Look over this contract for me please!

deadly · Post by **deadly** » Wed Aug 19, 2009 8:55 am

Got our first tune coming out on a various artists album in October. Nothing major - it will probably sell 500-1000 altogether.

I have no idea if this is an OK deal or not. Obviously I'm not expecting to retire off it but I just wanted to check I'm not signing my life away. Is 6 years a standard licensing period and 18% royalties decent? Any other comments?

Project: xxxxxxxx Soundtrack Of The Year 2009
Requested Title(s): xxxxxxxxxxx - xxxxxxxxx
Release: xx October 2009
Label: Xxxxxxxx Records
Rights: non-exclusive
Territory: World
Main Distributors: XXXXXX, xxxxxxxtunes, Xxxxxxxx
Number of Tracks: ~15
Format: 2x12", CD, digital
Royalty: 18% of fixed tradeprice
Deductions: none
Licensing Period: 6 years, +6 month sell-off period
Sales Statements: annually within 90 days of each period
Mechanical rights/GEMA: paid by Xxxxxxxx Records
Free Product Samples: 3 copies of available physical formats
(Additional copies: 8 Euro per 2x12" / CD)

lowpass · Post by **lowpass** » Wed Aug 19, 2009 8:58 am

probably the most irrelevant but the 3 free samples. Is that one of each format or 3 of each format?

darkartois · Post by **darkartois** » Wed Aug 19, 2009 9:02 am

In my experience I have never seen a 6 year royalty period, there has never been any amount of time defined. I have never dealt with a compilation release though.

deadly · Post by **deadly** » Wed Aug 19, 2009 9:08 am

Lowpass wrote:probably the most irrelevant but the 3 free samples. Is that one of each format or 3 of each format?

3 CDs and 3 vinyl sets which seems fair to me. It will just end up on my wall anyway!

lowpass · Post by **lowpass** » Wed Aug 19, 2009 9:17 am

Lol I'd be so desperate to get a vinyl on my wall I'd probably sign anything that got me a free copy of it

sorry I can't be of much help, might have to read up on music business, I'll try to avoid signing anything too soon as well lol

deadly_habit · Post by **deadly_habit** » Wed Aug 19, 2009 9:45 am

that is the most non legally worded contract i have yet to see

paradigm_x · Post by **paradigm_x** » Wed Aug 19, 2009 9:48 am

If theres 15 tracks, and 18% royalites, obv that would have to be split between 15 people (unless youre doing more than one track etc.) so about 0.83% per artist....

SO basically youre not looking at retiring yet. Cant see you getting much more on a compilation either, unless its a 2-3 artists thing...

Normally they try and keep your tune forever so not too bad id suggest. Lets face it, who cares about a dubstep tune 6 years later...

Id say go for it, lucky to get any form of contract at all.!

Nice one.

serox · Post by **serox** » Wed Aug 19, 2009 9:57 am

What happens if they decide to re sell your track later on another compilation?

I am guessing there is more to the contract, ie the legal shit.

Also, what is 1 statement a year? does that mean you only get some monies once a year?!

serox · Post by **serox** » Wed Aug 19, 2009 10:05 am

a pal had this to say about it

1000 cds or a 1000s records? or both?

how much will they sell them for?

how much do they make V's the artist

make sure they put in writing the exact stores they would be available on etc etc

if you were releaseing just digital versions i could get you a royalty rate of almost 79% from stores like beatport, TID, Itunes, Amazon so the 18% would still bother me bro.

id bartar with the label/distri to just do hard copies and no digital. as the deal is non exclsuive you can then go and get a decent royalty rate on the digital versions of the music with leading digital stores.

then cross sell between all stores "cant afford the vinyl?? check out trackitdown for the digtal version blah blah blah"

just some thoughts

boomstix · Post by **boomstix** » Wed Aug 19, 2009 11:01 am

if i am considering signing a contract and wondering if its a good deal or not, the main consideration is if anyone else is offering a deal.

if you have a better offer then take it

if not, then go for this one i think

just from looking at what you showed us, it doesn't look like you're signing your life away. mainly because its non-exclusive, so if you want to you can still license it to someone else at the same time.

as was posted earlier, you could get more on the digital sales but you have to consider how well they would sell if they weren't backed by a label.

if its a good label and they know what they are doing that will probably be better than just pushing them yourself.

i don't know much about royalty rates on vinyl and cd's tho. hopefully someone else does?

deadly_habit · Post by **deadly_habit** » Wed Aug 19, 2009 11:22 am

boomstix wrote:if i am considering signing a contract and wondering if its a good deal or not, the main consideration is if anyone else is offering a deal.

if you have a better offer then take it

if not, then go for this one i think

just from looking at what you showed us, it doesn't look like you're signing your life away. mainly because its non-exclusive, so if you want to you can still license it to someone else at the same time.

as was posted earlier, you could get more on the digital sales but you have to consider how well they would sell if they weren't backed by a label.

if its a good label and they know what they are doing that will probably be better than just pushing them yourself.

i don't know much about royalty rates on vinyl and cd's tho. hopefully someone else does?

mix cd or multi artist depends on how many tunes etc on it
just make sure you at least get quarterly invoices tracking sales, promo copies etc till sold out

deadly · Post by **deadly** » Wed Aug 19, 2009 1:16 pm

Thanks for all the responses.

Probably should have mentioned that it's not a Dubstep track - it's electropop! There's about 15 separate artists on the unmixed compilation.

Deadly Habit wrote:that is the most non legally worded contract i have yet to see

It's copied from a Heads of Agreement and there's more than just what I posted.

I'll ask about the royalty rate on individual downloads from Beatport etc. I'll also find out exactly where it's going to be sold as it only states the main distributors.

I'll also try and find out if we can see sales invoices more than once a year.

Haven't signed up to PRS and PPL yet so I'll have to do that asap.

deadly_habit · Post by **deadly_habit** » Wed Aug 19, 2009 1:19 pm

yea mechanical royalties just as a heads up should be a separate contract

arcticsunrise · Post by **arcticsunrise** » Wed Aug 19, 2009 1:25 pm

yes do ppl as an artist becuase royalties of a track played get split between the label who put out the tune and the artist who made so make sure your registered or the label will get their bit but not you.

tbh the lenght of time isnt bad and like it says no exclusive so you can licence the track to anoher labelcomp whatever - you could even sell it yourself as a download from wherever and theoretically use the promotion of the track being on'xyz album' and then keep more of a percentage of digital sales.

also check things like whether you have to promote the track and the album etc as sometimes in the small print you may not get money if you havent reasonably helped to promote the music.

contarcts are a pain but very very important if you want to make some dosh.

ive seen 1 page and 13 page contracts before so it varies.

dbl check a few but id say go for it mate - then you can add to the list of labels youve released on.

decree · Post by **decree** » Wed Aug 19, 2009 3:25 pm

Does that non-exclusive clause go to the track being signed or to him?

if the track is non-exclusive then 100% do it since you can still sign it out and this would be a way to get it some instant marketing

otherwise if it is exclusive rights to track then thats low and long

deadly · Post by **deadly** » Wed Aug 19, 2009 3:35 pm

Yeah it's non-exclusive so I can put it out at any point in the future if I want.

This contract is only for the release on this particular compilation so any further releases would have to be agreed.

They guy I'm dealing with seems pretty sound and they've had some relatively big names on their label so it's pretty exciting for us. They've said they're up for doing a 4 track EP in the new year which I'm sure will be a bit more complicated but I don't want to go asking for the earth on a first release!

Rickmansworth · Post by **Rickmansworth** » Wed Aug 19, 2009 3:45 pm

18% royalty? seems low... maybe b/c there is vinyl and cd involved?

usually its 50% for digital releases.

decree · Post by **decree** » Wed Aug 19, 2009 3:50 pm

rickmansworth wrote:18% royalty? seems low... maybe b/c there is vinyl and cd involved?

usually its 50% for digital releases.

not when they are not signing the rights to your track
this is for a compilation

------------------------------------------------------------------------------------

again then I will say that if they are not recieving general rights to your track
then 100% DO THIS ASAP

(for backing of my opinion... I too run a label)

setspeed · Post by **setspeed** » Wed Aug 19, 2009 3:58 pm

people are getting confused here.

this is a contract for a LICENCE to a compilation. 50% is standard for a sales contract where you sign away the copyright to a label to do whatever they like with. in this case, you retain the copyright and are only giving this label the right to sell the track as part of this one comp.

18% is totally standard; in fact you normally have to haggle to get them above 16% so it's not bad. on top of that, they normally have deductions (this is short for packaging deductions which is a heap of bullshit that majors use to screw more money out of their artists, even when selling mp3's which have no packing) - this one doesn't have that so it's not so bad.

as to accountings - to be quite frank i'd say fuck it. once a year is not amazing and you could ask for once in 6 months but to be honest the dance music industry is so shit and unprofessional you will probably never get any statements at all. i haven't had a statement for anything i've released in about 2 and a half years, despite releasing about 25 original tracks in that time on 6 or 7 labels, and having statements required in the contracts and that. i'd say just get the tune out, and enjoy it

make sure you do register with MCPS though, as you'll definitely get some money through them. the PRS and MCPS are genuinely on the artists side

stepwriterun · Post by **stepwriterun** » Wed Aug 19, 2009 4:59 pm

It's a non-exclusive license, so you can release the track on another label too. Save whatever money you receive from this for the time you need a lawyer/solicitor to review a real contract.

Look over this contract for me please!

Look over this contract for me please!

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