SCIM3233

ISSUES & ETHICS IN

MUSIC INDUSTRY
Topic 1: Introduction/Setting the Stage
1.0 INTRODUCTION/SETTING THE STAGE

 Entertainment Group Names: Selection and

Protection
◦ Service marks vs Trademarks (in US rights are usually
created by use)
◦ Service mark – a group name used for entertainment
services, whilst trademark is a brand name used for a
product
◦ Service mark – can also be used as a trademark
◦ Researching the name – internet sources, databases,
professional searching bureau, yellow pages under
“trademark Agents” and “Trademark Consultants”
1.0 INTRODUCTION/SETTING THE STAGE

◦ Creating rights in the name – ‘reserve’ –’intent to use’

trademark or service mark application
◦ Registration of the name
◦ Concept of “territoriality” – in entertainment area, this
means that it is possible for two groups to operate under the
same name in different parts of the country & for each of
them to own the name in its own territory
◦ Ownership of the name – deciding who is going to own it
and to put this decision in writing
◦ Rights in Cyberspace – register the group name as a
domain name – does not give rights to the name, however
block someone else frm registering exactly the same domain
1.0 INTRODUCTION/SETTING THE STAGE

◦ Registration - read on Intellectual Property Rights in

Malaysia
◦ Akta Perbadanan Harta Intelek Malaysia 2002
◦ http://www.myipo.gov.my/
1.1 INTRODUCTION TO MUSIC LAW

 The term music law refers to these various legal

principles, practices, regulations, rules, statutes and
customs that have evolved in the music industry as
well as certain legal aspects in other areas of the
entertainment industry, which includes motion picture,
television, sports and theater.(Google, Jan 15, 2016
1.1 INTRODUCTION TO MUSIC LAW

 Music Law refers to legal aspects of the music industry, and certain

legal aspects in other sectors of the entertainment industry. The music
industry includes record labels, music publishers, merchandisers, the
live events sector and of course performers and artists.

 The terms "music law" and "entertainment law", along with "business
affairs", are used by the music and entertainment industry and should
not be thought of as academic definitions. Indeed, music law covers a
range of traditional legal subjects including intellectual property law (
copyright law, trademarks, image publicity rights, design rights), 
competition law, bankruptcy law, contract law, defamation and, for
the live events industry, immigration law, health and safety law, and
licensing. (wikipedia)
1.1 INTRODUCTION TO MUSIC LAW

 Business Entities
◦ Sole Proprietorship
◦ Partnerships – an association of two or more persons conducting a
business on a continuing basis as co-owners for profit.
 General partnership – has undivided equel inetrest in all of the p/ship
property, unless by contract they proovide their interest s to be unequal
 Joint Venture – on projects
 Limited partnership – consists of a least two people, corporations,
partnerships or some combination thereof. L/P contribute capital – 1 or
more LP take no part in management, has no liability beyond the
amount of money contributed, and any profits owed to them under the
limited p/ship
 LP is for an established duration and must be set out in the agreement
◦ Corporation – time to incorporate
1.1 INTRODUCTION TO MUSIC LAW

 Business Entities
◦ 3 forms of business can be registered in Malaysia;

1) Sole Proprietorship;

2) Partnership;

3) Company- Under the jurisdiction of Companies Act

1965. min 2 & max 50 people. Can be divided as

following types:
1.1 INTRODUCTION TO MUSIC
LAW
a. Limited Company by Shares – member’s liabilities are limited to unpaid

shares owned. Once paid no more liabilities. Can be divided into two

categories:-1) Private Limited Company & 2) Public Limited Company.

b. Limited Company by Guarantee – member’s liabilities are limited to

amount guaranteed should there be any loss and dissolution.

c. Unlimited Company – unlimited liabilities as those of partnership

companies, but liabilities will stop after a period of one year from the date

he/she leave the company.

1.2 THE SETTINGS FOR MUSIC LAW

 The basics of music law

◦ Music law, a particular type of entertainment law, affords
protection to people in the music industry,
including employees, and governs the actions of musicians,
record producers and record company executives. 
◦ Copyrights –
 Copyrights protect music and other original works of authorship.
Registering a copyright for a piece of music allows the composer
or songwriter to seek monetary damages and attorneys’ fees from
anyone who uses the work in a prohibited or unauthorized manner.
Music companies typically manage copyrights for written works,
while record labels manage the copyrights for sound recordings.
1.2 THE SETTINGS FOR MUSIC LAW

 Under the Laws of Malaysia Copyright Act 1987 (Act 332)

 The kinds of works protected under copyright law are:
 literary works - including books, pamphlets, plays, drama, scripts, articles, letters,
reports, memoranda, tables and compilations, computer programs;
 artistic works - including paintings, drawings, diagrams, maps, charts, engravings,
photographs, sculptures, works of architecture, works of artistic craftsmanship;
 musical works;
 films;
 sound recordings; and
 broadcasts.

 In order to be eligible for protection, a literary, musical or artistic work must

be:
 original in the sense of not being copied and with sufficient effort having been
expended in its creation; and
 written down, recorded or otherwise reduced to material form.
1.2 THE SETTINGS FOR MUSIC LAW

 Ownership of copyright 
 It is important to note that there is a distinction between the author of a
work and the owner of copyright in it.
 Copyright ownership shall initially vest in the author. This general rule
is however subject to two exceptions: where the author was
commissioned under a contract of service or apprenticeship, or where
the work was created in the course of his employment, copyright shall
vest in the commissioner or employer. These exceptions are subject to
any agreement to the contrary.
 The owner of copyright is entitled to assign or licence the right. Such
an assignment or licence must be executed in writing.
1.2 THE SETTINGS FOR MUSIC LAW

◦ Publishing
 Music publishing is a broad field that includes developing new
music, protecting music, and promoting the value of music.
 Music publishers help composers by taking care of the business
aspects of publishing and allowing the artists to focus on
producing new works.
 Music publishers look for new artists, register new works, produce
demo recordings and other promotional materials, grant licenses to
reproduce or print music, secure commissions for new artists,
monitor the use of music, make royalty payments to artists, and
take legal action against those who use music without a license.
1.2 THE SETTINGS FOR MUSIC LAW

◦ Business
 Business laws play an important role in the music industry.
Composers, songwriters, performing artists, music producers, music
promoters, and industry executives rely on contracts, licenses, and
other legal documents to make their living. Music attorneys help
their clients negotiate royalties, review contract terms, negotiate
settlements on behalf of their clients, and handle other business
matters such as:
 Breach of Contract: If one party fails to fulfil their promise, and the other
party has fulfilled their obligations under the contract, the other party
may sue for money and other damages.
 Wrongful Termination: An employee who was improperly fired from their
job may sue for money and other damages.

◦ Other related laws with music industry

1.3 ATTORNEYS & LAWSUITS

 Music Attorneys –who they are, what they do, what they cost, what
their obligations and how to best work together
 An attorney (lawyer) –
◦ is professional with legal training, licensed to practice law
◦ Most are specialize due to the complexity of the legal
problems, fast changing and complex law – unable to
competence in all areas
◦ Legal specialty called as entertainment law (music lawyers) –
specialize in the legal and business aspects of the music
business.
1.3 ATTORNEYS & LAWSUITS

 (Music Attorneys )
 Functions:
◦ Negotiating and drafting variety of agreements for songwriters, recording
artists, record companies, music publishers, record producers, personal
managers and music investors
◦ Develop relationships with people and companies in the industry, and
their recommendation of a music client is sometimes influential in
obtaining a contract.
◦ To act as a business hub – coordinating the activities of your agent,
personal manager and business manager.
◦ Sometimes empowered as a money collector – collect and receive monies
due you or your companies from all sources, based on the agreements
with them.
◦ Provide general career advice (act like a personal manager in the early
stage of your career)
1.3 ATTORNEYS & LAWSUITS

 (Music Attorneys )
 When to see a music attorney? –when you sign a

contract, you are setting up law with the other party

1.3 ATTORNEYS & LAWSUITS

 Lawsuits
◦ A lawsuit is any proceeding by a party or parties against
another in a court of law. Sometimes, the term "lawsuit" is in
reference to a civil action brought in a court of law in which a
plaintiff, a party who claims to have incurred loss as a result of
a defendant's actions, demands a legal or equitable remedy.
 Lawsuits in music industry
◦ Example: lawsuits againts spotify
◦ “hidup dalam mati” & “ku kejar bayangmu” –syamel vs ayai
(not a lawsuit)