The main terms in a typical recording contract
Every contract is different but each will include some common business terms. Here is your guide to the most important ones: How many songs am I obliged to write?
Each publishing agreement will specify an amount of songs that the writer agrees to assign to the publisher. This can often be specified as a proportion of songs on a specified album. For example, if a band is signed to a record company and the main writer in a band signs a publishing deal with a publisher, the publisher may agree that a ‘product guarantee’ is fulfilled when the writer has written 70% of the songs on the album.
How many songs could I be obliged to make for the company?
Similar to Recording Agreements, the publisher can decide to continue the agreement for a period of time and retain exclusive rights to any new songs that the writer composes. These are known as ‘options’, and the commencement of each option period will normally trigger the payment of extra advances to the writer.
How do I get paid?
Most publishing deals will include an ‘advance’ which is a payment made to the artist in advance of the royalties the artist will earn when the songs are released in recorded form or played on the radio, TV or in a movie. The writer is usually paid half of the agreed advance when they sign the deal, the other other half when they have fulfilled their ‘product guarantee’.
The agreement will include an agreed royalty rate, often described as a ratio between the writer and the publisher. For example, the agreement might be 70/30, with the composer keeping 70% of the money earned and the publisher retaining 30%.
Can I write for another Publisher while I’m signed?
Usually a publishing deal will be ‘exclusive’, meaning that the composer cannot write for any other publisher during the term of the deal. However, some publishers may simply control the copyrights of specified songs, not the entire work of a writer. In that case the writer will be free to write for other publishers.
What is the territory that the agreement covers?
Most publishers will intend to sign the recording rights of their artist on a worldwide, sometimes universe-wide basis! If this is not the case then the company will specify territories that the agreement covers, such as North America or Europe.
What about 360 deals?
It is becoming increasingly common for Record Companies to control the publishing rights of their signed artists. This has many benefits for the company, as it may enable them to use publishing income to offset the expense of recordings. However, many artists and their managers object to this practice and will often negotiate that the publishing income is not ‘cross-collateralised’.