QUESTION

What is the average finder’s fee for a music distribution deal and a film finder deal bring investor?

Asked on Aug 27th, 2016 on Entertainment Law - California
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1 ANSWER

Susan Marie Basko
It sounds like in the first part of your question, you are asking what is the average finder's fee for a music distribution deal. This question makes little to no sense to me. There would not be any finder's fee involved in any such thing. The only person who can be paid a percentage of talent work is a Licensed Talent Agent and the prices are set by contract that must be approved by the State. The only exception is when a Music Manager gets a recording contract for a client, but the law states recording contract, not a distribution deal. Trying to get a "finder's fee" for telling someone about a music distribution company would not happen legally, absent being a licensed Talent Agent. In the second part of your question, you are saying something about a "film finder deal bring investor." Please be aware that investing in a film is usually considered an activity only for qualified investors under SEC rules. In any situation where an investor will be brought on to a film, you must work closely with a film finance attorney. The rules are very specific because the investment is so incredibly risky. When the film project has a good film finance attorney in place, she or he will be able to tell you if there will be some sort of fee available for bringing in an investor to the project. Before expecting any such fee, be sure to have a contract in place between yourself and the producers of the film, written by the film finance attorney with all legal provisions. If you simply show up introducing an investor to a film producer, do not expect to be paid any money for that. Who can be paid for what is very specific in the entertainment industry.
Answered on Sep 21st, 2016 at 11:43 AM

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