Music Industry Contracts

What is recoupment in music contracts?

Recoupment is the process where a record label repays itself for expenses (recording, marketing) from the artist's royalties before paying the artist.

Do I own my music if I sign with a label?

Usually, no. Standard record deals transfer ownership of the master recordings to the label, often in perpetuity or for a long period.

What is a synchronization license?

It is a license that allows your music to be "synced" with visual media like movies, TV shows, or commercials, generating additional income.

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Music Industry Contracts are complex legal documents regulating relationships between musicians, composers, producers, and labels. The music business is built on intellectual property, and a poorly drafted contract can cause an artist to lose rights to their work or a significant portion of their income. In Georgia, where the music market is developing, more artists are signing contracts with local or foreign companies, requiring specialized legal knowledge.

Our service covers the drafting and auditing of all types of music industry contracts:

  • Recording Agreements: Regulating the relationship between the artist and the record label, recording financing, ownership of Master Rights, and royalty distribution.
  • Publishing Agreements: Contracts between the composer and the music publisher for the commercialization of the work (synchronization, sheet music sales).
  • Management Contracts: Defining duties and commissions between the artist and their manager.
  • Producer Agreements: Remuneration for the music producer (flat fee + Points/Royalty) and credits.
  • Band Agreements: Internal bylaws for a music group: how income is distributed, who owns the name, and what happens if a member leaves.

Practical problems often involve "360-degree" contracts, where the label demands a share of all the artist's income (including concerts and merchandising). Aspiring musicians often sign such contracts in exchange for funding, but in the long run, this is disadvantageous. Another common issue is "Recoupment"—where the label does not pay the artist royalties until all expenses (music video, studio, marketing) are recovered. A lawyer helps the artist understand exactly what they are signing.

In Georgia, music law is regulated by the Law on Copyright and Related Rights. The law distinguishes between the author (composer, lyricist) and the performer (singer, musician), who have different rights. The role of collective management organizations (GCA) in collecting royalties is also significant.

Working with a lawyer involves reviewing every clause of the contract. For example, who owns the "master"? What territory does the contract cover? How long is the contract term? Legal.ge offers lawyers with experience in the music industry who can protect your creative freedom.

A good contract is the foundation of a successful music career. Do not make mistakes at the very beginning. Contact a specialist on Legal.ge.

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