Here`s a list of some of the «creative control» issues you need to address: A recording agreement could mean licensing the swishest from professional studios for your first album – but the recording fees are recovered by your own advance, so keep an eye on the price. Before they see money, the artist must reimburse the registration fee, advances and usually 50 percent of all video costs. The label will make additional deductions, which will further reduce the actual royalty rate. (ii) Samples Most agreements provide that recordings are considered «delivered» only when the samples they contain have been erased, so it is important for the artist to be aware of them and not to record samples that they have not erased. If samples are to be used during recording, an artist, record company and music publishers should be created to support the subsequent application process. As the copyright holder, the record company is authorized to operate the recordings throughout the territory subject to any restrictions on the agreement (which will later be expanded). This clause also contains an affirmation of the artist`s moral rights. If the record company disagrees, you at least insist on being credited as an artist on all publications. 1. CONTROLLED COMPOSITIONS The section of the contract, commonly referred to as the Controlled Composition Clause, sets a limit on the amount the label must pay the artist in mechanical royalties for each «controlled composition.» A «controlled composition» is a song in which the artist has an income or interest (i.e.
the artist wrote, owns or controls it). (e.71) As noted in the previous subsection, the legal rate of 8.5 cents per unit of song sold is the maximum amount that the label is willing to pay in mechanical royalties. Another protection that the label will require is a limitation of reissue. This prevents the artist from resuming his music after the expiry of the contract for a number of years on another label. Any restrictions you agree should apply for up to five years after the end of the contract and should only cover actual published recordings. «A-R» – An A-R person is an employee of a record company responsible for the research and development of new talent, including matching artists specific to appropriate performance material. 3. BREAKAGE FEES «Breakage fees» are remnants of the vinyl era. When vinyl records were the primary recording format, some of them broke up during shipping, so record companies paid royalties for only 90% of the records sold. (e.46) Although this deduction is increasingly rare, it is still used in some contracts and you should try to negotiate it. Strong polycarbonate CDs are not as vulnerable as vinyl. (e.47) As noted above, this clause gives the artist the right to terminate the contract if the record company does not publish minimum statements of commitments in the United Kingdom.
It is unlikely that a record company will accept a right of termination resulting from non-release in other regions, with the possible exception of the United States, and it is therefore expected that recordings that are not published in «large markets» will be licensed at the artist`s request. Another point to consider is that U.S. record companies are also reluctant to pay mechanical royalties for free or commercial copies of records. This agreement provides for such royalties for fifty per cent of free goods. The artist should ensure that these provisions apply only to «controlled compositions» and not to third-party song recordings. It is also important to ensure that the definition of «controlled compositions» applies only to compositions written or controlled by the artist, and not to any third-party producer over which they may have no control. An advance is the amount made available to you by the record company that you must use for any number of expenses, including the cost of living,