 A hallmark of most, if not all, music recording contracts is the expectation that the musician will record multiple albums for a record company. Recording contracts stipulate that the musician must submit to the record company a minimum number of albums or the record company will refuse to release the musician from its contract. Many such disagreements proceed to costly litigation in which the musician attempts to be released from the contract.
Musicians, as artists, often experience apprehension at the notion that they must create music according to a predetermined timetable or in certain quantities. One strategy for reducing the potential for a musician or record company to become dissatisfied with the arrangement is to draft the recording contract so that it requires the musician to produce one album. Such an agreement allows the record company and musician to freely negotiate subsequent agreements for albums as the music is created or as the parties deem appropriate. If an initial record does better or worse than expected, the parties can modify the terms of subsequent agreements to suit their objectives. This ensures the parties manage their expectations appropriately.
Record companies often require multiple albums from their musicians to guarantee the record company is able to recover its costs from prior records that may have not done as well as projected. For example, if a musician releases three records that lose money for the record company and produces a fourth album that sells well, the record company will use profits from the fourth successful album to recoup its costs from the initial three albums. Such an arrangement, however, promotes an unproductive relationship in which the musician is contractually obligated to create music it may not want to create or may not be able to create for a record company that will not release the musician from its contract. Musicians are often unable to produce marketable music the record company needs when placed under such contractual pressure to create music. Additionally, multiple-record contracts encourage the record company to continue investing in a musician that may not be a good fit for that record company.
Some smaller record companies have successfully utilized the single-record contract to encourage musicians to create music at their own pace, which often results in higher quality work that is more commercially successful. The transitory and mobile characteristics of many musicians makes the single-record contract an attractive alternative to multiple-record contracts that may result in unfulfilled obligations and unsatisfied parties. |
The music business offers seemingly limitless opportunities for hard-working musicians. However, the business side of a music career presents musicians with many opportunities to damage their career before it gains momentum. Musicians are confronted with myriad contracts controlling every relationship involving the movement of funds or control of copyrights, trademarks, master tapes, and other valuable assets. Understanding contracts and the terms in the contracts is critical to advancing and protecting a career in music.
A musician promoting him- or herself, securing shows at clubs and venues, and attracting consistent audiences may be urged to obtain a manager, business manager, or public relations (“PR”) representative. The musician must carefully select which, if any, of these assistants and representatives to hire. A manager, business manager, and PR representative are each important elements of a successful music career, but each may only be appropriate at a certain stage in the musician’s career. Additionally, the musician should carefully evaluate which representatives to hire and should avoid hiring representatives based only on that representative’s current client base.
Securing legal counsel to review and revise contracts with managers and representatives will help protect the musician from agreeing to contracts that are unfavorable to the musician. Musicians presented with contracts often feel pressured to sign the contract immediately without consulting an attorney. Signing a contract that was not reviewed by an attorney working in the musician’s best interest could result in significant impairment to the musician’s rights.
Musicians also should avoid relying solely on non-attorneys such as managers and business managers to evaluate contracts with record labels, music publishers, and other entities seeking an agreement with the musician. Managers, business managers, and PR representatives possess unique and helpful skills in the music industry but may not have the proper training to give legal advice about contracts. Reviewing manager and record label contracts with an attorney will help to ensure the musician retains the rights most valuable to the musician. |