Legal Issues Recording Contracts Producer Contracts

Recording Contracts The basis of all recording contracts is that the artist has the ability to grant his/her recorded performances to the record company which will then have exclusive rights to them.

Types of Record Contract  Exclusive recording contract  Development deal  360°deal  Production deals

Types of Record Contract  Exclusive recording contract  Development deal  360° deal  Production deals The record company will usually own the sound recordings in perpetuity Options on the contract are usually in favour of the record company The record company will usually own the sound recordings in perpetuity Options on the contract are usually in favour of the record company

Types of Record Contract  Exclusive recording contract  Development deal  360° deal  Production deals The record label signs the artist, gives them enough money to make sound recordings (maybe demos) with a producer but does not include enough money to live on The record label usually will have first option to sign the artist The record label signs the artist, gives them enough money to make sound recordings (maybe demos) with a producer but does not include enough money to live on The record label usually will have first option to sign the artist

Types of Record Contract  Exclusive recording contract  Development deal  360° deal  Production deals Record companies share in other artist activities, eg, songwriting royalties, concert tickets, merchandise, sponsorship deals, website income.

Types of Record Contract  Exclusive recording contract  Development deal  360° deal  Production deals Production companies sign the artist to an exclusive agreement at an early stage of their career and fund/create recordings. The company can then sell or licence the rights on the deal to a record label.

Record Contract Clauses  Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory

 Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory Record company has the exclusive rights to every recording made by the artist during the period of the contract, within the agreed territory, even if they don’t release the recordings. Record Contract Clauses

 Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory How long the contract will run for, eg a fixed number of years, an annual option up to a maximum period or a certain number of albums to be delivered. Record Contract Clauses

 Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory How the artist will be paid on sales, eg around 16-18% dealer price for every album sold (large companies) or 50/50 profit sharing (smaller companies).

Record Contract Clauses  Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory Paid in advance of royalty payments to help the artist while the album is being recorded and until it starts to sell. Advances are recoupable from album sales before royalties are paid.

Record Contract Clauses  Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory How the contract could be terminated. For example, not sending the artist royalty statements every six months or not taking up the option to extend the contract.

Record Contract Clauses  Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory Protects the record company from unexpected liabilities. Eg, the artist will agree that there are no outstanding obligations under prior recording contracts.

Record Contract Clauses  Exclusivity  Term  Royalties  Advances  Termination  Warranties  Territory Where the record company is signing the artist for, eg the whole world, Europe or the UK.

Producer Key Responsibilities  Technical/creative responsibilities  Deliver tracks to deadline  Inform record company of samples used

The Producer Contract  The producer contract is the only means of protection if:  the record label switches producers halfway through a project  rework demos  the record label decides not to pay the producer.  Entered into by the producer and the record label (in the UK)  The record label funds the recording costs - the producer provides a written assignment of ownership in the sound recording copyright(s) to the record label.

 The producer has to deliver the master recordings to technically and commercially acceptable standard to a specific deadline.  Producers are paid by a fees, advances and/or royalties.  Most producers charge a rate per 'master' recording. The Producer Contract

 The producer has to deliver the master recordings to technically and commercially acceptable standard to a specific deadline.  Producers are paid by a fees, advances and/or royalties.  Most producers charge a rate per 'master' recording. The Producer Contract Usually non recoupable

 The producer has to deliver the master recordings to technically and commercially acceptable standard to a specific deadline.  Producers are paid by a fees, advances and/or royalties.  Most producers charge a rate per 'master' recording. The Producer Contract Recoupable from the Producer’s royalties

 The producer has to deliver the master recordings to technically and commercially acceptable standard to a specific deadline.  Producers are paid by a fees, advances and/or royalties.  Most producers charge a rate per 'master' recording. The Producer Contract Eg 3-5% of dealer price

 Producer will get paid royalties when any producer advance has been recouped by the record label  Producer’s royalty is not generally dependent on the recoupment of artist’s advance.  Most producers charge a rate per 'master' recording.  Contract should include credits – physical and digital.  Contract should include payment terms – how often royalties will be paid.  Contract should also allow the producer’s lawyer or accountant to audit the record company’s books. The Producer Contract