Business Name Registration Trade Marks Domain Names. Partnerships Companies and Shareholder Agreements

Transcription

1 CONTENTS PREFACE xxi ACKNOWLEDGMENTS xxiii 1 SELECTING AND PROTECTING A NAME 1 THE NAME SEARCH 1 WHO OWNS THE NAME? 3 Business Name Registration Trade Marks Domain Names BAND STRUCTURES THAT PROTECT THE NAME 6 Partnerships Companies and Shareholder Agreements WHAT S IN A NAME? 7 Pop Mechanix Fleetwood Mac The Five Platters, Inc. The Ongoing Story SOUND-ALIKES 9 Protection of Name, Image and Likeness 2 BUSINESS STRUCTURES 12 WORKING SOLO 12 WORKING WITH OTHERS 13 Starting Out THE OPTIONS 14 Partnership Companies Trusts 3 NOT-FOR-PROFIT ORGANISATIONS 22 PRELIMINARY ISSUES 23 What Does Non-Profit Mean? What Will the Primary Sources of Funding Be? ESTABLISHING A MUSIC ORGANISATION 25 Defining the Objectives Defining the Implementation Strategy Selecting the First Board SELECTING THE STRUCTURE 27 Unincorporated Non-profit Groups The Incorporated Association Co- Operatives The Company Limited by Guarantee Trusts REGISTER OF CULTURAL ORGANISATIONS 33 MANAGING A NON-PROFIT ARTS ORGANISATION 34 Purpose of the Board Selecting the Board

2 vi CONTENTS SKILLS MATRIX 38 HELPING THE BOARD TO BE EFFECTIVE 39 The Care and Feeding of Board Members Introduction Procedures for New Board Members Assignment of Responsibilities Decision Making, Defining Policy and Setting Strategy Setting Limits and Creating Communication Channels Delegation BLESSED BE THE CHAIR : DEALING WITH PROBLEM BOARD MEMBERS 43 Ghosts Back Slappers Celebrities and Socialites Sleepers Bullies Lifers Martyrs Secret Agents Two Secret Agents Make a Conspiracy. This Can Only be Tackled by Confrontation. Talkers The Diary-Afflicted The Conflicted RESPONSIBILITIES OF PEOPLE IN AUTHORITY 47 Statutory Bodies Duties of Committee Members of Unincorporated Associations Duties of Management Committee Members of Incorporated Associations Duties of Directors of Companies Limited by Guarantee Liability of Directors and Employees to Pay Company Debts People Forbidden to be Involved with Management of the Organisation Duties of Trustees CHECKLIST FOR BOARDS AND MANAGERS OF NON-PROFIT ARTS ORGANISATIONS IN AUSTRALIA 56 4 AGENTS 61 THE FUNCTION OF AGENTS 62 THE POWERS AND AUTHORITIES OF AGENTS 63 The Authority to Represent The Authority to Receive and Negotiate Offers of Employment The Authority to Sign Booking Agreements on the Performer s Behalf The Authority to Collect Deposits and Performance Fees AGENTS FEES AND COMMISSIONS 66 WRITTEN AGENCY AGREEMENTS 66 BOOKING AGREEMENTS AND ENGAGEMENT CONFIRMATIONS 69 VENUE CONSULTANTS 71 Payroll Services 5 THE MANAGER 74 QUALIFICATIONS 74 WHEN DO YOU NEED MANAGEMENT? 76 THE LEGAL RELATIONSHIP BETWEEN MANAGER AND ARTIST 77 THE FINANCIAL RELATIONSHIP BETWEEN MANAGER AND ARTIST 78 SCOPE OF MANAGEMENT 79 EXCLUSIVITY 80 CO-MANAGERS 81 PERSONAL MANAGERS 81 TERRITORY 82 LENGTH OF THE MANAGEMENT CONTRACT 83

3 CONTENTS vii THE FUNCTIONS OF THE MANAGER 84 Finding Work Business Management Confidentiality, Integrity and Hard Work THE MANAGER S COMMISSION 88 ADVANCES 88 Exclusions The Right to Payment After Termination THE MANAGER S POWERS 94 ENFORCEMENT 95 ENDING THE MANAGEMENT RELATIONSHIP 96 CONCLUSION 97 Management Agreement Checklist 6 CONTROLLING MANAGERS, AGENTS AND VENUE CONSULTANTS BY LEGISLATION 100 PURPOSE 101 THE ENTERTAINMENT INDUSTRY INTERIM COUNCIL 101 ENTERTAINMENT INDUSTRY REPRESENTATIVES 102 Entertainment Industry Agent Manager Venue Consultant LICENCES 104 REGULATION OF FEES 105 Agents Managers Fees for Venue Consultants TRUST ACCOUNTS 107 KEEPING RECORDS 107 BONDS 108 COMPLAINTS COMMITTEE 108 INTERSTATE REPRESENTATIVES 109 CONCLUSION PERFORMING LIVE 111 STARTING OUT ON THE ROAD 111 Bargaining Power Dealing With Potential Employers Basic Terms Enforcement of the Deal Tax The Role of the Booking Agent TOURING 118 DOING IT YOURSELF 119 Planning the Tour Budget Preparation Funding the Tour Contracting the Performances DOING IT WITH AN AGENT OR A PROMOTER 121 Promoter Attitudes The Letter of Intent REMUNERATION 123 The Set Performance Fee or Guarantee The Guarantee versus Gross The Four Walls Deal The Percentage of Gross or Net Deal Net Participation Deals PAYMENT 126

4 viii CONTENTS AUDIENCE NUMBERS 127 TICKET PRICES 127 TICKET SALES 128 The Secondary Ticket Market COMPLIMENTARY TICKETS 129 SUPPORT ACTS 130 BUYING IN 131 FESTIVALS AND EVENTS 132 PUBLICITY 132 Interviews Promotional Materials Press Releases Using the Record Company Other Uses of the Artist s Name and Reputation MERCHANDISING 134 PRACTICAL CONSIDERATIONS 134 Worksheet Set Up Performance Details Security Arrangements Staging Power Requirements Dressing Rooms Catering Recording the Performance Photographers Permits and Consents Insurance Accommodation Termination 8 COPYRIGHT & MUSIC THE BASICS 141 WHY IS COPYRIGHT IMPORTANT? 141 WHAT IS THE SOURCE OF COPYRIGHT? 142 WHAT IS COVERED BY COPYRIGHT? 143 WHAT RIGHTS DOES COPYRIGHT INCLUDE? 143 REPRODUCTION 143 PUBLICATION 144 COMMUNICATION TO THE PUBLIC 144 US FREE TRADE AGREEMENT 145 HOW DO YOU GET COPYRIGHT PROTECTION? 145 WHO OWNS THE COPYRIGHT? 147 Musical Works Sound Recordings Special Rules Applying to Sound Recordings Made Prior to 1 January 2005 Performers Rights HOW LONG DOES COPYRIGHT LAST? 152 Musical Works and Literary Works Sound Recordings Published Editions Anonymous or Pseudonymous Works Works of Joint Authorship Films COPYRIGHT TRANSACTIONS 153 The Assignment of Copyright Licensing the Rights Basic Terms IS ALL USE OF COPYRIGHT MATERIAL FORBIDDEN UNLESS YOU HAVE A LICENCE? 156 Fair Dealing Parody & Satire Use of an Insubstantial Portion Home Copying & Time Shifting PROTECTION OF NON-COPYRIGHT RIGHTS OF PERFORMERS AND THEIR PERFORMANCE 160

5 CONTENTS ix PERFORMERS COPYRIGHT 161 MORAL RIGHTS 162 The Right of Attribution The Right Not to be Falsely Attributed The Right of Integrity Duration Remedies for Infringements Defences to Infringements No Cause for Alarm SAMPLING 167 Who Pays and Gets Paid for the Sample? PARALLEL IMPORTING 170 Importing Sound Recordings How Parallel Import of Sound Recordings Works Competition Policy The Effect of Parallel Importing LICENCE SCHEMES AND OPEN LICENCES 175 Should You Put a CC Licence on Your Work? CONCLUSION 178 FURTHER INFORMATION MUSIC PUBLISHING 179 WHAT A PUBLISHER DOES 179 Administration & Collection Licensing Creative PUBLISHING INCOME AND COPYRIGHT 181 RIGHTS, USES AND MONEY 181 The Right to Publish The Right to Reproduce The Right to Publicly Perform and the Right to Communicate to the Public The Right to Make an Adaptation Combinations of Rights SOURCES OF PUBLISHING INCOME 183 Sheet Music Mechanical Rights Synchronisation in Film or Television Advertising Syncs The Promotion of Third Party Goods and Services Public Performance and Communication to the Public Sundry Income COLLECTION, CALCULATION AND DISTRIBUTION OF PUBLISHING INCOME 193 Sheet Music Mechanical Income from Records Mechancial Income Payable in Other Situations THE MECHANICAL LICENCE PROCESS 196 Reporting the Use Claiming the Work and the Royalty Issuing the Prescribed Notice Accounting Returns and Retentions The Financial Results United Kingdom Practice United States Practice Controlled Composition Clauses SYNCHRONISATION WITH FILM OR TELEVISION 200 Production Music Commissioned Material Pre-recorded and Released Material THE PROMOTION OF THIRD PARTY GOODS AND SERVICES 201 COMMUNICATION TO THE PUBLIC 202 Licensing Users Overseas Income

6 x CONTENTS 10 ANATOMY OF A MUSIC PUBLISHER 206 THE MANAGING DIRECTOR 206 THE CREATIVE SERVICES MANAGER 207 LICENSING MANAGER 208 TRANSCRIBERS 209 PRINT MUSIC 210 PRINT MUSIC SALES 210 BUSINESS AFFAIRS 211 COPYRIGHT AND ADMINISTRATION 211 WAREHOUSE COMPOSING AND WRITING WITH OTHERS 213 DOCUMENTING THE RELATIONSHIP 214 PARTNERSHIPS 215 COPYRIGHT OWNERSHIP JOINT AND COLLECTIVE WORKS 215 Collective Work Joint Works CONTROL 218 THE ROYALTY SPLITS 219 APRA REGISTRATION 220 CONTRACTUAL OBLIGATIONS 220 ARRANGERS AND TRANSLATORS 220 Arrangements Translators RECORD PRODUCERS 223 ADDITIONAL WRITERS 224 ACCIDENTAL CO-WRITERS TYPES OF PUBLISHING CONTRACTS 226 WRITER-FOR-HIRE AGREEMENTS 226 SINGLE-SONG ASSIGNMENT 227 The Rights Period (or Retention Period ) The Advance Royalties OTHER SPECIFIC-WORKS AGREEMENTS 229 TERM PUBLISHING AGREEMENTS 237 Duration The Advance Split Publishing Deals Recoupment Minimum Commitment SELF-PUBLISHING 256 ADMINISTRATION DEALS 256 Length of Contract Copyright Ownership Advances Income Splits Covers 13 COMMON CLAUSES IN PUBLISHING DEALS 259 ASSIGNMENTS AND LICENCES 259

7 CONTENTS xi PUBLISHER S OBLIGATION TO EXPLOIT 260 ROYALTY SPLITS 260 General Synchronisations and Covers Sheet Music Income Public Performance and Communication Income OVERSEAS INCOME 263 The Sub-Publisher s Commission Net Receipts v. At Source MECHANICAL ROYALTY REDUCTIONS IN THE UNITED STATES AND CANADA 266 ACCOUNTING 268 GST 268 CREATIVE CONTROL 269 WRITER S WARRANTIES 270 PUBLISHER WARRANTIES 271 REVERSION OF COPYRIGHT TECHNOLOGY AND MUSIC: EVOLUTION AND REVOLUTION 273 THE MECHANICAL AGE 274 Early Recordings Flat Records THE ELECTRONIC AGE 276 Electricity Hi-Fi The Transistor Music on the Move Audio and Video Tape Portable Recording THE DIGITAL AGE 279 The Birth of the Blues Other Digital Formats PERSONAL COMPUTERS 283 THE INTERNET 284 ONLINE DELIVERY, STREAMING AND THE CLOUD 285 MP3 286 WEBCASTING AND STREAMING 287 RINGTONES 288 DIGITAL BROADCAST 290 MOBILE PHONES 291 EVOLUTION DIGITAL DELIVERY: EVOLUTION IN BUSINESS REVOLUTION IN THINKING 293 DOWNLOAD WARS 294 Digital Files, Personal Computers and the internet The Industry Baulks Napster Grokster Kazaa Gnutella, BitTorrent, LimeWire and The Pirate Bay THE FOCUS ON INTERNET SERVICE PROVIDERS 299

8 xii CONTENTS THE iinet CASE 300 The Initial Case The First Appeal THE WAY FORWARD 304 Buying Online Streaming Services CHANGES IN THE WAY COMPANIES DO BUSINESS 305 ARTISTS AND NEW TECHNOLOGY 307 Royalties Artistic Control in the Digital Age New Technology and the Artist s Business COPYRIGHT ISSUES ARISING FROM RECENT AND FUTURE TECHNOLOGICAL DEVELOPMENTS 311 Does Copyright Even Have a Future? COPYRIGHT MANAGEMENT 313 PROMOTING CONTROLLED COPYRIGHT ACCESS AND MONITORING USE 313 COLLECTION OF COPYRIGHT INCOME FOR INTERNET USE 316 THE FUTURE OF ONLINE MUSIC THE TIMES THEY ARE A CHANGIN 316 CONCLUSION THE GROWTH OF THE AUSTRALIAN RECORD BUSINESS 320 PROFIT SKILL OR LUCK 322 A SHORT HISTORY 324 Language and Geography Covers The 1960s The 1970s The 1980s The 1990s The 2000s VERTICAL INTEGRATION 328 THE RECORD COMPANIES 330 MAJORS STRUCTURES 331 Head Office MULTI-NATIONAL MAJORS 332 EMI Sony BMG Universal Warner Music Local Majors THE INDEPENDENTS 340 RECORD DISTRIBUTORS 341 TELEMARKETERS 342 BUDGET RECORD COMPANIES 342 RECORD CLUBS ANATOMY OF A RECORD COMPANY 344 ARTIST AND REPERTOIRE (A&R) 344 BUSINESS AFFAIRS 345 MARKETING AND PROMOTIONS DEPARTMENT 346 DIGITAL & NEW MEDIA DEPARTMENT 347

9 CONTENTS xiii DESIGN DEPARTMENT 347 PRODUCTION DEPARTMENT AND STOCK OR CATALOGUE CONTROL 348 SALES REPRESENTATIVES 349 ORDERS AND WAREHOUSE 350 ACCOUNTS AND ROYALTY ACCOUNTS CHOOSING A RECORD COMPANY 351 THE ARTIST ROSTER 351 WHO S HOT? 351 WHO S THE BEST AT PROMOTING RECORDS? 352 CAN I WORK WITH THEM? 352 WHAT DO I WANT MY RECORD COMPANY TO DO? 353 WHO S GIVING THE BEST DEALS? GETTING A RECORD CONTRACT 355 DREAMS OF INSTANT SUCCESS 355 WHAT LABELS WANT 355 CREATING AWARENESS OF YOUR MUSIC 356 Knowing Someone Live Work Social Networking & Online Presence Image Publicity Stunts Demos Talent Shows & Reality TV STARTING NEGOTIATIONS RECORD CONTRACTS 364 WHY HAVE A RECORD CONTRACT? 365 THE FORM OF THE RECORD CONTRACT 365 Oral Agreements Deal Memos Heads of Agreement Inducement Letters KEY ISSUES IN RECORDING CONTRACTS 367 Contract for Services Exclusivity The Artist s Services Working in Other Media internet and Website Control Contract Definitions The Term of the Contract Delays and Interruptions Suspension Clauses The Territory Overseas Releases Release Options Artist s Minimum Delivery Commitments The Record Company s Recording Commitment Artistic Control Working With A&R Release Commitment Publicity and Image Funding Recordings Advances and Recording Costs Secondary Exploitation of Records Who Owns the Recordings? Cover Art Re-Recording Restrictions Moral Rights and Remixing American Federation of Musicians The Right to Assign the Contract Warranties and Indemnities 360 and Multiple Rights Deals Conclusion 21 RECORD DISTRIBUTION DEALS 396 LABEL DEALS 396 What are Labels? Label Ownership Why Do a Label Deal? Negotiating Label Deals Artists and Label Deals

10 xiv CONTENTS PRESSING AND DISTRIBUTING DEALS 404 Why Do P&D Deals? P&D Versus Master Licence Selecting a Distributor Expenses Funding Who Does What? Manufacturing Physical Records Who Owns the Records? Stock Control Promotion Promotional Copies Distribution Trading Terms Distribution Fees Deductions and Accounting Goods and Services Tax During the Deal At the End of the Deal MASTER LICENCE DEALS 414 Exclusivity Basic Elements of Master Licences DIGITAL-ONLY DISTRIBUTION GROUP RECORDING CONTRACTS 429 GROUP CONTRACTS 429 THE DYNAMICS OF GROUPS 430 GROUP STRUCTURES 430 THE CONTRACT PROVISIONS 431 The Parties Individual and Group Liability The Group s Professional Name LIAISING WITH THE RECORD COMPANY 433 Who Speaks for the Group? Who Makes Decisions? Line-up Changes FINANCIAL CONSEQUENCES OF LINE-UP CHANGES 436 Royalties and Accounting Recoupment Ill and Absentee Members 23 RECORD ROYALTIES 438 NON-RECOUPABLE DEALS 438 RECOUPABLE DEALS 439 NET SALES 440 THE ROYALTY RATE 442 THE ROYALTY BASE 442 RRP Royalty Calculation Dealer Price Calculation DEDUCTIONS CALCULATING THE ROYALTY BASE PRICE 444 Goods and Services Tax Delivery Charges Packaging Deductions Specific Packaging Deductions New Technology Deductions Arbitrary Deductions Double Deductions ROYALTIES FROM RECORDS SOLD BY UNUSUAL MARKETING METHODS 449 Record Clubs Media Advertised Records Premium Records Budget and Mid-Price Records OTHER INCOME 452 Broadcast and Public Performance Royalties Synchronisation Fees ROYALTY ACCOUNTING 454 PRODUCERS ROYALTIES 455

11 CONTENTS xv ALTERNATIVES TO ROYALTY PAYMENTS 455 Lump-Sum Payments Shares (Equity in the Record Company) Being Creative MECHANICAL ROYALTY CAPS AND REDUCTIONS 456 Background North American Practice Payment of Mechanicals on Records Sold Three Quarter Rate Capping Controlled Compositions Capping All Mechanical Royalty-Bearing Tracks Your Publisher Practical Examples 24 RECORD PRODUCERS 465 WHO PAYS? 466 THIRD PARTY PRODUCERS 466 WRITTEN CONTRACTS 467 The Job Description Who Hires the Producer? Services SELECTING A PRODUCER 469 PRODUCER S REMUNERATION 470 The Fee Timing of Fee Payment Royalties Royalty Rates Advances and Recoupment When Does the Producer Earn Royalties? Timing of Royalty Payments Share of Licence Fees Video Royalties Royalty Reductions Pro- Rata Calculations A-Side Protection RESPONSIBILITY FOR BUDGET OVERAGES 475 COPYRIGHT OWNERSHIP 476 The Master Recordings Works Composed With the Artist Works Composed by Third Parties REMIXING 477 TERMINATION MUSIC CLIPS 478 HISTORY 478 Clips as a Promotional Tool Concert Films Television CLIPS AND RECORDING BUDGETS 480 MTV 481 The Present OTHER USES OF CLIPS 481 Video Jukeboxes Sell-through Video and DVD Broadcasters and Pay for Play CLIP PRODUCERS 483 COMMISSIONING YOUR OWN CLIPS 484 MUSIC COPYRIGHT IN CLIPS 485 CLIPS AND RECORDING CONTRACTS 485 Budgetary and Creative Control Royalties Packaging Deductions on Sell- Through Videos and DVD

12 xvi CONTENTS THE VIDEO PRODUCER S CONTRACT 487 The Parties Choice of Director Storyboard Budgets Factors Affecting the Budget Who Owns the Rights? Clearances Delivery Dates When Things Go Wrong THE FUTURE COLLECTING SOCIETIES 491 EARLY BEGINNINGS 491 INTERNATIONAL CONVENTIONS 492 CHARACTERISTICS OF COLLECTING SOCIETIES 492 COLLECTIVE ADMINISTRATION 493 PRIMARY FUNCTIONS OF COLLECTING SOCIETIES 494 AUSTRALIAN COLLECTING SOCIETIES 495 APRA AMCOS PPCA Screenrights Copyright Agency Limited (CAL) Christian Music Copyright Collecting Companies INTERNATIONAL CO-ORDINATION 511 Public Performance Mechanical Copyright ISSUES OF MARKET FAIRNESS AND COMPETITION 513 COPYRIGHT SOCIETIES CODE OF CONDUCT 515 MULTI-FORMAT LICENSING 515 THE FUTURE ROLE OF COLLECTING SOCIETIES MERCHANDISING 518 AREAS OF MERCHANDISING 519 Tour Merchandising Retail Merchandising Marketing and Web Merchandising SOME BASIC QUESTIONS 520 Why Merchandise? When to Merchandise? Have You Got the Rights? Who Negotiates? How Do We Allocate the Rights? MERCHANDISING AND RECORD COMPANIES 522 TOUR MERCHANDISING 524 Territory Length of a Tour-Merchandising Deal Extension for Unrecoupment Advances for Tour Merchandising Timing of Advance Payments Recoupable or Repayable Advances The Splits The Artist s Share Quality Control Inventory Leftovers Accounting and Payment Sales Efforts Group Members Obligations DOING YOUR OWN TOUR MERCHANDISING 531 RETAIL MERCHANDISING 531 The Agent s Commission The Agent s Role Agents Rights PROTECTION SPONSORSHIP AND PRODUCT ENDORSEMENT 536 SPONSORSHIPS 536

13 CONTENTS xvii WHY COMPANIES BECOME SPONSORS 537 Image Establishment Image Definition and Brand Development Image Improvement Association With Excellence Client and Staff Relations The Relationship WHAT TO ASK FOR 541 A MOMENT S REFLECTION 541 TOUR SPONSORSHIP 542 CONFLICT WITH VENUES 543 SPONSORSHIP OF RECORDS 543 DIRECT ENDORSEMENTS 544 THE ENDORSEMENT CONTRACT PHILANTHROPY 548 GIFT RECEIVERS 549 Establishing Relationships Setting up an Organisation with Tax Deductible Status MAINTAINING RELATIONSHIPS 552 GIFT GIVERS 553 Individuals Companies Workplace Giving Volunteering Tax Considerations for the Gift Giver Private Ancillary Funds 30 MUSIC IN ADVERTISING 558 SOURCES OF MUSIC 558 COMMISSIONING ORIGINAL MUSIC 558 The Rights The Budget PRODUCTION MUSIC 563 How Libraries Work LICENSING PRE-RECORDED AND RELEASED MATERIAL 564 PERILS AND PITFALLS MUSIC IN FILM 567 AND NOW TO THE PRESENT 568 SOURCES OF MUSIC 568 Production Music Licensing Existing Recordings Commissioned Music COMPOSERS WITH PUBLISHING CONTRACTS 575 THE COMMISSION CONTRACT 576 Composing the Music and Making the Soundtrack General Terms Soundtrack Albums AUSTRALIAN GUILD OF SCREEN COMPOSERS INSURANCE 605 INTRODUCTION 605

14 xviii CONTENTS HOUSEHOLD CONTENTS 606 EQUIPMENT INSURANCE 606 TRAVEL INSURANCE 607 INCOME INSURANCE 607 Income Protection Insurance Personal Accident and Illness Insurance PUBLIC LIABILITY INSURANCE 608 NON-PERFORMANCE AND NON-APPEARANCE 609 EVENT INSURANCE 609 Common Insurance Mistakes in Event Insurance KEY PERSON INSURANCE 611 PROFESSIONAL INDEMNITY INSURANCE 612 FURTHER READING MUSIC LAWYERS 613 CHOOSING YOUR MUSIC LAWYER 613 FINDING YOUR MUSIC LAWYER 614 WHAT MUSIC LAWYERS DO 615 Contract Analysis, Advice and Negotiation Contract Drafting General Advice WHAT LAWYERS COST 617 The Hourly Rate Estimates The Capped Fee Success Fees Percentages PAYING THE BILLS 619 COMMUNICATION 619 CONFLICTS OF INTEREST 620 CHANGING LAWYERS 621 FREE LEGAL ADVICE 621 CONTACTS INDUSTRY UNIONS AND AWARDS 623 EMPLOYEE OR INDEPENDENT CONTRACTOR? 623 UNIONS 624 ENTERTAINMENT INDUSTRY AWARDS 625 SESSION MUSICIANS 626 MAKING CAST RECORDINGS OF SHOWS KEEPING THE BOOKS 628 MANAGING THE MONEY 629 TAXATION 629 TOUR BUDGETS/GRANT APPLICATIONS 629 Tour Budgets Submissions for Subsidies or Grants BORROWING MONEY 630

15 CONTENTS xix BOOKKEEPING ESSENTIALS 631 Cash Book Petty Cash Book Periodical Accounts Filing System GST Paperwork Business Activity Statements (BAS) Role of the Accountant CONCLUSION TAXATION 636 INTRODUCTION TO THE TAXATION SYSTEM IN AUSTRALIA 637 TAXABLE INCOME AND ASSESSABLE INCOME 637 Assessable Income Taxable Income Taxable Income and Assessable Income for Overseas Artists Tax Rates for Australian Residents Tax Rates for Non- Australian Residents LODGING YOUR TAX RETURN 640 Do I Have to Lodge a Tax Return? Individuals Partnerships Companies Trusts Deductions Capital Expenses and Depreciation Recurrent Expenses HOBBY OR BUSINESS? 648 What is a Business? Significant Commercial Purpose or Character Intention of the Taxpayer Size or Scale of Activity Examples REGISTERING YOUR BUSINESS: GST, ABN, TAX FILE NUMBERS AND PAYG WITHHOLDING TAX 655 The ABN Registering for an ABN The Australian Company Number and the ABN What is GST? GST Paperwork Registering for GST What are the Benefits of GST Registration? Obtaining a Tax File Number Registering for PAYG Withholding Registering for Fringe Benefits Tax PERSONAL SERVICES INCOME 658 Does This Affect You? CARRYING FORWARD LOSSES 659 ABNORMAL RECEIPTS 659 INCOME AVERAGING FOR SPECIAL PROFESSIONALS 660 TAX PLANNING AND BUSINESS STRUCTURES 660 Partnerships Companies Trusts Superannuation TAX ISSUES FOR OVERSEAS ARTISTS 662 Income from Engagements Income from Royalties Double Tax Treaty CHOOSING A TAX OR ACCOUNTING PROFESSIONAL GETTING THE INTERNATIONAL DEAL 663 TALENT THE STARTING POINT 663 CONTACTS 665 Colleagues Lawyers Managers Agents WHERE TO BASE THE BUSINESS THE ART OF THE DEAL 670 A DEAL IS A RELATIONSHIP 670

16 xx CONTENTS THE BACKGROUND INTELLIGENCE 670 What are the Parties Creative Needs and Expectations? What are the Client s Commercial Needs? Will the Artist have the Personal Support Necessary to be Successful? What are the Company s Commercial Needs? What do Other Artists of the Same Genre, and a Similar Level of Success, Receive? Understand Negotiation Discipline TECHNIQUES OF THE NEGOTIATION 675 CONTENT OF THE DEAL 677 The Myth of the Grand Advance Understand How the Deal Works Defining the Unknown Dispute Resolution Renegotiation CONCLUSION 679