Master Recording Agreement for the United States

Master Recording Agreement Template for United States

A Master Recording Agreement is a legally binding contract under U.S. law that establishes the terms and conditions under which an artist will create and deliver recorded music to a record company. The agreement covers rights ownership, compensation, recording obligations, and exploitation rights. It typically includes provisions for digital and physical distribution, marketing commitments, and territory restrictions. This agreement is governed by U.S. federal copyright law and state-specific contract laws.

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What is a Master Recording Agreement?

The Master Recording Agreement serves as the foundational document in the recorded music industry, establishing the legal framework for the relationship between artists and record companies. This agreement is particularly crucial in the United States, where it must comply with federal copyright law and state-specific regulations. The document typically covers essential aspects such as ownership of master recordings, royalty rates, recording budgets, and distribution rights. The agreement is used when an artist commits to create recordings exclusively for a record company, typically in exchange for financial investment and professional support in production, marketing, and distribution.

What sections should be included in a Master Recording Agreement?

1. Parties: Identification of the record company and artist/band

2. Background: Context of the agreement and general purpose

3. Definitions: Key terms used throughout the agreement including technical, financial, and legal terminology

4. Grant of Rights: Specific rights being transferred to the record company, including recording, distribution, and exploitation rights

5. Term: Duration of the agreement and any extension options

6. Recording Obligations: Number of recordings, delivery requirements, and technical specifications

7. Compensation: Royalty rates, advances, and payment terms

8. Accounting: Reporting periods, statements, and audit rights

9. Warranties and Representations: Legal guarantees from both parties regarding rights, permissions, and capabilities

10. General Terms: Standard legal provisions including governing law, dispute resolution, and termination rights

What sections are optional to include in a Master Recording Agreement?

1. Marketing and Promotion: Promotional obligations and requirements, including marketing commitments and promotional appearances

2. Publishing Rights: Administration of publishing rights and related revenue sharing

3. Merchandising Rights: Terms for merchandise production and sales, including revenue sharing arrangements

4. Territory Restrictions: Geographic limitations on rights and territory-specific terms

5. Side Artist Provisions: Terms for guest appearances and collaborations with other artists

What schedules should be included in a Master Recording Agreement?

1. Schedule A - Recording Schedule: Detailed timeline for recording and delivery of master recordings

2. Schedule B - Technical Specifications: Required format and quality standards for master recordings

3. Schedule C - Royalty Calculations: Detailed breakdown of royalty computations and payment structures

4. Schedule D - Permitted Deductions: List of allowed expense deductions from royalty calculations

5. Schedule E - Territory List: Detailed list of territories covered under the agreement

6. Schedule F - Approved Recording Budget: Agreed budget for recording process including studio time and production costs

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Music Industry
Entertainment
Digital Media
Broadcasting

Relevant Teams

Legal
Business Affairs
A&R
Finance
Marketing
Distribution

Relevant Roles

A&R Director
Music Attorney
Business Affairs Manager
Artist Manager
Record Label Executive

Industries

U.S. Copyright Act of 1976: Primary federal copyright law governing rights in creative works, including sound recordings, compositions, and arrangements

Digital Millennium Copyright Act: Federal law addressing digital copyright issues, including online distribution and anti-circumvention provisions

Music Modernization Act 2018: Updates music licensing legislation for the digital age, including streaming rights and royalty structures

Fair Labor Standards Act: Federal law establishing wage, overtime, and labor standards that may affect recording sessions and production work

Work-for-hire Provisions: Copyright law provisions determining ownership of works created during employment or specially commissioned works

State Contract Laws: State-specific regulations governing contract formation, enforcement, and interpretation

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Uniform Commercial Code: Standardized state laws governing commercial transactions, including sale of goods and services

Right of Publicity Laws: State laws protecting individuals' right to control commercial use of their name, image, and likeness

SAG-AFTRA Regulations: Union rules affecting performers' rights, working conditions, and compensation in recording industry

AFM Regulations: American Federation of Musicians rules governing musicians' rights, working conditions, and compensation

E-SIGN Act: Federal law governing validity of electronic signatures and records in commercial transactions

Sound Recording Rights: Specific rights related to recorded performances, including reproduction, distribution, and public performance

Mechanical Rights: Rights related to reproduction of musical compositions in recorded form

Synchronization Rights: Rights governing use of recordings in audiovisual works like films, TV shows, and advertisements

Performance Rights: Rights related to public performance of musical works and sound recordings

Royalty Payment Regulations: Laws governing calculation, reporting, and payment of royalties to rights holders

International Copyright Conventions: Treaties and agreements governing copyright protection across national borders

Federal Trade Commission Regulations: Consumer protection and fair trade practices regulations affecting music industry

Territory Restrictions Laws: Regulations governing geographical limitations on distribution and exploitation of recordings

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What is a Master Recording Agreement?

What sections should be included in a Master Recording Agreement?

What sections are optional to include in a Master Recording Agreement?

What schedules should be included in a Master Recording Agreement?

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