Advances:
An advance is a type of loan that serves as income for the artist or songwriter as they record or write songs and wait for royalties to generate revenue. They're paid when the artist signs to the label, and again as and when further options are exercised. These advances must be paid back to the label.
Accounting:
The artist only receives a royalty cheque once they've recouped. However, the label should still be sending royalty statements to the artist at least twice a year. You should make sure your accountant has the right to inspect and audit the record labels' books any time upon request
Term:
This relates to the duration of the contract. It is calculated by reference to an initial fixed period. In this period you are expected to make your first album. After you complete the album you will receive further option periods, also usually of 12 months, allowing the record company to extend the contract if they wish. There may be a minimum commitment within each period, requiring you to deliver a certain number of tracks.
Territory:
"Territory" in a contract refers to where the label plans to exploit your music. Major labels will normally sign the artist to a worldwide deal, however, it isn't uncommon for labels to sign territory-specific deals too.
Key-Man Provision:
What if the A&R guy who signs you leaves the label or the music director whos a big fan of your music is suddenly fired? In this situation, you might be glad you'd negotiated a key-man clause in your contract, allowing you to leave the label as well
Termination:
Refers to how/why/when an agreement is terminated. The contract should anticipate scenarios that could give the parties the right to terminate the agreement. There should be safeguards where the label goes into liquidation or fails to release the record, or where either side is in breach of contract.
Grant of Rights:
The contract will usually require the artist to transfer and assign ownership of current and future sound recording copyrights to the label. They will then be the owner. Some contracts may go as far as requiring the artist to transfer ownership of their name (or trademark, image rights, any copyrights in artwork or a logo and website name to the record label
Power of Attorney:
Power of Attorney gives a party the right to sign documents in place of another party.
Jurisdiction:
This one is key. "Jurisdiction" in an agreement refers to the laws in which the contract shall abide by. Each U.S. State has specific laws, as well as every country around the world
Share this article if you enjoyed the content and we will make more posts that are similar.
Follow our Instagram @ArtistLinkApp and @ArtistLinkSpotlight
DM me if you have any questions!
Remember to stay consistent!
Comments