In a bid to contribute its own quota to the growth of Nigeria’s entertainment industry, Legalbyte Africa, a law firm which specialises in entertainment and music business in Nigeria, through its Founding Partner, Legalbyte Africa, has stated some standard legal structures to be put in place for a record label to flourish.
According to Opeyemi Iredumare “A record Label is like any brand or company; it requires method of operation. The difference in running a record label is that the “product and services” it deals with are Peculiar. These “products and services” require technical protective mechanisms, accountability procedure, good human relationship and public relations expertise, involvement in creative research and development and market interactions.
“Firstly, Legal and Confidential Operations, require that a record label be a company registered under the law and the company must ensure to fulfill all requirements of the law. Fulfilling these requirements means you must register your intellectual properties via trademarks and copyright protection, ensure all tax liabilities are taken care of, ensure everyone working, paid and unpaid, are working under a contract and never hesitate to take legal precautions.”
Speaking further, “Furthermore, a record label must ensure to hire appropriate and competent staff who understand the “product and service “and the professionalism needed to be exhibited by such personnel. Employing competent staff cannot be over-emphasized. An incompetent manager or Publicist can cause grievous harm to a record label than a cancelled event or endorsement deal. A competent experienced A & R can be the trade secret of a record label. Ensuring that the assets of the company are managed by competent hands is a priority that cannot be moved down wards on any list on”
Explaining why record labels fail in Nigeria, the creative entertainment lawyer stated “One cannot zero this on one specific shortcoming even though you realize most record labels in Nigeria lack the mechanism listed above . Through experience, I can zero in on many factors such as Incompetency and negligence of the owners, directors and managers, Misappropriation of company funds, Lack of due-diligence culture and professionalism.
and then