I remember maybe 2002, 2003 that I called a record
company that had an agreement with my clients, and
I was arguing for a percentage interest in the copyrights in the compositions.
I felt that my clients had made a contribution to
the songs that they recorded and they were never given credit for it.
Now the company that I was dealing with was made up of creative people as well.
Producers who were also songwriters.
And as I pressed this point that I want my clients to participate
in the songwriting income, the attorney got a little perturbed and he said,
wait a minute, John, you know your clients have had a hit career for over 25 years.
My clients wrote and produced most of the hit songs, and
as a result of my clients contributing those great hit songs,
your clients have been able to sell out concerts.
They've been able to act in TV shows and in movies.
They've been able to acquire sponsorships and endorsements.
And you know something?
We don't participate in that income.
We never have.
He said, hm, John, you know something?
Maybe my clients should ask your clients for
a certain percentage of their live performance income.
A certain percentage of their publishing, of their merchandising,
of their acting fees, of their sponsorships.
Hm, maybe that's something that we should think about.
And that was my first inclination that people at the major label level were
thinking about participating in income other than the sale and use of recordings.
And shortly after that, EMI entered into what was considered
the first major label 360 degree deal with Robbie Williams,
who was a huge artist worldwide except for the United States.
Where Robbie entered into a deal where he gave up a certain interest in his
publishing, he gave up a certain percentage
interest in his merchandising, sponsorship.
Any activities within the entertainment area, EMI was gonna participate
in the earnings, and that's generally what these 360 degree deals are all about.
In other words, the record company doesn't just participate in the income generated
from the use and sale of those sound recordings, but they participate in
the entire circle, 360 degrees, of income that the artist generates.
So now most deals that you will sign with major labels,
at least a major label is gonna try to get you to sign a 360 degree deal.
If you have a lot of leverage,
you might be able to negotiate out of a 360 degree deal.
But in most instances artists are gonna sign 360 degree deals.
Which means that the record company is at least gonna have
options to pick up contracts for merchandising with the artist.
So that they'll participate in a certain amount of the merchandising income,
sponsorship income, endorsement income, live performance.
Maybe a certain percentage,
10, 15% of the net revenue from live performances will be paid.
Never before has that been done at the major label level.