What about the legal side of a talent/manager relationship?

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As many of you might deduce, my business plan consists in a talent/booking agency for Latin artists within different genres. Consequently, we have talked here about things ranging from emergent bands to other bands consolidated in the Latin music market, as well as leaders and spectacular storytelling. However, the legal field constitutes a sort of a life insurance policy when it comes to establishing a talent and booking agency. With that being said, I want to highlight some examples from the long list of legal issues that may arise.

First of all, it is especially important to properly register yourself as a talent agent. In the United States, the first place you have to look at when it comes to agent registration is the Association of Talent Agents (ATA). This association was created with the intention to track and regulate talent agent’s work. If you are not registered in the ATA, it can bring some negative consequences to your business, such as contract breaching without compensation or legal repercussions. Moreover, the fact of being registered in the ATA builds confidence in both your clients and artists, as well as gives a sort of leverage to your business.

On the other hand, contracts are the most important document of your agency. They are going to be a sort of constitution, regulating every single activity. Therefore, you have to be very cautious when writing contracts, no matter its type. A common liability regarding artist management contracts is unjustified termination or firing. The case of Kid Rock’s former manager Stephen Hutton in 2000 serves as an example of common contract issues. Long story short, Hutton sued Kid Rock for $4 Million, alleging unjustified contract termination. Lesson to learn: be very specific when it comes to contract termination clauses. Hutton wanted a correspondent compensation from the successful tour that Kid Rock did when he was at the top of his career in that year.

 

 "Ke$ha" in a photo shooting for Redfm.

Another case of a similar liability regarding contracts, is the dispute between pop artist “Ke$ha” and her former managers. The New York-based DAS communications firm, sued the artist for $14 Million in damages, alleging artist failure to honor commission deal. On the other hand, “Ke$ha’s” attorneys allege that her former managers had nothing to do with her recording deal, signed with RCA/Jive label group, and therefore, no commission had to be honored. Do not forget to document enough your achievements as a talent manager or booking agent. That is the easiest way to demonstrate your merits within a dispute.

Stay tuned since more tips and curiosities about the industry are coming soon.

References:

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http://www.mtv.com/news/articles/1430793/update-kid-rock-sued-by-ex-manager-breach-contract.jhtml

--> http://brianbowers.wordpress.com/2009/10/28/how-to-legally-get-out-of-your-talent-agency-contract/  

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http://blogs.findlaw.com/celebrity_justice/2010/06/pop-artist-keha-faces-breach-of-contract-lawsuit.html

http://www.agentassociation.com/ 

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http://www.redfm.ie/news/kesha-little-mix-bell-x1-imelda-may-come-to-cork/