| Quick guide to record contracts.The following is | | | | he will probably be able to provide you with |
| intended to be an introduction to the main points to | | | | calculations to determine how much (or little) you are |
| be aware of with recording contracts, but we would | | | | likely to receive.Typically, record companies will pay |
| always advise you to have a solicitor with experience | | | | for studio time and promotion, and may give the |
| in this area to help you negotiate your contract.A | | | | band an advance. The money for all of this is a loan |
| record contract is an 'exclusive' agreement.A record | | | | which the band pays back out of their royalties. Once |
| contract is an exclusive agreement, this means that | | | | you sell enough to pay back the record label, you will |
| you agree not to make recording for anyone other | | | | receive royalties on future record sales. This means, |
| than the record company for the term of the | | | | that unless the band is successful enough for the |
| contract. | | | | royalties to cover cost and the advance, they will not |
| The record company decides if the music is | | | | receive any money, likewise the record company will |
| releasedYou should note that a recording contract is | | | | stand to loose the money they invested in costs and |
| not a guarantee to release, whether the music is | | | | or advances if the sales do not cover these |
| released or not will depends on whether the | | | | costs.Copyright.You should always retain copyright to |
| company believes it is commercial viable.If your | | | | the musical work itself, though in the contract you |
| contract is for a number of albums, this is the | | | | will licence certain rights to the record company, to |
| number of albums that you are tied to the company | | | | enable them to manufacture, distribute and sell your |
| for. For example, if you have a five album contract, | | | | work on your behalf.For musical works copyright can |
| and your first album is a failure the company can | | | | exist separately in a sound recording (phonographic |
| drop you. If on the other hand, the band is a | | | | right), and in some instances, copyright to the master |
| commercial success, the band must remain with the | | | | recordings may also be owned by the company. |
| company. Since the record company has already | | | | Other types of contractBesides the standard record |
| invested in the band, they want to ensure a suitable | | | | production deal, there are also licensing contracts, |
| return on their investment if the band is | | | | where the you fund the majority of the costs |
| successful.Royalties.The terms and conditions | | | | independently and simply grant the company the |
| covering royalties will form a major part of the | | | | rights to manufacture, distribute and sell agreed |
| contract. Royalties can be based on either the | | | | recordings. This gives the band more control and the |
| wholesale price, or the standard retail selling price, and | | | | royalty rate should be higher, but there is unlikely to |
| as a rule your royalty percentage is also reduced for | | | | be a major budget to promote the album. Some of |
| sales where the product is discounted. You may also | | | | the smaller independent labels also offer profit split |
| find that the costs of production, manufacture and | | | | the profits, after any expenditure with the |
| packaging are also deducted from the royalty | | | | artist.Recommended Resources:UKCS Music copyright |
| figure.If you have a good solicitor representing you, | | | | factsheet Recording contract page at vocalist.org. |