21cMusician Toolkit 21cMusician Toolkit Understanding Commercial Agency Contracts Essential guidance for early-career musicians navigating agency agreements. Starting to work with an agent or manager can feel like an important step in any musician’s career - but it often brings with it complex legal agreements and decisions that, at first, can feel daunting and unfamiliar. Not every commercial agency is a signed up member of IAMA (International Artist Managers’ Association), but most follow, or are strongly influenced by, its Code of Practice, developed over the years jointly with the AEAA (Association Européenne des Agents Artistiques). This Code sets out clear, ethical standards for how agencies are expected to work with artists. Even if your agent isn’t a member, understanding these principles can help you know what to expect, notice areas of practice that may differ from the norm, and, importantly, feel more confident when reviewing your own contract and what questions you should be asking. Below, you’ll find the full wording of the IAMA/AEAA Code of Practice, with brief explanations to help you make sense of the legal language. . IAMA/AEAA Code of Practice The members of the Association recognise that the Articles laid down in this Code of Practice are an expression of their wish to maintain a high ethical and professional standard in all their dealings with other members and with third parties. **Throughout this document, the use of the masculine shall be deemed to also cover the feminine. The term "agent" shall be deemed to cover all companies who are full members of the Association, whether acting as agents or managers. . Article 1 This Code of Practice forms an integral part of the conditions for membership of the Association. All members of the Association agree to abide by this Code. In other words: agencies that belong to IAMA must follow these rules as a condition of their membership. . Article 2 When entering into representation of an artist, the agent is under a duty to confirm their agreement in writing, either in a formal contract or in letter form. The agreement shall be fair and reasonable and shall specify the amount of any commission to be paid to the agent, the agent's right to commission upon termination, the commissionable activities, any expenses to be reclaimed by the agent from the artist, the applicable territory, any exclusivity, the term and the procedure for termination. This is one of the most important sections. It means your agency contract should always be in writing and clearly set out: What the agent earns and when (commission rate and what activities are commissionable) What happens if the contract ends (e.g. whether they still receive commission for bookings they made) What territory it covers (e.g. UK only, North America, Europe-wide, worldwide) How long the agreement lasts and how it can be ended by either side. Any exclusivity clauses (e.g. whether you are able to enter into any other type of commercial relationship with another company or not) .. Article 3 An agent shall not state that he acts on behalf of an artist without the artist's prior approval, or if there is a general manager, without the general manager's written approval. Agents can’t say they represent you without your permission - this protects your professional reputation. The relationship structure between a general manager and any ‘local’ managers who may be working for you in other ‘territories’ should be very clear. . Article 4 When an agent is in receipt of money on behalf of an artist, such money should always be properly accounted for and held and distributed in accordance with the governing laws of the country in which the agent is based, unless mutually agreed otherwise in writing. If your agent receives fees for a concert on your behalf, they must handle this transparently and legally - and pass the money on appropriately. NB- You are entirely responsible for your own personal tax status wherever you are residing and must always keep your own clear financial records and accounts. Your manager will be able to provide clear records of any work that is handled by them on your behalf, but they are not responsible for your individual tax returns! . Article 5 An agent who is acting as a general manager shall not replace a local manager without the prior approval of the artist. You must be consulted before any changes are made to your team structure. . Article 6 When promoting their services, agents will at all times maintain the highest ethical standards and will not harass or pressurise artists. An agent will not make disparaging remarks about another agent to an artist with a view to acquiring the artist's representation. This article focuses on professional behaviour. Agents shouldn’t pressure you to sign, nor should they say negative things about other agencies to ‘poach’ you. . Article 7 Where an agent is engaged by an artist to replace another agent, the incoming agent shall use his best endeavours to ensure that the artist honours all reasonable contractual obligations entered into with the outgoing agent. The incoming agent shall not knowingly encourage the artist to break existing agreements, which should only be altered by negotiation and if there is agreement between the parties. If you change agents, both you and the new agent should respect any existing agreements with your previous agent, and resolve changes through proper negotiation. . Article 8 An agent should avoid potential conflicts of interest if he undertakes work (for example as promoter, programming consultant or for competitions) that would influence his activities as an agent or his loyalty towards his artists. Your agent should always act in your best interests, and avoid situations where other roles could compromise that. It is also incumbent on the agent to behave ethically and in as unbiased a manner as possible when in professional situations where they may find themselves unduly favouring their own artists over others, eg in a competition setting. . Article 9 Any split of commission between agents should be agreed upon in writing in advance. If more than one agent is involved (e.g. local and general manager), commission splits must be agreed in advance, so you’re clear on how fees will be shared. You should be clear from the outset about your and their expectations of commission rates and how expenses (travel, accommodation, visa costs, withholding tax etc) are factored into any commission calculation ie on the net or gross fee. . Article 10 When an agent has been asked for information about an artist whom he does not represent, he will give the name and details of the agent representing such artist or advice on where to find the relevant information. Agents should be transparent about who represents an artist, rather than claiming someone they don’t manage. . Article 11 It is the responsibility of the agent to ensure that he maintains a high level of professional competence and has a full understanding of all relevant legislation. Agencies should keep their knowledge up to date - including laws that affect artists. . Article 12 Any complaint made against a member of the Association in relation to a breach of this Code shall be dealt with by the Board of the Association in accordance with the Association's current procedure at that time, a copy of which is available to members upon request. If an agency that’s a member of IAMA breaches the Code, there is a formal complaints procedure that can be followed. . . Understanding the IAMA/AEAA Code of Practice can help you recognise what a fair and transparent agency agreement looks like, ask informed questions before signing, and identify clauses or behaviours that don't align with industry standards. Most importantly, it can give you greater confidence and a sense of empowerment as you navigate professional relationships with agents and managers. If you’re ever unsure about any part of a contract, it’s always wise to seek professional legal advice before signing. Further resources: IAMA/AEAA Code of Practice . Click here to sign up to the 21cMusician Newsletter Manage Cookie Preferences