Selling CDs Outside of the U.S.:
By Ben Mclane, Esq. www.benmclane.com

Question:
I want to sell my CD's outside of this country. I have been told I need a foreign licensing deal, but have no idea what that even is? Can you give me the basics on what it is, and what I need to know to get started?

Answer:
Foreign licensing deals are becoming quite common today as the appetite for American acts grows internationally. Further, they are an excellent avenue for an artist to sell product worldwide without having an actual record contract. Although such an agreement is similar to a domestic recording contract, the essence of the foreign licensing deal is that the artist is licensing the master to a foreign company ("company") to manufacture and distribute the CD. This article will briefly discuss some of the main deal points which are incorporated into a foreign licensing agreement.

Territory. The territory is defined to be only specific continents or countries. It is important that the territory not be stated as being for the "entire world." It is best to limit the territory to the areas that the artist feels the company can sell CDs. The licensed territory should be spelled out (e.g., Japan, China, etc.)

Product. The licensed CD should be defined by title(s) so that the company does not infer that it is being granted the right to release the artist's entire catalogue.

Rights. The artist will normally grant to the company the right to (1) manufacture and sell the CD; (2) use the name and likeness of the artist in connection with advertising and sales; and (3) the right to publicly perform and broadcast the recording.

Money. The company will make payments to the artist in the form of royalties and advances. The royalty will usually be a percentage of the suggested retail list price in the licensed territory on records sold, or, if there is no such list price, the equivalent in that territory. Sometimes the royalty will simply be a certain number of the company's country's currency for each CD sold (e.g., three German marks for each copy sold). The artist could request that royalties be paid in US dollars. The artist should also expect an advance against royalties (recoupable). Here, unlike domestic recording agreements, the company generally will absorb the costs to manufacture and sell the CDs and not charge these costs back to the artist.

Guaranteed Release. The artist should insist that the company commence manufacturing and selling the CD within a few months after the deal is signed, or else the rights granted will terminate and revert back to the artist. Logically, the company wants to release the CD because it bears all the costs of manufacturing and selling; each record sold results in a payment to the company. 

Payments. Royalty payments are generally due to the artist semiannually within 30-90 days following June and December of each year. Such payment will be accompanied by a statement setting forth the amount of CDs sold, if any, and the royalty computation.

Copyright. The copyright to the master(s) remains with the artist. The artist is only granting to the company the right to make reproductions of the master. The artist should make sure that the company puts the proper "notice of copyright" on the CDs manufactured.

Termination. Once the term ends, the company is usually allowed a selloff period of six months for the CDs already manufactured (with royalties still payable).


Singer Stage Fright:

Question:
I am a new songwriter, and I love to sing with the band. I feel really comfortable singing in private or at our practice sessions, but not on stage. I can't dance and feel like there is so much people are expecting these days from performers. I don't understand how to do this, if anyone can hide behind a microphone stand it is me. I need help! Please tell me how people get over this fear?

Answer:
When I was playing solo gigs in coffeeshops I was responsible for every single noise that was made and felt comfortable with that, but when I started playing with a band, I experienced true stagefright. I was no longer slouching behind a guitar, providing background music for people's conversation. The audience had actually paid money to see us, which made me nervous. What did they expect? What if they didn't like us? What if they walked out??

The two things that I depend on to get over stagefright are:

Attitude. Expect to have fun. That 's what people are paying for. They expect a lot from their entertainers, but that's allright, because you can deliver. They don't expect to see you up on stage doing the latest dance moves; they paid to see you and your band do what you and your band do best. Have fun and it will likely be contagious.

Reliance on Band Mates. Interact with your band. Be friends. Let it be evident that you are friends while on stage. Play together, interact with each other, smile at each other, smile at your audience. Perhaps you can arrange the staging so that the distance between you and the guitarists is smaller, making you feel less of a visual focus for the audience. Perhaps you could play a tambourine or other small percussion instrument to keep your hands occupied and make you feel less awkward about not dancing. Know that even if every other person in the bar hates what you're doing, there's at least those other guys on the stage who are thrilled by it. When you are having a good time, making a conscious effort at having a good time, all those things that make you nervous (I can't dance; what if my guitar strings break/ what if my stage monitor blows up and catches the front row on fire?) are not insurmountable obstacles.

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