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You probably have many questions if you are an independent musician looking to enter into a record label with a producer or recording studio. For instance, what rights will you retain over your music? How will you be paid? The music industry has changed considerably in the past two decades. This article will provide you with an overview of your rights and obligations in the music industry as they specifically relate to your relationship with producers and record labels under a producer or a recording agreement.
What is the Difference Between the Producer and Record Label?
Generally, the industry distinguishes between producers and record labels because they fulfil different functions. Sometimes a single entity will fulfil both functions. This is more common for independent labels. Generally, the producer and recording label are separate entities.
The Producer
A producer is a person or entity that arranges, records, mixes, or masters your music. Some artists produce themselves. But most hire professional producers, and recording and sound engineers who produce other artists.
The relationship between a producer and an artist can vary wildly. Some producers work so closely with artists that they become part of the creative process. In this case, the producer may become entitled to some of the artist’s royalties. Alternatively, some producers simply mix or master the recording and have little or no creative input.
After the initial production, the producer may mix or master the recording, which is fine-tuning the sound. Alternatively, another party may mix and/or master the music after production.
What is a Producer Agreement?
The producer agreement is the legal document that sets out the rights and obligations of the producer to the artists and the record label. It usually specifies:
- how the producer will be paid;
- what entitlement the producer has to royalties (if any); and
- various copyright matters.
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What is a Record Label?
A record label generally describes any person or company that agrees to:
- act as your manager/agent;
- record and/or produce your music;
- distribute your music;
- promote your music;
- coordinate your live shows;
- produce and promote any associated merchandise; and
- otherwise, serve as a sponsor or brand manager.
Some musicians may have a single entity that provides all of these services. Others may have different entities providing different services.
Therefore it is important to understand precisely the obligations a record label owes you. This information will be contained in the recording contract.
What is a Recording Agreement?
The recording agreement is a contract between you and the record label. It will set out certain important terms, including:
- your obligations to produce and record your music;
- how much the label will spend on production;
- who owns the copyright and licencing;
- your entitlement to royalties;
- your rights and obligations related to live shows and touring to promote the music produced and recorded by the label; and
- which income streams the label is entitled to.
The agreement may also specify matters such as:
- what happens if your band splits up; and
- your rights to audit the label for the proceeds it has received from your music.
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Key Takeaways
As an independent musician looking to sign a record label or recording contract, you should understand your rights and obligations under these agreements. Appreciating the difference between producers and record labels is important because these describe different functions usually provided by different entities. Producers actually create the recorded music, whereas record labels typically finance the production and oversee the distribution of the recorded music. As a musician, you should carefully consider copyright ownership, royalties, and cash advancements when negotiating with record labels and producers to ensure you maximise your interests.
If you need help with your agreement, our experienced contracts 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.
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