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Ahh…bit late. I just noticed he’s been banned so please do delete my comments.
Ah yes, Alfredo… The “Demo of the Month” club!! 😛
@alfredo. I’ll leave your comments (and others) as fair warning to take DI’s comments with a grain of salt.
I for one will miss DI’s contribution. I have found it sometimes helpful and always entertaining. This is a Public forum and of course we should take everyone’s advice with a grain of salt, including mine. Just my 2 cents.
The problem with this thread, in particular, is that he kept giving “legal” advice that was not correct.
When a correct explanation and information are offered that kind of BS just confuses the issue and doesn’t help the person who originally asked the question
What MichaelL said. 🙂
The most important factor here is whether or not the defunct library has sold its rights to its catalogue, or been absorbed by another entity.
Go over your initial contract with them and see if there’s a reversion clause and/or mention of what happens if they’re absorbed/sold.
Good luck!
If you’re not sure whether the catalog has been sold, and you cannot get in contact with the defunct library, I’d say that is the time to speak with an attorney, if those tracks are worth anything to you going forward
I’d say that is the time to speak with an attorney…
Possibly good advice, with the caveat that an attorney, including myself, will charge you $$$ per hour.
There are some basic things you can do yourself.
1) If the library was incorporated in the US, you can search state business databases online to see if the company is still active. Most states require that information to be updated annually. Also, for tax reasons, they should / would have notified the state if they ceased doing business.
2) You can also search state court databases for bankruptcy filings.
3) If the company is located outside the US, try a “whois” search to find out the status of the company’s domain. If it’s been abandoned that’s an indication that the company no longer exists. http://www.whois.com
4) Check with your PRO to see if the publisher information has changed. Is there a new publisher? Has the old publisher changed its address?
You can do all of the above yourself. By the time an attorney did
1-4 you will most likely have spent more than $1,000. Most attorneys would ask for that, or more, up front as a retainer.Steps 1-4 are just the beginning to confirm the status of the library. After that, because the works were done on a work-for-hire basis you would most likely need an attorney to get your tracks back, if at all possible. That may depend on the specifics of the contract. Getting your tracks back could involve buying them back.
You could easily spend a lot of money. Only you know if it’s worth it.
Good advice, Michael. I know I’d have to be pretty sure there was some significant value in those tracks before I started down that road…
A huge asterisk to add to this discussion: check your contracts. Check your contracts. CHECK YOUR CONTRACTS.
Most contracts I’ve signed include stipulations that the library may assign its rights to another company. If an exclusive library goes belly-up, it still legally controls the music under their control, and if another library comes along and acquires it, your music might go with it too.
I have dealt with some libraries that simply ceased to operate (basically, they just gave up in promoting their music and the individual(s) behind it just moved on to other endeavors) and in this case, sure, you might think it would be harmless to assume the contract is over and done with (and in practical terms, maybe it would be if the library has no interest in the material), but legally speaking, the contract doesn’t cease to be valid. If the library owner comes along and reignites the flame of his company, or if another company acquires the assets of the first company, then your music may go with it.
Read your contracts. If you’re able to make contact, get the withdrawal in writing.
If an exclusive library goes belly-up, it still legally controls the music under their control, and if another library comes along and acquires it, your music might go with it too.
First, non-lawyer disclaimer. I welcome MichaelL to comment on/correct this… If your contract, as many do, has the right to assign it still doesn’t NECESSARILY mean the library still controls your music if they go out of business. Let’s say they truly go under before ever assigning the music elsewhere… The company goes insolvent and the catalog is just sitting there not transferred… The situation MIGHT be different. Again, depends on many factors– the contract, the situation, etc.
One other point I wanted to make based on things I’ve seen. *DON’T* ever assume that just because a library doesn’t return phone calls or emails anymore (or even combined with a down website) that they are truly out of business. For whatever reason, even if rude at times, we’ve seen lots of libraries not return calls or emails. And they can always say they are in business but restructuring operations. So if you run off and start signing those tracks elsewhere, you could be in breach of contract.
Once again, I welcome input from our resident shark if he’s not too busy biting people off the coast of North Carolina. 😉
If an exclusive library goes belly-up, it still legally controls the music under their control, and if another library comes along and acquires it, your music might go with it too.
This is where the word “exclusive” needs to be clearly defined. If the library is “exclusive” as in work-for-hire, they paid you money up front and you transferred the copyright, then yes it still legally controls your music.
On the other hand if you never transferred the copyright
you enter the zone of the perpetual license agreement.you might think it would be harmless to assume the contract is over and done with (and in practical terms, maybe it would be if the library has no interest in the material), but legally speaking, the contract doesn’t cease to be valid.
This may be true outside the US. But, here the parties to a contract must be able to perform, or make a good faith effort of performing their duties under the contract.
This is where I see a difference between what I’ll call true WFH exclusive libraries, and what everyone likes to call exclusive these days.
They key issue is whether or not you have transferred the copyright. If you have not, then the library owns nothing.
If you agree to let library “A” represent your music exclusively (but do not transfer the copyright) library “A” owns nothing. If library “A” goes out of business — truly closes its doors and has filed the necessary paperwork to dissolve the business, it cannot sell you music to pay off its creditors.
Moreover, after the business is dissolved, it’s founder — JOE X” cannot just start library “B” and claim any rights to your music. HE didn’t hold the rights. His now defunct business did. The contract was with library “A” and not “JOE X” personally.
“JOE X” cannot revive a contract that was with his dissolved company.BUT…companies do experience periods of inactivity, they relocate, they change their name, etc. You cannot assume that a company has truly dissolved and will no longer perform it contractual duties.
All of these issues could have been and should have been addressed in the original contract. The OP should hire a lawyer to read the contract, and to advise him based upon the terms of the specific contract. But, as the OP did sell his tracks to the library, the point is likely moot. A lawyer reading the contract can confirm that.
One can never act on assumption. Composers must make every effort to determine the status of the library. AND..they should have an attorney advise them regarding their obligations under the specific contract.
Complicated topic and as usual and tx MichaelL fro words of wisdom. I think DI means well but has a compulsion to post on every subject without necessarily knowing the answer. With all matters legal tread very carefully and take advice wisely. There is so much misinformation floating about the internet its frightening.
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