By Chris Ogunbanjo/
It is unfortunate that musicians fall victim of unscrupulous contract terms. Here are six terms every musician must look out for:
Release Commitment
A release commitment binds the record label to get your album produced and distributed for sale. Without a release commitment, you cannot guarantee whether the record label will produce an album. With a release commitment, you may decide to walk away from the contract where the record label fails to produce your album.
Contract Term That Is Longer Than One Year
Usually, the duration of a recording contract is one year. There could be options where the record label may renew your contract. However, be cautious when you see a duration of more than a year.
Transfer of Copyright
Contracts that contain terms that imply that you are transferring copyright of your songs should be avoided. Agreeing to such terms will prevent you from claiming ownership of your songs in the future
However, nothing beats the importance of having a lawyer review your contracts before signing your first record deal.
Royalty Rate
Simply put, music #royalties is the payment that goes to recording artists for the right to use their intellectual property. #Royalty rates should be based on industry standards. It’s based on the success of the artist. For new artists, it’s 5-10%. So, avoid contracts with royalty rates of 1-2%.
Hidden Royalty Deductions
Record labels may make deductions from royalties for costs that go into the recording and production of the album. But, be on the lookout for deductions that fall under the category of general costs of doing business and terms that denote unlimited deductions.
Audit Provision
Through the use of an audit provision, an artist may hire a third-party expert to review all the books of the record label to ascertain whether the #RecordLabel is paying the artist what is due to the artist in terms of royalties.
However, it’s better to have a lawyer review your contracts before signing.
For more advice on contract terms in the #MusicIndustry, please contact info@chrisogunbanjo.com.
#music
Chief Chris Ogunbanjo is a highly-accomplished Nigerian Corporate Lawyer, leading Industrialist and preeminent Philanthropist.
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