Music Business · 05
Contracts 101 for Artists
What musicians should understand before signing an agreement.
You do not need to be a lawyer to read a contract carefully. You do need to know what the common agreements are called, what the recurring terms mean, and when to stop and get help.
Agreements you are likely to see
- Recording agreement — terms for making and releasing recordings
- Distribution agreement — how your music reaches stores and services
- Management agreement — who represents your career and on what terms
- Producer agreement — fees, points, credit and ownership of the track
- Featured artist agreement — terms for appearing on someone else's record
- Collaboration agreement — how co-created work is owned and exploited
- Work-for-hire agreement — work created for someone else who owns the result
- Licensing agreement — permission for a specific use, scope and period
- Publishing agreement — administration or ownership of compositions
- Performance and booking agreements — show terms, fees and obligations
“If you cannot explain a clause in your own words, you are not ready to sign it.”
Terms that decide the deal
- Parties — exactly who is bound, individuals or companies
- Term — how long the agreement lasts
- Territory — where it applies
- Exclusivity — what you may and may not do elsewhere during the term
- Ownership — who holds the masters and the publishing, and for how long
- Royalty percentage — the rate, and what it is calculated on
- Advances and recoupment — money paid up front that comes back out of your earnings first
- Expenses — what is charged against you, and whether there is a cap
- Options — the other party's right to extend or continue
- Deliverables — what you must produce, and by when
- Creative control — who approves music, artwork and marketing
- Accounting and audit rights — how often you are paid and whether you can inspect the books
- Termination — how either side exits, and what survives afterward
- Indemnification — who covers claims and costs if something goes wrong
- Name, image and likeness — how your identity may be used
How to read one
Read the whole document, including exhibits. Write your questions in the margin. Ask for a plain-language explanation of any clause you cannot restate in your own words — if nobody will explain it, that itself is information.
Red flags to slow down and review
- Blank spaces, unnamed parties or missing dates
- Undefined or uncapped expenses charged back to you
- Extremely broad ownership language covering future work
- Perpetual rights, or a term with no clear end
- Unclear payment terms, schedules or accounting
- Verbal promises that never appear in the written document
- Pressure to sign immediately or without review
- No termination path for you
- Rights to your name, image or likeness beyond the deal's purpose
Educational information only — This article is general educational information, not legal advice. Drake Magazine is not a law firm and does not represent artists. Every agreement is specific to its parties and jurisdiction — have a qualified entertainment attorney review your contract before you sign it.