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If you are an independent musician in the process of signing to a record label, you will probably come across the concept of a producer agreement. Also called a production agreement, this legal document sets out the obligations the producer owes to the record label and the musicians. This article reviews the key terms of a producer agreement and explains some significant legal consequences that arise under a producer agreement.
Producer vs Record Label
It is essential to distinguish between the role of the producer and the record label. Record labels are responsible for financing the cost of production and distribution of your music. In most cases, the producer is the party that works with you (the musician) to record the music.
While the same person or entity can carry out both tasks, usually, these are carried out by two different parties. This is because the production company or entity is managed by musicians and audio engineers that have a hand in the actual process of recording. The record label is usually more business-oriented and involves distributing and promoting the recording.
The Producer Agreement
Producers may have a great degree of creative input over the recording process. Alternatively, they may purely coordinate the technical aspects of recording and mixing. This depends on you and the producer’s objectives and creative approach.
Generally speaking, production entails the following tasks:
- recording your tracks;
- arranging them; and
- mixing and mastering the tracks.
The exact role of the producer will be specified in the producer agreement.
Let us explore the most important terms in the producer agreement:
The Producer’s Obligations
The producer agreement will specify what precisely the producer is supposed to do. For instance, it may be to orchestrate, arrange, record, mix, and master at least 12 songs or a total of 45 minutes of music. It will usually specify a delivery date when the producer must have satisfied all its obligations.
There will be carve-outs where the producer cannot fulfil its obligations for reasons outside their control. For instance, suppose you, as the musician, fail to show up or behave unreasonably. In this case, the contract typically absolves the producer of any responsibility.
Paying the Producer
Unless you self-fund your music, your record label will pay the bill. The producer is usually paid on a per-track or per-hour basis.
Production costs can vary wildly. Independent amateur studios may charge as little as £50 per hour. Professional studios with industry heavyweights can charge more than £1,000 an hour or have a daily rate of over £5,000.
The Producer’s Entitlement to Royalties
Unless a producer demonstrates they contributed to the creative process, they are not entitled to royalties.
If the producer negotiates royalties, the agreement will specify their share. Usually, this will be in proportion to the entitlement of the other musicians as specified in the recording agreement. For instance, if the recording agreement entitles the musicians to 5% of the royalties for the first five years, the producer might obtain an additional 1%. More prominent producers may command a higher share of the royalties. What is fair depends on the negotiating position of all the parties.
Copyright Matters
The producer agreement obliges the producer to transfer any copyright in the recordings to the musicians, subject to the contract between the musicians and the record label. This prevents the producer from later claiming that they have direct copyright over some or all of the work and prevents further disputes from arising in the future.
The producer agreement will also specify the producer’s right to be credited on the album and their right to remove any reference to them from the album. This may happen when the record label has a third-party mix or master the post-production recording, and the producer is unsatisfied with the subsequent work.
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Further Legal Considerations
Privity of Contract
In the UK, the producer is often separate from the record label. Accordingly, the producer agreement is a contract between the producer and the record label. For comparison, in the US, the contract may be directly between the musicians and the manager/agent.
Therefore, if the producer breaches an obligation in the contract but is not a party to the producer agreement, you have no claim against the producer. Accordingly, the record label must pursue a claim against the producer on your behalf.
Contract Formation
A producer agreement may exist even if it is not written down. These informal arrangements are common, especially for independent musicians, labels, and studios. Provided everything goes according to plan, the absence of a written agreement may not be a problem.
However, where there is a dispute, the aggrieved party will need to demonstrate a contract exists. Where money exchanges hands, or a promise to exchange money in the future, it may be easy to prove a contract even without a written record. However, this is not guaranteed. Furthermore, it will be challenging to prove the contract’s terms if it is not written. Therefore, all parties benefit from a written agreement where possible.
Key Takeaways
As an independent musician, you should understand the terms of any producer agreement arising during your career. You may not be a party to the contract due to the relationship between you, the record label, and the producer. Nonetheless, it helps to know what everyone’s rights and obligations are. The producer agreement outlines the producer’s obligations, payment terms, entitlement to royalties, and copyright matters related to the music recording process. It also may specify the producer’s role in arranging, recording, mixing, and mastering the tracks. Finally, the agreement may grant the producer a share of the royalties if they contributed creatively.
If you need help drafting your producer agreement, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A producer agreement, also known as a production agreement, is a legal document that outlines the rights and obligations of the producer involved in the recording and producing a music project.
Yes, a producer may negotiate royalties in the producer agreement, specifying their share of the royalties provided they contributed creatively to the music.
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