The record-label agreement and its legal frame
A record-label agreement is not regulated in Georgia by a separate statute — no special law on record labels exists. A label deal moves on the neighbouring-rights provisions of the copyright law and on ordinary contract law: the phonogram producer's rights, the performer's consent and the essential terms of the licence contract. This page explains the label side on the basis of articles forty-seven, forty-eight and forty of the law.
What the Label Needs from the Performer
Under article forty-seven, the performer holds personal and property rights in the performance: the right to the name, the right to the respect of reputation and the right to use the performance in any form, including the right to receive remuneration. The exclusive right of use means the right to permit or prohibit the fixation of a performance not previously fixed, the reproduction of a performance fixed on a phonogram, its broadcasting, rental, distribution and making available at a time and place chosen by the person.
For a label this means: creating the recording and then exploiting it requires the performer's permission — permission is granted on the basis of a written contract, and for the performance of a collective of performers by the head of that collective. The performer’s right to receive remuneration for every form of use remains. Special rules exist as well: a contract with a broadcasting organization transfers to it the rights of recording the performance, its subsequent transmission and reproduction of the recording only where this is directly provided for by the contract, and the remuneration payable for such use is determined by that contract; a contract on an audiovisual work transfers the performer's rights only within the limits of the use of that work and, unless otherwise agreed, does not include the separate use of the sound and the image fixed in it. For a performance created in the course of employment, the performer keeps the right to the name, while the exclusive right of use belongs to the employer unless the contract provides otherwise.
The Phonogram Producer's Rights
Article forty-eight defines what the label acquires as producer of the phonogram: the exclusive right to use the phonogram in any form, including the right to receive remuneration. This right covers the reproduction of the phonogram, the rental and distribution of the original and copies, import, and transmission by wire or wireless means so that it is available to any person at a time and place chosen by that person.
These exclusive rights may be transferred by contract to another person — this is how rights pass to a distributor or a streaming platform. A boundary is also set: the first sale of copies in Georgia exhausts the producer's right over their subsequent distribution.
The Terms of the Licence Contract
Article forty regulates the licence contract: it must stipulate an exact description of the object to be used — title, volume, genre — the concrete type of use, the term and territory, the amount of the remuneration or the procedure for determining it for each type of use, and the procedure and time-limit for payment. Every right not directly provided for remains with the right holder. Where the concrete type of use is not stated, the contract is deemed concluded for such uses as may be considered necessary for the intention the parties had at its conclusion; and the rights granted may be passed on to other persons, in whole or in part, only where the contract directly so provides.
Where the term is not written in, the right holder may terminate the contract after 3 years, notifying the licensee in writing 6 months in advance; where the territory is not stated, the contract operates only in Georgia; and where a fixed remuneration applies to reproduction, a maximum print run must be set.
What the Label Agreement Should Determine
The content of the contract follows directly from these provisions: the label and the performer should determine which performance is being recorded and in which forms it will be used — reproduction, distribution, rental, broadcasting or making available; what remuneration the performer receives for each form of use; for what term and territory the licence operates; and whether the rights pass to third parties — a distributor or a platform.
With a fixed remuneration the contract must also set a maximum print run, and the risk of unwritten terms cuts both ways: without a term the contract ends after 3 years, and without a territory it extends only to Georgia. A label seeking international distribution must therefore state the territory expressly.
Frequently Asked Questions
Label-deal questions most often concern the performer's consent, the phonogram rights and the licence terms.
From whom does the label obtain the right to record?
From the performer — the fixation of an unfixed performance requires the performer's permission, and for a collective performance permission is granted by its head.
What rights does the label hold in the phonogram?
The exclusive rights of reproduction, rental, distribution, import and making available — including the right to receive remuneration.
What happens if no term is stated?
Termination is possible after 3 years, with written notice given 6 months in advance.
Who keeps unwritten rights?
Every type of use not directly provided for in the contract remains with the right holder.
How We Help on Legal.ge
The Legal.ge team works with labels, producers and performers: we draft recording and licensing contracts, structure remuneration and ensure the correct demarcation of phonogram and performance rights.
If you are concluding a label agreement or have a dispute over one, write to us on Legal.ge — we will assess the terms and defend you on a legal footing.