What are my rights to future royalties if I sign over my share for business purposes?
Full Question:
Answer:
The answer will be governed by contract law principles. Assignment in legal terms means the transfer of a property right or title to some particular person under an agreement, usually in writing. Unless an assignment is qualified in some way, it is generally considered to be a transfer of the transferor's entire interest in the thing assigned.
The contract terms will govern the division of any payments required to be paid. If the music license is assigned to a new company, the terms of the license agreement will specify how payments are to be made. If you transfer your rights to your brother, the company will likely only agree to make payments to the brother that holds the royalty rights. Any division of payments would then become a matter of a separate agreement between the brothers involved. Any agreements made should be put in writing, as oral contracts present problems of evidence if there is a later dispute. I suggest you contact a local attorney who can review all the facts and documents involved.
