Company and Artist Contract week 2
Overview
Contracts can be long and complicated or short and to the point. More often than not, though, they’ll be longer than you’d like with a lot of extra legalese. So what do you focus on? You’ve been over the clauses from week 1, and contracts can usually be analyzed by looking at each individual clause. But there are a lot of those clauses and many are just boilerplate that are used in every contract, such as force majeure. So, when you’re looking at a contract and wondering if you should sign it, what’s most important to you?
The key concerns usually come down to: time, money and control. Time– how long will you be in this contract, how long will it take to fulfill the obligations? Money– how much do you have to pay, or how much are you getting paid? And control– do you have the right to make decisions in the contract, the right to inspect the other party’s books?
What You’ll Need
The contract you chose from week 1
Create
In a Word document, explain the following about your chosen contract:
In the contract, assume the role of one of the parties. Which party will you be (ie. producer, musician, director, actor, composer, writer, etc.)?
What is the time frame of your particular contract? How does this work to your advantage or disadvantage? Would you negotiate this if you could? Why or why not?
Explain the money or consideration in your contract– how much or what will change hands if the contract is accepted? Is this good for you? Why or why not?
Explain which party has the control in the contract (it could be both for different reasons). What do they control? How does this work to your advantage? How is to your disadvantage? Would you try to negotiate any of these aspects? Why? What alternatives would you propose?
In the contract I would take the role of the musician because there are many associated benefits. This is a renewable contract and has no defined term. The periods of the contract is divided into two periods: participation period and contract period. The two terms are subsequent to accomplishment of each party’s obligations. However, the company has more authority to continue the contract since when it has fulfilled its contractual duties, the contract still continues.
This is an advantage to me as an artist since am guaranteed that my music will be recorded all through. The high cost of recording and producing are catered for by the company as long as the contract is applicable. However, the term of the contract restricts me from fully benefiting from other contracts. Furthermore, every music activity done within while in contract with the company is monitored and controlled.
I would negotiate the term of the period to a specific period. Moreover, I should be given some authority to determine the continuity of the contract. By this, I should be allowed to consider if I still want to renew the contract considering the activities of the company. The actions of the period should not automatically guarantee a subsequent term of the contract.
In the contract, the company is entitled to have 50 percent of all the revenue I earn through any music activities such as touring, acting, personal appearances, and merchandise among others. Additionally, the company will receive a 50 percent share of the money earned from contracts with third parties. Also, the accounting records will be reviewed by the company regularly to ensure that it is getting the right share of the revenues.
If the contract is accepted, I will lose control of my income since the company will be dealing with everything regarding my earnings on the music platform. All the money I earned is paid directly to the company so that it can get its share and hold the rest of it until the specified date of release. This is a disadvantage for me since I cannot control my finances. The payment method is also complex and uncertain. In the case of indemnity, the company can hold my finances until the issue is over. This leaves me, as an artist in an unstable financial position.
In this agreement, the company has authority over the artist. Many of the decisions are made by the company including the engagement of the artist with third parties. The rights entitled to the company make it more powerful than the artist. The country controls all the music activities I am involved in and the finances I earn thereafter. This offers me security and protection of my earnings from third parties since they are required to pay directly to the company. On the other hand, it limits my liberty to solely enter into other contracts since the revenue earned from them will still be shared between me and the company.
Given an opportunity, I would negotiate the aspect of the company’s share on revenue earned from third parties. Activities involving a third party should not be involved in the company since that is an event on its own. Also, the company should allow me to handle the money I earn from other contracts. The applicable alternatives in this aspect would be: first, reduce the company’s share to 10 percent on revenue earned from third parties if it is really necessary and second, eliminate the rules which define the engagement of the artist with third parties.
