Our Services for the Music and Entertainment Industry
Another area of activity of the law firm KPAG Kosmidis & Partner is advising music labels and artists in the entertainment and music industry. In addition to copyright law and the granting of exploitation rights, our advisory services also cover promotion, distribution (both physical and digital), concert management, and merchandising.
Before commercial exploitation can take place, the artist’s exploitation rights – governed by the Greek Copyright Act (Law 2121/1993, most recently amended by Law 5221/2025) – must be transferred to the label. The exploitation right is the author’s exclusive right to reproduce, distribute, and make a work (such as a musical composition) available to the public; the Act distinguishes in particular between the rights of performance, broadcasting, and public recitation, as well as – depending on the type of use – first, second, and third-stage exploitation rights in tangible form (reproduction, distribution) and intangible form (broadcasting and communication rights).
Distribution: From Physical Recordings to Streaming
Traditional distribution of physical recordings (CDs, and increasingly vinyl again for collectors) through specialist music shops, electronics retailers, and online stores remains a distribution channel, but has lost considerable importance in recent years compared to digital distribution. Digital distribution today takes place predominantly through streaming platforms (including Spotify, Apple Music, YouTube Music, and Amazon Music) rather than primarily through individual downloads – the former download market leader, the iTunes Store, was already discontinued in 2019 in favor of Apple Music as a streaming service. For artists and labels, this means that contracts today should regularly include separate provisions on streaming licenses, minimum guarantees, and the distribution of streaming royalties (generally through a music aggregator or distribution service provider), which supplement or replace the traditional provisions on physical distribution.
Contract Terms Between Label and Artist
Depending on the desired scope of cooperation, contracts between labels and musicians or bands may cover one or more of the following areas:
- Production of the album (including studio recordings, mastering)
- Promotion and advertising (radio, television, press, online and social media channels)
- Physical and digital distribution, including streaming
- Merchandising (clothing, accessories, and the like)
- Production of videos for streaming and video platforms
- Concert management, tour planning, and logistics
Under a simple “record deal,” the artist generally transfers to the label, for a specified period, the right to exploit compositions and recordings in exchange for a share of the proceeds (royalties); in the areas of PR, distribution, and merchandising, contracts with external service providers frequently also need to be reviewed and negotiated.
FAQ
The law firm KPAG comprehensively advises music labels, solo artists, and bands on all legal and business aspects of the music industry. Our services include:
- Copyright and exploitation rights law
- Contract drafting (label deals, license agreements)
- Promotion & PR (radio, TV, print, online)
- Distribution (physical and digital)
- Merchandising & concert management
This generally concerns the transfer of exploitation rights. The artist transfers to the label the exclusive right to commercially exploit their work (e.g. compositions or recordings). In return, the artist usually receives a share of the sales proceeds, known as royalties.
Copyright law distinguishes between tangible exploitation (reproduction on sound carriers) and intangible exploitation (communication to the public). There are three stages:
- First-stage exploitation: the initial production and release of a sound recording (CD, vinyl, digital release).
- Second-stage exploitation: re-release (e.g. on a “best of” compilation) or radio airplay.
- Third-stage exploitation: public communication, for example when radio music is played in a restaurant or bar.
The range extends from a simple “record deal” to comprehensive models:
- Classic distribution deal: focused on physical pressing (CD/vinyl) and distribution through specialist retailers or online shops.
- Digital distribution: sales and streaming via platforms such as Spotify, Apple Music, or YouTube Music.
- 360-degree models: here the label additionally handles promotion (servicing radio stations with releases), merchandising, video production, and concert management.
Live events are today one of the most important factors in driving sales. Legal advice in this area covers:
- negotiations with concert promoters and tour agents,
- concluding contracts on performance opportunities and fees,
- organizing logistics and tour planning.
In Germany, collecting societies such as GEMA (musical copyright) and GVL (related rights of performers and phonogram producers) handle the collective administration of rights. In Greece, the landscape of collecting societies (Οργανισμοί Συλλογικής Διαχείρισης) has undergone significant change in recent years: the long-standing market leader, ΑΕΠΙ, definitively lost its operating license in 2018 due to serious mismanagement allegations. Since then, other state-licensed organizations (including Αυτοδιαχείριση/Autodia and further, more recently established organizations) have taken over the administration of musical copyright, under the supervision of the Greek Intellectual Property Organisation (ΟΠΙ, Οργανισμός Πνευματικής Ιδιοκτησίας). Artists and labels operating in Greece are therefore advised to carefully and currently verify which organization actually administers the relevant rights in a given case.
The music business is characterized by complex, industry-specific particularities. In particular, delineating exclusive rights, structuring license periods, and negotiating with the relevant collecting societies require in-depth market knowledge in order to protect the long-term interests of authors.