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How much should fees be for music attorney services?

By Joey Scavuzzo

If you’re in the market for an entertainment attorney in the music business… Congratulations! You’re on the rise, finally getting paid for your craft and need someone in your corner looking out for your best interests. Few make it this far, but mo’ money, mo’ problems, right?

Anyone can find an attorney today. Google exists. But the bigger questions loom: what are the payment options, what should you expect to pay and is it reasonable? The barriers to this knowledge are high so let’s tear them down and empower you with all the information you need.

What are music attorney fee payment options?

According to California Legal Forms – Transaction Guide, Matthew Bender, a leading publisher of legal analysis and research information, explains that entertainment attorney fees are typically paid in one of four ways:

  1. A retainer
  2. An hourly rate
  3. A combination of an hourly rate and a percentage of your gross compensation
  4. Contingency fees based on gross income.

What should you expect to pay for a music attorney?

When it comes to an hourly rate, Donald S. Passman, author of All You Need to Know About the Music Business, Eighth Edition, states, “Most lawyers in the music business don’t charge on just an hourly basis. For the ones that do, the rates are from $150 per hour for new lawyers, up to $600 or more for biggies[1].”

Since many entertainment clients can’t afford to retain an attorney on an hourly basis, they and their attorney instead often agree to a contingency fee arrangement.

Kenneth Abdo, a partner at the firm Fox Rothschild LLP along with Jack Saul, a professor of law at University of Akron, note in their article Entertainment Law Ethics, “A customary contingent fee ranges from 5% to 10% of the defined gross compensation of the client and rarely exceeds 10%. The exact percentage depends, in part, on the client’s record for commercial or critical success and the likelihood that the lawyer’s efforts will be successful. For example, it is reasonable with a superstar to take a lower percentage of the gross compensation and with a new or “baby act” to insist on 10%. Successfully shopping a new artist to a recording contract with a small, local, independent record company is a situation in which a lawyer might charge 10% of the artist’s gross compensation.[2]”

This is further supported by LAW AND BUSINESS OF THE ENTERTAINMENT INDUSTRIES, Fifth Edition, by Donald E. Biederman, et. al. (the prevailing text used in law schools), stating,  “A customary contingency fee ranges from 5% to 10% of the defined compensation earned by the client and rarely exceeds 10%[3].” But that doesn’t mean it can’t. There is no case law or precedent defining a specific ceiling. For example, it is common for contingency lawyers in personal injury cases to take 33.33% and employment lawyers to take 40% of the total amount recovered. [4]

And this leads us to our final section…

Is your attorney’s fee percentage reasonable?

According to the American Bar Association’s Model Rules of Professional Conduct (MRPC), the ethical code governing attorneys, Rule 1.5(a)(1)-(8) states the attorney can consider the following criteria in determining a reasonable fee: “the time and labor required, the novelty and difficulty of the questions involved, the skill requisite to perform the legal service properly, the fee customarily charged in the locality for similar legal services; the amount involved and the results obtained;, the experience, reputation, and the ability of the lawyer performing the services required; and whether the fee is fixed or contingent.[5]” In fact, some lawyers may require a retainer or deposit payment in addition to a percentage of the deal.[6]

What that says is that music attorneys have a lot of flexibility and protection when it comes to charging their fees. Simply put, an attorney with years of experience and a proven track record can, legally and ethically, charge higher rates.

So, when hiring a music attorney, you want a specialist, someone experienced with music contracts. They will understand the nuances of any deal. And you should want a professional who regularly deals with agents, managers, producers, and record companies. Like entertainment attorney Gordon Firemark says, “Their relationships with executives… can mean the difference between an average deal or a favorable one.[7]” But you should expect to pay a premium for this expertise.

[1] Donald Passman: All You Need to Know About the Music Business; https://books.google.com/books?id=smbiogvIt9AC&pg=PA50&dq=charge+on+just+an+hourly+basis&hl=en&ppis=_c&sa=X&ved=2ahUKEwi5p8G2_cfoAhUdJzQIHYCLCbYQ6AEwAXoECAIQAg#v=onepage&q=charge%20on%20just%20an%20hourly%20basis&f=false

[2] Kenneth Abdo & Jack Saul, “Entertainment Law Ethics” https://law.marquette.edu/assets/sports-law/Entertainment%20Law%20Ethics%20%28Abdo%20%26%20Sahl%29-C1.pdf

[3] Donald Biederman: Law and Business of the Entertainment Industries: Fifth Edition (2001) https://books.google.com/books?id=hKguqdfT3eMC&pg=PA18&dq=the+defined+compensation+earned+by+the+client&hl=en&ppis=_c&sa=X&ved=2ahUKEwjOrqH7_MfoAhV2GjQIHc3zBvwQ6AEwAHoECAYQAg#v=onepage&q=the%20defined%20compensation%20earned%20by%20the%20client&f=false

[4] Hutchinson and Stoy, “Everything You Need to Know About Contingency Fee and No Win, No Fee Lawyers https://www.warriorsforjustice.com/everything-need-know-contingency-fee-no-win-no-fee-lawyers/

[5] American Bar Association; Model Rules of Professional Conduct: Rule 1.5, https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/

[6] Wallace Collins, “How do you know When you need an Entertainment Lawyer?” 2015. https://www.digitalmusicnews.com/2015/05/13/how-do-you-know-when-you-need-an-entertainment-lawyer/

[7] Gordon Firemark, “Assembling a Winning Team: The Entertainment Lawyer,” 2004. https://firemark.com/2004/05/24/assembling-a-winning-team-the-entertainment-lawyer/

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What Entertainment Lawyers Charge Is No Secret. All You Have to Do Is Ask.

Prospective artists, songwriters and producers who have stakes in a recording agreement often wonder what entertainment lawyers charge. Unfortunately, like many complex questions, there isn’t a one-sum answer that fits universally.

Why is this the case? Simply put, there’s no single, one-size-fits-all amount that entertainment lawyers charge. Asking this question is a lot like asking how much a producer should charge for a song or the precise amount a newly signed artist should receive as an advance. Many factors are at play.

Some good news: knowing what entertainment lawyers charge is possible, and not especially complicated. Entertainment lawyers generally follow one of about four or five different fee structures. Here’s what you need to know about them

What Entertainment Lawyers Charge: Pricing and Price Structure

Entertainment lawyers are a diverse bunch, hailing from different professional and personal backgrounds. Their life and career experiences differ. And the scope of the work that they do for artists and/or producers varies quite a bit. Accordingly, so do their pricing structures.

Helen Yu, a well-regarded Los Angeles entertainment attorney, puts it in these terms: “Different lawyers charge in a variety of ways, in many cases depending on the kind of matter involved.” For starters, many will charge percentage-based fees as a “base rate” or “an hourly rate,” she explains, with a deposit retainer up front, or sometimes a combined reduced hourly rate and percentage fee.

When a lawyer is willing to take the risk of non-payment on a straight percentage, their rates are generally assessed as a percentage of client earnings. In these cases, their rates tend to be on par with agents, managers, and other entertainment-support professionals.

Base percentage rates for entertainment attorneys range from 5 % to 15%. The precise percentage depends on factors such as:

  • The client’s stature
  • The artist’s or producer’s annual earnings
  • The scope of work performed by the entertainment attorney
  • The entertainment attorney’s experience, with higher base percentage rates commanded by highly specialized or seasoned entertainment attorneys

The client’s annual income is a very important factor. For example, when the client earns $2 million dollars or more per year, the percentage rate usually falls to the lowest available pricing tier, and vice versa. When a producer earns $15K or less per advance, for example, their pricing tier typically ranges from 10% to 15%, but generally does not exceed 15%.

Clients just getting into the entertainment business should expect to pay above 10%, which is the average base percentage range. Once the artist or producer earns more than $2 million annually, the percentage rates decrease. For example, most entertainment lawyers would think it fair and reasonable to charge 5% on artists like Beyonce, Imagine Dragons, or Ariana Grande, all of whom are at the peak of their profession.

More to What Entertainment Lawyers Charge

The base percentage rate is just one part of what entertainment lawyers charge, however. Entertainment attorneys also typically charge a blended hourly rate, calculated as a retainer reduced hourly rate plus a percentage of earnings, depending on the complexity and scope of work.

“It’s possible [for entertainment lawyers] to arrange a reduced hourly fee as an advance against a percentage,” says Gordon Firemark in an article on compensation for entertainment attorneys.

Do Entertainment Lawyers Charge Flat Fees?

The short answer to this question is “yes.” When working on one-off transactions for clients with whom they have not previously worked, entertainment lawyers may agree to forgo percentage fees or hourly rates and instead charge flat fees, particularly when the client does not earn enough to cover the attorney’s usual percentage fee.

For example, when a producer is paid a $7,500 advance, a 10% percentage-based rate would amount to $750. Since the attorney may spend up to 10 hours on the agreement, and the average hourly compensation for experienced Los Angeles and New York attorneys is $550 per hour, the percentage fee would amount to a fraction of the attorney’s actual costs. In such cases, the entertainment attorney may calculate a flat fee as a multiple of his or her normal hourly rate on the basis of the estimated time needed for the task.

When aspiring artists and producers have no interest in continuing the relationship with their entertainment lawyer following the successful completion of a one-off arrangement, the flat-fee structure may be suitable. That said, should follow-up legal work be required, the client should not expect the same attorney to work on the matter again, as there was no mutual expectation that the relationship would endure.

Does Experience Influence Entertainment Attorney Pricing?

Although the precise extent is up for debate, attorney experience does affect what entertainment lawyers charge. Attorneys licensed in entertainment hubs such as Los Angeles and New York are usually the most experienced and skilled lawyers, since those markets are so important to the industry. The number of entertainment lawyers licensed to practice in places like Nashville (Tennessee) or Atlanta (Georgia) is smaller than the number licensed in California, home to Hollywood.

Finding the Best Fit at the Right Price

Immediately asking “what do entertainment lawyers charge,” you should ask, “how do I find the entertainment lawyer who best fits my needs at the right price?”

Helen Yu of Yu Leseberg says, “The future success of a new artist or performer depends on their finding the right entertainment lawyer. Our firm wants to work with those willing to invest in themselves.”

In other words, she continues, “[T]he smart artist understands that having the right attorney as a member of their team, helping them maximize their earnings, is absolutely crucial. Artists who look for what they think is ‘the best deal’ may end up hurting themselves. When you find the right lawyer, stick with them, as you will probably never run across that opportunity again.”   

For example, Helen Yu has played an integral role in the success of fellow Los Angeles natives such as YG, DJ Mustard and Ty Dolla $ign, and Black Eyed Peas, to name a few. She encourages artists to seek out high-quality legal representation on the basis of:

  • Duration of experience in the artist’s creative niche
  • Unimpeachable knowledge of industry norms and customs
  • Enduring relationships with law professionals and executives at creative firms, such as record labels
  • Positive referrals from past clients

“There is nothing more important in building a successful career than putting yourself first,” says Helen Yu of Yu Leseberg. “Don’t cheap out on you. You owe it to yourself to work with an attorney you have total confidence in, regardless of his or her pricing structure. Lawyers charge what they’re worth. Your creative career is too important to entrust to any but the very best.”