Record Label Agreements are the most important and risky legal documents in a music career. This is a contract between an artist and a recording company, where the label undertakes to finance the recording, marketing, and distribution, in exchange for rights to the recording (Master) and a large portion of the revenue. In the digital age, although artists can upload music independently, major labels and independent labels still dominate the market due to global reach and financial resources.
The service involves analyzing and negotiating all types of label-related agreements:
- Standard Recording Contract: An exclusive agreement where the artist is obligated to record a specific number of albums for the label.
- 360 Deal: The label takes a percentage from all the artist's revenue streams (concerts, merch, sponsorship), not just from music sales.
- Licensing Deal: The artist retains ownership of the recording but grants the label the right to distribute it for a certain period.
- Distribution Deal: The label only distributes the music to digital platforms and physical stores without marketing obligations.
- Single Deal: A short-term contract for releasing one or two songs, allowing for a trial period.
The real risks are significant: many famous artists have lost rights to their own albums (the "Taylor Swift case") precisely due to contracts signed with labels. In Georgia, it is common for a label to demand perpetual rights to a recording while the artist receives meager royalties. Also problematic is the "Cross-collateralization" clause, where the success of one album covers the losses of another, preventing the artist from receiving payment for years.
The legal process involves a detailed study of the "draft" offered by the label. The lawyer focuses on: royalty rates, advance amounts, contract duration, and "territory" (worldwide or specific region). The goal is for the artist to retain as much creative control as possible and receive fair financial benefits. Legal.ge gives you access to music law experts who will protect your interests when negotiating with "sharks."
A contract with a label can be a springboard or a trap for your career. Do not sign without reading. Secure your musical future with the help of Legal.ge.
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