ANOTHER NEW BUSINESS MODEL? Music lawyer Charles Law takes a look at how to avoid problems when dealing with recording and publishing rights reproduced from MusicAlly Global Digital Briefing Charles Law As well as giving their writers a financial service, music publishers offer creative help too. This is particularly the case where publishers help develop new talent by giving a home to aspiring recording artists before they sign a record deal. A publisher can give artists a home and some initial funding to enable them to dedicate time to advancing their careers. They often also make available studio time for recording demos. The problem facing artists (and publishers seeking a return on their investment) is the decreasing number of record deals being done and record labels to do them. Labels also try to sign artists nearer the date when they can launch them. One method of developing and bringing artists to the industry's attention is the limited release of a single on a credible "taste maker" label such as Fierce Panda, Rough Trade or Animal Noise. Typically these deals are for one single only with a maximum pressing of 10,000 units. There is normally a limit of one year or less on the duration of selling rights and there is no re-recording restriction so the artist can record that title again under their full-term record deal when they sign it. Now an idea is emerging for music publishers to be more active in their writer's recording careers. At least one major publisher is considering opening an associate company to exploit recordings. Certainly this is logical from the point of view of the recording process. With modern recording techniques if a publisher has funded the recording of demos, then these can be enhanced to produce masters, thereby saving costs. If a publisher wants to start a record label or a production company (to record masters and license them on to a third party record label) there are many reasons why it makes sense from a creative viewpoint. The problem is whether such an arrangement would be adversely viewed by the music industry and whether, even worse, it may create an unreasonable restraint of trade. It is not possible to give a definitive answer to this question, as a Court would have regard to all the facts of the particular case and not just the words written on the page. An agreement which is fair on the face of it is capable of being operated unfairly and if it is found to be an unreasonable restraint of trade then the artist may avoid the entire structure – in this situation both the publishing and the recording/production contracts. However, there are various factors that may help prevent the relationship from being problematic.