Label Contract questions

[Jordon]

Hey guys,

My band was just offered a contract by an indie label who shall remain anonymous. They want us to sign a 10 year contract. What is the standard length for an indie label contract?

My understanding is that the shorter, the better.

Also, it stipulates that they will own 100% of the rights to the material, including copyrights.

We're taking this to an entertainment attorney, but I'd like some input from you guys if possible.

 

[Ionei]

Ten years!
Fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuccckkk

 

[Williamn]

Without being anything close to a attorney.. I would say be very carefull, 10 years is damn long time, and 100% of the rights to the material, including copyrights also seems a bit much (But then again, im not sure if thats the norm)

 

[Fragle]

ten years is....a long time ^^
maybe try to change that into multiple albums....lets say 2 or 3. this way you have more control.

as for the copyright, well based from my understanding that's normal. after all they need the copyrights to manufacture the cds and sell them etc.
watch out for merchandise stuff, that's where to get the money from nowadays. also, how much will you have to pay for cds to sell at shows etc?
what about royalties? usually you get either free cds based on a fixed percentage of how many cds they sold (more common with smaller labels afaik), or a fixed percentage of the wholesale price.

 

[Jevil]

10 years? 100% copyrights? Uuuuh... scary...

I've been into 2 labels years ago, in both we arranged contracts for albums instead of years, I think there were 3 albums of contracts... and the copyrights were 50%-50%.

Royalties were 10% of the price, but not the final price, but the price after manufacturing.

In the first one we quit peacefully after 2 albums, the second one we quit after one album not peacefully, and not cheap, we had to pay an attorney. This label dissapeared.

 

[Jordon]

You guys are saying what EVERYONE else is saying.

The guys in my band are all eager and shit. I'm not.

Royalties are 75/25 label/artist after recoup

Show revenues are 50/50

I feel the long, cold dildo of the music industry creeping around downstairs...Ugh.

 

[Loren Littlejohn]

10 years FFFFFFFFFFFUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU!

Tell your band your not signing shit. Put it on them, then walk when shit goes south.

 

[Aaron Smith]

Yeah, don't sign on for a set period of time, that sounds terrible. A set amount of LPs is what's common. Not sure what you mean on the 75/25 for "royalties"- if you're actually getting a 25% royalty rate on CD sales, that would be much higher than usual, although they might offer you that but then tack on some garbage like a 25% reduction for packaging costs and whatnot, so you don't actually collect anywhere near a full 25%. Do you mean you're getting 25% of publishing? That's not very good at all, I would aim for at least 50% (or something close) if not more! And the label is asking you to sign away 50% of your guarantees when you tour? That's totally horrendous and probably the worst part of this deal- money your band pulls in on the road is your financial "bread and butter", and there's no reason for a label to be dipping into that when you basically will never see any money from record sales. Also, assume you'll be paying 15% to your manager and maybe another 15% to your booking agent out of your guarantees...clearly, the label taking 50% on top of that, would be extremely destructive for the health of your band. Now imagine being tied into that for ten years...haha!

 

[Jevil]

Show revenues are 50/50

What? Are they going to schedule a tour or do management jobs?

 

[Jordon]

I'm printing this thread out for them. I've already put my foot down. I'm not signing a damn thing.

Not ONE single person has said this is a good contract.

 

[Trevoire520]

Dude, that's literally like music industry rape.

Normally deals are for 2-3 albums, and sometimes have option periods (so if say after 1/2 albums either you or the label don't want to continue then you can break it off)

50% of show revenue is bullshit, your band wont be able to survive. Especially after managers and booking agents get their cut. You'll basically be playing for free while every fucker else laugh's their way to the bank.

Show guarantee's and merch is where your band actually make a living.

 

[Skinny Viking]

They want us to sign a 10 year contract.

Also, it stipulates that they will own 100% of the rights to the material, including copyrights.

If you can't renegotiate ... Pass

 

[Skinny Viking]

This label dissapeared.

Sounds like LMP?

 

[plague_rider]

Keep them away from Merch and Gig revenue, thats yours and should never be touched by a label, it'll be your only source of income after they've taken what they want from your music releases...

Shorter period, as suggested above, change time for releases

Aaron's given the best advice...

what are they offering along the lines of payign for recording, distribution etc??

From the details you've put up, if they're an indie label, they'll not have a great deal of contacts in this area, but should be offering something...

I've always thought the best idea is to organise recording and touring yourself, sell the CD through facebook/myspace/gigs and try and organise distribution yourself (independent cd shops/iTunes)

 

[Glenn Fricker]

Run, Forrest, RUN!!!

 

[plague_rider]

Run, Forrest, RUN!!!

If you could sum all responses in three words...

Glenn where you been??

 

[slashvanyoung]

Apart from what everyone else has already been saying, make sure that you don't sign yourself away as an individual artist (especially if it's going to be a deal lasting several years - which is a bad idea to begin with, push for a deal about a set amount of releases, ideally with release clauses). If you do that, you will still be contractually obliged when you exit the band or want to release a side project.