Recording Contract Received

[DigitalDon]

My son just received a recording contract from a small outfit in Miami, FL. We worked with these guys about a year and a half ago but the "deal" fell through due to their finances. So we hear nothing from this guy then out of the blue get the contract in the mail. No cover letter, just the 8 page contract.

You would have thought these guys were major label with the wording and restrictions in the contract. It even said the company "may" pay him xxxx dollars a year. Percentage of sales also. Of course that's after all costs such as recording, production, marketing, etc are recouped. It was a one year contract with option (by the company only of course) for consecutive renewals for the next 6 years. Oh yeah, they would also own his professional name which happens to be his birth name. He would not be allowed to use it professionally after termination of the contract. He would not be allowed to perform without permission of the company. He also couldn't perform as a member of another group if the performance included any vocal or instrument solos. Even as a backup vocalist his name could not be listed in the credits without permission from the company. I did notice though that they slipped up and didn't put the all inclusive "digital rights" statement in there. Of course I'll read it again in case they just re-worded it or broke it up and hid it through several paragraphs.

I could go on and on. Don't get me wrong. I've done a tremendous amount of reading on recording contracts so I'm really not surprised. Other than a small company wanting so much control. On the flip side, his lawyer called me about a year and a half back. He explained that his job was obviously to write the contract as much to the benefit of his client as possible. I understand a contract will go back and forth several times until both parties either agree or give up.

The great thing is my son (and his band) have no interest in a contract since they've decided to go it indie. Of course if the big guys came knocking on the door then who knows? At the same time, he knows that at his age (20), and with a band less than a year old, he has a local following but that's it so far. No clout whatsoever and therefore no leverage with the big boys right now. He would get screwed for sure.

I think we'll have our lawyer look it over anyhow and counter propose a contract the company couldn't live with. This could be interesting and educational at the same time. Will keep you informed.

DD

[RSM1000]

Don't bother having a lawyer look it over.

It's 100% no good. Not a single bit. There is absolutely nothing in it for him whatsoever.

Just throw it away and pretend it NEVER happened.

[Buffalo Bob]

Hey Don- if you PM me I will personally check this company out. I'm in Miami. At least then you'll know if they are legit or not.


Bob

[Slackmaster2K]

Even if they are legit, it almost seems like the terms of this contract are so severe that they wouldn't hold up...although I don't know jack about it.

Unless this label is going to be the last label you ever work with, it sure seems like you should stay away! From the verbage, it sounds like they just buy people up with the hopes of one of them striking gold.

Slackmaster 2000

[DigitalDon]

When I say small, I mean really small. I think it's like a 2 or three man organization. He found us through a relative who lives near Miami. The story from the relative is he helped someone get signed in with Gloria Estephan's (spelling?) people. Seemed like the thing to do so he bought a business license and started a label. I think my son would actually be his first signing. Don't think so.

I wouldn't want my son to sign a contract like this with a major label much less a new startup with no track record or previous experience in the business. Red flags all over the place.

Here's a couple of clauses if you've never seen a recording contract. This is exact wording:
"Advance royalties (if any) and promotional costs (if any) incurred by Company in connection with sale of CD/Cassetes for which Artist is entitled to receive a percentage royalty, shall be due to Company and deducted by Company from the royalties payable to Artist on all CD/Cassettes made by Artist for Company under this or other agreements."
"Company will render a statement to Artist together with royalty remittance ...... (lots of mumbo jumbo) .... less the amount of any unrecouped advances made by Company to or for Artist, less any bookkeeping credits due Company from Artist."
"Company may charge any expenses, which a label leasing or buying masters produced pursuant to this contract charges against royalties paid to Company, against Artists royalties, if Company so desires."
"Group Name. Each Artist hereby assigns any and all rights he may have in the group name to Company. Each Artist acknowledges that the fictitious name belongs to the Company."
"Artist agrees to not use such fictitious name(s) ..... after termination of this agreement. Artist and Company agree that all fictitious names selected by Company shall belong exclusively to Company."
"Survival of rights, company's rights, titles, interest, of privileges .... to or in connection with any of the results of proceeds of Artist's services hereunder and any material supplied by Artist hereunder, shall outlive, continue after, and are not affected by the expiration or termination of this agreement."

Sorry this was so long but you get the picture. There's eight pages of this kind of stuff. And just think, suckers sign this and worse agreements everyday just to be heard by the masses. What a shitty way to lose your soul.

DD

[RSM1000]

Let me some up what this contract says.


He who signs this agrees that:

1. We own your band name, and your legal name.
2. We will get any amount of money you make we want - from anything you make it off of at all ever in your lifetime.

[Gidge]

that sounds pretty standard for a recording contract.....

but i dont see where they own your real name?????

[DigitalDon]

Yeah Gidge it's pretty much standard from examples I've seen before. The point being this is a new guy with no business experience or track record. Per the contract they would own his "professional name" which, in this case, is his real name.

[tanlith]

OK... just for shits and giggles, write up an equally ridiculous contract outlining that if your son dosn't sell XXX # of records in a specific amount of time you take ownership of their organization... I think it'd be worth the time to type it up just to see what reaction you get... hehehe






- Tanlith -
Webmaster: Super Loop Library

[ji22zz]

Hey all I'm new

Umh..That label is going to go absolutely no where. If they had a lawyer write that up then it would seem that the lawyer does not know much about this field of law. If your son were to sign (which would be absolutely stupid), I do not believe they could actually own his name, or the band name etc. , without the label owning the trademark. Now it may hold up in the court of law that he cannot perform under that name, as the agreement to the label, but they cannot do anything about the name being used in the future by someone else who may already have the name trademarked.

I am not a lawyer myself, so it could be a plot to get artists to sign over trademarked names that they have already paid for too. I dunno. Maybe just looking for naive artists that would actually sign something with that clause in it. The rest of the examples look pretty normal though.

If it were me, I would probably be using that contract as toilet paper for the next time I go do my business (if you know what I mean) then put it in an envolope, and mail it back. That is the kind of person I am though. So you may want to take Tanlith's advice which is pretty damn funny as well.

[okobd]

You know my sis and I have been dreamin' of one day having this problem to deal with.
Soooooo.... are they all like that? Is it Indie or nothin?
Or is it all about how bad they want you????
Insight please, Not that I'll ever need it BTW
-ok

[zekthedeadcow]

actually I'm pretty sure that they could own his legal name as thats what happened to Prince, but usually all of those similar restrictions like the ability to re-record the song expire 3-5 years after the termination of the contract....and hence we can call him Prince, instead of "the symbol guy"

...plus being a minor he "could" (maybe) sign on, blow the guys money and plead infancy provided you don't sign anything holding yourself liable... minors CAN sign contracts...but they usuallt arn't enforceable upon the minor...but they are upon the company...

[DigitalDon]

He's 20 so the contract would be legal if he signed (which he won't).

He could re-record the songs recorded during the contract period 5 years after contract termination.

DD

[acorec]

Originally posted by DigitalDon
When I say small, I mean really small. I think it's like a 2 or three man organization. He found us through a relative who lives near Miami. The story from the relative is he helped someone get signed in with Gloria Estephan's (spelling?) people. Seemed like the thing to do so he bought a business license and started a label. I think my son would actually be his first signing. Don't think so.

I wouldn't want my son to sign a contract like this with a major label much less a new startup with no track record or previous experience in the business. Red flags all over the place.

Here's a couple of clauses if you've never seen a recording contract. This is exact wording:
"Advance royalties (if any) and promotional costs (if any) incurred by Company in connection with sale of CD/Cassetes for which Artist is entitled to receive a percentage royalty, shall be due to Company and deducted by Company from the royalties payable to Artist on all CD/Cassettes made by Artist for Company under this or other agreements."
"Company will render a statement to Artist together with royalty remittance ...... (lots of mumbo jumbo) .... less the amount of any unrecouped advances made by Company to or for Artist, less any bookkeeping credits due Company from Artist."
"Company may charge any expenses, which a label leasing or buying masters produced pursuant to this contract charges against royalties paid to Company, against Artists royalties, if Company so desires."
"Group Name. Each Artist hereby assigns any and all rights he may have in the group name to Company. Each Artist acknowledges that the fictitious name belongs to the Company."
"Artist agrees to not use such fictitious name(s) ..... after termination of this agreement. Artist and Company agree that all fictitious names selected by Company shall belong exclusively to Company."
"Survival of rights, company's rights, titles, interest, of privileges .... to or in connection with any of the results of proceeds of Artist's services hereunder and any material supplied by Artist hereunder, shall outlive, continue after, and are not affected by the expiration or termination of this agreement."

Sorry this was so long but you get the picture. There's eight pages of this kind of stuff. And just think, suckers sign this and worse agreements everyday just to be heard by the masses. What a shitty way to lose your soul.

DD

LOOK at the last line. You are signing away his WHOLE LIFE. At least get them to remove the last line. If the contract expires or is terminated, he STILL belongs to the company.

[keilson]

don't do it. especially so early in the game. they have only been together for one year you said. do it indie and shop them around. this way you aren't taking a huge risk and can still make some money. does the band have a demo by the way?

[Gidge]

http://www.therecordindustry.com/cou...ist_rights.htm

how many times have you heard of a band recording a record and selling alot of albums, have a successful tour and still be pretty much broke....its pretty standard that the cost of recording and the tour come straight out of the artists royalties, and are paid for before the artist recieves a cent......

record companies are raping artists everyday and most of us want a deal so bad we'd sign anything, so the cycle continues......

Im still sure they dont own your given name, just any "ficticious" name or band name......they pretty much own it while you are under contract with them, but once you leave its yours.....

[Jagular]

Originally posted by DigitalDon
We worked with these guys about a year and a half ago but the "deal" fell through due to their finances.

Without reading any further, this sent up a major red flag. Who floats the costs of a project? The label, right? If they can't do that, what good are they. I'd say be very careful on this.

Note: I'm no music industry expert, just a CPA who is interested in it

[DigitalDon]

I guess the bottom line is doesn't want to sign anything whatsoever and I back him up 100%. He's way too early in the game to sign his life (career) away. He wants to stay independent but, like everyone else here, is concerned about distribution. Patience grasshopper, patience.

DD

[Gidge]

get him selling thousands of CD's in and around his hometown and the labels will come to him.......

but the contract may not look a whole lot different and independent may not be a bad idea......

[Treeline]

Why have you spent this much time with it? Throw it away.

[TexRoadkill]

What are they going to do for him? Are they going to finance an album, tour any guaranteed promotions? Any advances against royalties?

First time contracts will always suck for the artist. I would get rid of any stipulation that they own the name after the contract expires.

A shitty record deal is still better than no record deal but you haven't mentioned what if anything they are offering.

[DigitalDon]

Tex - From talking to this guy in the past I have a good idea of what would happen. The company would pay to record a single and float it around to do some market testing. If it went very well they would then record a complete CD. Of course all costs would go against the artist royalties, etc. If it didn't go well, my son would still be locked in with the company not willing to spend anymore money (very limited finances I'm sure). The company could basically put him on the shelf, take a loss and hope that my son does something on his own that they can get their fingers into. No thanks. He's 20 years old and the (musical) creative spark is just now igniting. He's been performing since he was 15 but his vocal and guitar abilities are fusing together right now. It's really exciting for us (as parents) and we won't allow him to get screwed or his spirit shit on. Lots of stuff ahead for him. Did I get off subject

DD

[TexRoadkill]

It sounds like you've already made up your mind.

If they are willing to pay for some real studio time and a good demo it may be worth it.

If you can get them to release the demo to you or allow you to purchase it at the end of the contract it could be worthwhile. Obviously them owning his name forever would have to go, lol.

[zer0sig]

unless these guys play switchfinger with tommy motola regularly, a few man operation is not going to be able to make this standard corporate robbery artist contract worthwhile. if this was a label with the resources to record an album and pay for a tour and get some national radioplay, it might just be worth it, because once your son/his band became real breadwinners, the contract would be destroyed by public opinion/the court system. that's your best bet when getting signed with any conventional label, be they big or just wannabes. the being big allows exposure that can get one a big enough media voice to take their life back as well as priceless industry experience.

contracts with lifetime rights to a person's name are horseshit. looks like all these guys really have going for them is someone's nest egg and a vicious lawyer.

[Fusion2]

typical riaa contract terms, i just saw where independents are selling there own now, there's a new site, sorry, i surf way to much and fast to recall where it is, do a google, excuse the vagueness...

it's hard times for us musicans now with all the greed going around the industry, to many fat money grubbing middle men in it now...

15 maybe 20% of 100 profit just sucks, its criminal is what it is, hang em high i say...

there will bw a day when musicans get paid for what "they" do and not the fat paper pushers... excuse the vent please...

best luck though...