Artist Recording Agreement Contract

3. BREAKAGE FEES “Breakage fees” are remnants of the vinyl era. When vinyl records were the primary recording format, some of them broke up during shipping, so record companies paid royalties for only 90% of the records sold. (e.46) Although this deduction is increasingly rare, it is still used in some contracts and you should try to negotiate it. Strong polycarbonate CDs are not as vulnerable as vinyl. (e.47) As with most contracts, a record contract may be terminated if one of the parties fails to meet contractual obligations and responsibilities. For example, the artist or group cannot complete the recordings within the agreed time frame or the company cannot publish the album within the agreed time frame. In such scenarios, termination may be served by the party concerned. If the artist is also a songwriter and the label publishes your music in the United States, you have to face the tricky question of how your mechanical royalties are paid. Essentially, mechanics are royalties paid to songwriters when their compositions are reproduced on discs for sale: CDs, vinyl, DVDs, and so on. They are completely independent of the public performance fees to which performers and composers are entitled when their works are broadcast on radio or television. The definition section often arrives at the end of the contract. However, it is one of the most important sections of the treaty, and it would be in your best interest to jump at least before reading anything else.

Throughout the contract, there will be many everyday words like “delivery” and “sale” that will be defined differently than you might expect. In addition, there are words and phrases that may be new to you, such as “container loading” and “controlled composition,” and you`ll want to familiarize yourself with them before you meet them in the contract. While first-admission transactions generally generate a smaller percentage of royalties for artists, subsequent (or renegotiated) agreements can generate much more potential profits or benefits. Acts such as Madonna, Michael Jackson, R.E.M., U2 and Janet Jackson have signed multi-million dollar agreements. Whitney Houston signed a $100 million contract with BMG to deliver only six albums, the biggest record deal at the time. Robbie Williams has signed an $80 million ($125 million) contract with EMI. [1] However, for many other artists, millions must follow for millions to become tangible, meet successful albums or surpass their previous sales.