Inequality of bargaining power in the music industry Essay

Inequality of bargaining power in the music industry - Essay Example The will theory of contract was founded upon the economic principle that the good of all exists in the pursuit of individual, selfish economic gain.1 The exchange between two parties is based upon the principle of â€Å"consideration† which Stone defines as â€Å"what one party to an agreement is giving, or promising in exchange for what is being given or promised from the other side.†2 But in truth, classical contract theory may not represent the true will of the parties, resulting in inequitable individual gains to one party3 and according to Baumann, â€Å"the role of the Courts is restricted to enforcing their [the parties] bargained for exchange.†4 As stated by Spencer Nathan Thal, â€Å"the freedom of contract doctrine sanctions every transaction, however unequal the starting points and however unequal the outcome.† Where the issue of contracts in the music industry are concerned, the common terms covered are exclusivity of use of material, duration and territories covering use, ownership, copyrights and the right to exploitation of the material6. Exclusive performance over large geographical areas for long periods may render a contract unconscionable for an artist, because as pointed out by Vetrone, most artists never get a fair deal from music and recording companies.