When I hire a session player (especially someone I don't know), I will have them sign a single-page "Work for Hire" contract before I hit the record button. This is at the strong and repeated urging of my attorney. That contract specifies that they will receive no additional compensation after that day regardless of whether the song makes any money or not.

I think Work for Hire contracts are unnecessary if you and a writing partner are performing all the parts. If you want your buddy to play guitar on your song and want to make money from it, I think it's wise to ask him/her to sign that little diddy. You may not make any money from the song, but what would happen if it suddenly started making a few thousand a quarter from some movie or TV placement, and it was the cool guitar part that brought it attention? Friendships have ended in situations like that.

My post above that generated some discussion was basically geared towards the songwriters who will pay a production company or producer to have a high quality demo done in Nashville using "B" list union players (guys who aren't necessarily first call, but still get plenty of major label work). They will have been paid the demo rate per the local Musician's Union rate sheet, but the recording will be near-major label quality. There are more than a few studios that are used for both demos and for masters - depending on who books the room.

However, the Union perspective is that the musicians worked for a "discounted rate" on the assumption that the song will not be sold - it was a demo. It's not that the musicians will get backend royalties (it was still a work for hire), it's that they would have been paid differently (more) if the song had been presented as a "master". I think the likelihood of "getting caught" isn't high since the song probably won't be selling in the 10's of thousands, but it does open the door to some unwanted attention by the Union and you probably don't want to go there.

I'm simply saying that if OurStage (or any other site) got a reputation for selling demos made with union musicians (as downloads), then the legal guys might want to get involved.

Maybe I'm off base and this is done all the time at Soundclick, CDBaby, and other music download sites, but I still think there could be a legal liability.

What do you think, Mike?