In the "All About You" feature, we learned about some famous partnerships. The Beatles and the Rolling Stones were popular music bands that started in the early 1960s. However, the Beatles broke up in 1970 after disagreements, including a disagreement on who should be their financial advisor. In contrast, the Rolling Stones have continued to play together.
You and a couple of friends have decided to form an "indie" band. An indie band records and publishes its music independently from commercial record labels, thus maintaining control over its music and career. You play the guitar and sing; your friends are a bass player and a keyboard player. You have written the lyrics to a couple of songs and the music for the lyrics was composed by the band. After the songs are recorded, the band intends to register the recordings with SOCAN. SOCAN sells access to music registered with it by collecting licence fees from anyone playing or broadcasting live or recorded music. SOCAN then pays the musicians a royalty.
The three of you have decided to get together and discuss some of the issues that may arise and what should be addressed in the band's agreement.
Instructions
(a) Is the band a partnership even if a partnership agreement is never created?
(b) Identify the different types of revenues that the band may earn.
(c) Identify the costs that the band will incur to earn these revenues.
(d) Identify issues that may arise when the band is determining how the revenues and costs should be shared by the members.
(e) Identify issues that may arise if one of the band members wants to leave the band. How might this be addressed in the agreement?
(f) Identify issues that may arise if a new member joins the band aft er the band has already successfully recorded music and is receiving royalties.
(g) Identify issues that may arise if one of the band members does a solo recording or performance.
(h) Identify issues that may arise if the band decides to split up.