Music Industry Contracts under the Copyright Law
The contract map of the music industry in Georgia is drawn by four norms: the commissioning contract for the creation of a song (Article 43); the licence contract on manners of use and royalties (Article 40); the performer's contract — on stage and in the studio (Article 47); and the phonogram rights that vest in the producer (Article 48). This page explains all four together — from the perspective of the author, the performer and the label.
The Commission — Creating a Song, Article 43
Under a work-creation contract the author undertakes to create a work according to the terms and transfer it to the commissioning party, while the latter accepts the work and pays the author a royalty. The author creates personally, the involvement of another person is admissible only with the commissioning party's consent; the commissioning party must examine the work as soon as the term arrives and notify the author in writing of acceptance or rejection — absent a written notice, the work is deemed accepted. The procedure, term and amount of the advance are defined by the contract. Two barriers of author protection operate here as well: void is a clause restricting the author's right to create future works on a defined topic or in a defined field, and the subject of the contract cannot be the transfer of rights in a work to be created in the future. The economic rights in a commissioned work belong to the commissioning party unless the contract provides otherwise.
The Licence Terms — Article 40
A licence contract must provide a precise description of the work, the specific manner of use, the term and territory, the royalty or the method of its determination, with the procedure and deadline of payment. Whatever is not directly provided remains with the author — in music this means: every format not written into the contract (streaming, synchronization, remix) belongs to the right holder. A contract without a term may be terminated by the author after 3 years, with written notice to the licensee 6 months in advance; without a territory it operates only in Georgia; a sub-licence is possible only where directly provided; and with a fixed royalty for reproduction, a maximum print run is set.
The Performer's Contract — Article 47
A performer holds over his performance personal and economic rights: the right of name; the right of respect for reputation — protection of the performance from distortion damaging the performer's honour or dignity; and the right to use the performance in any form, including the receipt of a royalty for every form of use. The exclusive right means permission or prohibition over: the recording of a hitherto unrecorded performance; the reproduction of a performance fixed on a phonogram; broadcasting or cable transmission; the broadcasting of a recording; rental and distribution; and making available by wire or wireless means — to any person at a chosen time and place. Permission is granted by the performer, and for a collective performance by its leader, under a written contract; a contract with a broadcaster transfers the rights of recording and subsequent transmission only where this is directly provided.
The Phonogram Rights — Article 48
The producer of a phonogram — the natural or legal person taking upon itself the responsibility for the first fixation of a performance or other sound material — holds the exclusive right over the phonogram. This means that the label's investment is directly protected by law: the fate of the recording is determined from its position by the system of contracts — the performer's permission and the author's royalty build the legal foundation of a release in one chain.
Frequently Asked Questions
Below we answer the questions most frequently raised about music industry contracts.
Who keeps the economic rights in a commissioned song?
The commissioning party, unless the contract provides otherwise — this clause is therefore decisive for the author.
What always remains with the performer?
The right of name and the right of respect for reputation — protection from distortion; the right to a royalty for every use is also statutory.
Does the broadcaster get the recording rights?
Only where this is directly written into the contract — otherwise the broadcaster holds the right of transmission, not of recording and further use.
How does the law protect the label?
Through the producer's exclusive right over the phonogram — the investment in the first fixation is recognized as a proprietary position.
The law also guarantees the author’s protections: a contractual clause restricting the author’s right to create in the future works on a definite theme or in a definite field is void, and the subject of the contract cannot be the transfer of rights to a work that may be created in the future. The procedure, term and amount of an advance are determined by the contract — these are the points most often disputed in a music contract.
To whom do the property rights in a commissioned work belong?
To the customer, unless the contract provides otherwise; the author creates the work personally, the involvement of others requires the customer’s consent, and the result of the examination is communicated to the author in writing — absent written notice, the work is deemed approved.
How We Help on Legal.ge
The language of a music contract decides the fate of a release: who keeps the song, who receives the royalty and what happens to the recording. The specialists at Legal.ge will explain Articles 43, 40, 47 and 48, assess the draft contract, and help in negotiation or dispute. Contact us through the Legal.ge form.