Music label creation lawyer
From vision to label: build on solid ground.
Want to start your own music label? INFLUXIO, a law firm specializing in music law, guides you step by step: choosing your legal structure, drafting bylaws, trademark registration, SPPF/SCPP/SACEM membership, artist and distribution contracts.
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Practical examples
Creation of an independent label for a producer collective
Three electronic music producers created their label as a SAS. Complete support: bylaws, shareholders' agreement, trademark filing, SPPF membership, standard artist contracts and digital distribution agreement.
Legal restructuring of a non-profit label into a SAS
A growing non-profit label was converted to a SAS to welcome an investor. Catalog transfer, artist contract updates and new distribution agreement negotiated.
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“Great responsiveness from all team members, with solutions found quickly and efficiently.”
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“We entrusted INFLUXIO with a complex case. Their technical expertise, strategic vision and the quality of their legal briefs were decisive.”
Mia-Line C.
Insights
Learn more about this area.
What is a music label?
A music label is a company that produces, manufactures and distributes sound recordings. Legally, the label operates as a phonographic producer (Article L.213-1 of the French Intellectual Property Code).
Major vs independent labels.
The music industry distinguishes major labels (Universal, Sony, Warner) from independent labels. Independent labels represent approximately 40% of the global market and play an essential role in musical diversity and discovering new artists.
The role of the phonographic producer.
The phonographic producer takes the initiative and financial responsibility for producing recordings. They benefit from neighboring rights to copyright on phonograms for a period of 70 years from first publication.
Why create an independent label?
Creating your own label allows you to maintain total control over your music, retain ownership of your masters, set your own exploitation terms, and benefit from a larger share of revenues. In the streaming era, the independent label model has never been more accessible.
Which legal structure for your label?
Choosing the legal structure is the first structuring decision.
SAS / SASU: the most common choice.
The SAS is the most suitable structure for an ambitious label: statutory flexibility, ability to welcome investors, limited liability.
- Flexibility in governance and rights allocation
- Ability to issue BSPCE and preference shares
- Credibility with distributors and professional organizations
SARL / EURL: advantages and limitations.
The SARL suits a small label with a limited number of partners. The majority manager benefits from the TNS regime, but the structure is less flexible than the SAS.
Association (non-profit): possible but limited.
A non-profit association is possible for a non-commercial music project. Surpluses cannot be distributed, which limits commercial development.
Micro-enterprise: to be avoided.
This status is strongly discouraged: revenue cap, inability to deduct production costs, unlimited personal liability, unfavorable perception among professional partners.
Steps to create your label.
Creating a label follows a precise legal and administrative process.
Drafting bylaws.
The bylaws must provide for governance, capital allocation, conditions for partner entry and exit. A lawyer specializing in music law ensures bylaws adapted to your needs.
Registration and NAF code (5920Z).
Your label will be registered with the Trade Registry under NAF code 5920Z 'Sound recording and music publishing.' This code determines access to certain professional aids (CNM).
Trademark registration at INPI.
Your label's name must be registered as a trademark at INPI (from €190, 10-year renewable protection). INFLUXIO verifies availability and handles the filing.
Membership in professional organizations (SPPF/SCPP, SACEM).
As a phonographic producer, your label must join the SPPF (independent labels) or SCPP (major labels) to collect equitable remuneration and private copying levies. SACEM membership is required if you are also a publisher.
Opening a professional bank account.
Opening a professional bank account is mandatory for companies. It separates financial flows and justifies transactions to tax authorities.
Essential contracts.
Managing a label involves numerous contracts.
Artist agreement.
The artist agreement is the label's fundamental contract. It binds the performing artist to the phonographic producer for creating recordings.
Distribution agreement.
The distribution agreement entrusts the commercial exploitation of your catalog to a distributor. Key terms: commission rate (15-30% digital), duration, territorial exclusivity.
License agreement.
The license agreement allows a third party to exploit your recordings for a specific use (audiovisual synchronization, compilation) in exchange for a royalty.
Rights assignment agreement.
The assignment agreement transfers rights ownership. It must comply with copyright formalities (Article L.131-3 of the French Intellectual Property Code).
Financing and grants for your label.
Several funding mechanisms are available to music labels in France.
CNM grants.
The Centre National de la Musique offers grants for phonographic production, promotion, and international development. These grants are conditional on NAF code 5920Z and membership in professional organizations.
Phonographic tax credit.
The CIPP allows deduction of 20% (SMEs) or 15% (large companies) of production expenses, up to €1.5 million per year.
Other funding sources.
Distributor advances, crowdfunding, regional grants, SPPF/SCPP funds. INFLUXIO advises you on the most suitable mechanisms.
The lawyer's role in creating a label.
Engaging a lawyer specializing in music law from the outset helps you avoid costly mistakes and structure your business on solid foundations. INFLUXIO has been supporting independent labels from creation: bylaws, trademark registration, artist contracts, distribution agreements and strategic advice.
Our combined expertise in music law, intellectual property and corporate law makes us the natural partner for music entrepreneurs.
Useful glossary for starting a music label.
- SPPF / SCPP
- French collective management organizations for phonographic producers' neighboring rights, responsible for collecting and distributing royalties from broadcasting and streaming.
- Phonographic producer
- natural or legal person who takes the initiative and responsibility for the first fixation of a sequence of sounds (Article L.213-1 of the French Intellectual Property Code).
- SACEM publisher SIRET
- business identification number required to join SACEM as a music publisher and collect the editorial share of authors' rights.
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FAQ
Frequently asked questions.
For a SAS/SASU: registry fees (~€230), legal notice (~€150), bylaws (€1,500-3,000 excl. VAT), INPI trademark (~€190). Total: €2,000-5,000 with legal support.
While legally permissible, this status is strongly discouraged: revenue cap, non-deductible expenses, unlimited liability, lack of credibility. Prefer a SASU.
Trademark registration is essential. INPI registration protects your name for 10 years (renewable). Without registration, you risk losing your name if a competitor files it.
Via a digital aggregator/distributor (TuneCore, DistroKid, Believe, The Orchard). The contract specifies a commission (15-30%) and reporting terms.
SPPF primarily groups independent labels. SCPP groups major labels and some independents. Both collect equitable remuneration and private copying levies.
This approach is increasingly common. Many artists create their label (typically as a SASU) to retain control of their masters and benefit from a greater share of revenues.
Full accounting (balance sheet, income statement, notes), tax returns, filing accounts with the registry. Also necessary for CNM grants and the phonographic tax credit.
4 to 8 weeks: bylaws (1-2 wks), trade registry registration (1-2 wks), INPI trademark (6 wks publication), SPPF/SCPP membership (2-4 wks), bank account (1-2 wks).
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In short
INFLUXIO is a law firm specialized in music label creation, based in Paris. Complete legal guide to starting a music label. Legal structure, INPI trademark, SACEM, SPPF, artist contracts. Specialized music lawyer in Paris.
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