16. If you’re signing a recording deal with a record label then it’d be reasonable to expect some of the following. You get them in various versions and for various countries all for you to be able to take advantage and build your legal arsenal. The upshot of this is that something might be officially titled a ‘distribution deal’ with a major label (which would ‘officially’ classify an artist as independent, since they're only lightly involved with the label and seemingly don't receive notable services from them) yet the services involved might be much closer to a recording deal. e) Company shall maintain books of account concerning the sale of Records hereunder. Company's books relating to any particular royalty statement may be examined as aforesaid only within One (1) year after the date rendered and Company shall have no obligation to permit Artist to so examine our such books relating to any particular royalty statement more than once. In either case, the label may encourage sales at live performances or on the artist’s website. d) Artist shall be deemed to have consented to all royalty statements and all other accountings rendered by Company hereunder and each such royalty statement or other accounting shall be conclusive, final, and binding, shall constitute an account state, and shall not be subject to any objection for any reason whatsoever unless specific objection in writing, stating the basis thereof, is given by Artist to us within two (2) years after the date rendered. Company will reserve at least 25 additional copies of the recording for promotional purposes. This website is designed for general information only. Payment of a 15% royalty on a 99-cent download (i.e., 15 cents), plus statutory mechanicals (namely, 9.1 cents, at the rate in effect as of January 1, 2016), leaves a nice margin for the label, with the digital music service downloader paying the label 70 cents on the download. No waiver of any provision or any default under this Agreement shall constitute a waiver by Company of compliance thereafter with the same or any other provision or its right to enforce the same or any other provision thereafter. An alternative to seeking a major-label recording contract or raising funds to produce your own recording is to approach independent record companies. We're going deep into the world of record labels to look at the ways they're connected, what they do and whether it matters to young artists. recordings and compositions) in the form of synchronization licenses. Art and design—$4 thousand The promoter agrees to remunerate DJ for the satisfactory performance of the engagement and to meet certain requirements as requested by DJ (including a safe performance area, electrical outlets, and crowd control personnel). “I think music fans love to be on board with something if they feel like it's independent, and they're not being marketed to but they're one of the early adopters and they're helping this artist out. Absolutely not. Company will announce the release of the album on the Internet and to the press, make sound files available for computer users as streaming audio, and will offer the finished LP for sale at Company's online store. That my friend, is a map of the Australian record label landscape as of October 2020. No matter what type of deal you’re signing, even if it is with a digital label that is only distributing your music as a free download, the agreement should include language for both digital and physical royalties. Company will act as wholesaler to retail distributors as needed, and will maintain sufficient stock of Artist's finished LP to supply said retail distributors. This is an exclusive agreement whereby an Artist grants merchandising rights to a company which allows the latter to use the Artist’s name, logo, likeness, picture, artwork, trademarks etc., throughout a defined territory in connection with manufacture and sale of products of any kind. INVALIDITY OF TERMS: If any clause, sentence, paragraph or part of this agreement, or the application thereof to any person, shall for any reason be adjudged by a court of competent jurisdiction to be invalid, such judgment shall be limited and confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered and to the person involved. K and Gordi as well as a former music lawyer for both independent and major record labels, now works as an independent entertainment lawyer. In these agreements, the artist can be either a single person or a group and the company is usually an organized entity. We’re specifically focusing on labels and distributers that operate out of Australia and those that artists like YOU could possibly see themselves signing to and naturally we can't fit every single label in the one image. “They can control the narrative of their story. Some contracts provide “not-to-exceed” budgets for recording. d. No royalties shall be payable on Records i) Furnished as free or bonus Records to members, applicants, or other participants in any record club or other direct mail distribution method which shall be specifically limited to two [2] per ten [10] sold. And they will also, in many cases, not be considered independent because they're fully owned by the major label”. Ensure that payments are collected and negotiate third-party contracts. Whatever the collaboration is, the basic elements of a music agreement contract are the same with any artist collaboration that involves talent, its commercial benefits, and the percentage for everyone involved that need to cash in on the proceeds. After your purchase(s), you will receive your agreement(s) instantly. A production company could have a deal with a record company that pays 14% to 18% of retail on records sold, depending in part on whether the recording costs are paid by the production company or advanced by the record company. (c) Costs incurred and paid by Company to third parties from time to time for noncontrolled compositions (i.e., cover recordings of compositions written by others and for which the Company must pay a mechanical royalty to third-party publishers that own the publishing of the cover songs) A music agreement contract may either be between an artist and a recording company or a band and its management. A standard contractual agreement is that you receive money only on records actually sold and paid for, and even then reserves against returns will be held for up to two years and sometimes longer for physical product sold. The reason this contract is favorable to the artist is that all costs are recovered first, and then the balance, if any, is the net that is split. Some labels have taken the approach of distributing the product only digitally and leaving rights to sell the masters in physical media, such as CDs and vinyl (physical rights), at least to some extent, to the artist, and then reassume physical rights if the artist gets sufficiently established so that the costs of being in the physical market are more likely to be covered by receipts from that market.