Whats in a Recording Contract?
• Exclusive Agreement – In all record contracts, you will be signing an exclusive agreement. This means that you will not be able to record for anybody else for however long your contract lasts. • Worldwide Rights – The record company will have rights to your services throughout the world, not just the country you signed in. • Royalties – Music royalties are a percentage of gross or net profit or a fixed amount per sale or use to which a creator of a work is entitled. • Deductions – Deductions are subtracted from music royalties. For instance, you will not receive royalties for records that are given away for promotional purposes. A large deduction called the “packaging deduction” is subtracted from your royalties to help pay for packaging of the CD and tape. • Recoupment – Recoupment is just another way of saying pay back. When the record company spends a lot of money on an artist, that artist must pay the record company back for its investment through its record sales. Record company
