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Entertainment
Lawyer Q&A By Mick Spence
SXSW: More Questions than Answers
I just returned from South By Southwest, the annual music conference in Austin,
Texas. I wish I had a concise, uniform and inspiring synopsis to present to you, but I
don't. If any themes were consistently woven throughout the conference, they would be
frustration and uncertainty. Those are not the buzzwords usually associated with the
music industry, but they were frequently described and felt by many attendees at this
year's meeting.
For those who don't know, South By Southwest (SXSW) is one of the paramount
music conferences held annually, and attended regularly, by musicians, music industry
professionals and fans alike. It is a music lover's mecca, with more opportunities to see
and hear performances than you could possibly ever hope to get to in such a limited space
and time (believe me, I've tried). Its early concept was to be a festival for unsigned
bands to converge and showcase their talents, in the hopes that label and music industry
reps would sign them to traditional recording contracts. In the almost 20 years that the
conference has been held, that early concept has broadened, to include film festivals,
interactive media programs, educational & legal seminars, tradeshows and parties of all
shapes and sizes. It still provides showcase opportunities for close to 1000 bands, at well
over 50 venues, all over a 5-day conference. However, nowadays many of the bands
performing are not necessarily looking for the "traditional" recording contract, if they're
even looking for a contract at all.
SXSW's informational panels kicked off with a keynote speech by Robbie
Robertson, leader of The Band, which toured with and backed Bob Dylan for a period in
its history. Robertson's remarks were inspiring once he got into his historical
achievements. His initial observations, however, set the tone by acknowledging the
climate of uncertainty in today's recording industry. With comments along the lines of
"I'm not sure how a Bruce Springsteen or a Bob Dylan would do if they were being
signed today" and "Labels don't allow artists to develop as much in today's business
models", Robertson called a spade a spade. The bottom line in the recording industry
today IS the bottom line. The fact that Robertson now performs duties as Creative
Advisor for Dreamworks Records, while still sharing the above perspectives, was an
interesting dichotomy.
Hilary Rosen, President of the Recording Industry Association of America
(RIAA) was next to share bits of the uncertainty and frustration. Rosen should be best
recognized as the spokesperson for the RIAA's recent lawsuits and settlements involving
Napster, MP3.com and other internet-based, digital distribution entities. Because of the
complexities of the lawsuits, and their ongoing status, Rosen's comments were fairly
superficial, and not immensely probing. This was frustrating for many, as the reasons
behind the litigation are the very reasons the recording industry is skittish and
handicapped. The old-school labels want the new technologies and artists to play by their
outdated rules. Conversely, the newer labels, independently produced artists and
technologically advanced consumers want the traditional labels and deals to get out of
their way. The recording industry is "down" in terms of sales, measured around 10-15%,
depending upon whom you talk to. Rosen and the RIAA (whose members are comprised
of record labels) blame that perceived decline on the prevalence of digitally distributed
songs, and technologies such as Napster, Gnutella, Morpheus and their progeny. After
the hissing from the audience died down, Rosen had to acknowledge that the major labels
HAVE to become more current, in terms of their contracts, relationships and services.
Many observers believe such an acknowledgement is too little, too late.
Next in the litany of challenges and questions posed was an interview with
Courtney Love, former front woman of Hole, and widow of Curt Cobain. In a belatedly,
convoluted and sometimes way-too-much-information sort of style, Love tore into the
recording industry as a whole (nudge, nudge). She is currently suing her record label,
claiming in essence that she can't be traded from merging label to label like chattel. In
that battle, she has also begun leading the charge for all recording artists by challenging
California's state law exempting personal service contracts (record deals) from a so-
called 7 year rule (i.e. it is unlawful to commit anyone to a 7-year contract, except
musicians). She also seems to want to be the catalyst to begin a recording artist union,
attempting to level the playing field in negotiations between artists and labels. With all
of these irons in the fire, all that is certain from her clashes is that after spending over a
quarter of a million dollars in legal fees, she isn't even near the end of her chosen battles.
Thank goodness for her she reported that Elton John would now begin to assist her with
her legal fees! Bottom line from Love's perspective: This industry is all f*cked up and
it's gotta change.
After deliberating the above perspectives, and the facts and circumstances behind
them, it is certain that there is change in the air in the recording industry. All of the
players seem to be able to agree on that point. The disagreement, frustration and
uncertainty stems from not knowing when or how this will all shake out. The good news
is, the wheels are already turning. Changes have begun. New businesses and
technologies have forced the traditional business models to adapt, or deal with their
refusal to recognize it's a new day. Artists and consumers will ultimately benefit when
this is all resolved. Bottom line, as I have said so many times, the music business IS A
BUSINESS. Economic principles will eventually guide the respective players to their
new, fairer places. There may be more questions than answers right now, but the fact that
questions are being asked only signals the imminent arrival of the ultimate answers.
Hang in there!
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© 2002 Mick Spence, Esq.
As originally published in City's Tone April 2002 edition. |
10 South Fifth Street, Suite 700 | Minneapolis, MN 55402
Phone: 612.375.1555 | Fax: 612.375.1511 | E-mail: info@spencelawfirm.com
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The Spence Law Firm.
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