When reviewing a record label agreement, artists should look out for the following key provisions:
- Royalties: The agreement should clearly define the artist’s royalty rate, including the percentage of income generated from album sales, streaming, and other sources.
- Ownership of master recordings: The agreement should specify the ownership rights of the master recordings and any limitations on the artist’s ability to use or exploit the recordings.
- Term of the agreement: The agreement should specify the length of time the artist is contracted with the record label and the conditions for renewing or terminating the contract.
- Advance payments: The agreement should specify the amount of any advance payments and the conditions for earning them, such as the release of a certain number of albums.
- Marketing and promotion: The agreement should outline the record label’s responsibilities for marketing and promoting the artist’s work, including budgets, timelines, and specific promotional activities.
- Creative control: The agreement should specify the artist’s rights and responsibilities in terms of creative control, such as approval over album art and music videos.
- Termination and breach of contract: The agreement should specify the conditions under which the contract can be terminated and the consequences of a breach of contract, including the return of any advance payments.
- Representation and management: The agreement should specify the responsibilities of the record label in terms of representing the artist and managing their career, including negotiating new deals and contracts.
Ensuring that these provisions are clearly defined and understood by both the artist and the record label can help to minimize the risk of disputes and ensure the success of the artist’s career. It is recommended to consult a legal professional to review and advise on the terms of a record label agreement.