The relationship between artists and record labels is not new in our local industry having vibrant labels like Swangz Avenue, black market Records among others. This interaction is mostly bitter sweet, while others may gain some end in tears. A few months ago Bruno k threatened to drag Black Market records to court accusing them of removing his song “Nipe love” off his YouTube channel. The latest is The feud between newly born again Nina roz and the under fire Black Market Records(BMR). This questions of artists are aware of the paper work they involve themselves in. First things first one should understand what a recording contract is. Recording contracts are legally binding agreements, enabling record companies to exploit an artist's performance in a sound recording, in return for royalty payments. A recording contract might seem like the Holy Grail, but record labels are not charity concerns and their contracts are not set up with your interests in mind.
Our case study are artists under BMR, sources say that some artists signed under this label signed a deal that they had to record 50 songs that meet the labels interests.
Role of BMR
Role of the artist
Above are some of the terms we managed to collect.
Daniel Olio a lawyer says,”Because of the legal complexity, recording contracts can be quite hard to decipher. They come in different shapes and sizes, and will often vary depending on the label, and the status of the artist involved. Even so, many of their commercial terms are similar. They certainly require closer inspection in an article of this scope.”
Exploitation of the contract by the label is achieved through physical sales, such as CD, vinyl and sometimes the public performance and broadcasting of works; and the sale of digital products such as downloads and mobile ringtones. The contract will define a record to include audio-visual devices as well.
There is nothing like a standard to recording contracts, each contract should be tailor fitted for the artist however some will usually require the artist to sign to the label exclusively. This means that they can't record for another label without permission, nor can they leave the contract if they're unhappy.
On a local station show Navio a recording artist explained his contract with Sony A few years ago in which he parted ways. He said that within his terms of reference he would terminate the contract with a 3 months notice hence not affecting his and and Sony’s relationship. The label, however, remains free to sign and promote as many artists as it wishes. Record labels invest huge sums of money in breaking an act and claim that they need this level of control in order to improve the chances of making a profit or, as is more often the case, to cut their losses. Occasionally the artist gets one over on the label.
Under most exclusive recording contracts, the artist will assign copyright in the sound recordings to the record company. An assignment is a transfer of ownership for the full life of copyright
Because our airwaves are mostly filled with failed stories of record labels and artists we giving tips on how an artist can interact.
When offered a recording contract with a label:
Royalties from sound recording
Availability of Advances
Advances are a financial sign of good faith from the record company. They should always be non-returnable.
When a long-term contract is offered, the advance should be large enough to provide the members of the band with a reasonable living wage until any initial costs have been met and royalties are being received.
When will One be paid?
Most companies will render a statement of account to their artists twice yearly, within 60 or 90 days of the end of June and December. If your royalty earnings are greater than the personal advances you have received and the recording costs you have incurred then the statement should be accompanied by a payment.
What should be deducted?
Ideally one feels that only the cost of recording and personal advances should be offset against royalty income. The artist should try to get references to ‘other costs’ deleted from an agreement, or at least make them subject to joint agreement.
Try to limit the number of remixes the company can commission without your approval or it’s possible that recording costs will spiral. Also, never agree to cross-collateralisation of advances against non-royalty income, such as PPL, or income from other contracts.
How long will the agreement be for?
A typical record deal with a major record company might be for one year plus four options, calling for five albums.
Tips for record agreement length
Who owns the recordings?
It is important to remember that because the record company has initially commissioned and paid for the recordings, in the eyes of the law they are the owners and not you. The agreement will make this clear and assign all copyrights in the recording to them.
However, if you have made and paid for recordings yourself then you probably own copyright in them. So if a label expresses interest in releasing them the artist should think seriously about whether to assign their copyright to the label or simply grant them a licence to exploit the recordings.
Release commitment
Although it is often not the intention that the record label should release masters themselves, it is important to have a clause ensuring that somebody does, otherwise the artist’s work might never see the light of day.
