From the course: Music Law: Recording, Management, Rights, and Performance Contracts

Five rules for all music contracts

From the course: Music Law: Recording, Management, Rights, and Performance Contracts

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Five rules for all music contracts

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- Here are five rules that musicians can apply to all music contracts. One, it's the people, not the paper. A contract won't protect you from a crook. This may seem obvious but I'll say it anyway. If you don't trust the other party, don't enter into a deal. Keep in mind that it's very hard to get out of a bad deal and one terrible deal can ruin a musician's career. Two, if you don't understand something in an agreement, don't sign it until you do. You may not have the bargaining power to change it, but you should have the ability to understand it. If an explanation for a provision is not covered in this course, there are plenty of online and print resources, including attorney referral services that can provide back up. Three, pay attention to what comes in and what goes out. Music, like every business, is built on margins. That is the difference between what comes in and what goes out. Don't focus only on the numbers coming in, how big the advance, how big the royalty numbers, how large the gate from the gig. Deductions and costs, which may eliminate any profits, are sometimes overlooked when negotiating. Four, get as big an advance as possible, hang on to what you can, and don't be afraid to ask for more. It usually doesn't hurt. Many people chip away at an artist ownership of songs and recordings. Try to retain as much ownership and control of copyrights as possible and if you must give up some rights, avoid giving them up to someone without any track record. Five, you can't always get what you want but, a musician who doesn't have a superior bargaining position should focus on getting one or two important changes in an agreement and accept the fact that the rest of the terms may not be ideal. For example, a musician might concentrate on issues like how long the agreement will last, or when rights will be recovered, and not dwell on less important issues such as piracy deductions or video royalties. Remember, all contract negotiations boil down to two issues, revenue and risk. So focus only on the most important ways to increase your revenue and lower your risk.

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