Importance of Music Contracts

Contracts are really important to artists, especially when working with music producers or record companies as it not only will protect your work, but will help to make sure everyone works fairly and knows what their rights and duties are in the project. I've been composing my own music for a little while and hope to collaborate with like-minded artists soon but never thought about having to write up contracts, which I now know would have to be one of the first important actions to do, even before starting on projects with them. This blog will be about the importance of having contracts as an artist, as well as to provide tips provided by outside sources on how to make sure artists and their fellow project members understand the contracts fully and to avoid any issues.

What are Contracts and why are they important?

So a contract is a legal document/agreement that ensures the protection of the artist's work. A contract also states detailed rules, rights, and compensation that both parties (the artist and the record company for example) must agree on and abide by as soon as they begin the production (Australian Music Industry Network, 2018). Contracts are crucial because not only does it protect the artist's work from being stolen/taken advantage of, but it also helps to increase their profile and audience, as well as to increase their income (Australian Music Industry Network, 2018). Contracts are also important for deviating roles within the project and to make sure all parties understand their duties so to work fairly.

There are 3 types of music business contracts which are: Recording Agreements, Publishing Agreements, and Management Agreements.

Recording Agreements: When a recording artist and a record label enter into a contract for the record label to take ownership and exploitation rights of the artist's sound recordings in exchange for royalty that will be paid to the artist, (Challis. 2010).

Publishing Agreements: a songwriter enters a contract with a music publisher to transfer the ownership of all songs form the past, present, and future to the music publisher to exploit their recordings on the songwriter's behalf, in return for a share of the revenues received (Challis, 2010).

Management Agreements: "A solo performer or a band enter into an agreement with a manager or management company to manage their career." (Challis, 2010)

As an artist and composer, recording agreements and publishing agreements would be the most relevant contracts to me.

Having a recording contract as an artist is important as it mainly protects your copyrights. If the agreement is not written down and only made verbally, you then won't own the legal rights and will easily lose your copyright to your tracks, which would result in the loss of 100s or 1000s of dollars, (101 Music Business Contracts, 2010). It is also a "great way way for artists to generate income as well as increase their artist profile and audience," (Australian Music Industry, 2018). By having contracts, it also reduces a lot of misunderstandings and disputes, as contracts can act as written documents to recall any terms and conditions that both parties might not remember, (101 Music Business Contracts, 2010). It also acts as the "legal word", especially when taking anything to court. "No court of law will accept any statement unless it is in writing," so it is crucial to get everything written down as early as you can to avoid disputes and misunderstandings, (101 Music Business Contracts, 2010).

In general, especially for independent artists, contracts helps to protect yourself when dealing with publishers, venues, record labels, etc (101 Music Business Contracts, 2010).

Tips when Signing Music Contracts

Before you sign contracts with another party, its crucial to know what you're getting yourself into and the processes that go into entering contracts. Here are some tips I've gathered from some sources to have a better understanding of contracts and to be safe once signing with another party.

Learn The Lingo (McDonald, 2018)

It's important to understand the vocabulary in contracts as it'll help with understanding the differences between certain things and knowing what you're working with.

Get It All Down in Writing (Chisholm, 2017)

Getting everything down on paper is so important as it prevents any ugly disputes, even though a hand shake and assuming the other party trusts you and vice versa, is tempting to do. Written agreements can save you from losing a lot money and from huge consequences.

Seek Legal Advice From An Expert Practicing in Music Law (Chisholm, 2017)

It's important to seek credible legal advice to help with decision-making when signing up for a contract. Don't get legal advice from your neighbour, accountant, or anyone not involved with music law, as you could run the risk of receiving false information, which could lead to large consequences down the track for both parties.

By researching about music contracts, I now know how crucial the contract process is for an artist. There can be many alleyways and traps that you can easily get lost in if you don't know the safe and proper ways to protect yourself when dealing with other parties via agreements. I've never been taught about music contracts and have had to do my own research by myself, which can be dangerous for other artists out there who don't know much about contracts and just sign blindly with other parties. I hope that they'll be more resources out there to educate artists on music contracts and other legal documents, to protect independent artists and the copyright of future music.

Bibliography

Australian Music Industry Network. (2018). Recording Contract Fact Sheet. Retrieved from https://www.musicvictoria.com.au/assets/Documents/RecordingContractFactSheet_web.pdf

Challis, B. (2010). Why sign a music business contract?. Retrieved from www.musiclawupdates.com/?p=118

Chisholm, D. (2017). Four Top Legal Tips For Signing A Music Contract. Retrieved from https://musicindustryinsideout.com.au/legal-tips-signing-music-contract/

101 Music Business Contracts. (2010). The Importance of Having Music Contracts. Retrieved from http://www.musiccontracts101.com/articles/the-importance-of-having-music-contracts.html

McDonald, H. (2018). Before You Sign a Music Producer Contract: Things to Know Before Entering Into an Agreement. Retrieved from https://www.thebalancecareers.com/before-you-sign-a-music-producer-contract-2460647