Music Contracts 101 Part One: The Basics

Ty Cohen asked:


Whether you have been using a contract for years or if it is brand new for you, it won’t kill you to examine and perk up your music contracts. Ideally, you are going to want fair-minded music business contracts that are designed for precision rather than their negotiating strength on either side. The most important thing is you want to have everyone in on the deal on the same page. You want a fair contract so everyone is happy.

Although it is suitable and believe it or not legal to use a handshake or verbal agreement, it is extremely difficult to enforce in court. Trust is a huge factor in this type of agreement so unless you have a stellar reputation or you have true confidence in the people you are working, music contracts should not be agreed upon this way.

Money is usually one of the chief factors involved in recording contracts and music business contracts in general. If you are new to the world of music contracts then requesting your clients sign one may be nerve-racking at first but believe me, musicians and bands alike with totally admire your professionalism in doing so. Think about it, the worst thing that can happen is that they will deny the signature and you may have to revise the terms.

If you are looking for a brief overview of what is involved in your standard recording contracts or music business contracts then I will give some important concepts to consider.

1. Sometimes all you need is a date, agreed upon time and a simple signature from you and the other party involved.

2. Next, you may want to define what is involved with their overall performance. Basically, what is expected of the artist? Is there a minimum length of time they need to perform? How many breaks will be allowed? What is the environment of the performance?

3. It is crucial that the you and the artist have in writing agreed upon location of performance, the correct date and the time the band or artist needs to show up in music contracts.

4. Money, money, money! Isn’t that what it all boils down to in the music industry? Will you have a set amount you will pay? What about a percentage of how many people pay at the door? Who will receive the payment? When will they receive the payment? How will they receive the payment? Will it be cash, check or paid in something such as free drinks or studio time?

5. When it comes to recording contracts, the artist must grant explicit permission. Involved in this may be recording, reproduction, transmission and photography of the artist. Is it ok for you to record the performance? Can you print promotional materials with their names included? These things are crucial to consider.



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Who Needs Music Contracts?

Ty Cohen asked:


Whether you are a newbie to the music industry or a seasoned professional, you are going to run across music contracts, no matter what! Record companies, managers, agents, songwriters, musicians, bands, independent artists, producers, directors will all have to deal with music business contracts at one time or another, you can count on it. The only question is, will you be prepared.

Let’s say you have decided to start your own record label. You must already know that recording contracts are going to play a huge role in your day-to-day business. But the bottom line is that lawyers are extremely expensive so you may not be able to run to them to write every single legal document you need. What do you do about this?

Maybe you are an independent artist, just starting out, trying to get signed. The available cash just isn’t there! There is no way you could hire a legal team to protect yourself let alone even one lawyer to review your music contracts. You are not alone and there is something you can do about this.

You don’t have to be put in a tough situation like the ones above. It is true, having a lawyer on the side is a great idea but the hourly rate is sky high. So, cut your costs were you can, you know? Since everyone in the music industry is going to have to deal with music business contracts, you need a plan.

Don’t worry, your plan does not have to involve you going to law school or business school. All you have to do is purchase some music business contracts templates. Yes, it is as simple as 1-2-3. This way you don’t leave anything out, you are free to edit it to your liking and you display professionalism to every person you come in contact with. You can’t go wrong here. You don’t need fancy lawyer’s that charge hundreds of dollars an hour. But you do need to be prepared for any situation that may arise in the music world. The music industry is tougher than nails and you have to have a thick skin and a plan no matter what role you are trying to play.

Music business contracts, recording contracts and music contracts can get confusing and complicated if you don’t have a plan. Acquire these templates so that they can be your guide to creating contracts and using them to protect yourself, your music, your company, your job, whatever! Don’t look like an amature and don’t get taken advantage of in this industry.



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