How Did the Rolling Stones Lose Their Copyright on Pre-1970 Songs?

The Rolling Stones faced a significant setback in the realm of copyright law when they signed a contract with their former manager, Allen Klein, in the late 1960s. This oversight had profound implications, particularly on their pre-1970 songs. To understand this issue fully, let's delve into the details of the situation, the legal framework, and the consequences.

The Late 1960s and Early 1970s: A Time of Transition

In the late 1960s, the Rolling Stones worked with Andrew Loog Oldham, who served as their manager and producer. Oldham formed a UK publishing company, but he sold his interest to a more unscrupulous figure, Allen Klein. Klein, a dishonest lawyer, became the band's manager in 1966. Despite firing Klein in 1970, the band unwittingly signed a contract with him that proved costly. The underlying issue stems from the specific terms and conditions of these agreements, which were rife with fine print that the Stones did not fully comprehend at the time.

Allen Klein's Deceptive Practices

Allen Klein was notorious for his questionable business practices. He created a new company, ABKCO, in the U.S. with the intention of avoiding taxes in the UK. By shrewdly reorganizing the bands' assets, Klein managed to centralize control over their intellectual property. This covert maneuver left the band with minimal rights and control over their pre-1970 songs, even after firing Klein from his management role.

Legality and the Public Domain

It’s important to understand the legal distinction between the copyright of sound recordings and the underlying song lyrics and music arrangements. Sound recordings are protected for 50 years from the date of their first release. Therefore, all records released before 1972, including those by The Rolling Stones, are now in the public domain. This means anyone can legally reproduce these recordings without obtaining a license or paying royalties.

However, the copyright in the lyrics, music, and arrangements—what is commonly referred to as the 'publishing rights'—remains in effect. These elements are still protected and subject to royalties. Therefore, if a band member or another artist wants to record "Satisfaction," for example, they still need to pay royalties to Mick Jagger and Keith Richards for the use of the lyrics and melody.

A Closer Look at Recording Contracts

In the early 1960s, the recording contract format was largely standardized, and the Stones, like many other bands of the era, signed contracts that transferred all performance and writing rights to the record label after a five-year period from the release of the recording. This practice was widespread and had a significant impact on the music industry, as other iconic bands like The Beatles and The Animals also lost control and revenue from their early music.

It took the weight of the biggest names in the music business to challenge these standard agreements. The Beatles' formation of Apple Records and The Rolling Stones' decision to independently release albums through Rolling Stones Records were pivotal moments that highlighted industry changes. Both bands established their own studios, sometimes referred to as 'mobile recording studios,' to bypass the constraints imposed by the major labels, which often controlled the best recording facilities.

The Impact and Lessons Learned

The loss of copyright can have significant financial and creative consequences for musicians and their audiences. For The Rolling Stones, losing control over their pre-1970 songs meant minimal income from their back catalog during those years, but it also led to a reevaluation of the terms and conditions in future contracts. It underscores the importance of thorough legal advice and understanding in contractual agreements, especially in the complex and ever-evolving music industry.

Conclusion

Allen Klein's manipulation of The Rolling Stones' contracts in the late 1960s resulted in the band losing significant control and revenue from their pre-1970 songs. While the sound recordings themselves are now in the public domain, the underlying publishing rights remain protected, ensuring that royalties are paid for the use of the band's music. This historical lesson serves as a reminder of the complexities in the music industry and the importance of protective measures and skilled legal representation.

Further Reading

For a deeper understanding of this topic, readers may explore books such as 'In the Court of the Judiciary' by Martin Lewis or articles from music industry publications like Rolling Stone and Billboard.