17 abr What Is the Point of a Recording Contract
Q: What are the main provisions that every registration contract should include? A: The form of the hosting agreement that is most commonly used today is actually much broader than the old “exclusive recording agreement,” which usually only dealt with record sales and artist-branded items. Today, all large companies and most independent companies (of which we represent a lot) use so-called “360” agreements. As the name suggests, these contracts deal not only with record sales, but also with the money that the artist earns through live performances, TV series or movies in which he can be cast, clothes, jewelry or endorsements of Cologne – anything with which the artist can make money because she has become a well-known name. From the record company`s point of view, the artist`s brand has become a household name mainly due to the investments the company has made in his career. From the artist`s point of view, success is due to the artist`s particular talents. In fact, both of these factors played a role. In many contracts, the financial terms will be more than 15 pages. The rule in record contracts is what the record company gives you with one hand, it takes you with the other. The basic touchstone of registration contracts is the “points”.
Dots refer to the number of percentage points a band receives as a licence fee. For a major label, it`s between 10 and 15 percent and for a smaller label usually 9 to 12 percent. However, the percentage of license fees is only the beginning. The first question you should ask yourself is, “A percentage of what?” Due to their legal complexity, registration contracts can be quite difficult to decipher. They come in different shapes and sizes and often vary depending on the label and status of the artist involved. Nevertheless, many of their business conditions are similar. They certainly need to be looked at more closely in an article of this scope. Q: What other suggestions might you have for an artist who has just been offered a recording contract? The conditions regarding the points must be set out in a signed and dated music producer agreement prior to the start of the recording process. A music producer or his agent may choose to sign a contract with a single artist, band, production company or record company. The agreement could only apply to a master or an entire album. Some of the following key terms can be covered in a manufacturer`s agreement: If this is the lucky dilemma you find yourself in, keep the fire.
Before you do anything, you need to know what to earn. If you want fame and fortune and all that comes with it, without the pain of disillusionment and legal problems later on, you need to do your homework first. A short-term contract allows artists to move to another record company after finishing the first record if they wish. Circumstances can change quickly and it`s good to keep your options open. Often, a group is aware of the “points of agreement” and has already negotiated them before hiring independent consultants on its behalf. Transaction points are the basis of the contract: the advance, the number of albums and the license fee. However, the devil is in the details. If an artist can`t get the funding or marketing power they need without the help of a record company, then it may simply be the commercial offering the artist has to choose when they have to deal with the terms of a 360° recording contract. Another common practice is to charge the band a variety of costs associated with producing an album. For example, the cost of recording the album, promoting the album, producing a music video, and touring the album can be a depreciable expense. This means that all of these expenses can be deducted from the band`s royalties before the band is paid.
The cost of recording an album can easily reach several hundred thousand dollars, as can the cost of promotion, tours, and music videos. All of these costs are deducted from the band`s royalty payment before the band label issues a royalty cheque. Whether it`s copyright, payments, or royalties, your attorney will review the terms of the hosting agreement to make sure you`re getting the best deal possible. It will pay off in the future if something goes wrong. Transactions are sometimes structured in such a way that the points a producer receives increase when the album reaches certain sales thresholds. And yes, most producers ask for points, at least those who are entrepreneurial and familiar with the industry. While 3 points may not seem like much, it can be a big stroke of luck when a song or album is a hit. Certain conditions of the contract depend on the negotiating power of the artist.
That`s why it`s important to monitor, track, and bring your own stats to the table as part of a contract negotiation. These were the main tasks of a record company in the past and they decided what was made public and what was not. Q: Who owns the copyright to my work – me or the record companies? Does that include master copies of those documents? A: Okay. This is where things get a little complicated, as there is actually not one – but TWO – copyright on each piece of music recorded: first, the composer`s copyright; and second, copyright for sound recordings. Think of Irving Berlin`s classic composition “White Christmas.” People on the street can tell you that the song is “Bing Crosby`s Song” because he was the first to record it. But Irving Berlin (who also wrote “God Bless America,” Easter Parade, “Blue Skies, and dozens more”) was and is the composer (and, along with his “music publisher,” the owner of the composer`s copyright). Whenever someone wants to release a new “White Christmas” album, they have to get a license to use Irving Berlin`s composition. There have been literally hundreds of different sound recordings of White Christmas, but there is only one composer. The composer`s copyright, “publication” (which already existed in the 1800s, even before there was mass technology to record music), is therefore completely separate from the copyright of sound recording, even if the same person (unlike Irving Berlin) is both the composer and the recording artist. I have outlined the main clauses of the record-keeping agreements below, each with an explanation and guidance on what would be a reasonable agreement. These results are based on our experience in negotiating contracts for our labels and artists, as well as extensive research on the subject. Q: Is it possible to negotiate an agreement where I own the copyright (and masters) and license of my work at the label for a while? A: Possible, but unlikely to the point that it`s not worth worrying about, except for the composer`s copyright.
Maybe if you`ve already sold ten million records and played stadium dates with 100,000 fans at an average price of $100 each. Otherwise, trying to negotiate about it will mark you (and your lawyer) as naïve. 4) Merchandising/Co-publishing: The ERA should also include a merchandising clause that gives your record company the exclusive right to use Suzy`s name and likeness in the manufacture and sale of products such as posters, t-shirts, baseball caps, etc. The net profit from merchandising sales is usually split 50/50 between the record company and the artist. The ERA will also include a co-publishing provision that would allow the record company to be the exclusive administrator and co-owner of the artist`s songs. This is an important provision because if Suzy writes or produces her own songs, the release revenue from the commercial exploitation of the songs could be substantial. The artist should aim to achieve positive release commitment from the label (at least in the UK), coupled with minimal marketing spend to support the release. If the label does not release your record, you should be able to cancel the contract and/or buy back your recordings so that they can be licensed to another label or perhaps released yourself. .