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Can my friend claim his partnership in my record company?

Saginaw, MI |

Creating a record company (for example "XYZ Records") for our city was are idea, however we never had a written agreement on this. Two years ago I created the record company (a C-Corp) but named it "XYZ Entertainment", and my friend claims so deeply its OUR company, when in reality I've done all the legal paperwork and process while he made a bunch of songs shouting out the company name "XYZ Records" (who isn't a artist on my label). Can he actually get his share of the company? Can I sue him if he decides to claim or shoutout my label name or uses any property of my label without my company written permission?

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Attorney answers 3

Best Answer

Your friend, if he had nothing to do with the company, and was promised nothing for his efforts, has no claim.
That fact should be reflected on the books of the corporation and in its tax returns filed since its inception.
If the corporation has properly protected its intellectual property there should be no issues, although it do not know how the corporation would have gained rights to his songs or shouts.
Again, as I have for the last few years, I recommend you seek counsel. Things appear to be getting more complicated and therefore will be more expensive to fix if the issues are not prevented.

To the PROSPECTIVE client, please call myself or another attorney for your choice with more detaiils and an appointment. My PRELIMINARY answer to your question(s) is for general purposes and based upon what little information you have conveyed. It is based on such limited information that the general answer should never be relied as a reason for your action or inaction. My response does NOT establish an attorney-client relationship and such may only be established by mutual agreement, and the signing of a written retainer agreement, which will generally require payment for our services, as this is what we do for a living and, just like you, we must get paid for our work.. .



I never promised my friend anything due to the fact he put in NO EFFORT at all. My record company haven't gained rights to his songs or shouts. I was asking if my friend uses my record company name in a song can I sue him?

John F. Brennan

John F. Brennan


I would need the details but generally the use of the name or a reference to your company would not be actionable.


Attorney Brennan has given you an excellent answer. I would suggest that you follow his advice.

James Frederick

***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!

John F. Brennan

John F. Brennan


Thank you Mr. Frederick.


I agree with John. Best of luck - Reese Serra

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