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:: RECORDING CONTRACTS ::
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If you are a Band
trying to make it ... we are the company that can help you. We
have a very different mind set, we do not follow the traditional avenues
to be successful. We have sold thousands of CD's the
unconventional way. Call us, we will tell you what we can do for
you.
(252) 449-8830
e-mail
I'd like to get some good simple 'generic'
contracts for when you have a good simple 'generic' situation and
don't need to call in the lawyers.
- COSTS PAID
OUT BY LABEL -
Note that there are recoupable costs and
non-recoupable costs. Recoupable costs are expenditures
like advances, tour support, etc. These are things that
are paid for by the artist from their royalties earned on
records sold. Non-recoupable costs are expenditures like
advertising and promotion. These are things that are paid
for by the label; none of these costs are passed on to the
artist. Because these are usually small in a basic
12" dj vinyl situation, the royalties paid to the
artist should (and usually are) higher.
Taking a new step, uttering a new word, is what people fear most! Dostoyevsky
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 R E C O R D I N
G C O N T R A C T S E R V I
C E S
- Recording Contracts -
In dance music, contracts can vary from
a simple one sheet that just states what share of the
income from the record will go to artist and label, to a
full blown massive contract handling every aspect of
expenditure and earning.
There isn't really such a thing as a
"standard contract." There are many conventions
that appear on most contracts, and there are several
spots on your normal contract where the Shadiness usually
occurs. When someone cheerfully states that its a
"standard contract" and that there is nothing to
worry about, you should cheerfully remark that "yeah
its all good you know, let me just take it home, look over
it and make sure I understand everything." Just
because you want to go through the whole thing and try and
understand it all (good luck) does not mean that you are
accusing the person of some kind of trickery, and it does
not mean that you aren't smart enough. If you have never
had a chance to really learn contracts, you need to take
your time and read it. If you are looking at any fairly
large deal, it is a necessity to have it examined by a
professional. In some cases it is necessary to have the
entire negotiation handled professionally. That costs
200-500$ an hour, but might easily pay for itself in extra
earnings if even a percentage point is changed or a
standard deduction altered. It all depends how serious the
relationship with the label is and how much money is
really involved. It might well be possible to get
professional advice without paying out that much.
It should also be said that if someone
is going to rip you off, doing it through a legally
binding contract is fairly tricky. Its much better just
not to pay you and not return your phone calls. The
RELATIONSHIP with the label is your primary protection.
CONTRACTS MUST ADDRESS
THE FOLLOWING:
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1) what percentage
of the sale of each record goes to the artist |
In underground situations where
the label has virtually no expenditures besides
manufacturing costs, 50/50 splits of the profit
(total income - total expenditure) sometimes
happen. With more developed "normal"
labels, percentages of the retail or wholesale
price are specified (12%-25%), minus
"standard packaging deductions", minus
expenditures. also specified is a rate at which
the
Mechanical Royalties will be paid by the label to the
artist. |
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2)
how much of an advance on those earnings to give |
If the advance exceeds the
eventual income of the record, the artist is not
required to pay any money back. However, any
further records done for the label will have to
pay back that amount before paying the artist
further money (though they many receive another
advance). Many labels are capable of precisely
guessing how much money will be earned.
The advance is also the method used by big labels
to convince naive artists that they've hit the big
time, and then give them a poor deal elsewhere, or
keep them in debt to the label. They never see
money after that. Note that the advance is usually
the figure that hits the magazines. |
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3)
when payments and accounting will happen |
You should get regular reports
with exact figures, anything else is shady. |
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4)
if the artist is retained exclusively by the label |
In most music situations,
exclusivity is desired by the label. These days it
is usually seen as a good thing to allow the
artist to work elsewhere, as that further
publicizes their career, which can only be good
for any sales by that artist. Sometimes a project
name is chosen that exclusively records for that
label. If you sign a contract with a label in the
state of California and its for 3 years or 2
records or more the label by law is obligated to
pay each band member a minimum of $9000 per year
if they want to keep you around, or its not
exclusive. This is not an advance, it is money
that they straight out pay you ! Apparently it
favors major labels who can afford to hold an
artist like that. Any indie label can't come up
with the money, and the Major if interested can
usually get the artist in question without further
wrestling. It is very common in indie rock (RIP)
to have a buyout clause stating the exact amount
of money (usually well over 10,000$) that is
needed to pay the small label off to relinquish
their artist. Coming soon to a techno contract
near you ! I know several labels who benefited
nicely by Sony buyouts. |
| 5)
if the tracks
in question are granted exclusively to the label |
Usually the tracks are exclusive
to that release. any future releases of the tracks
are licensed by the label to whatever other label
is going to use them (e.g.. CD compilations). |
| 6)
how many
releases the artist is bound to |
In some cases just that release.
"options" mean that it is the label's
option to do further releases with the artist, but
if they wish to then they can drop the artist.
This can be a problem if the artist is unknown,
signs a deal for several albums, and then does
really well on the first or second. There is no
chance then to renegotiate the terms of the
contract, they are fixed. So you would actually
wish to get less albums or just a single release
deal. |
| 7)
In the event
any of the tracks are licensed to another party,
the share of profits from that are specified |
Usually 50/50% minus any
expenditures |
| 8)
It is also
usual to state that clearing any samples is the
responsibility of the recording artist |
I'm still waiting for the
Winstons Vs. Jungle court case. |
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