bknot1
Hustle Magic!! We Got It.
nice article from: http://www.buko.net/content/columns/legally _speaking/legally_speaking1b.html
RECORD PRODUCER AGREEMENTS: WHO SIGNS THE DEAL?
Depending on the terms of the artist’s recording contract with a record company, it may be the record company who contracts with the record producer, or alternatively, it may be the artist who does so.
If the Record Company Is Signing The Deal. If the producer agreement is between the producer and the record company, the record company will generally require a “Letter of Direction” from the artist, authorizing the record company to pay a certain designated advance and royalty directly to the producer.
Depending on what approval rights are contained in the pre-existing recording agreement between the artist and the record company, the record company may be contractually required to obtain the artist's written approval as to the selection of the producer, as well as the terms of the producer agreement. From an artist’s perspective, it is very important to have this right of approval, since a “sweetheart deal” between a record company and a producer can sometimes have very negative financial repercussions for the artist.
If the Artist Is Signing The Deal. If the producer agreement is between the producer and the artist, the record company will often (but not always) have the right to approve or reject the producer.
Also, the record company will typically require the producer to sign a side agreement directly with the record company (sometimes called a “Producer Declaration”). This document will say that if there is any conflict between the terms of the agreement between the artist and producer, and the recording agreement between the artist and the label, the terms of the recording agreement will supersede and preempt the producer agreement. This permits the record company to, in effect, override any provisions in the producer agreement which are contrary to the label’s normal policies, and to avoid any contractual obligations not already contained in the artist's recording contract with the label.
Record Business 101: If you’re a producer, you want to do everything possible, before you start producing a record, to try to get the record company to agree in writing to pay you your producer royalties DIRECTLY, rather than you having to collect your producer royalties from the artist.
First of all, the artist may very possibly not have the money to pay you when your producer royalties become due. Secondly, even if the artist “directs” the record company to pay you directly, such directions are not binding on the record company, and so the record company may refuse to do so.
Getting a record company to pay you directly will require not only a “Letter of Direction” signed by the artist, but also a document signed by the record company, agreeing to pay you directly.