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Record Label Agreement

For an artist signing with a record label — covers advances, royalty rates, how many albums the artist owes, who owns the masters, controlled compositions, and option periods.

Drafted by a Harvard Law entertainment attorney.

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Is this the right contract for your deal?

This contract is built for an artist signing with a label that will fund, release, and promote recordings in exchange for rights and a share of income. It fits deals where the label takes ownership of the masters, pays an advance, recoups its costs, and commits to a number of recordings, and where both sides want the royalty, ownership, and term terms in writing.

Good fit for

  • Artists signing with an independent or major label
  • Labels funding and releasing an artist's recordings
  • Deals with an advance the label recoups
  • Multi-album deals with option periods
  • Anyone setting master ownership and royalty terms

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Before you start

It helps to have these details on hand before you create your contract:

  • Artist name and label name
  • Number of recordings or albums required
  • Advance amount and what it covers
  • Royalty rate and how it is calculated
  • Who owns the master recordings and for how long
  • What costs are recoupable before royalties are paid
  • Option periods and release commitments
  • Term, territory, and any reversion of rights

What's Inside This Contract

Recording commitment

Sets the number of recordings or albums the artist must deliver.

Term and territory

States how long the deal lasts and the regions it covers.

Compensation

Covers the advance, royalty rate, and recoupment of the label's costs.

Grant of rights

Defines what rights the artist grants, including ownership of the masters.

Representations and warranties

Each side confirms it has the right to enter the deal.

Termination

Explains how and when the agreement can end.

Disputes and general provisions

Covers standard terms such as notices, how disputes are handled, and signatures.

Points Worth Negotiating

  • Who owns the master recordings and for how long
  • The advance and what it must cover
  • The royalty rate and what it is calculated on
  • How many albums and option periods are required
  • What costs are recoupable before royalties are paid
  • Whether and when rights revert to the artist

Frequently Asked Questions

What is a record label agreement?
It is an agreement where a label funds and releases an artist's recordings in exchange for rights and a share of income, including ownership of the masters.
Who should sign it?
The artist and the label both sign. When the artist is a group, each member usually signs to confirm the rights granted and the income splits.
What does recoupment mean?
Recoupment is the label earning back money it spent, such as advances and recording costs, out of the artist's share before the artist starts collecting royalties.
What are option periods?
Options let the label require more albums by extending the deal. Each option period adds another release the artist must deliver.
Do rights ever return to the artist?
Only if the agreement includes a reversion. Some deals return certain rights after a set time, while others do not, so check this closely.
How is this different from a distribution deal?
A label funds and releases recordings and usually owns the masters. A Music Distribution Agreement only delivers your finished recordings to services, and you keep ownership in most deals.
Should I choose the custom contract or the editable template?
Choose the custom contract to answer a few questions and have it filled in for you. Choose the editable template if you prefer a blank version with labeled fields to complete yourself.
What are common warning signs in a record label agreement?

These are common issues to watch for in any record label agreement:

  • Permanent master ownership with no reversion
  • Many option periods that lock the artist in
  • Broad recoupment that delays royalties
  • Low royalty rate with unclear deductions
  • No release commitment or deadline
  • No audit right to check accounting
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