producer contract/agreement

[sport]

I'd appreciate any input from those in the know:
I'm a solo artist currently recording a cd. The material is written and sung by me(with the exception of 2 songs written with a writing partner). I handled the guitars. I hired musicians to play drums and bass. My producer(we are co-producing this, actually) is an established, reasonably well known engineer who has worked with well known bands. But he is not "known" as a producer --- he produces alot of local bands who sell maybe a couple thousand records or so. I am paying him in cash. He gives me receipts after every installment that I give him that say "paid in full" for engineering/production services. I brought up the idea of having an agreement or contract signed at the beginning of our project but he said that he just deals in cash unless it is a major label situation. I was a bit nervous about this at first, but I have come to see that he is actually doing me quite a favor in not asking for points or not making me go to a lawyer at my expense and draw something up. As he says, 3% of 100 or even 3% of a thousand ain't much...Among the reasons he cited for not requesting an agreement or contract were: It's an independent record and I don't have the cash to press alot of cd's...If I got signed as an artist to a major label they would have me re-record it anyways...

Fast forward to the situation today. We've finished the recording and are going into the mixing stage next week. I think my producer has been pleasantly surpised, particularly by one tune. -the other day he said "I think you've got yourself a radio song here dude" (which was music to my ears of course!)
I'm hoping for some radio play and hope to get on some soundtracks-probably on independent films I would imagine, unless I get a lucky break.

Anyways, now he is willing to sign an agreement getting everything in writing because he knows I've had it on my mind the whole time. I had a lawyer draw one up, giving a 3% producer's royalty on all record sales beyond 10,000 units(it seemed like a good number to start at to save everybody unnecessary paperwork over diddly squat). He would also get a small percentage if it is licenced to a third party etc., which is all standard,...

If you're still with me these are my questions: Are there any situations that I may enter into(licensing to a third party, soundtracks, etc) where I would legally need to show a contract between myself and the producer? (I've heard of situations where songwriters have been denied a soundtrack gig because they didn't have a musician's agreement/clearance signed by hired performers)
My next question: In the contract the producer is offered a 10 percent royalty of the net sums received by me in respect to master licences for film. My lawyer assured me that this was very reasonable. I'm aware of the producer's standard 3% on records but how about the 10% of the net cash on a soundrack deal? Is this standard?

And finally, I had all the session players sign an agreement (the standard one, saying it was a final payment and I own the rights, etc). They didn't have a problem with this but I got the impression that my producer was thinking I was a bit "contract crazy" although he never came out and said so. I know of cases where a songwriter didn't get a release from a singer on his demo and he was denied a deal. Is it possible if I hadn't got these agreements signed, that somewhere in the process of whoring my music(be it a soundtrack or distribution deal, or whatever), I would have had to track down these musicians and get their permission to be on the soundtrack, or record, etc.?

I found it quite uncomfortable bringing out contracts for everyone to sign and I was hoping it wasn't some kind of faux paus-ruining the vibe etc. I could tell the producer wasn't that keen on it but he let me go about my business. I should add that I don't have a persection complex and think everyone is out for the "big scam". The producer is very talented and professional-he works with major acts(mostly as an engineer) and we get along quite well. I am sure he is on the up and up, etc. My main concern is covering my ass for the reasons I mentioned above. Remember I'm tring to think way down the road and all the conceivable ways to market and sell my music, whereas the producer and musicians may think I'm just one of the many who will sell a few records to his family and friends and I'm a little out of line having everyone sign these contracts/agreements.

Let's hear it guys...your responses are always very informative....Thanks

 

[John Sayers]

You are quite correct in getting clearances from all the musicians involved and covering your ass.

The problem the producer faces is who will he get his 3% from? you , the record company, your management whatever? I try to get the Production deal with the record company cos you know they will still be around in three years and have the finance department geared to handle it whereas the management might have changed three times in that period and you may have pissed off to the Bahamas for tax reasons or moved to the other side of the country and won't reply to correspondence.

Producer agreements are usually about points etc and the distribution of such but there are a few other sections that a producer must have in the contract that may sound petty but in the long term are just as important

1. A full credit for production work to be displayed on the back cover of the CD in x Font Size. So often they stick the producer credit somewhere inside amoungst the lyrics etc.

2. A stipulated no of CD's to be given to the producer for free. You can often land up having to go to a shop to buy a copy of a CD you made cos noones thought to give you a copy!!

3. A point system that increases with sales. Take the 3% over 10,000 that you suggested, perhaps that should become 4% over 100,000 sales.

4. Make sure you understand the record companies definition of the base price from which the % is taken. They often have packaging clauses and breakage (yes a hangover from the vinyl days) clauses so your % is taken from retail/wholesale less.....xxxx. in fact is it from the retail price or the wholesale price??

5. If you worked your butt of producing the artist you may want a guarrantee to produce the follow up recording. So often you produce an unknown artist, create the market and them some other producer gets to record the second album that sells heaps cos of the demand your production created.

food for thought
cheers
john

 

[jvasey]

Your wise to get it all in writing, and if you do get on a soundtrack, or are picked up for distribution, you will need all these clearances. If you sign a distribution deal, YOU will be paying the producer his 3 pts on the GROSS, (before breakage, promo, and return deductions). The 10,000 threshold was a nice touch, but I'm guessing his flat fee was more than his 3% for the first 10,000.
The 10% for soundtrack is pretty high, but likely won't be a big deal because you will be paying 10% on your NET. Because you will only be one of many artists on the soundtrack, you'd have to rack up some pretty big numbers for it to make a difference. Typically, you'll get about $.18 to $.25 a unit depending on the company, for a single on a soundtrack.
The most important thing, is to make sure your contract stipulates the producers share is of the mechanical royalties only, and not performance. I've seen some people get screwed on this, and even end up having to pay producers royaties for playing shows. If you end up getting airplay in a soundtrack situation, you'll make more for performance than CD sales anyways.
Jeff

 

[sport]

Remember-the producer never asked for any points or any agreement whatsoever-all he really wanted was the cash for the project. As for the royalty going up to 4% at 100,000-it's an utter impossibility for an independent act to sell that many in Canada. There was no point even talking about numbers like that. If you sell 2,000 nationally major labels and distributors will approach you. There are about 10 major cities in Canada to sell your records.
I just wanted to get something in writing, thinking at a later date if I sign a distribution deal or a soundtrack deal that they might need a producer's contract in order to see what they may or may not potentially have to pay a producer.

 

[John Sayers]

be VERY VERY careful sport. Savage Garden were released on an independent label in OZ that was about to fold. Now it's one of the biggest and 8mil sales later.......

 

[poslowjam]

Good To See An Artist On Top Of Business

Just wanted to say that you are doing the right things. It is always difficult to deal with contracts and yes it can sometimes ruin the vibe. Some people look at it as a sign of distrust. However, if they are trustworthy themselves they should understand the music biz. They wont have a problem signing contracts as long as they are fair.

The one thing that I always advise music artist, producers, writers, etc...
It's always best to deal with paper work in the beginning before any work is done. Musicians that are under pay for hire guidlines should sign over all rights as they are paid. This is standard practice. As for the producer or coproducer not wanting to do contracts, this is something of a problem for me. I think you mentioned that he didn' think it was necessary because you wouldn't be selling that many CD's. That's the last thing that an artist should want to hear. Every time you go into a studio you should take the approach that you are making a hit. If someone thinks otherwise, they must think that you are wasteing your money. I have a problem with that. Your music is just as important as anyone else that is recording.