C.R.S. § 7-80-1218: Member transition.

(1) An artist company's articles of organization or operating agreement may provide for:

(a) Procedures for admission of new members and departure, withdrawal, expulsion, or dissociation of existing members, so long as artists retain ownership in accordance with the requirements of section 7-80-1203 (1)(c);

(b) Rights to artistic work, royalty sharing rights, and revenue participation rights upon a member's departure, including:

(I) Whether artistic work assigned or exclusively licensed by the departing artist-member remains with the artist company or reverts to the member, in whole or in part;

(II) Whether artistic work created during the member's membership remains with the artist company or reverts to the artist-member in specified departure scenarios, in whole or in part;

(III) Whether and on what terms the departing artist-member retains rights to receive royalties or revenues from artistic work created during their membership in specified departure scenarios; and

(IV) Whether and on what terms the departing artist-member retains rights to use collective names, trademarks, or other identifiers associated with the artist company;

(c) Continuing economic rights of departed members, including distribution rights, royalty sharing, and revenue participation;

(d) Rights and obligations of remaining members, including rights to continue exploiting artistic work jointly created with departed artist-members;

(e) Valuation and buyout provisions for a departing member's interest; and

(f) Dispute resolution procedures.

(2) In the absence of provisions addressing member departure in the articles of organization or operating agreement of an artist company:

(a) A departing member's ownership interest is subject to the default provisions of this article 80;

(b) Artistic work assigned or exclusively licensed by the member, if an artist-member, to the artist company remains the property of the artist company, subject to any reversionary rights provided in section 7-80-1221 (2)(a)(I);

(c) Artistic work created by the member, if an artist-member, during their membership shall be treated in accordance with any assignment or exclusive licensing terms included in the articles of organization or operating agreement pursuant to section 7-80-1213 (1) or, in the absence of such terms, is governed by federal intellectual property law; and

(d) The departing member has no continuing rights to distributions, royalties, or revenues except as may be required by section 7-80-1213 (4) or 7-80-1221 (2)(a)(I).

(3) The admission of a new member must include the consent specified in the articles of organization or operating agreement of an artist company or, in the absence of such specification, the consent required by section 7-80-701.