Record Label Contract for the United States

Record Label Contract Template for United States

A Record Label Contract is a legally binding agreement governed by U.S. federal and state laws that establishes the terms and conditions between a record label and a recording artist or band. The agreement covers rights assignment, recording commitments, royalty structures, marketing obligations, and distribution rights. It incorporates various aspects of copyright law, digital rights management, and performance rights while ensuring compliance with federal music industry regulations and state-specific contract laws.

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What is a Record Label Contract?

A Record Label Contract serves as the foundational agreement in the music industry, establishing the legal and business relationship between artists and record companies. This document is essential when an artist or band enters into a professional recording arrangement with a label in the United States. It covers crucial elements including copyright ownership, recording obligations, royalty payments, marketing commitments, and distribution rights. The contract must comply with U.S. federal copyright law, state contract laws, and industry-specific regulations, while protecting both parties' interests in an evolving digital music landscape.

What sections should be included in a Record Label Contract?

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

2. Background: Context of the agreement and basic premises

3. Definitions: Key terms used throughout the agreement including copyright, masters, recordings, territory, and royalty terms

4. Term: Duration of the agreement and extension options

5. Recording Commitment: Number and type of recordings to be delivered, including minimum requirements and delivery schedules

6. Rights Granted: Rights being transferred to the label including master recordings, distribution, and licensing rights

7. Royalties: Payment terms, calculation methods, and distribution of revenue across different formats and territories

8. Accounting: Financial reporting requirements, payment schedules, and audit rights

9. Warranties and Representations: Legal guarantees from both parties regarding rights, ownership, and capacity to contract

10. Termination: Conditions for ending the agreement and post-termination obligations

What sections are optional to include in a Record Label Contract?

1. Marketing and Promotion: Specific marketing commitments, budget allocations, and promotional obligations

2. Tour Support: Terms for touring assistance, financial support, and tour revenue sharing

3. Merchandise Rights: Terms for merchandise production, sales, and revenue sharing

4. Publishing Rights: Terms for music publishing, administration, and revenue sharing

5. Digital Distribution: Specific terms for digital platforms, streaming services, and social media usage

What schedules should be included in a Record Label Contract?

1. Schedule A - Recording Schedule: Detailed timeline for recordings and delivery dates

2. Schedule B - Royalty Calculations: Detailed breakdown of royalty rates for different formats and territories

3. Schedule C - Territory Definition: List of territories covered by the agreement

4. Schedule D - Permitted Recordings: List of pre-existing recordings and their usage rights

5. Schedule E - Marketing Commitments: Detailed marketing plans, budgets, and promotional requirements

6. Appendix 1 - Recording Requirements: Technical specifications and quality requirements for recordings

7. Appendix 2 - Approved Third-Party Agreements: List of pre-approved external contracts and relationships

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

Jurisdiction

United States

Publisher

Genie AI

Document Type

Music Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Copyright Law: Primary legislation includes Copyright Act of 1976, Digital Millennium Copyright Act (DMCA), Music Modernization Act of 2018, and Sound Recording Act. These laws govern the protection and exploitation of musical works and sound recordings.

Contract Law: State-specific contract laws, Statute of Frauds requirements, and common law principles of contract formation that govern the basic validity and enforceability of the agreement.

Labor Laws: Fair Labor Standards Act and state-specific employment laws, including independent contractor regulations that may affect the artist-label relationship.

Royalty and Payment Regulations: Digital Performance Right in Sound Recordings Act, Digital Performance Rights Act, and mechanical licensing regulations that govern compensation structures.

Union Requirements: American Federation of Musicians (AFM) and SAG-AFTRA regulations that may affect the recording and performance aspects of the contract.

Rights of Publicity: State-specific publicity rights laws governing the use of the artist's name, image, and likeness in marketing and merchandise.

Trademark Law: Lanham Act and state trademark laws protecting brand names, logos, and other distinctive marks associated with the artist.

Anti-Trust Laws: Sherman Antitrust Act and Clayton Act provisions affecting competition and market behavior in the music industry.

Digital Distribution Laws: E-SIGN Act and state electronic transaction laws governing digital distribution and electronic contracting.

Minor Protection Laws: State-specific laws protecting minors in entertainment, particularly relevant if the artist is under 18 years of age.

Term and Territory Definitions: Specific contractual provisions defining the duration of the agreement and geographical scope of rights granted.

Recording Commitments: Contractual obligations regarding the number of recordings, delivery schedules, and quality requirements.

Ownership of Masters: Legal provisions governing the ownership and control of master recordings produced under the agreement.

Marketing and Promotion: Obligations and rights regarding the marketing, promotion, and exploitation of recordings and artist brand.

Dispute Resolution: Procedures and mechanisms for resolving disputes between parties, including choice of jurisdiction and arbitration provisions.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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