With the growing popularity of the Internet and the World Wide Web, record companies are insisting that artists sign away the rights to their "U.R.L." (Uniform Resource Locator) when they sign a recording contract. As if recording agreements were not one-sided enough already, what say does the artist have in this matter? And why is owning a URL so important?

Simply put, a URL (or "domain") is your electronic address on the World Wide Web. A URL is potentially how millions of people find each other online. If somebody wants to find information on, for example, the group The Def Tones and they do not know the specific URL, they are likely to key in the address www.deftones.com. Because this address (or site) is the first one the user will visit, owning the Def Tones URL is essentially an asset.

[With the development of MP3 technology, the technology that facilitated the transfer of near CD quality sound files over the Internet, Michael Robertson (president of MP3.com) realized the potential in owning the URL. www.mp3.com. Robertson bought the rights from a man who first registered the URL after his own name “Martin Paul” and the number 3. Martin Paul had no idea what MP3 really meant and sold the name to Robertson for $1,000. Today, the URL www.mp3.com is potentially worth millions. Martin Paul is likely kicking himself now.]

Record companies believe that because they invest a substantial amount of money into developing their artists and building a “brand name,” they are rightfully entitled to owning the domain. Although a valid point in some cases, how often to do we hear of labels who don’t follow through on their commitment to a band leaving them lost in the shuffle so to speak. An artist can easily get dropped from their record company and resigned with another--then dropped and resigned once again--all during the course of their career. With relationships lasting for as little as one album-tour cycle (if that), is it reasonable for labels to ask artists to reliquish their URL ownership. If so, why not ask to own the rights to band’s names as well?

Moving on, record companies also believe that because an artist spends a substantial amount of time in the recording studios and out on the road, the labels can better monitor and update their web sites. But don’t record companies typically have several bands on its rosters that are being marketing at the same time? It’s not likely that each band will receive the time and support they actually need. A band's management team, however, may have the resources to maintain their artists’ web sites and effectively provide them with individual attention. If the management lacks this capability, it’s often the willing fan who is more than happy to help out. Some of the best sites are run by fans.

So how exactly does the record company benefit from URL ownership anyway? They don't receive advertising dollars from other businesses nor do they display banner ads on their artist's sites. In fact, the artist is actually the one that stands to benefit the most from owning and controlling their URL. A major part of an artist's revenues comes from merchandising (such as T-shirts, hats, stickers, etc.). The World Wide Web provides enormous potential for sales. Can an artist use an alternate URL? Of course, but as pointed out earlier, it simply is not as valuable.

[ARTISTdirect is a major company that among other things, can manage a band’s online presence and merchandising sales. Groups that have set up Internet stores with ARTISTdirect are Metallica, Red Hot Chili Peppers, Aerosmith, the Rolling Stones, Tom Petty and the Beastie Boys. These groups offer merchandising, physical CDs, their own news and where contracts permit, digital downloads.]

In closing, there’s one thing remains certain in the debate for URL ownership; recording agreements have never been entirely fair to the artist and label's demands for domain ownership is just another example of the one-sidedness of deals. In the words of Mark Goldstein, Senior Vice president of Business Affairs at Warner Bros. Records:

“Some labels are adamant about acquiring URL ownership. Others will settle for having a license during the term with the rights going back to the artist after the deal is over and all active records have been "worked". But make no mistake, it's going to be very hard at the beginning of 2003 for an new artist to retain a separate site with the "best URL. Once an artist is succesful, however, everything is negotiable [grin]!

Copyright 2002 Bobby Borg.
Excerpt taken from "The Musician’s Handbook: A Practical Guide To Understanding The Music Business,"
scheduled for release in the Spring 2003 by Billboard Books.
For more information or comments, visit http://www.bobbyborg.com,
or write: mailto:bborg@earthlink.net, or Bobby Borg, PO Box 18564, Beverly Hills, CA 90209.