Music contract legal advice

Croissant

Hi,

I would be grateful if someone could look at the contract below and clarify the following for me please under ARTICLE 3. Does this contract relate to just the SONG NAME. For example am I free to promote my other songs to other record labels and playlists using my Artist Name.  Or is this an exclusive contract which means I cannot work with any other record label? Thank you.

Artist Management Contract

 

The agreement enters into force on the day 02-08-2022                        hereinafter,

the "record label" GOTTA RCRDS with address in Mexico, MID, and the "Artist".

Artist information

1.      Full name:  

2.    Artist Name: 

3.      Address:

Song information

1.       Song name:  Home                                                                               

2.       Song genre: Dance/EDM                            

3.       Version: Original Mix

The “record label” and the "artist" may be individually referred to as "Party" and collectively "Parties".

 

Consideration:

Please note the following items marked in this contract which are:

1.                  Duration

2.                  Production agreement

3.                  No change

4.                  License

5.                  Distribution

6.                  Cancellation

7.                  Royalties

8.                  Release

9.                  Rights

10.             Legal actions

ARTICLE 1 – DURATION

This agreement enters into force between the "artist" and the “record label”             

from the first day of the song's release and will be valid for ten (10) years from the date of signing of this agreement.

Please note: this agreement will automatically renew after the effective date.

 

ARTICLE 2 – PRODUCTION AGREEMENT

During the agreement of this contract, the "artist" accepts the distribution and exploitation of the song listed in this agreement.

Music recordings produced by the "artist" are subject to approval or rejection by the “record label”.

The "artist" accepts that these recordings are original and do not contain third party files such as (free samples, acapellas, etc.) with copyright.

If the song contains (free samples, acapellas, etc.) You must submit the license for commercial use.

You can use third party files as long as you have the official license to use them.

 

ARTICLE 3 – NO CHANGE

During the agreement of this contract, the "artist" agrees not to perform under any other artistic name within the "record label", nor to use the services of this “record label” outside of it.

 

ARTICLE 4 – LICENSE

The "artist" grants the "record label" a perpetual license to use his artist name, biographical information and audio files for the commercialization and exploitation of this song in order to work on marketing and distribution strategies.

ARTICLE 5 – DISTRIBUTION

By signing this contract, the "artist" accepts the distribution of his song and the       

collection of rights related to it in more than 120 different digital stores (including

radio and television) where GOTTA RCRDS can distribute.

 

ARTICLE 6 – CANCELLATION

If the "record label" or "artist" cancels the contract, your track will be vulnerable to any kind of plagiarism or copyright infringement. We are not responsible for your songs after the contract has been canceled.

This song will be released under the GOTTA RCRDS license.

 

ARTICLE 7 – ROYALTIES

The "record label" will pay the "artist" 80% of the base earnings, to collect their royalties the "artist" must generate a minimum of: $50.00 USD.

The "record label" agrees to pay royalties to the "artist", as long as it covers the amount indicated above.

Note: Royalties will be reflected with us after three (3) months from the song available release date.

 

ARTICLE 8 – RELEASE

The song will be released after its release is accepted and a release date will be sent to you during the wait until the release date (we will work on marketing strategies). If you, as an "artist", decide to create marketing on your own, you can easily do so.

ARTICLE 9 – RIGHTS

The "artist" when signing this contract will have full rights to his song, but must comply with all the terms established in the contract. The "artist" will be responsible for the costs incurred in connection with a violation of the terms set forth in this contract.

In the event that the "artist" breaches any term of the contract, the "record label" may cancel his contract, losing all possibility of working together.

 

ARTICLE 10 – LEGAL ACTIONS

By signing and submitting the contract, the "artist" acknowledges and agrees that in the event of a breach of the terms of this contract, the "record label" will suffer irreparable damages and monetary damages. In the event of a breach of this agreement in any way, the "record label" will have the right to seek injunctive relief along with monetary damages, as well as to seek reasonable costs, including attorneys' fees, incurred to enforce this agreement.

 

 

 

In FAITH and LEGALITY, I accept the terms of this contract.

Full name:

Signature:

 Record Label: GOTTA RCRDS

Grumpy_chap

No one can give legal advice that you can rely upon in a forum such as this.  Given the potential consequences, especially if you "make it big" I can only suggest that you must take professional paid for legal advice.

I see what is written and take my view on how that is interpreted against the question asked.  This is one case where I won't even share my view on the content as an unqualified observation because of the risk to the OP getting this wrong.

Dakta

Feel the same way as the above, this is an employment advisory forum and what you have raised is a very specific legal question with regards to contracts - even if someone had an interpretation you'd have to take it with a pinch of salt as not everyone's a legal expert (or even if they were necessarily a good one)

Congrats on getting some recognition though. 

tacpot12

This a good contract in that it is short, but it is a bad contract in that it is not specific about many aspect that might be important to you. Profressional legal advice from someone with experience in the music industry and with Mexican law would be the best thing. 

However, to answer your question. Article 3 says: 'During the agreement of this contract, the "artist" agrees not to perform under any other artistic name within the "record label", nor to use the services of this “record label” outside of it.'

I would interpret the "it" at the end of the sentence to refer to "the Agreement". If this is correct, then Article 3 appears to say that you agree not use any other name when dealing with GOTTA RCRDS. (i.e. you are stuck with the name you choose for the duration of the agreement). The record label can and will promote your songs (covered by the agreement) with that name and that name alone. AND that you will not have the benefit of any services of the record label in relation to any other songs, or if the agreement has ended.

Article 3 does not appear to prevent you promoting your other songs (or playlists) to other record labels using my Artist Name, but Article 2 might. Part of Articple 2 says "Music recordings produced by the "artist" are subject to approval or rejection by the “record label”." This potentially means that the GOTTA RCRDS has first refusal on ANY recording of music that you produce whether or not it is one of the songs listed as covered by the agreement. I suspect that they don't mean this - they are bascially say that EVEN if they agree to the contract they have a right to listen to the tracks again and decide that they are not worth promoting. It is a clause that I think is designed to give them the right to refuse to promote anything.

If you do not understand the contract, ask the other party what it means, and then use their explanation to improve the contract wording so that BOTH of you agree what it means. If you don't understand it, or it isn't clear, a court is going to also struggle to point a fair interpretation on it. 

Croissant

Thank you I appreciate you taking the time to reply. It has helped me a lot.

Marcon

Jillanddy said:

And to add to the above, if this is a contract in Mexican law, you need someone who understands Mexican law!

Indeed - but the contract doesn't actually say which jurisdiction will apply. Definitely one for expert advice in case OP makes it big (hope they will!).

Grumpy_chap

tacpot12 said:

Part of Articple 2 says "Music recordings produced by the "artist" are subject to approval or rejection by the “record label”." This potentially means that the GOTTA RCRDS has first refusal on ANY recording of music that you produce whether or not it is one of the songs listed as covered by the agreement. 

That is a possible interpretation.

It conflicts with the "heads of terms" titling that the contract only refers to:

Croissant said:

Song information

1.       Song name:  Home                                                                               

2.       Song genre: Dance/EDM                            

3.       Version: Original Mix

The “record label” and the "artist" may be individually referred to as "Party" and collectively "Parties".

Clear scope for conflict between terms, so proper legal advice is required and not something to be addressed in a forum.

Let's hope the OP makes it and we can look forward to hearing their songs.
It can be our claim to fame "I gave Elton John(*) legal advice on his first ever recording contract" - (*)substituting the appropriate stage name....

TBagpuss

I agree with others that this is something you need advice about from a specialist. 

Are you a member of any body which might be able to offer this? I am not familiar with any trade bodies for musicians but it's probably worth looking into - and even if most of their membership compose and perform a different type of music to  yours the legal basis may well be similar. 
Given that the company you have a contract from appears to be based in Mexico you also need to clarify which law will apply to the contract, (it's normal for a contract to say that it will be governed by the las of England and Wales, or the laws of Mexico, or whatever applies, especially if the parties to it are in different countries) 

https://www.ism.org/ might be useful - you could ask about whether membership would include help of this kind and if not they might be able to suggest experts who can. You could also check whether you would qualify for membership of Equity and if so whether they can offer any advice.