Warning All Musicians

[FunkyMofoPsb]

I was just recently offered a contract for a record label. It is one of the worst contracts I have seen. I just want all musicians to be careful not to sign anything they are unsure about. The contract said:

1) Company here by engages Artists exclusive personal services as a recording Artist during the term hereinafter specified and Artist hereby accepts such agreements and agrees to exclusively render such services for Company during the term hereof and all extensions and renewels.

2) The term of this agreement shall be for an initial period commencing on the date hereof and continuing until the last day of the first month following the month during which Artists shall have delivered and Company shall have accepted the full masters required to be delivered.

3) Artist hereby grants Company ONE option to extend the term for One more Album with the same terms to apply.

4) During the term the Artists shall record and deliver to Company masters the equivalent in playing time of Two Albums.

5)The masters are to be recorded in a recording studio selected or approved by Company at such times as Company may designate or approve.

6) Artists warrants and agrees that during the term, Artist shall not perform for the purpose of making records for anyone other than Company and shall not authorize the use of Artists name, likeness, or other identification for the purpose of distributing, selling, advertising or exploiting records anywhere in the world for anyone other than Company.

7) All masters recorded by Artist during the term from the inception of the recording thereof and all reproductions derived there from together with the performances embodied thereon shall be the sole property of Company.

8) Company and Artist are to retain 50/50 split incopyrights in sound recordings recorded by Artist during the term.

9) Each master subject hereto shall be produced by a producer selected by Artist and approved by Company. Artist shall be soley responsible for and shall pay all monies becoming payable to such producer. In the event that the Company agrees to pay the producer all monies paid out shall be deducted from all monies payable to Artist.( Album produced by: [someone's name], percentage earned 3%.)

10) The Company and Artist agree to a 50/50 split in revenue in regards to all monies made from record sales and publishing, after all said monies are paid back to Company from the cost of recording.

11)Company has the right to license the masters to third parties for record use and/or all other types of use on a flat fee or royalty basis.

12)Artist agrees to give the Company an option to re-record any or all songs on the first album under same conditions as stated herein.

13)Artist shall appear on dates and at places requested by Company for the filming, taping, or other fixation of audio/video recordings after verbal confirmation with the Artists.

14) Artist shall have the rights to perform as a so-called non-featured back-up musician or side person with featured artists for the purpose of making a phonograph records for third parties only upon the following conditions:
A. Artists activities will in no way interfere with the prompt and timely performance of the recording and delivery obligations provided in this agreement.
B. Artist shall give Company written notice in advance of such happenings.
C. Artist shall give Company notice in advance as to a member leaving the band.
D. Company shall have the right to make leaving member in the band a solo Artist.
E. No leaving member shall use in any manner the likeness, name or logo of the band.

15) This agreement sets forth the enitire agreement between parties with respect to the subject matter hereof.


Stay away from any similar record deals! This could leave you with less money than what you started with. Show your contract to an experienced musician or even a lawer.
:eek::eek:

[EngineGuitarist]

get an entertainment lawyer. regular lawyers like freekin Jacoby&Meyers don't know shit about a record contract. They'll see it as the rec. co. sponsoring a high risk investment, and will think it is natural for them to get virtually all money made. (once the bills are paid that is). musicians can help, but you should still see a lawyer if you're going to sign a deal.

[BlueStrat]

This is a fairly standard record contract. Unfortunately, you don't get to negotiate terms until you've proven you have clout by demonstrating you can sell records. Frankly, I'm surprised they're giving up half the copyright on the actual recording and are not asking for at least 50 percent of publishing.

[Kingnome]

Originally posted by BlueStrat
Frankly, I'm surprised they're giving up half the copyright on the actual recording and are not asking for at least 50 percent of publishing.

Read no 10 again.

[jdechant]

kinda looks like a demo deal to me... very bad deals... rec company takes you in for an initial period and then drops you and uses it as a tax writeoff... wanna keep away from these... very bad deals cause the companies have no intentions of renewing your contract or even trying to help you... they just want it for a tax writeoff...

wanna keep away from record contracts period... or at least until you get yourself in a position to negotiate a good deal.

[filthykarma]

No offense, gents, but your posts are very telling. One of you says it's standard deal, one of you says it's a demo deal, and none of you really seem to agree.

I know little about music deals, so I say "Get an entertainment lawyer" . . . Costs a few bucks, but you can pay now or pay later, right?

Layyyter . . .

[FunkyMofoPsb]

Thanks for all your posts

There are still a few things I forgot to mention about this contract.

1) Sure we can select the studio and producer that we want, but they only have one studio and only one producer and they will only accept the ones that they have.

2) We are an underaged rock group. There are four members in the band. One is 18, two are 17, and the youngest just turned 16. We wouldn't be able to tour for awhile and there aren't many venues that we can play at. Most of the places in the area are over 21 bars.

3) I got kind of suspicious with number 14 C and D. The first thing the guy from the company said to our lead guitarist was, "Wow how'd you learn to play guitar like that. Your good enough to be a solo artist." I almost think the contract was written around the guitarist himself. They could even try to corrupt us.

[EngineGuitarist]

some friends of mine were signed to a indie label and after a couple years they borke up. they hated the people who ran the label for a number of reasons, but one was that they were gaga over the singer/guitarist. when the band broke up they were ready to give him a solo deal, but he declined. I'm not saying they intentionally split up the band, but they sure didn't try to save them. If the company didn't want all of you, you'd know it because only one or two would stay in the band. and the others would be replaced.

[6am eternal]

Most of it looks pretty standard to me but this is not a record deal. A lot of clauses are missing. What rec co is that? Probably an indie, right?

In any and all cases, get a lawyer.

1) If you don't sign this contract, will you have MORE choice of a studio and producer? Do other rec cos battle at your door to sign you?

By the way, get a lawyer.

2) Underage bands perform at 21 and over bars everyday. They are just not allowed in the room, but no problems on stage. Friends of mine have performed in some bars for years before being legally allowed in the room itself.

Make sure you get a lawyer.l

3) You're right, they will try to get the most out of you, and who could blame them? If your band is comprised of a genius guitarist and a lame drummer, lame bassist, they'll probably replace thoses and keep the genius. Wouldn't you? If you are insecure, get to work. You have to be needed if you want to stay in the game.

One last thing: GET A LAWYER!

[6am eternal]

Do yourself a favor and spend $16 on http://www.amazon.com/exec/obidos/ASIN/087930636X/qid=1024087792/sr=8-2/ref=sr_8_2/104-6292637-6302354

Did I mention you should get a lawyer?

[Kingnome]

David said to get a lawyer.

[BlueStrat]

Originally posted by Kingnome


Read no 10 again.

Oops, I missed it. Gotta clean my glasses!:)

The point is, it's a business, and the fact they're going to stack the deck in their favor ought not to be a shock to anyone. I have a friend who signed last year with Blind Pig ( a big blues label out of San Francisco) and he pretty much got the same deal. Your only hope is to make money on volume, and to own your own publishing company so you get at least half that. The main things to be concerned with regarding any record company that wants what these guys want is : What's their promo budget, and what's their distribution? I'd ask to see figures on that and also see what their sales volume is before signing a deal like that. Of course, I'm not interested in signing with anyone, since I can likely make as much or more money on my own while maintaining creative control and all rights, and I don't care if I ever become a household name. I did find a small company that is going to front the production on my next project, though, which is really all I'm after.

By the way, I think David says you should get an entertainment lawyer. I agree; never sign ANY legal contract you don't fully understand without legal representation.

[Snagglefinger]

Honestly, I think that the only reason that new artists should focus on making CD's is so that they can use it as a promotional tool. If you make money, that's great; and you should try to scoop up every cent you can get out of it. But most likely, even if you make a profit, it's going to be pretty damn modest, especially when split among several members of a band.

Until then, I'd consider it an overhead expense and use it to simply get people familiar with your music so that you can play 250 shows a year where you'll make most of your money doing that while selling the CD along with other merch. If you can't play that often at your ages, it might only be an expensive hobby. Or a liability.

Think about what you really expect to get out of a recording contract. If it's airplay, you'd better read this first:

http://www.salon.com/ent/clear_channel/

I'd guess that a 50/50 split is about as good as you're going to get. It could sure be worse. Obviously, you want your lawyer to strengthen your position as much as possible. Probably all you can really do is shorten the length of time that you are obligated to them. Let them prove that they can do something with the product before signing up again.

Lastly, do pick up the book recomended by 6am, or Donald Passman's "All You Need To Know About The Music Business" or some other similar book. Even at hard cover prices, they are a worthwhile investment. I'd go through the book even before talking to a lawyer!

[Scheming Demon]

The deal does look fairly standard for an initial offering. This is why lawyers get rich. Some points in a contract are negotiable and some are not. There are some key clauses which should be deleted, changed or added, which is where a good lawyer will come in. A contract may go back and forth a couple times before it is finalized.

GET A LAWYER - to at least review the contract, explain it to you and possibly advise you of your options.

Being a new band you have zero clout and the record company will make the lion share of the profits. This is the price for getting in the game in the first place.

Your ages are a concern. Because of your youth I would be very, very careful that someone is not trying to take advantage of you because of your "business" inexperience. As was often repeated get someone knowledgeable on your side to help you, do not go into this blindly.