Studio Contracts - Master Recording

[hebro1]

Hi Pro Toolers,

I have decided to invest in an artist that really has potential. However, I need a contract that states "because I am financing production, recording, mixing, and mastering" that I own the Master Recording(s).

Now I have no problem releasing the Master's to the artist, once I have recouped, but until then, they belong to me.

I have searched the web, and the closest I found was the "Purchase of Master Recordings."

If anyone has a contract already on file that they can email me, I would greatly appreciate it.

My email is:
[email protected]
or
[email protected]

Thanks
David

[lexaudio]

Originally Posted by hebro1

Hi Pro Toolers,

I have decided to invest in an artist that really has potential. However, I need a contract that states "because I am financing production, recording, mixing, and mastering" that I own the Master Recording(s).

Now I have no problem releasing the Master's to the artist, once I have recouped, but until then, they belong to me.

I have searched the web, and the closest I found was the "Purchase of Master Recordings."

If anyone has a contract already on file that they can email me, I would greatly appreciate it.

My email is:
[email protected]
or
[email protected]

Thanks
David

You should really get an attorney to draft a contract because there are so many things that could go wrong.

You need to protect yourself. There are plenty of contracts you can buy on the internet, producer/artist development agreements, but an attorney would be worth the money.

[O.G. Killa]

Bro, get an entertainment attorney! Specifically one that deals in recording contracts and production contracts. You are going to inevitably screw yourself over if you don't. Any contract you find on the web is only going to be worth about as much as what you paid for it ($0) and you'll make just about as much money by using one of them ($0). Anyone who actually has a good contract IS NOT GOING TO POST IT ON THE WEB!!! Two reasons why... each contract ends up being custom tailored to each deal. No two deals with an artist are completely identical, as much as we all wish they would be. Second, some of these contracts can cost anywhere from $500~$10,000 to draft. If you spent $10,000 on a kick ass lawyer drafting up a rock solid contract for you. Are you just going to post it on the web for all to use for free? I think not!

So let me just give you a couple examples, FROM PERSONAL EXPERIENCE, as to how you could screw yourself over. What if, after finishing the masters but before releasing them... the band gets a large record deal with a major label (they sent the CD to a lawyer who shopped it to some labels, all without telling you) and the label decides to hire Steve Lillywhite/Rick Ruben/Etc to produce it and CLA/Dave Pensado/Tony Maserati/etc to mix it? You get "$0" because they aren't using your masters anymore, yet your hard work and investment is what got them the major label deal in the first place. They now have $200,000~$400,000 in cash as an advance and have $1.5mil marketing them. You have a hug, a pat on the back and a big "thanks for all your help!" from the band.

Or what if the same thing happens after the album is released but before you have recouped your investment? The major label will legally make the band stop selling YOUR version of the CD and even pull it off shelves and have it returned to the band to be destroyed. This way they can do a much larger marketing push for THEIR versions of the masters when they are finished, and you are screwed.

Also, don't screw yourself by only getting your money BACK. You are investing in them, as such not only should you recoup, but you should get a RETURN on your investment. How much is that return going to be? On what do you get a return? do you make money from them touring in support of the album since without your efforts they wouldn't have an album to tour in support of? What if they release a CD single of one of the songs? Should you get a percentage of that too or just the Master LP you made for them?

Etc...

There are SOOOOOOO many ways for you to screw yourself over in a deal like this. Get a GOOD entertainment attorney (not a general law attorney, not a real estate law attorney, not a divorce attorney or family law attorney, not a tax attorney). And if you feel that the attorney is going to be too expensive... then that ultimately tells you something about the band and your feelings/confidence in them. If you were 110% sure the band was going to sell at least 10,000 copies (at $10/each). That's $100,000! Why wouldn't you want to spend $1000 or $2000 on a lawyer to make $100,000? If you think the lawyer is going to cost more than you are going to make from working with the band... then you should probably walk away.

And just to put this in perspective, I have 4 law firms on retainer. I have an entertainment law firm that handles all of the production, recording, publishing, broadcast, script writing, songwriting, and musician "work for hire" agreements I need to draft. I have a litigation attorney, since I'm developing artists (some of whom are minors) and frequently need to get these types of contracts ratified by a judge (any contract with a person under 18 yrs old in CA needs to be ratified by a judge). I have a Tax/business law firm that handles my corporation and helps me with d/b/a's, bylaws, and tax law (this is in addition to my Accountant). And I have a second entertainment attorney that acts as a broker, his only job is to shop artists/projects to the appropriately interested companies for me and negoiates the deals with these companies for me. It is the cost of doing business.

If I didn't have all these people working for me, I would be COMPLETELY screwed, wouldn't be making any money, and would be broke and bankrupt (and possibly sued) before I even stepped out my front door.

and just one little piece of advice, it's always the artist/group you really like but don't think will go anywhere, that ends up being huge. Don't waive any of your rights or money/percentages for "credit". "Credit" comes as a result of the paychecks a label HAS to write you, not in leiu of. I learned that one the hard way and screwed myself out of about $900,000 (yes, $900,000!) on a $9mil record deal for a friend I thought was amazing, but just never imagined would/could get that big. I still to this day kick myself in the butt for that one. You live and you learn...

[jeremyroberts]

Originally Posted by O.G. Killa

Bro, get an entertainment attorney!

No wiser words have ever been spoken on the DUC.

[TiPo]

Actually if I had a contract drafted for me even for $20,000 I still would possibly share it with others. Maybe it is just me, but lawyers make too much money on us even in this bad economy and yet their main purpose is to escalate conflicts and disputes among us so later they could jump in again, take most of our money and attempt to “solve the problems” that basically they have caused in the first place.
Hmm… lawyers. Can’t live with them and can’t live without them. Or can we?
By sharing my contract I would loose nothing, really, since I will have already spent the $20,000 but at least by sharing a top notch agreement draft I would hopefully decrease the need for a lawyer for the others even if only somewhat at least.

[Mt.Everest]

Originally Posted by jeremyroberts

No wiser words have ever been spoken on the DUC.

+1!!

Also, be sure to vet ANY lawyer you like/are referred to/has big-name credits . Always ask what labels they have worked with and for which artists specifically. Reach out to artists of local but non-celeb status.

I deal A LOT with the music publishing aspect of the biz. And its a shame when a naive inexperienced writer/producer (no fault of their own; gotta start SOMEwhere!) writes a HUGE #1 single and years later is still caught up in legal battles/fund freezes spawned from their poor/vague/taken-advantage-of contract. Multiplatinum sales and has only collected under $5k for a song that at least paid publishing royalties of around 1 million per 10%.

Personal experiences and witnessing others get screwed learned me to vet at least 10yrs prior to present before signing anything- their lawyer AND my own.

Lastly, there are some amazing books out there. The usual ones like the Don Passman book for example.

Work some numbers (budget, minimum return hoped for, accepted points structure, etc) and get an idea what it really takes to see a dime- selling only 10k units or 500k units (digital these days) . Without a GREAT contract, an artist with serious potential WILL be taken away from you.

Then again, Im pretty jaded. But the interweb tubes are very useful these days for research. Or just watch " That Thing You Do! " :)

MT

[jeremyroberts]

The problem with a spec project (it just so happens that I am turning one down today) is that there are countless things that can make it worthless to you.

As O.G. wrote, what happens when your band gets picked up by a major (and if the album is good, it could) - and the major wants a do-over with A-list guys. Doesn't matter if the original album is great or it sucks. It's their money. Your album is now a demo, and it's a boat anchor.

Spec deals are tricky and only as good as your relationships... so EVEN IF you have a contract with every contingency considered, and EVEN IF your deal protects you from all future exploitation, think about what will happen if/when you have to pursue a legal remedy -- legal fees, blown relationships, etc... and then, let's say you get a judgment - how are you going to collect? Will there be anything left over?

As they say, "a contract is only worth the paper it's printed on..."

So your investment in a lawyer is only part of the process -- you also need a serious heart-to-heart with the people involved, and discuss all contingencies, and really know where you stand. Yes, make a laundry list of contingencies as part of the deal, but make sure everyone knows every contingency. Shoot video of your conversation (of course the video is not legally binding, but it does remind all involved that you have discussed the contingencies, and get a signed release from everyone in the video that you have permission -- and if the band screws you, this video will end up on YouTube)

Am I jaded? No -- just been there, done that more than a few times...

The business now is about 360 deals, so making a spec deal ONLY for the exploitation of a master recording is unlikely to be profitable for you.

Talk to a legal professional that is actively working in music right now. NOT a general entertainment guy -- film, tv and other media may be related, but the selling and exploiting of recorded music business has changed so much in the past 5 years... the expert from 5 years ago is unlikely to be the expert today.

[Bill Denton]

Don't want to bring you down, but...

I'm guessing you probably don't have a lot of music business experience, but please correct me if I'm wrong.

First, keep in mind that there is a very wide gulf between music that is good and music that will sell, and it does take a certain amount of experience to learn the difference.

Were it me, I would forget about the "master" thing, and instead lock the artist(s) down with some type of exclusive contract with at least a three-year term. That way you'll get a cut no matter how things go down.

Then, if you feel you really know how to put together a marketable master (or can hire people who know how to), put the whole thing together and try to get a distribution deal with a major record company.

To be brutally honest, you might not be able to get a distribution deal even if you do have a saleable product, but you definitely will not be able to get one "if it ain't in the grooves".

The whole thing about this is maximizing your chances of getting a financial return while limiting your financial exposure.

And once again, "good" don't mean a damn thing; it's all about what will sell.

But however you play it...good luck...