Entire law school classes are taught, and entire books are written, on legal battles related to the music business (see, for instance, They Fought The Law: Rock Music Goes To Court, by Stan Soocher). Most of these problems focus on contract disputes. That’s why, next to your attorney, the most important business tool available to you as a record label owner is the written contract. In fact, you can’t make money, sell records, or even exist as a label without contracts. The copyright and trademark laws are clear: whoever creates the vocal and musical sounds on the master recording (e.g., artist, producer, side artist, etc.), owns those sounds.
Music Business Made Simple (Record Label Advice): First Steps to Setting Up a Label
You may be starting a label because you love music, but remember, it’s still a business. And as with any business, one goal of a label is to make a profit. Therefore, you should establish good habits and a professional approach from the start. This will make your life much easier and help your label to grow more quickly. It isn’t difficult to set up a label, and you can do some things on your own. However, I recommend hiring an experienced attorney to help. This is a good investment, because even the simple stuff can be confusing if you don’t know how to do it, and any mistakes you make in the beginning will cost more money to correct later.