Music contracts can make or break an artist's career. Understanding the key terms before signing is essential to protecting your creative work and financial future.
Types of Music Contracts
Recording Agreement
A contract with a record label granting them the right to record, manufacture, and distribute your music. Key terms include: number of albums owed, royalty rates, advance amounts, creative control, and ownership of master recordings.
Publishing Agreement
Grants a publisher rights to your compositions (songs). They collect royalties and seek sync placements in exchange for a share of income. Understand: copyright ownership, term length, reversion rights, and administration duties.
Management Agreement
Engages a manager to guide your career. Critical terms: commission percentage (typically 15-20%), sunset clauses, term length, and scope of services.
Producer Agreement
Defines producer compensation and credits. Address: producer royalty points, advance/fee structure, credit requirements, and sample clearance responsibilities.
Key Terms to Negotiate
- Term length: Shorter terms provide more flexibility
- Options: Who controls option periods and under what conditions
- Territory: Worldwide vs. limited geographic scope
- Advances: Amount and recoupment terms
- Royalty rates: Base rate and escalations
- Creative control: Approval rights over recordings, artwork, videos
- Accounting: Frequency of statements and audit rights
- Termination: Conditions under which either party can exit
Red Flags to Watch For
- Perpetual copyright transfers without reversion
- 360 deals with excessive commission rates
- Cross-collateralization across multiple albums
- Broad "leaving member" provisions in band agreements
- Excessive recoupable expenses
- No audit rights or limited audit periods
Before You Sign
Never sign a music contract without having an entertainment attorney review it. The investment in legal review is minimal compared to the long-term financial and creative implications of a bad deal.