Reference55 clauses · reviewed July 2026

Every clausethat can cost you.

What each clause means in plain English, where the risk actually sits, and what a fair version reads like. Written for the person holding the contract, not the person who drafted it.

Risk

55 clauses

The volume at a glance

Deal Structure8

  1. ExclusivityYou can only record and release music through this label for the duration of the deal.Watch
  2. TerritoryDefines which countries or regions the label controls your recordings in.Watch
  3. Contract TermHow long the label controls your recordings and services.High risk
  4. Option PeriodsThe label's right to extend the deal for additional albums, which only they can choose to exercise.High risk
  5. Auto-RenewalThe contract silently renews unless you send a termination notice within a specific window.Watch
  6. 360 DealThe label takes a percentage of all your income streams, not just recordings.High risk
  7. Joint VentureArtist and label co-own the recordings and split net profits after costs are recovered.Neutral
  8. Co-Publishing DealA publisher takes a share of your song copyright in exchange for administration and advances.Watch

Financial Terms13

  1. Recording Royalty RateThe percentage of sales revenue paid to the artist after deductions.Watch
  2. Royalty BaseThe price your royalty percentage is applied to, often reduced by deductions before the percentage is even calculated.Watch
  3. Mechanical RoyaltiesRoyalties paid to songwriters for each reproduction of their composition, and how labels try to reduce them.High risk
  4. Streaming RoyaltiesHow your share of streaming revenue is calculated, typically a small fraction of what platforms pay the label.High risk
  5. Sync FeesFees paid when your recording is licensed for use in film, TV, advertising, or games.Watch
  6. AdvanceUpfront money from the label that is repaid from your future royalties, not a gift.Neutral
  7. RecoupmentThe label recoups its advance from your royalty share, not from its own margin, before you see any money.Watch
  8. Cross-CollateralizationProfits from one album are applied to recoup losses from another before the artist is paid.High risk
  9. Reserve Against ReturnsThe label withholds a percentage of earned royalties in case physical products are returned, even long after streaming dominates.Watch
  10. Accounting PeriodsHow often the label calculates and pays royalties, and how long they have after each period to actually pay.Watch
  11. Audit RightsYour right to inspect the label's financial records to verify royalty calculations are correct.Artist-friendly
  12. Most Favoured Nations (MFN)A guarantee that your deal terms will be at least as good as the best equivalent deal the label has signed.Artist-friendly
  13. Fund-Based DealsA single budget covers both artist advance and recording costs, with the artist keeping any unspent portion.Neutral

Rights & Licenses10

  1. Copyright AssignmentA permanent transfer of your copyright ownership to the label, as opposed to a licence for a limited term.High risk
  2. Master Recording RightsWho owns the actual recorded version of your music, one of the most valuable assets in music.High risk
  3. Synchronization RightsThe right to pair your music with visual content, film, TV, ads, games, and online video.Watch
  4. Neighboring RightsRoyalties paid to performers and record labels when recordings are played on radio, TV, or in public.Watch
  5. Remix RightsWho controls the right to create and release remixes of your recordings.Watch
  6. Sampling RightsThe obligation to clear samples of third-party recordings, and who bears the cost.Watch
  7. Music Video RightsWho owns and controls music videos, and whether their costs are charged back to the artist.Watch
  8. SublicensingThe label's right to licence your recordings to third parties without your approval.Watch
  9. Compilation RightsThe label's right to include your recordings on compilation albums or playlists.Watch
  10. Work for HireClassifies recordings as employer-commissioned works, permanently removing the artist's right to reclaim copyright after 35 years.High risk

Release & Reversion6

  1. Release CommitmentA binding obligation on the label to commercially release your recordings.High risk
  2. Release WindowThe maximum time between delivering your recording and the label commercially releasing it.Watch
  3. Reversion ClauseRights in your recordings return to you if the label fails to release or actively exploit them.High risk
  4. Inactivity ReversionRights revert to you if the label stops actively exploiting your recordings for a defined period.Watch
  5. Key Person ClauseA clause allowing you to terminate the deal if a specific person, the one who signed you, leaves the label.Neutral
  6. Cure PeriodA window of time given to the breaching party to fix a breach before termination can be triggered.Neutral

AI & Digital5

  1. AI / ML Training RightsWhether your recordings can be used to train artificial intelligence or machine learning models.High risk
  2. NFT & Blockchain RightsWho controls the right to create and sell NFTs or blockchain-based tokens tied to your recordings.Watch
  3. UGC MonetizationWho controls and collects income from fan videos, social media posts, and other user-generated content that uses your music.Watch
  4. Social Media RightsWho controls and benefits from licensing your music for use on social media platforms.Watch
  5. Streaming Exclusivity WindowsPeriods during which a recording is available only on one streaming platform before a wider release.Watch

Creative Controls5

  1. Artistic ApprovalYour right to have final say over the creative content of your recordings and releases.Watch
  2. Marketing ApprovalYour right to review and approve promotional materials and campaigns before they go live.Watch
  3. Artwork ApprovalYour right to approve the cover art, packaging design, and visual presentation of your releases.Watch
  4. Endorsement ApprovalWho controls your right to enter brand deals, sponsorships, and endorsements.High risk
  5. Deemed ApprovalA clause that treats your silence within a short window as approval for a proposed action.Watch
  1. Governing LawWhich state or country's laws apply to your contract, and where disputes must be resolved.Neutral
  2. Dispute ResolutionHow disagreements between artist and label are resolved, through courts or private arbitration.Watch
  3. IndemnificationWho pays legal costs and damages if a third party sues over the recordings.Watch
  4. Force MajeureWhat happens to the contract during unforeseeable events, pandemics, natural disasters, government actions, that prevent performance.Neutral
  5. Assignment RightsWhether the label can transfer your contract to another company without your consent.High risk
  6. ISRC / ISNI ComplianceStandard identifiers that enable accurate royalty tracking and payment across global systems.Artist-friendly
  7. Moral RightsYour right to be credited as the creator of your work and to object to distorted or mutilated uses.Watch
  8. ConfidentialityRestrictions on either party disclosing the terms or existence of the deal to third parties.Watch