What is the name of your state (only U.S. law)? Michigan
Received a recording contract. They want to record 4 albums but didn't provide a year term. Is that normal? Also, is there any loopholes as an artist to get out of this contract incase things don't work out with the label? Should there be a payment schedule? so were not stuck in a contract and not making that much money if we become "big". Any other things I should look out for?
I have provided the contract offer below. I appreciate if you could help me out.
Thank you.
Received a recording contract. They want to record 4 albums but didn't provide a year term. Is that normal? Also, is there any loopholes as an artist to get out of this contract incase things don't work out with the label? Should there be a payment schedule? so were not stuck in a contract and not making that much money if we become "big". Any other things I should look out for?
I have provided the contract offer below. I appreciate if you could help me out.
Thank you.
Recording Contract
The parties agree as follows:
1. Exclusive Recording Services (Label) , agrees to employ (ARTIST) to make recordings, and (ARTIST) agrees to record exclusively on (LABEL) for a period of 4, from the date of execution of this Agreement. During the term of this Agreement, (ARTIST) will not make, or participate in the making of any recordings, other than on the (Label)s, unless (Label), expressly approves of that participation.
2. Master Recordings
During the period in which this Agreement remains in effect, (ARTIST) will make a minimum of 4 master recordings of previously unrecorded,or record material which (ARTIST) will select with (Label) and/or compose. (Label) will complete one master recording of at least 60 minutes duration every two years during the term of this Agreement. (Label) will have final rights of approval on all material to be recorded by (ARTIST) under this Agreement,(ARTIST) will receive 15% of sells of album sells.
3. Professional Name
(ARTIST) will perform and record under the professional name (ARTIST) will not use different name in connection with Mater recording unless(ARTIST) and the (Label) mutually agree in writing.
4. Term
(ARTIST) obligation to perform exclusive recording services shall begin upon the latest signature date of this Agreement and shall continue for (ARTIST) years after delivery of the first master Recording. If (Label) grants one or more options to (Label) as part of this Agreement, anytime prior to the end of the term, the negating may extend the term by exercising its option.
5. Compensation
(Label) will pay to (ARTIST) , $5000.00 for each master recorded on(Label) label under the terms of this Agreement, plus any royalty to which (ARTIST) may be entitled under this Agreement.
6. Royalty Terms
(Label) agrees to pay royalties to (ARTIST) for each unit sold, according to the following schedule:
a. (Label) shall pay to (ARTIST) as a royalty, 15% of the Net Receipts received by (Label), from exploitation of the Masters and 15%of any flat fee received by (Label) for licensing or sublicensing the Masters less all Expenses agreed to herein, not to exceed 12 of the total Net Receipts received by (Label) (hereinafter called as (ARTIST) Royalty). In the event (Label) third party distributor withholds a commission and remits the margin to (Label), this margin will be reduced by the agreed expenses and commissions and the balance divided equally between (Label) and (ARTIST) less the expenses set forth in this Agreement.
b. The royalties shall be computed in the national currency of the U.S. and shall be paid to (ARTIST) in U.S. currency at the rate of exchange prevailing on the date payment is made or, if higher, at the rate of exchange at the business day that payment should have been in accordance with this Agreement. Any bona fide reasonable and or agreed fees paid to third party distributors by (Label) or deducted from (Label) gross Receipts will be included as deductible expenses for purposes of calculating Net Receipts.
c. Net Receipts shall mean Gross Receipts received by (Label) less Expenses.
7. Rights to Name and Likeness of (ARTIST)
(ARTIST) will permit the use of (ARTIST) likeness or other identifying characteristics by (Label) for the promotion of sales of records produced under this Agreement. During the term of this Agreement, (Label) will have the sole right to the use of (ARTIST) name, voice, likeness, sound, and similar characteristics for the purpose of advertising, promoting, selling, and otherwise merchandising CDs, tapes, and other audio recordings produced from the masters produced by (ARTIST) under the terms of this Agreement.
8. Ownership of Masters
(Label) will be the sole owner and will have perpetual use and control of all masters and CDs, tapes, and other audio recordings produced under this Agreement. (Label) will be free to dispose of and treat in any way all masters and CDs, tapes, and other audio recordings produced under this Agreement, including but not limited to selling, advertising, distributing, permitting their use in other mediums, and including them in masters containing the work of other Artists.
9. Merchandising
If (Label), realizes any net profits directly attributable to the merchandising of (ARTIST) name and/or likeness, (Label), will pay to (ARTIST) 25 % percent of those net profits derived from sales in the U.S. and 25% of those net profits derived from foreign sales.
10. Suspension
(Label) will have the right to suspend this Agreement, if (ARTIST) suffers any physical, mental, or other disability, including but not limited to changes in (ARTIST) voice, that will, in the judgment of (ARTIST) , interfere with (ARTIST) performance; or fails, refuses, or neglects to perform any duties set forth in this Agreement, or declares either personally or through a representative that (ARTIST) does not intend to perform those duties.
(b) (Label) right to suspend this Agreement will be contingent on the delivery to (ARTIST) of a written notice of suspension at least 90 before the date that suspension will take place. Disability or breach will be deemed ended when the (ARTIST) notifies (Label)that s/he is, without reservation or condition, willing and able to perform all duties under this Agreement and, in fact, is willing and able.
(c) If (Label) suspends the operation of this Agreement as provided (a) and (b) of this Paragraph, (ARTIST) , right to be compensated will be suspended accordingly; however, (ARTIST) will be entitled to continue to receive all royalties on work already produced under this Agreement.
11. Termination
(Label), will have the right to terminate this Agreement if any of the following events occur: the material and permanent change in (ARTIST) ability to perform; (ARTIST) election to cease all activities in the music industry; or conduct of the (ARTIST) which results in a violation of the law or adverse publicity which the (Label)believes may reflect badly on the (ARTIST) and/or the (Label).
12.Live Performance income: Company agrees to pay (ARTIST) 30% of gross income off of shows,during the term of this agreement company shall provide tour deficit support(Tour Deficit Support�) to Artist for all live performances,including a tour.Company shall have the right to collect Gross Receipts paid to Artist for those live performances or appearances that company provided such Tour Deficit Support.For purposes of this Agreement,Tour Deficit Support shall mean the payment of all company approved travel.
13. Representations
Both(ARTIST) and (Label) represent that they have full capacity and authority to grant all rights and assume all obligations which they have granted and assumed by virtue of executing this Agreement.
14. Notice of Breach
Neither party will be deemed to be in breach of this Agreement until it has received notice of the supposed breach from the other party. The party charged with breach of the Agreement will have 14 from the date of receiving notice in which to either cure the claimed breach or otherwise respond. If the circumstances leading to the charge that the Agreement was breached have not been explained or cured within 14 from the date on which the party received notice of breach, the non breaching party may terminate this Agreement. If (ARTIST) is a group, the breach of this Agreement by any member of that group may be deemed a breach by the entire group.
15. Notices
All notices to the parties will be in writing and will be sent to the address of the party stated at the beginning of this Agreement.
16. Governing Law
This Agreement will be governed in all respects by the law of the State of Michigan.
17. Legal Construction
In the event any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability shall not affect any other provision. This Agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in it.
18. Amendments
This Agreement may be amended by the parties only by a written Agreement.
19. Attorneys' Fees
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled.
