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Does My Band Need a Band Agreement?

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You may wonder if you need a written band agreement if you play music in a band. A band agreement creates express legal obligations between the band members. In this sense, a band agreement formalises the obligations each of the band members owe one another. Band agreements are therefore recommended where significant money is involved. This article will explain the purpose and advantages of a band agreement. 

What is a Band Agreement?

The extent to which you need a band agreement largely depends on the amount of money involved in the band. That is to say, a band that plays occasional shows at local venues is less likely to benefit from an agreement than one with multiple record label agreements and professional tours. 

In some cases, your band may not have a choice. For instance, record labels commonly require band members to enter into a formal band agreement before the band enters an agreement with the record label. This gives the record label more certainty over the band’s conduct because there is an agreement that all the relevant parties can reference. 

What Are the Advantages of a Band Agreement?

As with all written business agreements, the primary benefit of a band agreement is that it gives the members more certainty about the rights and obligations the members owe one another. Without a written agreement, it is harder to prove the promises the members have made to one another. If a dispute emerges, it becomes difficult to determine the legal rights and obligations. 

For these reasons, band agreements can help minimise disputes. The agreement will set out in clear terms what is expected of everyone. Likewise, it will have terms that specify what happens during a disagreement. 

Ultimately, a band agreement can:

  • avoid misunderstandings;
  • promote cohesion; 
  • allow you to focus on making and performing music; and
  • minimise costs that arise where a dispute emerges.
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What Are the Disadvantages of a Band Agreement?

An agreement must be appropriately drafted for it to be effective. This usually requires the help of a professional, such as a band manager or an entertainment lawyer, which costs money. However, you and your band members may determine that the agreement’s certainty justifies the cost. 

Another less tangible disadvantage is that a band agreement can formalise the relationships between all the band members to an undesirable degree. In other words, it might feel like entering into a formal agreement makes what has been a creative endeavour feel too commercial. However, you should note that virtually every professional band will have a band agreement.

What are the Key Terms of a Band Agreement?

Band agreements can be lengthy depending on the band member’s objectives. However, most band agreements contain the following provisions:

ProvisionExplanation 
Profit sharingThe starting position is that all band members are equal partners in the band, which is a partnership. This entitles all band members to an equal share of any profits. In practice, bands may want to vary this arrangement.
Activities the agreement coversBeing in a band means doing many different things, such as writing, recording, performing music, selling merchandise and appearing in promotional ads. 

You may not want the agreement to cover certain aspects of the band or specific band member’s activities. For instance, if one band member writes all the songs, they may not want the songwriting process governed by the agreement.
Decision-making You may want some decisions made by a simple majority, whereas others unanimously. For instance, appointing a new band member or manager might require a majority vote. Therefore, the agreement should specify which matters require the band’s approval.
Rights of former band membersIf a band member quits, retires, or the band expels them, the agreement should specify their entitlement to future royalties (if any). 
Leaving the bandThis will specify the process members must take before leaving the band. For instance, they may need to give written notice or discharge ongoing obligations like finishing a tour.
Other legal provisionsAs this is a legal document, various legal matters should be clarified. This includes:
+ provisions specifying what happens when a member breaches the terms of the contract;
+ the governing law and jurisdiction of the agreement;
+ confidentiality provisions; 
+ schedules that detail information related to band intellectual property; and
+ definitions. 

Key Takeaways

A band agreement formalises the legal obligations and rights band members owe one another. A well-crafted agreement is a standard for professional bands and includes terms related to:

  • profit sharing;
  • restricted activities; and 
  • the conduct of the band members.

If you need help with your commercial contract, our experienced contracts lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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Jake Rickman

Jake Rickman

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