You’re an artist who is about to sign a contract. It’s thrilling, and it is clear that the manager, producer, or label on the other end is eager to sign the deal. It’s easy to feel pressured into signing without checking the details. They seem trustworthy, and it’s easier for you to believe that everything will go well.
It is not uncommon for musicians to seriously harm their careers by signing blindly into agreements. Here are four legal tips that will help you protect your creative capital and your future earnings if you care about your music.
1. Write it down
The truth is that contracts do not have to be written down to be legally binding. However, there are good reasons why they often are. It’s tempting for one party to sign a deal and assume that the other has your back. However, each side must know their position to avoid any disputes later. It’s amazing how many musicians and music companies fail to do this. This can lead to costly and disastrous consequences for artists. These include comments like “don’t worry, this clause won’t be implemented” or “just ignore that section.” Alarm bells should sound if you hear these.
Legally, any agreement you sign overrides all others. Don’t be afraid of standing your ground, and get it written. Any verbal or informal discussions to modify or add terms must be included in the final contract. It also means that clauses that do not apply to the contract must be deleted.
2. Do not ask for ‘legal advice from anyone you sign with
It can be not easy to work as a muso. A more secure career can lead to a more comfortable lifestyle. Your decision to follow a creative career path will often mean sacrifice, setbacks, and uncertainty. However, there are huge creative rewards and freedom and great passion and joy for what you do.
After the hard work and low pay of the beginning, commercial contracts can offer some relief. This is likely to be an ongoing relationship, so don’t rush. Be patient and take your time to understand the terms fully.
Although it may seem obvious, artists may choose to sign a contract simply because another party assures them that it is “standard” or “very fair”. In many cases, terms are less favourable to one party than the artist and may not protect him adequately. To make informed decisions, you have the right to understand what terms you agree to fully.
When seeking expert advice, ensure you only use a qualified source. You should not seek legal advice from your neighbour, accountant or lawyer who doesn’t specialize in entertainment law. Music law is a highly specialized field. It’s best to ensure that your advisor understands the area thoroughly and can identify the important fishhooks to watch out for.
3. Contract 101: Get started with the basics
Contracts can be complicated and long. It is important to start with the basics when trying to understand a contract. While you’ll need to get into the details, it can be helpful to start discussions by focusing on the core questions.
The questions below are a good place for you to start:
– What is its term? (i.e. How long do you have to keep it locked down?
Is there a way to extend the contract? Who can do this?
– Which territory is the contract valid for? Only New Zealand and Australia? Europe? Worldwide?
Is there any warranty (i.e. promises to do certain tasks)? What are they? Are they realistic? Is the contract realistic?
– Who is allowed to terminate the contract? What reasons are there to terminate a contract?
– How are each party compensated?
4. You get something back
A fair exchange of obligations should be the key to a good agreement. You need to ensure that the other party clearly outlines what they will deliver before signing. The agreement should allow artists to cancel the agreement if the other party fails to meet their obligations.
This is an example of a bad deal: A record deal in which the artist gives the copyright to their masters as payment for financing an EP, single or album.
The music is then no longer owned by the muso. The record company may decide not to release the album. It may be kept in the vault and not released to its intended audience.
It’s devastating for the artist. It’s obvious. Before signing a contract, you must include a release agreement to cover all bases.
In summary
It is rare to be able to write and play music. This is your talent. Be smart and hardworking!