4 things artists should look out for in a recording contract

However, one of the major concerns surrounding the artist-record label relationship is usually found in the recording contract; either the contract was too bulky and complicated for the artist to understand, or he or she was simply not too eager to thoroughly go through it. This can lead to devastating consequences for the artist.

Most musicians who have been signed under record labels often have regrets for having signed. As mentioned earlier, these regrets are usually a result of either ignorance to the terms of the agreement, or simply just a lack of understanding of the legal and music jargon contained in the contract.

Below are four summarised elements that appear in the recording contract, which an artist should pay close attention to before signing.

1. Ownership of copyright

The question of the ownership of music and all other related content to be produced during the term of the agreement is one of the fundamental elements in the management contract. It is highly critical for a signing artist to be fully aware of the extent that such ownership shall vest, either on his part or on the part of the record label. Generally, management contracts demand an artist to agree to assign the label all the rights related to the music and the relevant content produced for and by the artist during his or her time at the label, in return for a specific amount of royalties during the subsistence of the agreement.

Is the artist willing to sign off the masters to his or her music to the record label? At this point, the artist has the option to either agree to the terms, completely refrain from signing the agreement or negotiate suitable terms.

2. Duration of the contract

It is a requirement for any valid contract to indicate a timeline in which all the agreements made between the contracting parties will suffice. The management contract is no exception to this requirement and should indicate the period in which all the terms and condition agreed to will be in force, including how long the artist will be signed to the label. The duration may also include the period in which all music and related content will be owned by the label. Some management contracts, although this does not normally happen, may grant the artist the opportunity to buy back the rights to his or her masters after a certain period of time.

3. Termination

Termination means the point at which the contract will come to an end. Any contract, including the recording contract, may be ended due to several factors. Firstly, lapse of time is the most obvious. If the agreement was that a contract would be in force for five years, then at the beginning or end of the five years, depending on what the parties have agreed on, the contract will come to an end, naturally.

Secondly, a breach or violation of the terms of the agreement by either of the parties may lead to the termination of the contract. It is therefore the responsibility of the artist to be fully aware of which conduct may lead to the termination of the contract. Lastly, a contract may come to an end as a result of natural factors, such as the impossibility of either of the parties to perform as agreed. This may be due to the death of the artist, sickness, or the liquidation of the record label resulting in it shutting down. When an artist signs a management contract, he or she should be fully aware of these conditions, and be prepared to accept or negotiate them.

4. Rights and obligations

The purpose of a contract is not only to express binding terms and conditions between contracting parties but also to lay out their rights, obligations and duties towards each other. In other words, it is important for the signing artist to clearly understand not only the rights, duties and obligations he or she has under the recording contract but also the rights that the record label will enjoy. He or she ought to know what the record label can do or not do while managing the artist. What exclusive rights do the artist and label have? To what extent will they affect the artist’s career in the present or future?

These rights may include the royalty share the artist will be entitled to in terms of related content, including, but not limited to, music, videos and performances. This is where most recording deals go wrong; an artist's inability to read between the lines of the fine print can lead to unpleasant circumstances.

While the affordability of hiring a lawyer for most upcoming artists who seek to be signed under record labels may be an issue, the importance of having an independent lawyer review the recording contract before the artist can sign it is paramount.

Advocate Leisa Leisanyane is a commercial lawyer practicing in the areas of corporate law, intellectual property law, entertainment law, sports law, and digital and technology law.

Disclaimer: The opinions expressed in this article are those of the author’s and do not necessarily reflect the views of Music In Africa.