Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Three Crucial Clauses In A Recording Contract

Author: Scarinci Hollenbeck, LLC

Date: May 26, 2015

Key Contacts

Back

The language of a record contract varies greatly, but a number of key clauses appear in most of them.

Three Crucial Clauses In A Recording Contract

The wording of the components of a record contract can lead to undesirable deals for artists who overlook the small details.

The contractual provisions of each record deal require special attention, because, if not, the deal could end up being onerous for recording artists who didn’t read the fine print. Putting pen to paper can certainly be an exciting time for an artist landing his or her first big recording contract, which might make it easier to overlook certain key details and get stuck with a less than optimum deal.

Following are the three most important things to look for when signing a recording contract:

The terms of the contract

Contract terms are more often measured in years than albums – record labels like to make sure contracts can be terminated to protect themselves in case the first record doesn’t sell well. Contracts generally run for one year, with a series of option periods, and may also include a minimum or maximum number of albums. Requesting a clause that sets a maximum number of master recordings to be completed, rather than a minimum, can help artists avoid getting caught in open-ended relationships with labels.

Use of an artist’s name and likeness

An artist should not give the record company unrestricted access to use his or her brand to boost business ventures in which he or she has no part, i.e., the label should only be allowed to use a musician’s name and likeness in connection with sales of that musician’s recordings and merchandise. This can be an easy aspect of a contract to overlook, because it is often seen as standard provision, but should not be discounted. Different agreements include varying terms on musicians’ names and likenesses, therefore it should not be assumed that this is a boilerplate clause in record deals.

The royalty rates

Recording contracts normally contain clauses setting the royalty rates for merchandise sold. The rates can be based on retail or wholesale pricing, though retail is typically the better option and makes calculations easier. However, there is a good chance that a royalty clause will include plenty of deductions for recording and video production costs, packaging charges, payment on less than 100 percent of the records sold and more. To get the most out of royalties, it is wise for musicians to request that their rates increase over the length of the contract. This portion of a recording contract can contain a number of interesting quirks and wrinkles, and should be approached with plenty of caution and attention to detail to ensure a fair deal.

The above are just a few of the contract clauses that recording artists should read thoroughly to make sure they are signing beneficial agreements. It can be easy for an artist to miss certain details and end up in an undesirable, open-ended and financially draining contract, but a careful review of clauses such as those listed above can help musicians avoid such deals. An attorney may also prove helpful when trying to understand exactly what each portion of a contract is saying.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!