THE SWEEPING success of Newport's Goldie Look-in' Chain will inspire hundreds of Gwent youngsters to contemplate forming a band and fishing for a recording contract.

The music industry is awash with tales of exploited artists and everyone contemplating entering it should be aware of the law.

They should also take professional advice at the first opportunity. One of the first hurdles for a young band will be finding a reliable manager.

There are plenty of people out there prepared to act as manager for a share of the income and a controlling interest in the artists. But great care should be taken in their appointment.

The person or company needs to be experienced and trustworthy and have the necessary contacts in the music industry to move a career forward at a pace acceptable to the artists.

The manager's role will be to advise on the selection of material, publicity arrangements, wardrobe and the general development and presentation of the talent.

The manager will expect to receive a fee for his work plus expenses normally in the rage of 15-25% of the artists' earnings.

These arrangements will be set out in a legally binding contract called an artist's management agreement. These contracts typically run to about 20 pages or so.

The recording contract will be lengthy and complex, governing the artists' relationship with the record company.

In essence, the contract will ensure the band's commitment to record material and the record company's obligation to pay royalties. The contract may provide for one single release or for a number of albums.

However, you will find that if the first record is a flop the record company will end the relationship.

The ability for it to do so will be set out in the contract.

There is no standard royalty rate. Contracts which I've been involved in have varied between 7% and 20% of the wholesale price of the record depending on the artists' bargaining power. Bands may be able to negotiate an advance against future royalties at the outset and this will be recouped by the record company from the royalties payable.

If a band writes its own material it will require a music publishing agreement to safeguard its income from the exploitation of its copyright on the material.

This income will derive from the actual recording of the material by the record company, public performances of the material, music videos and so on.

The publisher will collect this income for the band via membership of various royalty collection agencies.

From my experience the publisher will expect 30% of this income as a fee. A band will need a "hit producer" to control its recording project and to create a commercially acceptable sound.

The producer agreement will provide for the number of tracks to be produced, the timescale for the recording, a budget for the process and details of exactly what the producer is to deliver.

The record company may well pay the up-front production costs but will seek to recoup these from the royalties payable to the band. There may be other contracts necessary, depending on the circumstances.

These contracts are not for the faint-hearted and expert advice from an experienced lawyer is always necessary to avoid a band locking itself into a contract it will later regret (ask George Michael about it!).