Label Liabilities

There are many branches and division that fall under a recording label. Recording, legal distribution, and marketing are just a few of the perks that a record label can help the artist out with. After reading several articles about liabilities a label can face, it leaves one to contemplate the legal team that works for these labels. The Wallace Collins article raises an excellent point about lost or stolen recordings, and who is liable for them. Once a master recording is made, it is the final copy of the artist work. Countless hours have been spent into the creation of the music so now that it printed down, it is imperative to have back-ups and to know where your master actually is. Placing a price on music that never hit the airwave can be complicated since you cannot prove that these tracks were not going to be the next hottest tracks. Major record labels have a system in place to prevent these events from occurring but smaller label do not. Another big liability that needs to be addressed is the actions of employees signed under the label. In Birdmans case a woman is suing for sexual assault in the studio. The owners of the label may not have committed the assault, but they are still liable for their employees action under their roof. This is a massive reputation buster and someone has to be held liable. Knowing you employees and having good insurance is a good start to protect yourself from incidents like this one.  One of the most important parts of having a label is the band or artist you will be signing. There are many places a label can be held liable and the artist are no exception. “One Direction” a boy band that was signed by Simon Cowell under his Syco Entertainment label is now being sued for using a bands name that already exists. Due to the nature of the beast a label is responsible for its artist and their image.  Research must be done to know that you are not infringing on others rights. These are just a few liabilities a label can face and if your thinking about starting a label, these situations should all be kept in mind.