Contract Hell!

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Do you have a horror story regarding music contracts you have been involved in, or near misses? Please share your experiences here and help illuminate us all!

Thanks to Steve P. for suggesting this.

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24 comments

Steve says:

December 27, 2009 at 12:39 am

We’ve all seen them…licensing or publishing agreements that are really worth reading carefully. Here’s one of the recent ones that I decided to pass up (I’ll only point out the key points). My comments added with ***BOLD***:

1) Term: The “term” is the length of the agreement.
· Agreement is binding until said composition or said musical work becomes public domain. ***YIKES! THAT’S A VERY LONG TIME!!****
(2) Territory:
· Worldwide Territory
(3) Scope & Compositions:
· This deal is for 5 single composition(s). ***YET THIS GUY NEVER EVEN HEARD ANYTHING FROM ME!***
(4) Ownership:
THE WRITER OWNS 100% OF THE MASTERS.***YES, UNTIL YOU SIGN THIS AGREEMENT!***
· Under this standard music industry publishing deal, the writer assigns all copyrights to the [Company name removed by moderator] has exclusive administration of the songs throughout the world and controls all of the publishing and all of the master(s). · Writer hereby irrevocably and absolutely assigns, transfers, sets over, and grants to [Company name removed by moderator], its successors, and assigns each and every and all rights and interests of every kind, nature and description in and to the results and proceeds of Writer’s services hereunder, including, but not limited to the titles, words, and music of any and all original arrangements of musical compositions in the public domain in any and all licenses relating thereto, together with all worldwide copyrights and renewals and extensions thereof, which musical works have been written, composed, created, or conceived, in whole or in part, by Writer alone or in collaboration with another or others, and which are now owned or controlled, directly or indirectly, by Writer, alone or with others, or as the employer or transferee, directly or indirectly, of the writers or composition, ad all worldwide copyrights and renewals and extensions thereof, all of which Writer does hereby represent are and shall at all times be [Company name removed by moderator] sole and exclusive property as the owner thereof free from any adverse claims or rights therein by any other person, firm or corporation.·
Writer acknowledges that, included within the rights and interests herein above referred to, but without limiting the generality of the foregoing, is Writer’s irrevocable grant to [Company name removed by moderator], it’s successors, licenses, sub licensees and assigns, of the sole and exclusive right license, privilege, and authority throughout the entire world with respect to the said original musical compositions and original arrangements of compositions under the public domain, whether now in existence or hereafter created during the term hereof as follows:
————
***ANOTHER RED FLAG***
(b) To substitute a new title or titles for said compositions or any of them and to make any arrangement, adaptation, translation, dramatization or transportation of said compositions or any of them, in whole or part, and in connection with any other literary, musical or dramatic material, and to add new lyrics to the music of any said compositions or new music to the lyrics of any of said compositions, all as [Company name removed by moderator] may deem expedient or desirable;
***SO, THEY CAN RE-TITLE AND RE-ARRANGE YOUR TRACK AS THEY DEEM `DESIRABLE’ AND YOU’LL NEVER SEE A PENNY FROM THE NEW TRACK!***

***BOTTOM LINE…Always know exactly what you’re giving away, BEFORE…you give it away.

[Reply]
Trained In The Arts, January 24th, 2010 at 1:52 pm Reply:
Most of what i read above is standard in the music industry, as far as dealing with a music publisher. But most people have not hired a entertainment lawyer, so they read a contract and throw out the baby with the bath water…because: they are not trained in the arts of music contracts. How can you show us 1/2 of a page of a contract and expect us to think that this contract is no good ?

[Reply]
Steve, January 26th, 2010 at 3:53 pm Reply:
What more do you need to see? This company expects someone to sign an exclusive agreement in perpetuity , transfer all rights, with no reversal clause, and no guarantee of any money whatsoever.

Would you read past what is posted here? If so, I’d be curious to hear the logic.

[Reply]
Chris Jones, January 27th, 2010 at 7:30 am Reply:
2nd. Most good libs own the tracks forever and that’s why you get a fee per track. And some libs don’t need to hear much. If your stuff is competent they just brief you and you go away and do it. This seems like more hating on libs and slight paranoia. The exclusivity you are speaking of is re: the masters not your employment which is what ^^^ seems to imply. And as far as guarantees? Nothing is guaranteed. Think about it…you can’t guarantee a use in anyway it’s crazy.

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Chris Jones, January 27th, 2010 at 7:32 am Reply:
And pls read my retitle article on the home page for some thoughts on why ^^^ is better.

[Reply]
Steve, January 28th, 2010 at 2:12 pm Reply:
Chris,

I understand that this contract refers to the tracks being exclusive for this company, not my employment with them.

Regarding a guarantee…All I was asking was why anyone would sign an exclusive contract, basically handing over their songs and copyright, without a hefty advance, or at least a way out of the agreement if nothing happens within 3 years. Am I really asking for too much?!!!

[Reply]
Chris Jones, January 28th, 2010 at 4:45 pm Reply:
I dunno. Most libs buy the track and own them forever. Those are the ones with good clients IMO. It depends on your view. Me personally? I don’t want an advance from a company unless they are big. Re: exclusively repping your master forever without a fee? Yeah, that’s whack. But buying the track’s copyright and exclusively owning forever with 100% writer’s performance going to you is normal.

[Reply]
Boom, January 28th, 2010 at 4:53 pm Reply:
Obviously there’s normal & there’s normal.
What has been normal in the UK for the proper libraries is this.

Library pays production fee or advance – per track or per album.
Library then owns copyright on the works for the period of copyright.
Writer and Publisher split all proceeds 50/50

That’s normal – 2 me.

[Reply]
Chris Jones says:

January 28, 2010 at 5:04 pm

@ Boom. Yes that is accurate and I have a deal like that in the UK as well as US exclusives. But you either take an advance and share 50/50 in everything including sync and (if so) mechanical OR take the fee and just share performance.

[Reply]
Boom, January 29th, 2010 at 9:54 am Reply:
Hi Chris – it;s nice to hear your experience – but In my experience this is not always the case (well in MY experience – never the case).

I’ve produced for both Extreme & KPM on the basis of a fee. This fee does not in anyway eat into my share of license fees.

It is in fact totally right that your time be paid upfront by a non-recoup able fee – not advance.
Of course – not many libraries offer fees, and go for advances, this I can live with / work with .. but you will know a sh*t library because they will refuse to pay either – and ask for exclusivity.

[Reply]
Steve, January 29th, 2010 at 9:58 am Reply:
Exactly!

[Reply]
Chris Jones, January 29th, 2010 at 10:56 am Reply:
Just so I understand. You are saying you’ve written tracks for those libs, gotten a fee (or non-recoupable advance), retain 100% of your performance royalties, and share 50% sync or other licenses?

[Reply]
Boom, January 31st, 2010 at 4:17 am Reply:
Yup that’s right ! – and that is how it should be..

Although – what used top be as standard – is now often a matter of negotiation.
If you have a product they want – you can negotiate a better deal, naturally.

The other thing is – once you have proved yourself a number of times – then you will be commissioned to write on projects .. again – I work with a range of the top UK libraries – and the upfront remuneration will either come as a ‘fee’ (no recoup) or ‘advance’ (which is basically a loan)

In the case of an advance – it is paid off with the mechanicals – you begin earning performance right away, of course.

However – with the proliferation of the low end industry – (freeby no advance to the composer – lo/no license fees for clients etc etc – basically a wide spread American model, now spreading internationally) – the more professional, traditional UK model is more and more under threat..

I see the whole Library industry going into the toilet – this decade.

[Reply]
Anonymous, January 31st, 2010 at 6:15 am Reply:
OK but that’s not standard practice. If you can negotiate these things: a fee (not advance), 100% writers, and 50/50 sync and mechanical, then more power to you but no one offers this setup.

[Reply]
Chris Jones, January 31st, 2010 at 8:30 am Reply:
Sorry that’s me. ^^^

[Reply]
angel fabela says:

May 2, 2010 at 7:45 pm

i was offered a publishing deal and don’t understand the contract i am nervous about signing it duval howitzer publishing co is who offered me the contract and it says a standered publishing contract what shoul i do

[Reply]
Art, May 3rd, 2010 at 7:42 am Reply:
Read the above comments. All valid points whether it’s Duval Howitzer or any company. If you are at all unsure find a good entertainment attorney.

[Reply]
hihiallibelle777, June 28th, 2010 at 4:37 pm Reply:
mm i been invited 2 on that “DH publising” mm i decided 2 investigate about the record company , i found just 2 artists on the company, these are christian,, but idk seems like weird cause that record company doesnt have tons of friends or subs on youtube, it doesnt have comments,(it has around 7 friends & 2 subs i guess) i check out the links of the channel, like myspace & the official web page but im not 4 completly sure of it D: i mean if that company would b hollywood records or that kind of rec. co.’s should have even more people on theyre pages ,, :/ till that i said idk 2 the message cause i wasnt sure of saying yes 2 someone by internet, i knooow is stressfull cause seems so good 2 b true but seems weird 2 :/ maybe i just have 2 wait a bit ,,, GOd bless 2 everyone, & guys if u get information bout thiss company, PLEASEEE TELL USS D: cause this is kinda serious :/

[Reply]
Junkman says:

May 12, 2010 at 9:13 am

Something smella at DH Publishing. Run

[Reply]
Mark says:

May 13, 2010 at 9:05 am

Does anyone have experience in licensing directly to the end user and handling the negotiations and contracts themselves?

How would you determine your costs?

Are their contract templates you would modify to suit, or would you rather hire a lawyer to draw up the paperwork?

[Reply]
Casper says:

June 17, 2010 at 7:30 pm

If you’re not an attorney then you have no business at all evaluating a contract with a view towards its copyright or legal implications. I keep wondering when you “legal experts” are going to get into medicine and advise the unwashed and holy on the art of a heart-lung transplant.

Stick to creating music or that noise pollution you call music, let someone with an actual license to practice law advise and consult on a contract.

[Reply]
dhis a scam says:

July 15, 2010 at 4:39 pm

Dh publish Mr. connon seems to be a con artist try to pick un people like us. he doesnt sign anything and sends a contract in a hurry without know who the hell I am.

[Reply]