Don’t Leave Money on the Table: Protect Yourself and Your Intellectual Property Rights

September 1, 2025

Dave Pomeroy  -  International Vice President and President of Local 257 (Nashville, TN)

Now more than ever, it is essential to document your recording work by putting it under an AFM contract. The music industry has undergone significant shifts over the past few decades, with its rules changing dramatically.

The days of major record labels and high-level managers controlling every aspect of an artist’s career are long gone. The creative use of social media provides PR opportunities that were unthinkable just a few years ago. The seemingly endless parade of unpredictable success stories of independent artists who break through the old barriers continue to throw the past business models to the curb.

Every musician knows that there is recording going on in the jurisdictions of every local in the AFM. The important fact every musician needs to know is the tangible value of documenting their work with an AFM recording contract. And they need to find ways to help employers and producers understand that it’s valuable for them too. For example, many people don’t know that an AFM contract makes the recording a “work for hire,” which protects the employer on several levels. The AFM continues to adjust our union recording agreements to align with new parameters as they emerge. Musicians who make the effort to bring those agreements into their world will realize the benefit of doing so.

One benefit is compensation for the use of studio tracks onstage. For years, it was simply deemed “illegal” to do so, as it would displace live musicians. As technology made syncing up recorded tracks with a live performance much easier, the use of studio tracks in concert became commonplace. As more artists began using tracks onstage to enhance their shows, we came up with a per show rate, based on touring Broadway musicals, that was reasonable and realistic.

We took this idea to the record labels and it was incorporated into the Sound Recording Labor Agreement (SRLA). Local 257 (Nashville, TN) has billed and collected nearly $1 million for musicians whose tracks were used onstage. We have had to explain to artists that the intellectual property they are using belongs to the label, and that the artist is responsible for payment to musicians. Someone has to say something to start the process. Don’t be afraid to speak up.

Another way to make sure your work is covered, even when you are recording at home, is to use the Single Song Overdub agreement. It is the only AFM recording agreement that is per song rather than by the hour and that also allows you the option to make your own pension contribution, if desired, via designation by the employer on the agreement. The scale, health and welfare, and pension are all built into the round number, and the Single Song worksheet shows you the breakdown.

After completing the work, send the overdub to the employer in a mix, but do not send them an isolated track until you have been paid. You can then file the contract and agreement with your local, and make the correct pension contribution for the amount received using the Single Song worksheet. This agreement can also be used in combination with a Local Limited Pressing agreement. The upgrade parameters are the same as for the Limited Pressing.

As the big budget days of the last century fade away, Low Budget Master is also on the rise as a win-win for players and employers. In exchange for a little bit of paperwork on the front end to get the project approved in advance of recording, the musicians get credit in the AFM Special Payments Fund for five years. Unlike demo and Limited Pressing sessions, the employer can pitch their music for film, television, and commercials without having to pay an upgrade. The back-end residual payments for employers to the Special Payments Fund are extremely affordable. For example, if an album sells 100,000 units, the back-end residual payment is less than $3,000. A sale of 500,000 units would trigger a residual of $31,000. These numbers are not dealbreakers, and create opportunities for musicians to be paid more than once when their work is used in new ways. That is the power of AFM contracts.

As we get ready to enter negotiations with the record labels for a new agreement, as we have done in our most recent TV and film negotiations, we will continue to look forward and address challenges as they emerge. This is nothing new, we have been dealing with technological advances that affect our work for more than a century. The value of music remains strong, and the AFM will continue to do all we can to ensure that musicians and their intellectual property are respected and valued. But it all starts with you, the players. Help us help you by asking your employers to do the right thing and put your work on an AFM contract. It can make a huge difference in your bottom line over time and into the future.

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