Split Sheets in the Music Industry

June 6, 2024
Split Sheets in the Music Industry

Imagine Carlos, Carla, and Carmen wrote a song called "Claridad". By default, the law dictates that Carlos, Carla, and Carmen each own an equal part of "Claridad," hence each owning 33.33%. If they prefer a different arrangement, they need a split sheet. In this alternate scenario, Carlos, Carla, and Carmen can use the split sheet to divide the ownership of "Claridad" however they see fit. For example, they might agree that Carlos gets 10%, Carla 40%, and Carmen 50%. With this split sheet, they can then claim their respective royalties through their Performance Rights Organizations (PROs) and publishers.

What is a Split Sheet?

A split sheet is a legal document that specifies the percentage of ownership among the authors and collaborators of a song. The purpose of the split is to ensure that everyone involved receives their fair share of the revenue generated by the song.

Requirements for a Valid Split Sheet

For a split sheet to be valid, it must:

  1. Be in writing,
  2. Be signed by all involved parties,
  3. Sum up to 100% in terms of percentage distribution.

When Should You Use a Split Sheet?

The best practice is to use a split sheet whenever more than one person is involved in the creation of a work, whether a composition or recording. Without a split sheet, the ownership of the work is automatically divided equally among all creators.

Ideally, a split sheet should be completed as soon as a work is created and the distribution of ownership among the authors and collaborators is agreed upon. This helps prevent misunderstandings and ensures that everyone’s contributions are protected from the start.

What Happens if a Split Sheet is Not Completed?

Failure to complete a split sheet can lead to legal and payment disputes among authors and collaborators in the future. This could involve disputes over ownership, attribution, and royalty distribution. Completing a split sheet helps prevent these issues and ensures each party receives their fair share of the revenues.

Do You Need Separate Split Sheets for the Composition and the Master?

It's best practice to use a written document whenever you collaborate with others on a work. Copyright law considers the composition and the master as separate entities. Therefore, each requires its own split sheet, when applicable.

Factors Affecting the Negotiation Process of a Split Sheet

Under copyright law, ownership of a work is divided equally among its creators unless there is a written agreement like a split sheet. When contracts are involved, the distribution of percentages depends on what the parties agree upon. Often, this negotiation process can be influenced by who has more power. For example, if Alex and Pedro are working on Alex's first song and Pedro is a well-known producer nominated for a Latin Grammy, Pedro would likely have more negotiating power. This means that even though the law would divide the work equally, Pedro might negotiate for a larger percentage in the split sheet.

Information Typically Included in a Split Sheet

A typical split sheet includes:

  • Legal and artistic names of the authors and collaborators.
  • Ownership percentage of each party involved.
  • Contact information for each party.
  • PRO affiliations, such as ASCAP or BMI.
  • International Standard Work Code (ISWC) of the song, if available.
  • The split might also include other key details like contributions by each person (lyrics, hooks, melodies, beats, etc.), publisher information, and whether different versions of the song were created.

Does a Manager Appear on the Split Sheet?

Typically, no. The general rule is that only the authors or composers of a musical work should appear on the split sheet, as it is for those who participated in creating the composition or recording. The rights and obligations of third parties, like managers, are established in separate contracts, such as artist management and representation agreements.

Is a Lawyer Necessary to Create a Split Sheet?

As a general rule, a lawyer is not necessary to create a split sheet. However, there are cases where it is advisable to have a lawyer with experience in the music and entertainment industry.

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