February 14, 2008

Record Distribution Deals - Change of Ownership Clause

Regarding the Disney label's agreement with EMI for the exclusive global distribution of albums recorded by 'tween band the Jonas Brothers, Rolling Stone reports "Disney’s international distribution contract with EMI expires at year’s end, but the Company That Mickey Built is already looking into a “change-of-ownership” clause that would allow them to opt out earlier."
Though both Disney and EMI deny the rift, it is interesting that the agreement contained such a clause. Compare Bonnie Greenberg, Distribution Companies and Record Labels in 9 ENTERTAINMENT INDUSTRY CONTRACTS: NEGOTIATING AND DRAFTING GUIDE para. 167.01 form 167-1 para. 8(D), (F) (Donald C. Farber ed., 2007).

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