Was Your Band Offered a "Label Friendly" or "Artist Friendly" Contract?

WHAT ARE THE MAIN DIFFERENCES BETWEEN A "LABEL FRIENDLY" RECORDING CONTRACT AND AN "ARTIST FRIENDLY" RECORDING CONTRACT?

Whether you are a label or an artist, there are some key terms in a recording contract that will definitely favor one party over the other. Knowing what terms to negotiate can make the contract easier to live with for both parties.

One of the first clauses I always look for is the Guaranteed Release Clause. Without one, a label has no obligation to manufacture and release a recording. An artist does not want to spend months in the studio only to have the record shelved indefinitely. If you are an artist and can't get the label to insert this clause, ask for a Buy Back Clause. This will allow you to purchase the master recording from the label if it does not release it within a specified period after delivery. It should say that the label has an obligation to negotiate a purchase price in good faith.

Next is the number of options that the label has over the artist. This is the number of times the label can extend the contract for another term after the initial term expires. A label will generally want to have something high; around four options. As an artist, you want to keep it to around two options. The artist will usually be required to record one record during each term. As a label, you will want the contract to say that the option is deemed automatically picked up by the label unless the label gives written notice to the contrary. That way, no action is required by the label in order to pick up the artist's option. As an artist, the contract should say that the label has to pick up your option by providing written notice to you. That way, if the label forgets to give you written notice, you have an out on your contract. This will allow you to negotiate a new contract if you want to re-sign with the label.