Since contracts are governed by state law, they will normally provide that any disputes under the contract are governed by a specific state's laws. For example, if an OMD is located in California, its contract will probably specify that any disputes will be decided according to California law and that any claims must be brought in the California courts. Obviously, if an artist lives in New York, this would be quite inconvenient. In reality, this provision will often make it practically impossible for many artists to pursue claims they may have due to the costs involved. Some contracts may contain arbitration clauses.
Arbitration is an alternative to going to court to resolve disputes.
Arbitration is often described as a cheaper and quicker way of resolving disputes, but this is not always true. In fact, arbitration can be much more expensive and time consuming than bringing a lawsuit in some circumstances. It is also much easier to abuse the arbitration process since arbitrators have no ability to enforce their decisions. Consequently, you could win an arbitration award and still have to file a suit in court to have your arbitration award enforced. He is also a professor in the Recording Industry program at Middle Tennessee State University where he teaches courses such as Copyright Law, Music Publishing and Legal Problems in the Recording Industry.