Indie Music Contracts?

fmc.org has a contract critique that is very instructive and righteous, if a bit outdated (or more precisely, in need of an update). It is a "major label" critique I think but a record contract is a record contract. Just take out all the stuff they think sucks.

fmc.org gets me to a faith ministry site--is that my bad? I is curious as well--will be going through it soon, and must arm our band.

also the difference between a release that you press 500 and a release you press 10,000 is like 2 different universes.

Are we the hand being palmed or the palming hand? 500 vs 10000 in terms of contractual obligations you mean?

palming hand.

i guess what i'm saying is that - like for a small limited 500 thing, someone you know and trust that does stuff on a small scale, contracts seem kinda silly and a waste of time...10,000 yr getting into like "music business" territory. that's a shitload of records to expect to sell....i guess to me it's like saying "should i go down and play a pickup game at the YMCA or just sign with the Lakers?"

but anyway, i just put out a record on a handshake deal and have ZERO complaints. but you know, i guess i know and trust the guy.

Sorry, FMC is www.futureofmusic.org (Future of Music Coalition)

I don't like those "handshake" deals myself. Artists tend to view contracts as a negative thing, like something they are trapped into, whereas a properly negotiated one does as much to protect an artist (such as the payment of mechanical royalties under the prevailing governmental artist copyright statute, most countries have one) as much as to harm them.

The thing is, most artists understandably don't know how to spot the negative and harmful language in a recording contract (that's where the FMC can help) but I think it is better to have something down on paper, LITERALLY even if it is just in your own words, as to what the precise nature of the deal is. The key areas would be: Grant of Licenses (what are you giving to the label? Are you giving away your publishing?), Term (i.e. how long), Territories (in which the license is granted), Artist Compensation (be sure you remember to address digital revenue), Recoupability of label expenditures against artist's "profits", Accountings and methods thereof, Artist Warranties (to protect the label to whatever extent possible-- which isn't really much-- that the artist's compositions are indeed theirs to license and that the artist is not harming any other parties in granting the license), and what to do if it all (or any of it) goes wrong (mechanisms for rights reversion under specified conditions, service of process, court of jurisdiction, notices under the agreement, provisions for arbitration).

These handshake deals are partly a function of the economic scale of the situation. If you expect to sell 1000 copies of a CD (and even that isn't all that easy), then obviously you can't pay a lawyer five grand to draw up the paperwork.

I like that pickup game at the Y/Lakers line, made me LOL a bit.

Hope that is helpful to both label and artist alike.

Yeah, the main protection for the artist in having a contract is if you press up 500 or whatever and then HIT THE BIG TIME at some future date, you know where you stand with reissues etc. Indie contracts I've seen are only a couple of pages long and pretty much just cover what Saxby D. Elder mentions.

This is really, really helpful. To Saxby, the "what are you giving away" is what I'm mostly worried about. I'll be happy if the label recoups their expenditures, (not much, but still, a fair amount of advance for a small label.) and i'm mostly wondering how to say "i want to maintain the rights to the songs, and i'd like to get revenue past X amount that you've made.) I didn't even THINK about the "what if we unintentionally ripped someone off" issues. YIKES

Highly recommend Donald Passman's All You Need to Know About the Music Industry, which covers essentials like recoupment, royalties, etc. You might want to also contact your local Volunteer Lawyers for the Arts to see if you could get pro bono (i.e. free) help in drafting a contract.

Good idea--I wonder if I can ask other bands on the label or on other labels--or is that a really bad idea? (even if we don't talk numbers at all, but just talk clauses and watchouts?) I've ordered the book! And FMC roxor!

re: VLA and the contract...

VLA is not entirely free (although it's a good suggestion). They charge you a certain amount (like $125 or so for a one-year membership) and I think there is a nominal additional charge if they actually take your case. And this particular matter would probably not meet their threshold as a "case" for them to take on (and draft you a contract). (at least my experience with the NY chapter, YMMV).

The label should be the ones who proffer the contract (i.e. it's not on you to figure out how or where to get one drafted), in which case you could pay to join VLA and then go to their free "clinic" to have whatever the label gives you looked at.

Best would be take that book and the FMC contract critique and make it your business to know what is what! Good luck!!