eminem signed his contract back in 1995 it did not make provisions its artist for digital sales. The major discrepancy in this dispute is the difference between Eminem as an artist being paid a 50 percent  royalty for the license and 12 percent for a sale. This was the difference between millions of dollars that Eminem would either lose or have coming to him. A federal court jury had initially ruled in favor of Universal in this case and then that ruling was overturned after an appeal. It was then taken to the Supreme Court and they refused to hear the case so it remained in favor of Eminem. This is a clear case of understanding your rights as an artist. As I stated before, it’s not enough to be good at entertaining, but you should also understand the business. I think it is great that Eminem was able to recognize and stand up for his rights. His fight also helped others with similar disputes.

The last controversial dispute that I would like to look at the recent filing of lawsuits filed by the Recording Industry Association ofAmerica (RIAA) against 532 illegal file sharers. This was done in an effort to protect copyright holders and also keep things balanced for those legitimate online music services. As the digital age has moved in and literally taken over various industries including the entertainment industry, it’s important that the rights of copyright holders are protected. I think it’s a good thing that the RIAA is doing this. People work hard to make really good music and the music they create not only adds color to the world, but it allows those individuals to take care of their families. These actions by the RIAA will hopefully help cut down on the illegal activity of file sharing.

As you can see there is a lot of legal business that takes place in the music industry. There are also many legal disputes and controversies that arise when the law is broken or legal responsibilities are not adhered to. Hopefully this information will help you be more aware of legal issues that can arise and encourage you to become legally educated and also add the proper legal representation to your team. This should cut down if not completely eliminated the amount of controversial legal disputes you could find yourself in over the course of your career!

The Mike Sears 

NEGOTIATIONS IN RELATIONSHIPS

Recently, I have made several posts about negotiating. I believe it is a very important topic to cover and should not be taking for granted in the music business. Aside from the major deals that have to be negotiated including contracts, compensation, and perks, we also have to negotiate in the process of building relationships. Like most industries, the music industry is a business that is about establishing good relationships. In the time that I have experienced in the music industry, I have been able to establish some important relationships that have helped me establish my career and other relationships that are currently helping me further my career.  There are several negotiation techniques that I believe can actually be used to help foster productive relationships in the music industry.

Building strong lasting relationships in the music industry can be the difference between having a career and not having one. No one can do this business alone. You need people in this business in order to do this business right and be successful. The need for people in order to be successful means there is also a need for relationships. Negotiating the right relationships can be imperative to having a consistent long lasting relationship. There are also some negotiating techniques that can be used to maintain those relationships when problems occur. One technique is to separate the problem from the person. In other words, you should try to solve any problem that occurs without attacking the other person. Another negotiation technique that can be used in maintaining industry relationships is  to focus on interest and not positions. It’s easy to try to stand on your own position and argue your point as opposed to finding out the other person’s true interests. Finding out their interest and how their interest coincide with your interest can save the relationship. Lastly, it is important not to allow any negative emotions impede on your industry relationships. There are times when individuals will use dirty tricks for their own benefit. However, dirty tricks should not be used in return. Instead, you should try to redirect the situation in a positive direction to avoid having to sever the relationship.

Donald Trump who is considered a real estate mogul has a quote that says “I like thinking big. I always have. To me it’s very simple: if you’re going to be thinking anyway, you might as well think big.” I like this quote and I believe it is necessary in the world of negotiating. You really have to be able to think big and have confidence in what you’re going after in order to be in a position to get it. There are a lot of opportunities available in the entertainment and music industry. Everyone who desires an opportunity does not always get that chance. Some opportunities are missed and others are wasted. So when the opportunity comes to you and there is a chance for you to establish the right relationships in your career, I hope these negotiation tips prove to be beneficial to maintaining those relationships. I have learned this from my Negotiations and Deal Making Class at Full Sail University. This course has also helped me build a greater level of confidence. I look forward to negotiating greater relationships for myself in the future!

The Mike Sears

Don't Hate, NEGOTIATE!!!

I say, if you don't like what you have or what you're getting out of the deal, then learn how to negotiate for something better. I had the honor and privilege of conducting an interview with up and coming sports agent Lorenzo Parker from Detroit Michigan.  He is the owner of a company called Pro-Actus Sports & Entertainment, Marketing and Management where he represents a host of athletes, coaches, and entertainers. I was able to get some great insight into his world as he shared with me some of the technics he uses when going into a negotiation. Negotiations are an intricate part of his job description. I asked him some questions and he gave me some really detailed answers.

The first question I asked Mr. Parker was how he handles positional bargaining tactics. He stated that positional bargaining can present many challenges in negotiations between sports agents and teams (i.e. General Managers, Scouts, and Player Personnel). When representing amateur athletes, especially those who come from Division II schools and lower, it is difficult to market their qualifications to compete at the professional level. Statistics show that less than 1% of student-athletes are scouted and recruited by professional sports organizations. This fact alone makes the task of securing professional employment even more difficult. Additionally, the experience of the agent and the agent’s company may present challenges. For example, a relatively new sports agent or agency may not have the rapport with teams needed to effectively pitch its clients for employment. Teams unfamiliar with boutique agencies tend to shy away from negotiations altogether. However, there are instances where the right client, sales pitch, and timing can help secure opportunities for clients who have very little popularity in the market.

Assuming that the agent and client reach the negotiation table of a professional team, the next hurdle is trying to overcome the Team’s positional bargaining tactics. For example, if your client is relatively unknown, a Team will use that fact in its favor. The reasoning is that your client has not demonstrated the level of skill and ability to justify compensation beyond the sport’s minimum. Virtually every professional team uses this positional bargaining tactic (or lack thereof) to try and get the best talent available for the cheapest price. Often, they will tell you (the agent) that an increase in compensation may be available after your client has made it through training camp, survived the “cutting” process, and demonstrated that they can compete far and above the talent that they already have or are considering. The cutting process is a period where players attend training camps and are tested in various competition tasks. If they are unsuccessful during this period, they are ultimately released.

Unfortunately, there is very little room for negotiations under these circumstances. For example, a player who performs at a developmental league level (semi-pro) is bound by the standard compensations at that level. The reason for this is that developmental teams are extremely limited in funding and the compensation is calculated based on how much the Owner’s can afford to pay. Conversely, when a client is considered a top prospect in a sport and is one who is projected to go high on the Draft board (i.e. NBA or NFL), positional bargaining tends to swing in the agent and client’s favor. This is because the larger professional leagues and their respective teams are interested in bargaining for the best talent. The owners in those leagues tend to have deep pockets to pay for players that are in high demand. Wow was all I could say. Mr. Parker gave a great response and detailed information about positional bargaining.

The next question I asked Mr. Parker was how he separates the person from the problem and if  he had any tips for new negotiators who are trying to do this? He suggested that the best way to separate people from the problem is to look at what each party wants to achieve. Typically, problems arise due to a lack of communication and understanding, which is completely normal. Staying with the sports analogy, if a client wants to negotiate a higher salary and the team refuses to do so because a lack of confidence in your client’s abilities, then the main problem is not so much the client themselves, but rather the production. The agent in this salary negotiation must continue to reiterate the potential of the client and explain to the team that if a new contract can be negotiated, then compensation should be contingent upon the client achieving certain benchmarks. Together, the agent, the client, and the team (typically the GM) work together to set realistic benchmarks. As a result, the client is happy because they remain on the team and the team is happy because they can retain the client with a view toward improved performance. This allows the client to feel incentivized through their continued efforts. The team is satisfied because they are not forced into having to pay an increase upfront and can continue to receive the athletic services that the client can provide.

For example, the Client (Wide Receiver) currently makes $45,000 for a standard CFL Contract with an option to renew. The Contract’s initial term has ended. Client has played one year for the CFL team and wants an increase in salary. The CFL team has several options to consider, either 1) renew for the option year; 2) release the player; or 3) increase the salary according to certain production benchmarks negotiated by both parties (i.e. All Star = $5,000 bonus; Lead league in reception yards = $3,000 bonus; Win Championship = $4,000 bonus). According to the third option, the Client now has the potential of making $57,000 for the second contract. This is a $12,000 increase in salary potential. As a result, if all parties agree on the third option, the problem itself is resolved and the people in the negotiation are happy.

I asked Mr. Parker if  he ever used dirty tricks and he responded, “No, absolutely not.” He stated that it is important to have integrity when dealing with clients. It is also important to maintain integrity when representing a client in the negotiation process. An agent, or representative, has a fiduciary duty to act within the best interests of their client. When a representative resorts to “dirty tricks” on either end of the spectrum you risk losing the client you serve as well as damaging your reputation, which in the end could detrimentally affect your future in business.

Lastly, I asked Mr. Parker if he felt like he was a good negotiator and he said he considers himself a good negotiator, however, there is always room for improvement. He stated that he thinks “good” is best determined by those who have engaged in negotiations with you or those who you have negotiated for. As an agent your job is to help others see the value your client brings to the deal. It is critical to cast your client in the best light possible. Of course, every client is different and at the end of the day these are real people whose successes and failures may depend on your ability to generate business. The agency business hinges upon relationships. Long-term relationships and a solid reputation for doing honest, professional business can open many doors for both you, as the representative, and the clients you serve. My approach to negotiations is to try and generate a result that both parties of the deal are pleased with. This approach is what I would consider a “win-win” negotiation or “mutual benefit.” The best way to achieve this result is to have a solid grasp of each parties perspectives, understand what motivates them (their interests), and try and tailor the negotiations in a way that each party can appreciate.

I had a really great time interviewing Mr. Parker and I learned a lot. I hope you learned much from reading this as well. Please be on the look out for Mr. Parker. He is definitely doing some big things in the industry and making some major moves.

-The Mike Sears

NEGOTIATIONS IN THE MUSIC INDUSTRY

What does negotiating have to do with the music industry? Well, I’m happy you asked.  There are all types of negotiations that take place in the music industry. Pertaining to someone who has a music career as an artist or a musician, one of the major things you have to negotiate are your contracts. You have to become wise about how you negotiate your contracts and there are various types of contracts to negotiate. You may have one or all of these: a manager contract, a producer contract, a record contract, and a performance contract. These are only a few contracts that you may have to consider within your career. Within each contract there are terms that have to be agreed upon. The process that takes place to decide on those terms is called negotiating. You have to negotiate the length of time of each contract as well as what you are willing to give up in exchange for what you will receive. You have to negotiate how much money you will receive for your efforts and when those monies will be recoupable. You even have to negotiate what your responsibilities will be in each agreement and how those responsibilities are expected to be carried out. One of the main things to consider when negotiating is the fact that nothing that happens to you in this business just happens.  You are very rarely just freely given what you want. A lot of what you receive is hugely a part of what you accept, what you vie for, and what you negotiate. You are never obligated to accept every offer that is presented to you. You have the right to refuse any offer or negotiate for better terms. It is very important to be knowledgeable about the music business and surround yourself with the right team of individuals that are knowledgeable as well. This is definitely what I sensed when speaking with Mike Holloway, the CEO of Walking On Water Productions located in Detroit, Michigan. He is very knowledgeable about the music industry and negotiating is a part of his routine on a consistent basis. In our conversation, I asked him a few questions about the technics he uses when negotiating and here’s what he had to say.

There were three main questions that I asked Mr. Holloway. The first question was how he was able to deal with positional bargaining tactics when negotiating with his clients. Mr. Holloway uses objective criteria to deal with a positional bargaining issue that might occur over the rates for his company’s services. He stated that as an Audio Production Specialist, his company offers rates that are set based on experienced claims of the industry. His company uses historical data and trends for audio engineering services.  This data is used to support their rates. Mr. Holloway went on to say, “This strengthens our position in the bargaining process as we are able to validate our rates being considerably less than the rates in the industry.” The next question I asked Mr. Holloway was if he could give me an example of how he worked toward a mutual benefit in a negotiation. Mr. Holloway had this to say, “ In the audio production industry, being able to build long-term relationships is vital. Therefore, we work towards mutual benefits with all clients to develop these relationships.” One of the examples he gave had to do with an organization that produces multiple plays, concerts, and other various services. This particular client approached Mr. Holloway’s company to help provide them with audio production services. His company was able to develop a long-term strategy for the organization. This strategy allowed his company to not just provide services for one particular program, but they were able to negotiate a deal that allowed them to partner with this organization and provide audio services for all of their performance needs at all of their venues. The mutual benefit in this scenario worked as the client was able to obtain a reduced rate for audio services based on the long-term relationship and Mr. Holloway’s company profited by gaining a long-term client with residual dividends. The last question I proposed to Mr. Holloway was would he ever use dirty tricks when negotiating with any of his clients. Mr. Holloway said, “We would never use dirty tactics in negotiating with a client. All data we provide is current and accurate. We would not speak adversely or provide any negative facts about any competitor in the industry. Integrity has to be a priority in conducting our business.” This is truly a principle that Mr. Holloway thoroughly stands by. He believes in treating people right and treating people fair. He is more concerned with the relationships he establishes with his clients and the longevity of that relationship over trying to make a quick buck.

This was a great interview. It gave some direct insight on how negotiation goes down in the music industry with some clear examples. I believe Mr. Holloway has the right idea about integrity and building long-term relationships. Success in the music industry has a lot to do with relationships and good relationships that are hard to come by should not be destroyed over the use of poor negotiation tactics. I hope that you were able to gain as much from this interview as I was about negotiating in the music industry.

   

-The Mike Sears