Legal Question in Intellectual Property in California

Re: Rights to Artwork

Since you say you ''hired'' a friend to do the artwork, the creation arguably belongs to the record label. However, you can't fault your friend for wanting to be compensated for his work. See a copyright atty together and register the copyright as a work for hire, with your label as the owner and your friend as the artist, agree over money and put it in writing.

Friends or not, your mix of business with friendship is a common mistake. But it can be overcome if both sides are willing to compromise.

If worse comes to worse, and you have no alternative to using his artwork, then using it may subject you to being sued for infringment if he has the work registered. Good luck.

Re: Rights to Artwork

Yes. He can hold you up and can make problems for you by contacting your distributor and informing them of the dispute. This could be costly. You'll need to make a deal with him and learn from your mistake. Ethical business dealings are not deep rooted in the record business. Make sure you have good contracts for all of your dealings or you will pay 5 fold later.

Re: Rights to Artwork

If he registers the copyright and files a lawsuit, he can in theory stop you from using the artwork he created, unless you can show that it was a work for hire.

Do you feel that it is now too late to come to an agreement that can be reduced to writing? You might be better off making a written agreement now than fighting over your oral agreement later.