Tips and Hints for Reviewing a Record Contract
As with any other deal in the music industry, there are many standards which can be assumed. The problem is that not everyone is honest. Because of this, it is always best to review each aspect of the contract to ensure your protection and the protection of your future money.
Duration: How long are you covered and do you retain the rights for that period of time?
Options: Are there any open ended options concerning licensing or rights to music?
Recordings: How many will be covered under contract and how will they be produced, distributed and sold?
Royalties: Review all rates to ensure they are statutory (look below for links to standard royalty rates)
Deductions: How many deductions are being held from the artist for various services and fees provided by the record company?
Escalation: Is there a threshold of popularity or sales at which point all percentages of profit will increase on behalf of the artist?
Promotions: Are their an adequate number of promotions built into the product or will the artist either be left with no marketing or forced to pedal their wares on the street?
Advances: How much, how often and under what terms will advances on royalties be paid to the artist?
Freebies: Is there artist entitle to a certain amount of free CD’s and swag for their own marketing purposes or is there a nominal charge built into the deductions?
Good luck and remember to consult an attorney before signing and contract. There are lots of slippery little buggers in the music industry.
Also see:
Hints about Music Publishers
Tips for a Development Deal
Rights Granted to a Music Publisher on Behalf of the Songwriter
Breakdown of Standard Royalties: Songwriter Compensation
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