Business at work: opening your label
Immediately, we note that the label is not created by a lone performer who despaired of bringing his music to the masses. The label is registered in order to earn money on the creation, sale and promotion of music. Thus, it is not necessary to independently perform all three components of the label’s activities. After all, the musician creates the music, sells its distributor, and promotes the producer. The person who holds the label only deals with the complex solution of all these issues and puts his label on the product, showing that it is he who has the right to engage in activities to bring music to the listener and earn money on it. Some labels are non-profit organizations (and some are nothing more than just nowhere and in any way a registered association of people) that are fed only by the enthusiasm and idea of promoting their own or someone else’s creativity. A label is not an organization, not a firm, or even a group of people; This is a brand name, reputation.
It is relatively easy to create a label, but it is more difficult to promote it by an order of magnitude; it will be possible to earn money on it only in the case of a competent approach to business. And, importantly, success may depend on simple luck. If you manage to find a team that suddenly becomes popular quickly, you will quickly move into the category of successful businessmen, otherwise you can wait for some positive changes for several years. In this case, just a huge level of competition, and even just yesterday, educated groups and in fact not able to play, can choose from several of the same non-professional labels. But, as in any business built on creativity, one can never predict what will happen tomorrow.
Since this article deals with exactly the commercial content of the label, it is worth mentioning the registration of a business entity. In fact, in their future work it will be necessary to introduce themselves as a label, and not a legally registered person (if we are talking about entrepreneurial activity, and not tax reporting and the like, doing business). Therefore, you can even remain an individual, preferring the form of an individual entrepreneur.
The activity code may be different, it all depends on what the label management will directly do. Initially, his work is (JECD 2) 90.02 Services for the support of performing arts, but if the label is organized by a musician to promote his work, then it is more suitable (JECA 2) 90.01 Services in the field of performing arts. But the sale of group recordings itself falls under the definition of (JECD 2) 47.91 Retail services by mail or by the information and communication Internet (as is clear from the definition, this is suitable only for e-commerce if you organize a so-called no-label) (OKPD 2) 59.20 Services of a sound recording and services in the edition of musical works. At the same time, the label doesn’t deal in retail, of course, although the corresponding coding is available in the classifier. According to the good old tradition, you can enter several codes, because it is not known what can happen to distributors, and it is always better to rely only on yourself.
From a legal point of view, the very concept of “label” is almost identical to the concept of “brand”, therefore, it must be registered accordingly. To do this, you must contact the Federal Service for Intellectual Property, the so-called Rospatent. They will require the payment of state duty and a certain list of papers:
An application for state registration of a designation as a trademark, indicating the applicant, his place of residence or location;
The list of goods in respect of which the state registration of a trademark is requested and which are grouped by classes of the International Classification of Goods and Services for the Registration of Marks;
If you have your own unregistered group, you can register it without leaving Rospatent. Here, all the same requirements as for any other intellectual property – it should not violate any rights, due to which rights will not be violated and only registered. Already at this stage it is worth thinking about finding copyright associations. These organizations will provide an opportunity not only to ensure the legality of the use of copyright material, but also to promote it. Not a single radio station, let alone cafes, bars and clubs that reproduce copyrighted music, will be addressed to any record label (although sometimes the musicians themselves have rights to musical compositions) depends on the terms of the contract between the label and the performer). It is much easier for the owners of the radio station (and everyone else) to buy the right to play the package of tracks. And the task of the label owner is to get a place in these packages.