It is a must to have a partnership agreement when two or more people are the entrepreneurs of a company. Without a written agreement, the viability of the long-term business can be compromised. At the start of a business, it is close to impossible to forecast how the company will evolve over time. As such, a formal agreement helps to create a foundation between partners that should define significant business issues such as how funds are distributed, how disputes will be handled, and the job duties expected of each partner.

The structure of a partnership agreement should be tailored to fit the business and management style. It should state the compensation, including the profits, losses, and draw each partner will take. Moreover, and surprising to many new partnerships, it is also commonly considered as wise for one partner to have more shares than the other(s). Otherwise, it can become a situation where the company becomes stalled with equal decision makers at the top.

The agreement should additionally show the contribution each partner has made to the business, including property, funds, and services. It should further list how new partners can be added at a later time, when applicable. Of equal importance are outside business activities a partner might take on, and what is permitted.

Basics such as who has check-signing privileges and decision making authority or voting rights is also very important and should be included. And while legalese to many, miscellaneous provisions that cover matters like how the agreement can be revised at a later date to meet the growing needs of the business should also be incorporated into the partnership agreement.

Of particular importance are the portions of the agreement that define what action will be taken if a partner leaves or can no longer perform the job duties. This facet is also important for financing as lenders want to see a rational agreement that will help the business maintain stability should this occur.

Stipulating what will happen should a dispute ensue is also critical. Partners should think this through as arbitration or mediation can be a better route than litigation in most cases.

Partners should get a skilled business attorney to create the contract and review it to ensure that each person’s rights and obligations have been addressed and are fair. Without legal representation, the agreement might be so threadbare that state law might override it during a dispute. It might feel awkward to think about all of the “what ifs” during the infancy of the business, but it is crucial to ensure that the business can develop in a healthy way. Time spent with a qualified business attorney will pay off later.

In California, Los Angeles business attorney Anthony Spotora, of Spotora & Associates, P.C. is accomplished in counseling business partners to create solid partnership agreements. Their team of Los Angeles business lawyers helps many businesses, from California companies to major international corporate entities. They are known for their high-quality services and prompt attention to a client’s business needs.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.

Musicians who want to regain control of their hit songs from the mid 1970s can now reclaim them due to the copyright law termination rights. As long as music artists apply for these rights two years before the 35th anniversary of the songs being copyrighted, they can reclaim them. Music labels are livid about this development, but musicians have been waiting for this opportunity for decades. Award-winning musicians such as Bruce Springsteen, Van Halen, Billy Joel, and Steve Miller have made millions for record companies and songs from 1978 are now in the two-year timeframe.

“In terms of all those big acts you name, the recording industry has made a gazillion dollars on those masters, more than the artists have,” said Don Henley, from the Eagles and a founder of the Recording Artists Coalition. “So there’s an issue of parity here, of fairness. This is a bone of contention, and it’s going to get more contentious in the next couple of years.”
The big record companies such as Universal, EMI, Sony BMG, and Warner Brothers are ready to battle this copyright provision. They believe these songs and records are classified as works for hire. Musicians are thus employees and not independent performers for the record label from their viewpoint.

The Recording Academy is concerned about termination rights disputes overwhelming the courts. Musicians are getting legal representation now to send termination rights notices to labels and get ready for 2013. As it stands now, record labels are not giving in. Some onlookers predict the issue might even make it to the U.S. Supreme Court in due time.

Next year, musicians will be able to send notices for songs made in 1979, and with each passing year more hits will be up for grabs. When a song qualifies for the 35-year expiration, an author has five years to claim it; otherwise the right to reclaim it passes. This issue also brings up questions of what a song author is – do record producers, foreign artists (think Led Zeppelin), and songwriters who write for big names have the right to request termination rights from labels?

As many of these songs and artists from 1978 defined their generation, this issue also becomes important for licensing rights. Many of these songs are coveted by advertisers, used in TV and film, and for ringtones and video game soundtracks. Musicians will therefore greatly benefit by having an experienced attorney represent their concerns for their song rights and licensing agreements.

In California, Los Angeles entertainment attorney and Los Angeles business lawyer Anthony Spotora is a strong ally for musicians as they exercise their rights. The Law Offices of Spotora & Associates, P.C. is experienced in negotiations, contracts, and litigation to uphold a client’s rights. Their team is skilled in all genres of the industry and represents some of the biggest names in the recording business.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.