Please help a newbie with a contract question??

[Schmomposer]

Hi Folks.

I am relatively new to Taxi, and I've recently been asked by a local Canadian company (unrelated to Taxi) to produce a 60 second and a 30 second piece to be used in TV and Movie Theatre ads for a grocery store. I'm excited to have my foot in the door, and they are enjoying the ideas that I've shared with them.

I've had 9 forwards since joining a few months ago, but I've never ever signed a contract for anything........ever.........so I'm a little freaked about the upcoming business meeting with the Grocery store marketing execs and would love some veteran support in this department.

I am interested in preparing myself for success and learning something about how much I should charge for my work and contracts in case the phone eventually rings over here. I can hear my piano teacher's voice right now saying "as much as flipping possible!" lol

I know that I will be sitting across the table from the grocery store marketing execs in about a weeks time, but I don't know how much to charge them for the work. I don't want to insult either of us with the magic number, and I don't want to shoot my fellow musicians in the foot by asking for too little. Does anyone have a clue as to what the "going rate" for such a thing would be? Has anyone done anything similarly in the past?

Sync Fees and royalties are all a mystery to me. Could someone out there please let me know if there is any substantial amount of money that a regular Joe makes in royalties after making such a deal, or should I expect that the upfront amount would be the majority earned? (like 95% of it?)

Thanks in advance.

[1BabeyBlue]

Consulting an entertainment lawyer is always recommended with the people that I have worked with (at least, until you have done enough that you too understand legalspeak). That way, both parties are on the same page & can feel secure that there will be no lawsuits. Entertainment lawyers can be pricey, but they speak the language that the contracts are usually written in. They can explain to you if there are "hidden clauses or assumptions." Basically, they can help to protect you from signing all your rights away, or getting a bad deal, etc.

I don't know much about the sync deals, but as a general rule as a writer for decades, it is a safeguard to get a pro to review the contract.

And, because they do so much of it [entertainment lawyers], they are familiar with what is common, fair, etc. They can help in the negotiations.

[hummingbird]

There are several things to be concerned about here and so the reference to having an entertainment lawyer look over any potential agreement is a good one.

In terms of negotiating, it's crucial you understand the basics before going into that meeting.

http://entertainmentlaw.uslegal.com/mus ... on-rights/
http://lehmannstrobel.com/articles/musi ... on-rights/

I would do a lot of investigation and research so you understand whether you are going to be providing music as a 'work for hire' (meaning the composition will belong to them) or whether you are licencing the work and, if so, under what terms. If you can take a lawyer with you to the meeting, all the better.

[Schmomposer]

Hummingbird, 1Babeyblue, I thank you both for your generous words of wisdom, and I will take your advice and run with it.

Sincerely, thanks.

Jesse

www.jessebrown.net

[mojobone]

If they offer a contract, you should by all means have a lawyer look at it, BUT, (and this is a very big but) even most entertainment lawyers don't know much about music licensing; you need a specialist, and they're often prohibitively expensive for your situation, particularly if this a local advert. Odds are, they'll want a buyout, but it may not be exclusive, meaning you can continue pitching your track to other opportunities. Obviously, if they want exclusive rights in perpetuity, you'll want to charge somewhat more, (since you're unlikely to see any back end, though that might be different in Canada) but most local companies are comfortable paying between $500 and $1000, though some have much deeper pockets than local grocery stores (car dealerships, for instance) and can pay considerably more.

For a regional grocery chain, I'd start the bidding at a thousand, even if it's for a local ad and particularly if they're going to use your piece across a number of outlets, like local TV/radio, as well as theaters. Other potential uses might depend on whether the lyric content, if any, is specific to the store, as with a jingle. It's smart to get a reversion clause, if you can, so if they stop using your track, you get the rights back, (you could possibly negotiate a renewal fee and schedule) but that's not always an option. See if you or a friend can find out what their budget is; perhaps you know or know of someone who works in advertising sales-take her to lunch someplace nice and pick her brain. For a national chain of stores and/or theaters, multiply the former figures by ten.

I am not a lawyer, but I have a friend or two in the local advertising business.