Crowdfunding and the Recording Industry

Tim Kappel, Loyola University New Orleans law student, submitted a paper to the Entertainment Law Initiative (ELI) last spring.  The paper discusses the growing popularity of “crowdfunding” music projects and the legal issues it presents.  Crowdfunding it basically like the stockmarket for bands.  You chip in $10, you own a piece of the band.  Investors are usually rewarded with perks that can include free albums, backstage passes, etc.  The sites focused on this model: Slicethepie, Sellaband and Bandstocks, all vary when it comes to terms of the deal, length of exclusivity, and licensing rights, but they all share the same business model.

The legal issues addressed in Tim’s submission include conflicts with Internet gamblign laws US Securities Laws.  Click on the link below to read the full paper.

Crowdfunding and the Recording Industry