 | UNRAVELING THE RED TAPE |  |
by: Shelly Harris / Entertainment Attorney
QUESTION:
My band recently shopped a demo CD to various record labels, including some small independent ones. So far we have gotten back one “offer” from a new label located in another part of the country. They sent us a four page contract that basically offers to pay us 50 percent of any net income they receive from sales of our recordings. (I think that means we will get half of any actual profits.) They will get to choose which songs to record, etc., but the contract doesn't state where a potential album might be recorded, who would produce it, how it would be distributed or promoted, or how much money the label is promising to invest in us, period. This makes me leery. Are these the usual terms for recording contracts?
ANSWER:
There are all kinds of recording contracts, including the “boiler plate” types that throw in everything but the kitchen sink. However, where such contracts are concerned, the more detailed they are concerning the exact details of what each party is promising to do, the better. Frankly, sight unseen, the recording contract you are referring to sounds shady. You would actually giving up a potential 50 percent interest in profits from your own recordings (which is a fairly standard percentage), but, in exchange for that, the label should be offering to do some specific things for you that you would not already be able to do for yourself. Specifically, the contract should state recording and production arrangements, roughly how much money will be invested in the project, who has artist control, how and where the recorded product will be distributed, and in what quantities. If there is no reference or promise of internet and other media distribution or promotion, and especially if the label does not have a major distributor to disseminate your records, then the contract will definitely not be to your benefit in any respect, especially if the label also wants a share of some of your other potential profits, like publishing royalties. In a nutshell, ask the label for a much more specific contract which explicitly states exactly what the label is promising to do for you, and not just what rights and interests you are giving up as an artists/musicians. (FYI, 20 -40 page recording contracts are the norm, and for good reason.) Finally, as a rule of thumb, check out all labels online to see if they have the earmarks of a legitimate business, and to see what other artists they have signed and what they have done for them. If they do have other signed artists, it would be a good idea to contact them to find out how they feel about the label before signing any contract with that label yourself. Shelly at: shellyharrislaw@aol.com [Note: Names are always changed in these Q & A’s; in addition, it is always in your best interest to consult an attorney of your choice directly regarding any particular legal issue or problem you might have.] | ||
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