Hi Bob – Please don’t use my name – but feel free to publish this reply anonymously.  

I’ve been in this business since the 80s and, in my current role, I primarily represent talent and I’ve been involved in the negotiation of several "360 deals" with every major label except for EMI.  I don’t know Bob Donnelly well, so I cannot know what practical exposure he’s had to these kinds of deals, but much of the content of his article (as reproduced below) directly contradicts what I’ve seen in the major label "360 deals" that I’ve been involved with.  

As just one example, in virtually every such deal that I’ve seen, the label’s "360" participation has been based on the artist’s "net" earnings after deducting for agency commissions, management commissions, tour costs and other hard costs.  The fact that Donnelly says the complete opposite must mean that either his research is way off the mark, or I’m the only lawyer in this business who’s successfully negotiated such concessions. My money’s on the former (although I’d be jazzed to learn that it’s the latter).  

Also, I’ve never heard anyone utter the phrase "multiple rights deal," so I guess Donnelly and I must just run in different circles.  

This reply doesn’t mean that I’m a "fan" of the "360 deal" (any more than I’m a fan of recoupment of advances at the artist’s royalty rate instead of the label’s net) but, when representing young and previously unsigned talent who WANTS to sign to a major, there are not a lot of other options out there with company’s that can say that they’ve successfully broken new acts.  So rather than just reject the model outright, we try very hard to negotiate the best possible terms of "360 deals" under the industry’s current circumstances, and we’ve done so with some success.  

I’m reminded of an incident that happened about two years ago, when a young singer hired a veteran music lawyer to negotiate the singer’s deal with a very powerful major – that lawyer had never actually been involved with a "360 deal" negotiation – and when he saw the terms, he killed the deal with much bluster and fanfare but assured his client that he would find a better deal that didn’t require "360" provisions.  He didn’t.