In the music industry, it is crucial for industry leaders, whether they are labels, managers, publishers, or distributors, to encourage their artists to have open and honest conversations about split sheets. A split sheet is a fundamental tool that ensures clarity and transparency when it comes to ownership percentages and the collection of publishing royalties. Without a split sheet in place, it becomes challenging to confirm a creator's ownership stake and to collect related publishing royalties.
Entertainment lawyer Kendall Minter emphasized the importance of split sheets by comparing them to deeds and titles for intellectual property and publishing. Just as one wouldn't walk away from a house closing without a deed and title, artists should not proceed without having a split sheet in place to protect their creative rights.
While split sheets are essential, they can be complex and may require guidance for artists as they navigate their long-term goals.
Here are some common questions about split sheets for publishers, labels, managers, and distributors:
1. What Are Some Common Business Scenarios Where Your Artist Would Need a Split Sheet?
- Bands: When a band is collaborating on songwriting, a split sheet is essential for dividing the ownership shares. It clarifies how songwriting duties are divided and how publishing royalties will be distributed among band members.
- Collaborations: Artists often work with various creators, and using split sheets can protect them from ownership disputes with outside parties in the future.
- Writing Sessions: Managers often set up writing sessions for their artists, and having a split sheet with a clear breakdown of publishing shares is crucial in these scenarios.
- Sample Usage: Using samples in a song requires approval and may involve upfront fees or a percentage of publishing rights. Documenting these details on a split sheet can prevent miscommunication and copyright conflicts.
2. What Are Some Common Errors Managers and Labels Might Encounter if Their Artists Don’t Use a Split Sheet?
- Ownership Disputes: Failing to use a split sheet can lead to conflicts regarding ownership, especially when there are prior agreements in place with specific terms.
- Publisher Switching: Switching publishers can be complex and may require a Letter of Relinquishment (LOR) to administer rights and royalties on behalf of the artist.
- Unlicensed Samples: Using unlicensed samples in a song can lead to legal issues if not properly documented.
- Fractional Splits: Songs with multiple co-writers may require complex fractional splits, which need to be clearly outlined in a split sheet.
- Last-Minute Changes: Changes to ownership percentages that were not formally discussed or confirmed can create disputes.
Effective communication is essential in all scenarios involving split sheets. Keeping an open dialogue and documenting decisions can help avoid conflicts and ensure clarity for all parties involved.
For more information on split sheets and a quicker path toward earning and retaining publishing royalties on behalf of your clients, consider utilizing our free split sheet template and crash course on why splits are crucial in the music industry.
In conclusion, split sheets play a vital role in the music industry by safeguarding the rights of creators and ensuring fair distribution of royalties. Encouraging artists to have open conversations about split sheets and providing them with the necessary guidance can contribute to a more transparent and equitable music industry landscape.