If you can't find what you are looking for through this page, please contact us
Click on this link for the site map
You will find a quick summary of what NoMoguls is all about here: What is Nomoguls?
For a quick overview of how nomoguls works, click here (for artists) or here (for investors)
Find answers to your questions on our FAQs page
Read our user contract and privacy policy.
Check the terms and conditions in the full Artist Contract and the Release of Rights Policy
To view a copy of your Standard Third Party Royalty Deal, click here.
The Artist Resources pages are a mine of information for bands and artists and have useful links to industry experts and organisations
If you are an artist looking for a lawyer to advise you on the Bandstocks deal, click on music lawyers
Click on public forums to see if your topic is being discussed or if you want to start a discussion about it.
This link explains the three Types of Account that you can open with us and how they work
Click here for tips for parents and teenagers using Bandstocks
To view a copy of the Trust Deed under which investors’ money is held at our bank, click here.
NoMoguls is a new system that empowers both music fans and artists by encouraging them to take control and collaborate directly with one another.
How does it work?
Through this website, we offer financial instruments (Bandstocks) to fans and professional investors to raise the necessary sum of money to make and market an album. Our website is secure and very carefully constructed and the Bandstocks funding model complies with all of the very complex Financial Services Authority laws and regulations.
With Bandstocks, artists get a bigger share of the recording income than under any other record deal we know about, while fans, in return for their investment, receive both acknowledgment and a share of the proceeds to reward their commitment.
As well as providing funding and a smooth administrative framework, Bandstocks also offers a menu of services which include manufacturing and direct selling of premium packages through an online shop, specialist vinyl distribution, digital distribution through all major third party services, manufacture and physical distribution of CDs and other products through our third party partners and online and offline marketing services.
Unlike those other new fangled deals you keeping hearing about, Bandstocks is designed to be better for everyone.
Loan stock in Civilian Industries PLC - the company behind Bandstocks. Loan stocks are, quite literally, stocks in a company issued against a loan to the company and are a commonly used and widely recognised means of providing funding in the commercial world. We issue loan stock in preference to shares because it enables us to return the income generated by a specific album to its investors in a way that would not be possible through a share issue. The loan stocks (Bandstockks) are sold through this website to raise funds to record and market individual albums. A different class of Bandstocks is created for each album project funded through Bandstocks.
The offer of Bandstocks to the public is a financial promotion for which we prepare all of the relevant documentation and obtain all necessary authorisations as required under the Financial Services and Markets Act 2000. Our website has been built to the highest technical standards to deal with and store data for the very large volume of transactions.
This Learn More section of the site is just intended as a general description of the Bandstocks funding model and is not an offer or invitation to invest in Bandstocks for any specific project. You must be 15 or over and a UK resident to invest in Bandstocks and must be eligible to register and have registered as an investor with Bandstocks before we invite you to consider an application to buy Bandstocks. If you are eligible and do register as an investor, you should then read carefully the Investment Memorandum for the particular project that you are thinking of investing in before you apply to buy Bandstocks. You should be aware that you may not get any money back when you make an investment in Bandstocks and should never risk more than you can afford to lose.
What's the deal for fan investors?
For each Bandstock in a nomoguls project, fan investors get:
- A share of the income generated by the album (pro rata share of 30% of net receipts)
- A credit on the first run of albums produced and a credit on the website
- A free high-quality download of the album
- The right to buy a signed limited edition of the album at a discount
- Behind the scenes website access
- Special privileges as agreed with the artist (priority gig booking, premium album packages at a special price etc.)
Please note, once again, that these Learn More pages are a general description of the Bandstocks funding method, not an offer to invest in any specific project
- The fund generated from the sale of Bandstocks is used to record and/or market the artist’s album.
- The copyright in the sound recording of one album is jointly owned by the Artist and a special purpose company (established solely to co-own and exploit the album) for a period of 5 years from release (or 5 ½ years from delivery)
- The entire copyright in the sound recordings reverts to the Artist at the end of the 5 (or 5 ½) year period.
- The company has exclusive exploitation rights during the 5 (or 5 ½) year period but this is based on the artist having complete creative control, and control over all forms of secondary exploitation
- The artist gets 50% of net receipts from exploiting the Album
- Uniquely, we do not deduct or recoup any part of the fund when calculating net receipts.
- No options or overrides on future albums are granted
- No publishing rights, merchandising rights or live income participation rights are granted.
- The fund that is raised from selling Bandstocks is non recoupable and non-deductible
Click here to see the full nomoguls Artist Contract
What is Civilian industries?
Civilian Industries PLC is a public limited company registered in England (registered number 5671709) which owns and operates the Bandstocks funding model and this website. It was established solely to develop Bandstocks as a businesslike and viable alternative to the existing models for funding recorded music. Its aim is to give artists control of their destinies and fans a chance to play a part in the growth and success of an artist.
At its core is the belief that its relationships with artists must be straightforward, open, honest and based on mutual respect. It understands the commercial realities of the music business and will help artists to achieve their commercial goals, but it is there to serve artists and their musical vision, not the other way round.
Civilian Industries understands and has enviable connections within all areas of the established music business, but operates independently of it and its corporate conventions.
What are Bandstocks?
Bandstocks are loan stock in Civilian Industries PLC. Bandstocks are sold through our website to raise funds for individual album projects. A different class of Bandstocks (loan stock) is created for each album project funded through Bandstocks. For more information about buying Bandstocks and the rights that go with them, see the Investors’ FAQs below. Bandstocks is also the name of this website.
What is the advantage in raising funds this way?
Artists are enabled to raise substantial funds whilst keeping control of their music and their careers and giving away far fewer rights and receiving a far greater share of the income than they would under a conventional record deal.
Investors are enabled to make direct investments in an artist’s album and in return for their investment acquire the legal rights of a Bandstockholder: these rights include the right to receive credits and other privileges as well as a share of the financial rewards if the album is successful.
How can the Bandstocks model be advantageous both for Artists and Investors at the same time - what’s the catch?
A The record industry’s economic model has pretty much always been based on the premise that the economic successes fund the economic failures. Not every album put out by a traditional record company makes a profit – maybe it’s one in ten, maybe it’s better than that, but whatever the ratio, the profits on the successful albums have to more than cover the losses on the others for the record company to stay in business. This means that the record company’s margin therefore has to be pretty big.
Our model is different because:
What is the difference/connection between nomoguls and Bandstocks?
Nomoguls is the trading name for the area of the Bandstocks website designed for unsigned artists. Bandstocks is the name for the website as a whole and is also the name for the loan stocks sold through the Bandstocks site of which nomoguls is a part.
Where are Bandstocks available?
In addition to nomoguls, Bandstocks will be available online through sites dedicated to specific artists (usually established artists with a large existing fanbase) and through other sites dedicated to specific indie labels. If you are interested in creating a site in conjunction with Bandstocks, please contact andrew@bandstocks.com
What ownership rights does Civilian Industries have in the projects that it raises funds for?
Civilian Industries sets up a subsidiary (Albumco) for each album funded by Bandstocks. For nomoguls projects, Albumco (which is owned by Civilian Industries) and the artist jointly own the copyright in the sound recording and the artwork for an album for a period of 5 years from release (or 5 ½ years from completion of the album if sooner). For Bandstocks sites other than nomoguls, the rights acquired by Albumco may vary from the nomoguls standard deal. We may, for example, acquire the right to sell special editions of a particular album without acquiring the whole copyright. The rights that Albumco is acquiring will always be explained clearly in the relevant Investment Memorandum. You should always check to see what rights are being acquired for a particular project before considering an investment.
How does Civilian Industries make money?
We take a 5% commission from funds raised and 20% of net receipts from the exploitation of albums. We also get the interest on the money held in investors’ accounts. Other potential sources of income include advertising and merchandising income. Out of this we pay the costs of making and authorising the offers of Bandstocks, building hosting and running the site, staff and overhead costs and all the usual costs of running a business. Like everyone else, we also have to pay tax. Copies of our accounts are available through www.companieshouse.com.
Can I copy the legal documents accessed through the website?
If you are an artist whose album is being funded by Bandstocks, you may print out copies of (and complete the blanks in) the Standard Third Party Royalty Deals to conclude agreements with the producers and other contributors to your Bandstocks funded album. Artists and investors may (and should) also print out a copy of any document which records a contract that they have entered into to keep a record it. Other than that, please do not copy or reproduce any of the documents on the website or any part of them. All the legal documents on the site (including the Artist Contract, the Standard Third Party Royalty Deal, the Investment Memorandum, the Short Form Investment Memorandum, the User Contract and the Privacy Policy) have been drafted from scratch and represent a great deal of time, experience, effort and money.
Is this just a copy of other fan based funding models? How is Bandstocks different?
No, Bandstocks isn’t a copy of, or even inspired by, anything that has gone before. Bandstocks’ basic business model was devised in 2004 and 2005 and we have been refining it since then. We spent a great deal of time working with our professional advisors to devise a legal framework that complies with the very complex laws about offering investments to the public. Devising a structure that is legally compliant was only part of the process: of equal importance to us, is that we have a structure that really works for artists of the highest calibre. Without them, in our view, there really isn’t much point in inviting fans to make an investment. What this means is that we also spent a great deal of time refining our model to take into account feedback from artists, managers and music business professionals to make sure it works to the best advantage of artists which, we believe, is what also makes it work for fans.
So, the short answer to the question is that we started with a blank sheet of paper and devised the model from scratch.
Since we devised the basic structure, a couple of other sites have launched based on a similar premise: i.e. using the web to raise funding from music fans. We are interested to see what others are doing, but nothing we have seen on other music funding websites has made us want to change our plans as we believe our model is better for artists and investors and really works as an alternative funding model for artists who have a choice rather than being aimed at artists that can’t get a deal (not that there is anything wrong with that, it just isn’t what Bandstocks is about).
We don’t want to sound negative about the others, but this is a quick summary of what makes Bandstocks different:
Are we just ripping the fans off by using their money instead of our own?
Actually, this is not strictly speaking a frequently asked question in that no-one has asked it yet, but they might, so we thought we would ask it ourselves.
The answer, of course, is a resounding “no”, but we know you are looking for a bit more than that.
Here are some of the reasons why we feel very comfortable answering this question so emphatically:
Do we or people associated with Bandstocks get paid separately for the services provided in connection with an album funded by Bandstocks?
In the case of Bandstocks and Civilian Industries PLC, the answer is a straightforward “no”: the only fees and profits we take are the ones clearly described in the Artist Contract and the Investment Memorandum (namely a 5% arrangement fee when the fund is raised, 20% of Albumco’s net receipts and a fee for accounting and company formalities of 0.5% of Albumco’s turnover). As the Investment Memorandum also makes clear (under the heading Related Party Transactions) in some cases, people or businesses associated with Bandstocks may provide specific services (in addition to the services provided by Bandstocks itself) which are charged as a cost to Albumco: the most obvious example is that, through our association with Vinyl Factory (which is acknowledged to be the UK’s leading manufacturer of high quality vinyl) Albumco may pay Vinyl Factory to manufacture certain products. Any arrangements like that have to be in the best interests of Albumco, are negotiated at arm’s length by us and approved by the relevant artist and Civilian Industries PLC’s MD (who has no financial interest in Vinyl Factory).
How does the voting work on nomoguls?
If you are logged on either as an investor or supporter, you can vote for any of the projects in Stage One (the Voting Stage) of the site. Projects that get enough votes in Stage One will usually move into Stage Two which is where the investment process starts. The number of votes needed is usually half the number of Bandstocks that need to be sold to raise the fund that the artist wants to raise. For example, if the artist wants to raise a £50,000 fund we will need to sell 5,000 £10 Bandstocks which means it will usually take 2,500 votes to move the project from Stage One to Stage Two. The site only allows each user to vote once on each project and you need to listen to at least 30 seconds of music before your vote will register. If you have an investor account, you can also reserve up to two Bandstocks when you vote. Making a reservation doesn’t mean that you are obliged to buy Bandstocks or that we are obliged to offer them. What it means is that if the project does move into the Investment Stage, we will hold back reserved Bandstocks for 3 days after the offer opens so that investors who have made a reservation can be sure of having a chance to buy Bandstocks within that period even if the offer sells out quickly. We send an e-mail to investors who have made reservations at the beginning of the 3 day period to let them know that the project has moved into the Investment Stage.
Who is behind Civilian Industries?
Andrew Lewis: Andrew is the founder of Civilian Industries and originator of the Bandstocks funding model.
He has more than 20 years experience in the music business, mostly as a music lawyer putting together deals between
artists and record labels. He has worked in private practice representing artists and labels and has also worked as a
music industry executive at PolyGram (now Universal) in London and at Island Records in New York.
Over the years, Andrew has been involved in deals for some of the world’s biggest acts, as well as countless smaller ones.
Vinyl Factory: Vinyl Factory Limited is the UK’s biggest manufacturer of vinyl producing over 3 million records a year.
Its principal manufacturing plant in Hayes was formerly owned by EMI and has been manufacturing vinyl since 1907.
It remains the number one choice for connoisseurs of high quality vinyl records.
Vinyl Factory also owns Phonica Records: an independent vinyl shop in the heart of Soho, London and an online service
(www.phonicarecords.co.uk), offering the same knowledge,
passion and quality to an audience around the world and Fact magazine, a music news web site
(www.factmagazine.co.uk) updated daily, and bi-monthly
music culture magazine which will be available through Bandstocks sites.
Vinyl Factory also runs the Vinyl Factory gallery and event space that hosts and promotes a range of events and exhibitions
(www.vinylfactorygallery.co.uk).
Mark Lewis and Martin Toher: Mark and Martin have been engaged as consultants to Civilian Industries
and bring with them a wealth of A+R experience and a track record of extraordinary success.
Together they co-own and run B-Unique Records Limited, home to the Kaiser Chiefs, Primal Scream,
the Twang, the Automatic and many more.
Between them, they have been developing artists’ careers for more than 30 years and in the last 4 years
alone their label has sold more than four million records.
Their other businesses include a music publishing company and a management company.
Mark and Martin’s involvement with Civilian Industries is entirely independent of their activities
as B-Unique ensuring that artists using the Bandstocks funding model have total freedom to
choose how their recordings are distributed and which, if any, record labels they are associated with.
Civilian Industries PLC’s bankers are Coutts and Co. 440, Strand, London, WC2R OQS.
Financial Promotions for Bandstocks are approved by Fisher Corporate PLC Acre House, 11/15 William Road, London, NW1 3ER. Fisher Corporate PLC is authorised and regulated by the Financial Services Authority.
Has the website been approved by an FSA authorised person?
Except as mentioned below in respect of ‘User Generated Material’, the content of the website (www.bandstocks.com) has been approved as a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 by Fisher Corporate PLC. Fisher Corporate is registered in England and Wales under number 03858534 and its registered office is at Acre House, 11-15 William Road, London, NW1 3ER. Fisher Corporate is entered on the FSA register, registration number 193921.
The website contains material posted by bands and visitors to the site (‘User Generated Material’). User Generated Material has not been approved by Fisher Corporate PLC and must not be relied on in deciding whether to buy a Bandstock. In making a final decision as to whether to buy a Bandstock, you should rely only on the information in the full Investment Memorandum.
Does it cost anything to sign up to Bandstocks?
No.
Do I have to live in the UK to sign up as an artist?
No – you can live anywhere in the world.
Can I have my own bandstocks site instead of going on nomoguls?
If you are an established artist with a big enough fanbase, yes. Please contact us at artists@bandstocks.com for more details.
How do I create a project on nomoguls?
Open an account as an Artist, click on the “create new project” button and follow the instructions.
If I submit a project through nomoguls, will it definitely be included in the site?
No, it goes through a basic screening process.
How does the screening process work and why is it needed?
We have a team of people who listen to and check out the projects that are submitted to nomoguls.
They recommend projects for inclusion in the Voting Stage. We do this for two reasons: the first is
to try to flush out any obvious problems that might arise if a project goes onto the site
(e.g. we think the content might infringe copyright or be defamatory or is racist or just plain nasty);
the second reason is to have a basic level of quality control. A project doesn’t have to be a work
of genius to pass the quality control test, but it has to show enough promise for us to think that
it is worth putting it to the vote. Finding anything half decent on most unsigned band sites is like
finding a needle in a haystack. By pre-screening, we have a smaller number of projects on the site,
but we think that all of them are worth a listen.
We are not, by the way, talking about technical quality or even necessarily musicianship if the
ideas are there – we are assuming that artists are submitting cheaply produced
demos and will use a bit of imagination when we listen.
Do you have a bias in favour of any particular music genres in the selection process?
No, although we aren’t very keen on ersatz light orchestral. We aren’t really big on genres at nomoguls which is why we don’t pigeon-hole music by genre on the site (the genres you see on the site are self selected by the artists or tagged by users). We just want it to be good.
Isn’t the screening process a bit subjective?
Yes it is, although decisions won’t usually be based on the opinion of just one person. We won’t always get it right.
How will I know if the project I have submitted is being included in the voting stage of the site?
We will normally tell you by e-mail within 10 working days of submission whether we would like to include your project in the Voting Stage or not. If we are not including the project in the site, the e-mail we send will be automatically generated and very brief. Please do not be offended by that – it doesn’t mean we haven’t taken the time to consider your music properly. The automatically generated e-mail is only sent after humans have listened to your music and decided (in their wisdom or stupidity) that it isn’t suitable for nomoguls. We won’t generally go into the reasons for our decision either in that e-mail or future correspondence.
Can I submit another project if the first project I submitted didn’t make it onto the site?
Yes. You can submit as many as you like. They don’t need to be completely different either.
How are projects on nomoguls chosen for investment?
Where artists submit a project to nomoguls on their own initiative (i.e. by opening an artist account and creating a project), projects go through a basic screening process before they enter the Voting Stage of the site. Once the project goes into the Voting Stage, democracy pretty much takes over. Artists who get enough votes go into the Investment Stage of the site unless we have a good reason to veto it (usually because there is some sort of legal problem with allowing the process continue). We are also actively looking for great artists that we want on the website. Where we have had direct contact with an artist and encouraged them to sign up to the site, we would usually skip the Voting Stage and put the artist straight into the Investment Stage.
Do I need to agree to a contract when I create a project for nomoguls?
When you submit a project to nomoguls, you will be asked to confirm that you agree that we are allowed to put your project in the Voting Stage of nomoguls and that you intend to be bound by the terms of the full Artist Contract if and when your project enters the Investment Stage of the site. You are not contractually bound by this intention, but you should still not submit a project unless you have read and understood the Artist Contract and do genuinely intend to sign it when the time comes. We will ask you to sign a paper copy of the Artist Contract before your project moves into the Investment Stage of the site and at that point, the Artist Contract becomes binding on you. The contract that you will be agreeing to when you submit a project (including the statement of intent and full Artist Contract) can be found here.
Is the Artist Contract negotiable?
Unlike most record contracts, Bandstocks’ Artist Contract was designed to be as artist friendly as possible whilst giving the investors a reasonable prospect of getting some sort of return on their investment. It has already been pre-negotiated and approved on behalf of real artists by a number of leading music industry lawyers and the version of the Artist Contract on this site already takes into account comments made by artist lawyers. We believe the terms of the Artist Contract are already very fair and in general we would not expect to have to negotiate additional changes to it, but we are nothing if not flexible and will always consider exceptions if there is a good reason. If, for example, you are thinking of signing an Artist Contract but there is a particular term in it that you cannot agree to, please contact us at legal@bandstocks.com.
Do I need to get legal advice before signing the Artist Contract?
We recommend that you do get legal advice from a specialist music lawyer before signing the Artist Contract. You only need to sign an Artist Contract if we are issuing Bandstocks for your album, not when you first create a project. When you create a project, you will be asked to agree to a non-binding “letter of intent”. You should read and make sure you understand the Artist Contract before you agree to the letter of intent. It is up to you whether you get legal advice at that stage, but if you do, you should make sure that your lawyer is not going to charge you unless the Album gets funding through Bandstocks. The Artist Contract is intended to be very easy to understand and you probably don’t need a music lawyer to explain to you what it means, but your lawyer will help you understand how the Bandstocks deal compares to other deals in the record business and check whether there are any issues that need to be sorted out before you sign it.
Does Bandstocks cover your legal fees?
If your album successfully raises a fund through Bandstocks, you can authorise us to pay an amount equal to 1% of the Fund as a contribution to your legal fees for the advice you get on the Artist Contract. The payment will need to be made direct to a firm of solicitors registered with the Law Society in England and Wales and will only be paid for advice you have received on the Bandstocks Artist Contract itself. We will make the payment on your behalf: it will not be deducted from the Fund (which is to be spent only on recording costs and marketing costs), but it will be deducted from your share of Net Receipts when the time comes. We will ask you to sign a letter confirming that you agree to this before we make the legal fee contribution.
I’m having problems playing the music. There are elements of the page missing. What is the problem?
You must have the latest version of Flash player installed. Most web browsers come with it pre-installed, but if you don’t have it follow this link:
http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash&promoid=BUIGP. It's a free, easy and fast download.
I can’t log in. What should I do?
If you have just registered, you need to click on the link in the e-mail that is automatically sent to you at the e-mail address which you give when you sign up. These e-mails may end up in your spam folder, so check there for an e-mail from Bandstocks. Once you click on the link, you will need to sign in with your username and password. You get three attempts at logging in. If you fail at the third attempt, your account will be temporarily blocked. If that happens, please e-mail us at support@bandstocks.com to get your account unblocked.
How do I upload a track?
Once you have started to create a new project and agreed to the artist contract, click the manage projects button on that page and upload your tracks.
I am having problems uploading my track. What should I do?
Check that the file you are trying to upload is in MP3 format, that the maximum bit rate is 128 kbps and if it's size is under 10 MB. You can do this by looking at the “properties” of the file. If your file is not in MP3 format or has a bit rate of more than 128 kbps, it is easy to convert the file using one of the many free converters available through the web. It can take a few minutes for your file to upload so be patient. If you are still having problems, please contact us at support@bandstocks.
I am having problems uploading images. What should I do?
Make sure your images are .jpgs and not gifs or PNGs or any other format. And please be patient: large files can take a while to upload. If you are still having problems, please contact us at support@bandstocks.
How many songs can I upload?
As many as you want, within reason. We would suggest between 3 and 5 tracks.
If I am funded through Bandstocks, does my Album have to include the songs uploaded onto the site?
It should, because investors will be influenced by what they hear on the site and will probably expect those tracks to be on the Album, but it isn’t a strict legal requirement. It is also possible that you or we may find out after you have uploaded your tracks that one of them cannot be released commercially for legal reasons in which case it would not go on the Album.
What else can I put on my Artist Pages?
The website has lots of features that allow artists to communicate with fans and investors and let them know what is going on. You can include as much or as little information about your project as you want. As well as text, you can upload photos, pictures and video links. Once your project is funded, your investors also have access to a special backstage area where you can keep your investors up to date on what is going on in the studio, and, if you want, invite them to join in discussion. The site also allows you to send messages to each of your investors telling them about special deals e.g. priority booking for gigs, special one-off gigs, special merchandise etc. If you are offering something that is only available to your investors (e.g. priority booking) we will validate ticket applications for you or the venue or promoter to make sure that whatever you are offering goes to the right people.
Can I change the tracks after submitting a project to the site?
You can’t change the tracks you have uploaded once you have submitted it to the Voting Stage while it is in the Voting Stage. If it moves into the Investment Stage, you can change the tracks while it is in the planning stage (between the Voting Stage and the Investment Stage), but not after it has moved into the Investment Stage. The reason for this is that (during the Investment Stage in particular) site users (and investors in particular) may be making decisions based on what they hear on the site. If investors are deciding whether to buy Bandstocks in your project, it is a good idea if they all have the same information (and tracks to listen to) throughout the offer period. If you want to change a track that you have uploaded by mistake or there is some other reason to change it (for example if you find out that the track is likely to cause legal problems) please contact us at artists@bandstocks.com and we will change it for you.
Can I sign up as an Artist if I am under 18?
Yes, but you must be at least 13 and if you are under 18 you should contact us before submitting a project by sending an e-mail to artists@bandstocks.com and tell us what age you are. If you are under 18 and thinking of signing an Artist Contract, your parent or guardian will need to agree (and sign a letter confirming) that it is to your benefit.
What is a Target Fund?
This is the amount of money that you would like to raise from the sale of Bandstocks. There are 4 standard options for the Target Fund: £25,000, £50,000, £75,000 and £100,000. You decide which one you want to go for when you submit your project to the site. When you reach the point where we offer Bandstocks to raise investment for your album, the general rule (which may change in individual cases) is that the offer normally only goes ahead if you raise 90% or more of the Target Fund that you have picked, so please bear this in mind when you sign up. If you think it is unlikely that more than 9,000 Bandstocks will be sold, you should not go for the £100,000 Target Fund. If you think it is unlikely that more than 4,500 Bandstocks will be sold, go for the £25,000 Target Fund. We will discuss and agree the Target Fund with you before you sign the Artist Contract (i.e. before your project actually goes into the Investment Stage) so it is possible to change it after your project has been submitted to the site. The actual level of the Target Fund obviously needs to take into account the budget for your album on the one hand and the number of Bandstocks that are likely to be sold on the other.
Can I have a Target Fund of more than £100,000?
Yes, if you have the fanbase to justify it. If you do, please contact us at artists@bandstocks.com before you submit your project.
Why does the Artist Contract have a choice of “Territory”?
If your project is funded through Bandstocks, we (through the special company set up for your album)
will have certain rights (as per the Artist Contract) to exploit the Album in “the Territory”.
You pick the extent of the Territory when you submit your project and confirm it when you actually sign the Artist Contract.
There are 3 standard choices: “world”, “world excluding the US and Canada” and “Europe only”.
If you are thinking of signing up but want us to consider a territorial option which isn’t one of these three, please contact us at
artists@bandstocks.com and tell us what territory you want and why.
We give you a choice of Territory because some artists may already have committed themselves to record deals in
certain countries or because they may intend to do separate deals in the future. When you pick your Territory,
please remember that the extent of the Territory may be an important factor for your investors: it may be better
for artists to give away rights for as small a territory as possible, but the smaller the territory, the less
attractive the deal is to investors. Before you decide on Territory, take a look at the way the Artist
Contract works in detail: you will see that we have built in mechanisms to enable your Album to be released
wherever there is a market for it and you will of course get your share of the money generated by it
throughout the whole Territory. Please think carefully before limiting the Territory to anything
less than the world – it may make it harder to get funding.
How do I get paid?
You (the artist) get 50% of the net receipts from exploiting the Album. Most importantly, we don’t deduct the funding raised from selling Bandstocks when we work out “net receipts” so the funding for your album is non-recoupable and non-deductible. See the Artist Contract for details.
Does Civilian Industries have options on future albums?
No.
How will my album get distributed?
For CDs and other digital physical products: We have a distribution deal with PIAS (formerly Vital) for physical records. PIAS is the UK’s leading independent distributor – it distributes for most of the best indie labels including XL (White Stripes, Raconteurs etc. etc) Domino (Arctic Monkeys, Franz Ferdinand etc, etc) so we are not talking amateur hour here. If you want us to license the album on to another record company with its own distribution, this is an option too. See the Artist Contract for details.
We also have arrangements which will enable your recordings to be distributed through all the usual paid for digital distribution channels.
Vinyl Distribution: we have unique vinyl manufacturing and distribution facilities through our association with Vinyl Factory Limited which is a part owner of Civilian Industries PLC.
Special Editions: special collectors’ editions are sold directly from the Bandstocks site.
Who makes the special editions and premium packages?
Our association with Vinyl Factory enables Civilian Industries to offer premium packages of the highest quality for the right projects (for example, a beautifully packaged boxed set including high quality vinyl, CD, a book, artwork and ticket offers). The vinyl element of such packages will generally be manufactured by Vinyl Factory itself at its unrivalled and historic manufacturing facilities: paper parts and CD manufacture will be arranged through third party manufacturers taking advantage of Vinyl Factory’s trading relationships developed as the manufacturer, currently, of more than 3 million records a year whilst assembly, packing and fulfilment of orders is usually provided through Vinyl Factory and its associated retail (online and offline) outlet.
Will signing up to Bandstocks stop me signing a record deal?
No, but you do need to factor in the rights which you have granted under the Artist Contract.
What happens if a record company makes me a great offer after I have signed an Artist Contract to make an album with Bandstocks?
You are always completely free to sign a record deal which takes account of the rights granted under the Artist Contract (i.e. you can’t record for the label until you have delivered your Album and you can’t release until the earlier of 4 months after the Bandstocks Album is released or 10 months after it is delivered). If you want the record company to release your Bandstocks Album, that is usually possible too as long as the record company agrees to a reasonable deal which gives your investors a reasonable return. Our Release of Rights Policy explains what we mean by “reasonable”.
Is it likely that a record company will be willing to do the sort of deal that you think is reasonable?
If they like your album enough, they will do it. They may make less profit on your first album than they would if they had signed you directly in the first place, but by the time they sign you, they may be happy with that because a lot of the risk has been removed from the equation. If they don’t like your album enough to do the kind of deal we think is reasonable, you are probably better off without them anyway.
Can I only record songs I have written?
No, you can record any songs for which you are able to obtain a mechanical licence. If you didn’t write the song and it hasn’t been released before, you will need permission from the songwriter or publisher to get what is known as the “first mechanical licence”. If you are doing a cover version of a previously released song, it will normally be possible for us to help you get an automatic mechanical licence as long as your version is a straight cover and not an adaptation. You and we would need specific permission from the owner of the original song (usually the music publisher) if your version is an adaptation. We would then pay the mechanical royalties to the owner of the song if we release it commercially.
What if my recording contains samples?
You should not upload recordings onto the site if they contain samples of other people’s recordings or songs unless you have obtained written permission from the owner of the recording and/or song that has been sampled. It is extremely important (and we will need to check) that sample licences are in place when you go into the Production Stage of the site, but you still should not include un-cleared samples in the demos that you upload as part of your project: even this may be an infringement of others’ rights. Also, if your project does go into the Investment Stage, investors will be expecting you to record versions of the songs you have demoed and there is never any guarantee that you or we will be able to obtain sample clearances at a later stage.
Can people download the tracks I upload?
Downloading music from the site is not authorised and is unlawful except where we specifically offer downloads. Music uploaded by artists as part of a Bandstocks project (whether in the Voting Stage, the Investment Stage or the Production Stage) is available for streaming only. Artists should be aware though that most music sites (and ours is no exception) can’t prevent people using software unlawfully to download music intended for streaming only without copy protecting the mp3 itself.
How can I delete a project?
You can’t delete an entire project. If necessary we may be able to make changes to a project, but depending on which Stage of the site the project is in, projects will not generally be deleted once they have been submitted. If you want to make changes please contact artists@bandstocks.com and tell us what the changes are and why and we will try to resolve the problem. Projects will not normally be deleted during the Investment Stage because we have made a commitment to keep the offer open for a certain period of time. Projects will not normally be deleted once they have entered the Production Stage because by that time, we will have obligations to the investors who have bought Bandstocks in the project. We will, however, if the artist asks us to, delete from the site any projects which have passed through the Investment Stage without Bandstocks being issued.
How will my album be marketed?
If we are distributing your album independently through PIAS, we will usually appoint independent marketing consultants to market your album. The consultants and the fees that are paid to them will be agreed with you up front.
How do I let people know that they can fund my project?
The Artist Resources pages have suggestions about how you can help spread the word, but you will no doubt have your own ideas too.
How do I report abuse?
Please send an e-mail describing the abuse to abuse@bandstocks.com.
What do I get when I buy Bandstocks?
Here is what investors get for each Bandstock they buy through nomoguls:
Who can buy Bandstocks?
UK residents aged 15 or over.
Can I buy Bandstocks if I am under 15?
No, but you can ask someone aged 15 or over to open an account on your behalf (as your trustee) as long as that person takes full responsibility for the account and everything that happens through it. The person aged 15 or over would need to complete the site registration himself or herself and any payments for Bandstocks would need to be made by that person and the contractual arrangement would be between Bandstocks and the trustee. If the registered investor wants the beneficiary (i.e. the under 15 year old) to get the name credit for a Bandstocks investment this can be done by letting the beneficiary choose the username (which is what we use for all credits), but the trustee’s full name must still be entered as the registered investor. If you are thinking of opening an investor account on behalf of a person under 15, please make sure you read the User Contract first.
Can I buy Bandstocks if I am not a UK resident?
No, but you can ask a UK resident aged 15 or over to open an account on your behalf (as your trustee) as long as that person takes full responsibility for the account and everything that happens through it. The trustee would need to complete the site registration himself or herself and any payments for Bandstocks would need to be made by that person and the contractual arrangement would be between Bandstocks and the trustee. If the registered investor wants the beneficiary (i.e. the non-UK resident) to get the name credit for a Bandstocks investment this can be done by letting the beneficiary choose the username (which is what we use for all credits), but the trustee’s full name must still be entered as the registered investor. If you are thinking of opening an investor account on behalf of a non UK resident, please make sure you read the User Contract first.
Can I buy more than one Bandstock?
Yes, you can buy as many Bandstocks as you like (as long as they are available and subject to our right to refuse applications or reduce the number of Bandstocks issued) but please read the risk warnings on the Investment Memorandum and never spend more on Bandstocks than you can afford to lose.
How do I buy Bandstocks?
Sign up as an investor, put some money in your account, click on the Bandstocks project that you are interested in, click on the “Buy Bandstocks” button and follow the instructions. If you haven’t already put money in your account when you first sign up, you can pay when you make the application to buy. (If you are thinking of buying a number of different Bandstocks over a period of time it may make sense to load up your account ahead of time because there is a handling charge for putting money into the account of 20 pence and 4% per transaction i.e. if you buy 10 £10 Bandstocks separately the charge per transaction will be 60p for each Bandstock, but if you load up the account with £100, the charge will only be £4.20 or 42p for each Bandstock. Once money is in your account, there are no more handling charges when you apply for Bandstocks or when we issue Bandstocks or when we refund money to your account if the offer or your application is unsuccessful.
How do I put money in my investor account?
Click “Sign In” and log onto your account by entering your username and password. This takes you to your account page. Click on the “Show My Statement” button in the Profile box on the left hand side then on the “Deposit Money” button at the bottom of the statement page and follow the instructions. Payment is accepted using Mastercard, Maestro, Delta, Visa Electron and Visa cards.
I am trying to buy Bandstocks using funds in my account, but the site is telling me there isn’t enough money in the account. What should I do?
Go to your account page (the first page when you log in as an investor) and check your statement by clicking on Show My Statement in the Profile Box. The statement itemises payments into and out of your investor account and shows your current balance which should explain why you don’t have enough in the account. If you think there is a mistake in the statement, please send us an e-mail immediately at accounts@bandstocks.com explaining what you think the mistake is. Otherwise, if you want to go ahead with your Bandstocks purchase, you can either deposit money into the account and then return to the Buy Bandstocks page to complete the transaction using funds in your account or alternatively return to the Buy Bandstocks page and click the Pay Now option and follow the instructions.
I can’t log in. What should I do?
If you have just registered, you need to click on the link in the e-mail that is automatically sent to you at the e-mail address which you give when you sign up. These e-mails may end up in your spam folder, so check there for an e-mail from Bandstocks. Once you click on the link, you will need to sign in with your username and password. You get three attempts at logging in. If you fail at the third attempt, your account will be temporarily blocked. If that happens, please e-mail us at support@bandstocks.com to get your account unblocked.
Parts of the site aren’t loading properly. What should I do?
Try clearing the cache of your web browser and logging in again. For most browsers you can do this by clicking on Tools and then
either “Internet Options” or “Clear Private Data”. If you don’t know how to do it, the following Wikipedia entry should
help: http://en.wikipedia.org/wiki/Wikipedia:Bypass_your_cache
If you are still having problems and think the problem is with our site and not with your computer or browser, please e-mail us at support@bandstocks.com.
Where is the money in my account kept?
When you make a payment through your investor account it is initially collected by our payment provider (Optimal Payments Limited “Optimal”). The money held in our Optimal merchant account is paid directly into the Civilian Industries trust account at Coutts and Co. The trust account is protected by a Trust Deed signed by us and by Coutts: under the terms of the Trust Deed, money can only move out of the account for one of four reasons: these are (i) when an album fund is raised in which case the fund is moved into a separate account used only for the album in question or (ii) when investors ask for payments to be made out of their account and back to the investors or (iii) when interest is earned on the account in which case the interest is paid to us or (iv) when the payment relates to goods (e.g records or merchandise) or tickets as opposed to Bandstocks which have been paid for through an investor account: the transfer of money relating to goods and tickets also needs to be approved by an independent trustee.
What happens if I have applied for Bandstocks and the offer doesn’t go ahead?
The full purchase price of the Bandstocks that you applied for is returned to your investor account.
Does Bandstocks guarantee that the record will get made?
We can’t guarantee that. The band may disintegrate or drop dead. We can guarantee that the fund raised (after deducting the 5% commission) will be made available to make and market an album and that we will do everything that we reasonably can to help get the record made.
What happens if the Album doesn’t get made?
It depends: one of the reasons that we administer the spending of the fund (as opposed to handing the whole lot over to the artist) is to try to make sure that the money is spent properly and that it does result in an album being delivered. If a project runs into real difficulties (e.g. because a group completely disintegrates and there is no-one left to make the album) we would return what is left of the fund to the investors.
What happens if the fund isn’t spent or isn’t fully spent?
We will decide in conjunction with the artist what happens to funds which aren’t spent according to the circumstances. In general, if an album is made under-budget, any surplus is likely to be used for marketing. If on the other hand the project has to be abandoned completely (because the band disintegrates for example) it is likely that the money will be returned to the investors who bought Bandstocks in that project.
What if the recording costs go over-budget?
Recording costs will be strictly controlled. We and the artist will initially agree on a recording budget which forms part of the Fund and the rest of the Fund is to be spent on marketing. We may need to revise the budget once the project is underway, but would generally try to avoid this since any increase in the recording budget reduces the amount of the Fund left over for marketing. The artist, producer and everyone else involved knows going into the project that they are working to a budget and that the album needs to be delivered within that budget. We will do everything we reasonably can to make sure that the artist delivers ^the best album they reasonably can within that budget. Although Bandstocks believes absolutely in giving artists all the creative freedom they want, this isn’t the place for getting self-indulgent if it involves running up huge extra costs. The deal for artists is that they should deliver the best album possible within the agreed budget.
How soon am I likely to see a return on my investment in Bandstocks?
We account to Bandstockholders once a year at the end of March for the previous calendar year. We won’t normally receive income from an album until at least a month after it is released and it is likely to take at least 6 months from the time the fund is raised before the album is released, so the first distribution may be a year or more after you make your investment.
What are the tax implications of investing in Bandstocks?
We can’t give you tax advice, but the advice we have had is as follows: (i) the first £10 per Bandstock returned to you is treated as repayment of capital so should not give rise to any tax liabilities (ii) HM Revenue and Customs may treat the interest payable on Bandstocks (above the £10 repayment) as distributions of profits rather than interest for tax purposes. If this treatment has to be adopted then the interest payable will be reduced by an amount equivalent to the rate of Corporation Tax payable at the date the interest is paid; currently this rate is 28% (reduced from 30% from 1 April 2008) and (iii) if this does apply, then no further tax will be payable on the interest by basic rate taxpayers, but higher rate taxpayers will be liable for higher rate taxes with the associated tax credit.
Can I invest in more than one project?
Yes.
How do I keep track of the Bandstocks I've bought?
Your investor account page has a box in the middle of it which shows how many Bandstocks you have applied for and been issued in each album project.
How do I keep track of my earnings from Bandstocks?
Your investor account page has a box at the bottom centre which shows how much you have earned from each of your Bandstocks.
How do I keep track of the money in my account?
Click on the “Show my statement” button above the profile box on the left of your account page. This shows all payments into and out of your account and the running total.
Can I buy Bandstocks for someone else?
The legal owner of Bandstocks will be the person named in the application and that person must qualify as an investor registered with the website and the benefits of a Bandstockholder can only be claimed by the legal owner. It is up to you if you want to pass those benefits on to someone else, but we will only be able to deal with the legal owner. If you want someone else to get the credit (on albums and on the website) as a Bandstockholder, you can do this by choosing a username that identifies the other person rather than yourself.
I'm interested in becoming an underwriter. How does that work?
Underwriters are investors who commit to buying a large number of Bandstocks in specific projects in return for additional rights and investment opportunities that may be offered through Civilian Industries PLC and its associated businesses. You need to be a company or a professional investor or what they call a “high net worth individual” to become an underwriter. If you think you qualify and are interested in finding out more, please send an e-mail to underwriters@bandstocks.com.
Can I trade Bandstocks elsewhere?
No.
Do I get credit on the albums I invest in on nomoguls?
Yes, you get a credit on a special insert on both the CD and vinyl versions of the initial manufacturing run of each album in which you have bought Bandstocks through the nomoguls part of the site. You will be credited under your username, not your legal name. You will also be credited on the investor mosaic page of the website with your username and whatever photo or image you have loaded onto your investor page. If you prefer you can buy Bandstocks anonymously in which case you will not get credits. If you want to be anonymous, select this option when you apply for Bandstocks. Credits for albums funded through Bandstocks on sites other than nonoguls may vary – details will be given in the Investment Memorandum for the project in question.
How much can I earn?
We can’t make any guarantees about this, but you can play around with the calculator to get an idea of what is possible. It is important to stress that any information you get from using the calculator should not be taken as a prediction of what will be returned on your investment. The other very important thing to note about the calculator is that it is designed to give a rough guide of earnings for a project funded through nomoguls which is then released independently through Bandstocks. It does not apply to other Bandstocks funded projects and does not apply when rights in nomoguls projects are assigned or licensed to third parties. You should read the notes on the calculator before using it for more information.
Do I get my money back if the project doesn’t raise enough funding to go ahead?
Yes.
I don’t want people to see who I vote for, who I invest in or my earnings. How can I stop that?
Select the “Edit Profile” option from your account page and then select the “keep private” options for the things you don’t want everyone else to see. You might for example be OK with people seeing what Bandstocks you have bought but not how much you have earned. You can pick and choose which of the boxes you show to other users.
Each time you apply to buy Bandstocks you will see a tick box with the option to invest anonymously. If you tick the box, you will not be identified in the site credits or the credits that go on the album itself if and when it is released and are therefore agreeing to waive your right to a credit. If you do not tick the box, you will be credited by username both on the site and on the album (if and when released). If you want to, you can invest anonymously in one album and be credited on others. It’s up to you to decide each time you buy Bandstocks. Your anonymous investments in Bandstocks will be visible to you on your account page when you are signed in, but not to anyone else.
What does the option to enter “Number of signed limited editions” mean when I apply to buy Bandstocks?
When you apply to buy Bandstocks, you have the option of entering the number of limited editions that you wish to buy as and when they are available. You will need to pay for them separately, but you don’t generally* need to pay anything when you apply for Bandstocks and you are not obligated to buy them. The number of editions that you enter must not be more than the number of Bandstocks that you are applying for.
Because the limited editions are usually quite expensive to manufacture and because they will, for nomoguls artists, be signed by the artist, it is helpful if we are able to estimate the number of limited editions that are likely to be needed as early as possible. The maximum price of the signed limited editions is indicated in the investment memorandum for the project in question. What this means is that, assuming that Bandstocks for your project are issued and assuming that the album is completed, you will have the right to buy a limited edition at the maximum price indicated or less. We may sometimes offer more than one edition, and some of the editions may be at a price higher than the maximum price, but you will still be offered the opportunity to buy a version of the limited edition at or below the maximum price. This will all be explained in detail when the limited editions are ready and you can decide then exactly what you want to buy and payment will be taken for it at that time.
If Bandstocks for your project are issued and the limited editions are made, you will still have an opportunity to buy your signed limited edition when they are issued even if you do not enter the number that you wish to buy in the box when you apply for Bandstocks.
The reason for asking how many you want during the Buy Bandstocks process is that the more accurate the information we have at that time, the better chance we have of supplying the special editions as efficiently as possible without over or under manufacturing, both of which cost money and both of which will have an impact on Albumco’s Net Receipts, so it is in the interests of Investors and the Artist for Investors to be as realistic and accurate as possible when entering the number of special editions that they wish to buy.
* For some Bandstocks offers (usually where the album has already been made and is about to be released) buying a special edition may be a compulsory part of the Buy Bandstocks process. This will always be made very clear and you will know from the “Buy Bandstocks” process that you are also being asked to buy and pay for the limited edition at the time.
How risky is an investment in Bandstocks?
Like any investment in the music business, it is high risk. Read the risk warnings in the investment memorandum before you apply to buy Bandstocks and never risk more than you can afford to lose.
Can investors have any input in a band’s career?
Investors can contribute their opinions through the backstage message boards. Artists can ask for opinions about anything they like and get feedback from their investor fans. It is then up to the artists what they do with it.
I’m having problems playing the music. There are elements of the page missing. What is the problem?
You must have the latest version of Flash player installed. Most web browsers come with it pre-installed, but if you don’t have it follow this link:
http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash&promoid=BUIGP. It's a free, easy and fast download.
How do I report abuse?
Please send an e-mail describing the abuse to abuse@bandstocks.com
I can’t log in. What should I do?
If you have just registered, you need to click on the link in the e-mail that is automatically sent to you at the e-mail address which you give when you sign up. These e-mails may end up in your spam folder, so check there for an e-mail from Bandstocks. Once you click on the link, you will need to sign in with your username and password. You get three attempts at logging in. If you fail at the third attempt, your account will be temporarily blocked. If that happens, please e-mail us at support@bandstocks.com to get your account unblocked.
I can’t vote. Why not?
You must be logged in as a supporter and listen to at least 30 seconds of a track before you can vote for it. You can only vote on a project once.
I’m having problems playing the music. There are elements of the page missing. What is the problem?
You must have the latest version of Flash player installed. Most web browsers come with it pre-installed, but if you don’t have it follow this link:
http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash&promoid=BUIGP. It's a free, easy and fast download.
The purpose of this Privacy Policy is to let you know what kinds of information we may gather about you, how we may use that information, whether we disclose it to anyone, and the choices you have about how we use the information.
1. Personal data means data which is capable of identifying a living person. Users of the site, whether they are Investors, Artists or Supporters, may provide us with personal data, such as their name, address, telephone number and credit card details.
2. Civilian Industries Plc (“we” or “us”) provide the Bandstocks service (“Bandstocks”), and this website. Your personal data will be collected, processed, stored and used by us, and passed to and processed by our subsidiary and/or affiliated companies (together “Civilian Industries Group Companies”) and other data processors acting under contract with us to provide and promote Bandstocks, to process payments you make to us, to provide customer support, and for other purposes referred to in this Privacy Policy and the other agreements that Users may have with us. It is possible that some of the computer systems and companies that process your data on our behalf may be based in countries outside the European Union (“EU”). Countries outside the EU may not have as well developed data protection laws to protect your information as those inside the EU, but we will ensure that your personal data is treated in compliance with United Kingdom data protection laws and this Privacy Policy.
3. In the course of using Bandstocks, Users may make their personal data available to others. It is the Users’ responsibility to ensure that they wish to reveal information about themselves (including personal data) in their use of the Bandstocks Service.
4. Cookies are small files which, depending on your browser settings, may be automatically stored on your computer's hard drive when your Web browser accesses a specific Web page. The cookies on the Bandstocks’ site are set by us, or (where an advertiser deploys a cookie) by the advertiser. You may not be able to register for Bandstocks, nor will you be able to use certain aspects of the Bandstocks service, if your browser is set to reject cookies. You can find out how to do this at: http://www.allaboutcookies.org/manage-cookies/
The Web sites you visit, including those of advertisers, have their own privacy policies. We advise you to review the privacy policies of Web sites before providing them with any of your personal data.
5. We encourage you to tell us how you wish us to use your personal data for marketing of services and products to you.
a. Email communications. We give you the opportunity to opt to receive emailed newsletters and/or marketing communications from us in relation to our or third parties’ services and products that we think may be of interest to you; each such communication will give you the opportunity of opting-out of receiving future similar communications.
b.Post and fax. We will not send marketing materials to you by post or fax, nor provide your address or fax number to others for this purpose.
Please note that you will also receive important emails from us (and from Bandstocks Artists) that are an integral part of the Bandstocks service, and cannot be opted-out of. The integral emails from Bandstocks will include (amongst other things) (i) emails about your use of Bandstocks, (ii) emails about issues arising under the Bandstocks User Contract or any other contracts you may have with us, and (iii) if you are an Investor, emails attaching your Bandstocks certificates, free download information and details of how to buy the limited editions to which you may be entitled. Integral emails will also be sent by Artists to Investors about special privileges offered to Investors by those Artists. To reiterate, these Bandstocks and Artist emails are an integral part of the Bandstocks service, and cannot be opted-out of. Therefore, you must ensure that the email address we hold for you is kept up-to-date and that you have full access to it. If you change email address, then you must inform us of the new address following the instructions on your account page.
6. We take appropriate technical and organisational measures to guard against unauthorised or unlawful processing of your personal data and against accidental loss or destruction of, or damage to, your personal data. While no computer system is completely secure, we believe the measures implemented by our site reduce the likelihood of security problems to a level appropriate to the type of data involved. We have security measures in place to protect our customer database and access to this database is restricted internally. However, it remains each User's responsibility:
a. to ensure no-one else uses Bandstocks while the User’s machine is "logged on" to the Bandstocks service;
b. to log off or exit from you Bandstocks account when not using it; and
c. to keep his/her password or other access information secret.
7. We will retain your personal data only as long as is necessary for the purposes to which you consent under your agreement(s) with us and this Privacy Policy, or as is required by applicable law, and then we will delete it.
8.Your personal data may be disclosed if we or an entity processing your data on our behalf are compelled to do so by law, or receive a valid, legally compliant request by a law enforcement or governmental authority.
9. To inspect, change or correct your identity and contact information, please log-in. If you have other questions about the handling or protection of your personal data, a written enquiry should be addressed to by email to [privacy@bandstocks.com].
BANDSTOCKS
CONTRACT AND STATEMENT OF INTENT FOR NOMOGULS ARTISTS
WHAT ARE YOU COMMITTING TO WHEN YOU SUBMIT A PROJECT?
YOUR CONTRACTUAL COMMITMENT: BY SUBMITTING A PROJECT TO US (CIVILIAN INDUSTRIES PLC) YOU ARE SIMPLY AGREEING THAT WE MAY INCLUDE IT IN THE VOTING STAGE OF THE WEBSITE AND THAT THE TERMS OF THE USER AGREEMENT (WHICH ALLOW US TO STREAM YOUR MUSIC ON THE SITE FOR EXAMPLE) APPLY TO IT. WE WILL LET YOU KNOW AS SOON AS POSSIBLE WHETHER YOUR PROJECT WILL BE INCLUDED IN THE SITE AND YOU WILL OF COURSE BE UNDER NO OBLIGATION TO US IF WE DO NOT INCLUDE IT.
YOUR STATEMENT OF INTENT: IF WE DO INCLUDE YOUR PROJECT IN THE VOTING STAGE OF THE SITE WE WILL ASK YOU TO SIGN THE ARTIST CONTRACT BELOW BEFORE YOUR PROJECT REACHES THE INVESTMENT STAGE OF THE SITE. BY SUBMITTING A PROJECT TO US YOU ARE CONFIRMING THAT YOU INTEND TO BE BOUND BY THIS CONTRACT IF YOUR PROJECT IS INCLUDED IN THE SITE AND REACHES THE INVESTMENT STAGE.
THE ARTIST CONTRACT IS NOT BINDING UNTIL YOU SIGN A PAPER COPY OF IT, BUT YOU SHOULD STILL READ IT CAREFULLY AND BE PREPARED TO SIGN IT BEFORE SUBMITTING YOUR PROJECT BECAUSE ONCE A PROJECT APPEARS IN THE VOTING STAGE OF THE WEBSITE, BANDSTOCKS INVESTORS WILL EXPECT PROJECTS THAT THEY SEE THERE TO BE AVAILABLE FOR INVESTMENT.
WE RECOMMEND THAT YOU GET ADVICE FROM A MUSIC LAWYER BEFORE YOU SIGN THE PAPER COPY OF THE ARTIST CONTRACT. UNLESS YOU KNOW A FRIENDLY LAWYER WHO WON’T CHARGE YOU FOR DOING THIS, WE WOULD SUGGEST THAT YOU GET LEGAL ADVICE ONCE YOU KNOW WHETHER THE PROJECT IS BEING INCLUDED IN THE SITE RATHER THAN BEFORE, BUT THAT IS UP TO YOU AND ANY LEGAL FEES YOU DO INCUR WILL BE YOUR RESPONSIBILITY. OUR POLICY ON LEGAL FEE CONTRIBUTIONS AFTER A FUND HAS BEEN RAISED THROUGH THE ISSUE OF BANDSTOCKS CAN BE FOUND IN THE ARTIST FAQs IN THE LEARN MORE SECTION OF THE SITE.
THE ARTIST CONTRACT IS IN PLAIN ENGLISH AND HAS ALREADY BEEN REVIEWED ON BEHALF OF ARTISTS BY A NUMBER OF LEADING MUSIC LAWYERS, SO IF YOU READ IT YOURSELF, YOU SHOULD KNOW WHETHER YOU ARE WILLING TO MAKE THIS STATEMENT OF INTENT EVEN WITHOUT LEGAL ADVICE.
CONTRACT SUMMARY
| This contract is between Civilian Industries PLC (“we”) and the Artist(s) (“you”) named above. If the Artist is more than one person, “you” means all of you jointly and individually. | |
| 1. | What are you committing to when you sign this contract? You are committing to using our website to raise funding for your Album and, if funding is raised, to delivering an Album under the terms of this contract. |
| 2. | What is “our website”? Our website is the website referred to above which is part of a group of linked websites accessed through www.bandstocks.com. It provides the mechanisms and data collection facilities to enable us to try to raise a fund for your Album as well as enabling you to communicate with your fans and investors and to sell records and other products ordered online. It is referred to simply as “the Website” in the rest of this contract. |
| 3. | How is the funding raised? Funding for your Album is raised by selling Bandstocks. Bandstocks is our name for a type of loan stock which we use to raise funding for your project. Bandstocks cost £10 each . The number of Bandstocks we offer will depend on the size of the Target Gross Fund referred to at the beginning of this contract. This is the total amount that we will try to raise,. |
| 4. | How long are you committed for? The offer of Bandstocks through the Website will begin on a date, within 30 days of signing this contract, to be mutually agreed between you and us. The period of time during which Bandstocks are offered is referred to as the Investment Stage. The Investment Stage lasts 60 days from then unless you want to extend it. If you want to extend it, tell us a few days before it is due to end and we may agree to extend for a limited period (usually another 30 days or so). If we fail to raise at least 90% of the Target Gross Fund during the Investment Stage, this contract comes to an end at the end of the Investment Stage and you and we will have no further obligations to each other. If we raise 90% or more of the Target Gross Fund during the Investment Stage, then at the end of the Investment Stage, your project will enter the Production Stage of the website. The Production Stage lasts from the end of the Investment Stage until you deliver the Album. Unless you and we agree otherwise, the Production Stage will last no longer than 6 months from the end of the Investment Stage and the Album must be delivered within that period. We and you will each be reasonable about agreeing to an extension if there is a legitimate reason for doing so (such as the availability of a specific producer or studio). |
| 5. | Are you restricted from making recordings for other labels during this process?
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| 6. | What happens when your project moves into the Production Stage?
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| 7. | How is the Fund spent?
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| 8. | Who makes the arrangements to record the Album? We will work with you to make arrangements to record the Album (booking studios, producers etc.) and to make sure that proper contracts are in place between Albumco and the studios, producers and others involved in making the Album. |
| 9. | How much creative control do you have? You have complete creative control over your Album. This means:
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| 10. | Are there any limitations at all on your creative control? Your creative control is limited only by a few practical considerations, namely:
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| 11. | What do the references to “Album” in this contract mean? The expression “Album” refers to the Album of sound recordings that you make under this contract: it is used to refer to the whole Album and all of the individual tracks on it except that under the release obligation in paragraph 22 it just means that we have to release the Album as a whole. |
| 12. | Who owns the copyright in the Album? You and Albumco will jointly own the copyright in the sound recordings on the Album and Albumco will have exploitation rights in the Territory for 5 years from release of the Album (or 5 1/2 years from delivery if earlier) only. This 5 (or 5 1/12) year period is referred to as “the Rights Period”. At the end of the Rights Period, Albumco’s rights will be assigned to you (see paragraphs 24 and 25). Albumco’s exploitation rights during the Rights Period and the restrictions on them are explained in more detail in paragraphs 16 and 17. The word “exploitation” is used to refer to things like selling records and downloads and other things that are to your advantage: we will only exploit the Album in ways that we reasonably believe are in your interests. |
| 13. | Who owns the copyright in the Artwork for the Album? You and Albumco will jointly own the copyright in the artwork for the Album and Albumco will have exploitation rights in the Territory during the Rights Period, but only in connection with the Album itself. At the end of the Rights Period, these rights will be assigned to you. Albumco’s exploitation rights and the restrictions on them are explained in more detail in paragraph 18. |
| 14. | Who owns the copyright in videos? You and Albumco will jointly own the copyright in any videos funded under this contract. At the end of the Rights Period, these rights will be assigned to you. Albumco’s exploitation rights and the restrictions on them are explained in more detail in paragraph 19. |
| 15. | Who owns the copyright in the songs and compositions recorded on the Album? If you write the songs and compositions on the Album, you or your music publisher will own them. If you record cover versions of other people’s songs or if other people write for you, the songwriters or their publishers will own those copyrights. We do not own or have any publishing rights in songs on your Album and will pay publishing royalties to whoever is entitled to receive them. This is explained in more detail in paragraph 27. |
| 16. | What exploitation rights does Albumco have in the Album?
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| 17. | Which exploitation rights need to be approved by you? (a) The types of exploitation in this part (a) are automatically approved
(b) The types of exploitation in this part (b) are examples of things that need your permission
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| 18. | What exploitation rights do we have in the Artwork? We have the right to use Artwork only in connection with the Album and its exploitation and only in the Territory. We do not have any merchandising rights. If Albumco does obtain merchandising rights in Artwork (or any other rights which, by virtue of the previous sentence, we do not have the right to use) from those who create or supply it, those rights are granted to you without payment to us or Albumco |
| 19. | What exploitation rights do we have in videos?
Albumco has the right in the Territory to use videos for promotional purposes only. Any commercial use of a video needs to be agreed by you. “Promotional” in this context includes showing videos to promote your Album at no direct cost to the viewer through websites, TV, MTV and other music programmes. The fact that there is an underlying commercial reason to do this and the fact that performance fees may be paid for these uses do not make them commercial uses under this contract. |
| 20. | What rights do we have to use your name and photos?
We have the right to use your name (or professional name if you have one) and approved photos and other approved images of you to promote the Album. You also agree that we are allowed to use your name and approved photos and other approved images on our website and in publicity to help get your project funded and for our website (but only during the Rights Period) and in connection with the retained rights referred to in paragraph 25 as long as the publicity we authorise is not misleading and is reasonable. |
| 21. | How will the Album be distributed? We have a contract with PIAS as our UK distributor. Normally, your Album will be distributed through PIAS in the UK, but it is possible to make alternative arrangements as long as these are made before or soon after the Album is delivered. You may want to do this if you are thinking of signing a long term record deal and your new record company wants to release your Album.
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| 22. | How does the Album get released?
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| 23. | What money gets spent on the Album once the Fund is used up? Our funding model is designed to make sure, as far as we reasonably can, that Albumco does not make losses. Because of this, we will be cautious about using Albumco’s income to provide additional marketing funds for your Album and will only ever do so with your agreement and where we think it makes commercial sense. |
| 24. | What happens at the end of the Rights Period? At the end of the Rights Period we will automatically assign to you all of Albumco’s rights (including Albumco’s share of the copyright in the Album Recordings, Artwork and Videos) and the contracts that Albumco has entered into to exploit the Album on condition that from then onwards you take responsibility for Albumco’s obligations under those contracts for exploitation which takes place after the contracts are assigned to you: for example if Albumco has a contract to pay royalties to a producer, it will be your job to makes sure the producer royalties are paid if you carry on exploiting the Album after Albumco has assigned its rights over to you. This assignment of rights back to you is subject to our retaining some very limited rights as described in the next paragraph. If we receive any income (except from retained rights) from the exploitation of the Album after the rights have been assigned to you (which may happen, for example, if licensees continue to account to us by mistake), we will pass it on to you after deducting only a 5% administration fee. |
| 25. | Do we retain any rights after the Rights Period? The only rights which we retain after the Rights Period (and for the life of copyright in the Album) are (i) the right to include tracks from your Album on our own brand (Civilian Industries or Bandstocks or nommoguls) compilation Albums (but never more than one track per compilation Album and never more than one new compilation Album in any three year period) and (ii) the right to download tracks through our own Website (but not anyone else’s). We will only exploit these rights on proper commercial terms and will continue to account to you for 50% of Net Receipts from these exploitations whenever we exercise these rights. We will try to co-operate with and will always consult with you and whichever record company you are then releasing records with or through if we wish to exercise these retained rights. Since we and Albumco have no copyright ownership in the Album after the Rights Period, you agree that these “retained rights” are licensed back to us by you or whoever becomes the copyright owner of the Album after the Rights Period. |
| 26. | What is the significance of “the Territory”? The Territory to which this contract applies automatically appears next to the word Territory at the beginning of the contract. If the Territory (as defined above) is less than the World, this means that Albumco is not allowed to exploit its rights outside the Territory. In that case, Albumco still jointly owns the copyrights in the Album Recordings and Artwork for the whole world (because they have been paid for out of the Fund), but you (or another record company) can buy Albumco’s share of the copyright for countries outside the Territory by paying a one-off fee. The amount of the fee will be a fair percentage of the recording costs depending on the countries for which the rights are being assigned and taking into account the relevant factors at the time. If you pay the fee (or get someone else to pay it) we will sign a contract assigning our share of copyright for the countries for which the fee has been paid. The fees paid by you will be treated as income of Albumco when we calculate Net Receipts. |
| 27. | What about the songs and compositions on the Album? This contract does not give us any right to own or publish or earn money from your songs. These rights are owned by you or your music publisher if you have one and we will get the necessary mechanical licenses and pay publishing royalties to whoever has the right to collect them (which will usually either be you, your publisher or a collecting society like the MCPS). In relation to songs and compositions, you are simply agreeing to the following:
If the Territory includes the USA and Canada, whoever releases the Album in those countries will almost certainly want to limit the amount of publishing payments for your songs on sales there, but we will involve you in those discussions when the time comes. |
| 28. | Writer Credits and Moral Rights At the moment, the only relevant moral rights that you have under English Law are the right “to be identified as the author” of the songs which you write and record under this contract and the right not to have your songs subjected to derogatory treatment. You need to assert the right to be identified as author if you want it to apply. We will assume that you do want to assert it (and therefore that you are asserting it under this contract) and will give you writer credits where applicable. If you acquire any additional moral rights because the law changes or if you have moral rights under the laws outside England, you agree not to assert those rights against us. |
| 29. | What rights do your investors have and who is responsible to them? The rights of the investors who buy Bandstocks (“Bandstockholders”) are described in another contract called the Investment Memorandum which we issue online when your project enters the Investment Stage. These include the right to receive a share of Albumco’s Net Receipts, the right to a free download of your Album when it is made, the right to buy signed limited editions of your Album and the right to be credited on the initial manufacturing run of you |