In the Music Industry, Forget the Handshake Deal - Get it in Writing

I’m Releasing a Record on a Label, Should I Have a Contract in Place?

The answer to that question is a resounding, “YES!” Contracts are what drive the music industry. When someone speaks of landing a “record deal”, they are inherently talking about a contract. One of my favorite bands, Alkaline Trio, used to record for Asian Man Records. Asian Man prides itself on not signing contracts with their artists; the “hand-shake” deal. This may be fine in the sprit of indie/DIY, but it spells potential headaches and legal fees in the event of a dispute. There are aspects of a record deal that are too important to not reduce to a written agreement. Terms such as royalty points, payment of royalties, ownership of the masters, a guaranteed release provision on the part of the company and whether the artist can purchase the masters from the company are just some provisions that need to be put in writing.

After coming to an understanding orally as to the general terms with the company, have the understanding reduced to writing. There are multiple benefits to this. One, it serves to memorialize the understanding. There will most likely be a significant passage of time between the recording process and the release date. As time passes, memories fade and different versions of an oral agreement may begin to surface. A written contract will prevent this from happening. Secondly, while some types of oral agreements are enforceable, a written contract is more likely to be enforced by a court in the event of a dispute.

The contract does not have to be fancy or elaborate. It does not have to be drafted by an attorney or notarized. At minimum, it should set forth what each party is doing for the other: Artist agrees to record one recording and Company agrees to release Artist’s recording. Next, it must set forth the legal “consideration”. This is what each party is giving to each other: Artist will record exclusively for Company for two recordings and Company will pay Artist eight royalty points per recording. Lastly, both parties should sign the writing.