NEGOTIATING YOUR RECORD CONTRACT

Negotiating is a vital element in achieving the best terms in a recording agreement. In the week, the writer has been tasked with re-drafting an already signed record agreement that did not go well and negotiating an exit strategy for an artist who did not negotiate properly before signing their record agreement and are now left with the option of terminating the said record agreement so they can move forward in their career.

To however negotiate your contract, you do not need to this alone, well except you are an expert in that field. As an artist, you can either do it alone if you fall into the category of person aforementioned or you can employ the service of an entertainment lawyer who also had a track record of negotiating record deals. This is important because being an entertainment lawyer is not the final bridge to cross to negotiating a great deal. It is engaging a lawyer who has a track record of doing the same.

Knowing the key areas to negotiate can continue to protect your interests throughout your music career.

TERM OF THE CONTRACT

One of the crucial points to negotiate upon is the time or duration the contract will subsist for. This is the period for which the artist will perform his obligations in the agreement and how long the life of the contract will be.

Music contracts are between 1-5 years. If possible, limit the term of your contract to a year (although in the world we have today to make a solid impact a minimum of 2-3year's agreement should be signed) and also negotiate that renewal upon termination will be mutually agreed on between parties. Signing a long contract might mean the record label having long-term control of your personal life and creative life.

The contract almost always contains a minimum commitment for that period, this requires you to provide a certain number of singles, EP, or LP for release. The record label may hold on to the contract beyond the stipulated term if you did not meet your obligations on the song releases.

At the submission of the commitment beware of the word commercially acceptable and endeavour to add that once the record label has acknowledged and received the songs as satisfactory, they can no longer ask of you to re-record the same and that counts as you performing your obligations.

OBLIGATIONS OF PARTIES

Each party's obligations should be specified and stated clearly. The artist’s obligations of recording, putting in her/his talents. Image, attitude, etc. should be stated whereas the record label contributes investment, network, talent growth, career guidance, and commercial criteria

 The important factors to consider before signing a deal with a record label are solvency, if both parties have the same values and commitment to promoting the artiste’s career.

All of these obligations of either party should be in writing and not be left to time or figuring how to cross the bridge when parties get there.

ROYALTIES

These are amounts you will be paid in terms of the percentage of each sale of an album. The rate you earn is usually set out by the record label and included in the agreement you will be signing. This might be your first album ever with the company or even as a recording artist. This however should not stop you from negotiating an increase (if any) of your rate.

EXCLUSIVITY

This is a clause in the recording contract that states that you will be providing recording services for that company alone and you may not engage or negotiate in providing services to any other company for the period you are signed in that contract. This means you must be convinced beyond all reasonable doubt that you are about to execute this and knowing that as soon as you breach this obligation even for a second you become liable.

EXPRESS AUTHORIZATION FOR COSTS

The record label is saddled with the obligations of paying for the artistes recording costs and some other expenses that are necessary to the furtherance of the artiste’s career and this will be charged to future royalties, the artist should try to negotiate the label’s ability to step up and pay for various costs without her/his express approval (written approval).

Do not let the label create an open check where they hold sole discretion as to determine what they can and cannot charge for things the artiste “needs” unless they get written approval from the artiste first.

MECHANICAL ROYALTIES

An artiste may try negotiating this out from the cost column of Recording costs. This is so the label does not deduct this as a cost in determining the ultimate value of royalty the artiste gets paid.

TERMINATION CLAUSE

Having seen a lot of music contracts without termination clauses thereby leaving the parties to the wind or court in cases of a conflict to determine how they get out of the contract.

Ensure that the termination clause states that the party that wants to terminate first puts the other party on notice.

At the end of the day make sure that the agreement is in writing and in a language that you understand. The writer often says that contracts should be in simple language a reasonable man can at least understand at first glance, even if they do not understand all of the legalese as contained.

The agreement should also include calendars, marketing drafts, production details, etc. if any at negotiating your contract.

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