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.
55 clauses
The volume at a glance
Deal Structure8
- ExclusivityYou can only record and release music through this label for the duration of the deal.Watch
- TerritoryDefines which countries or regions the label controls your recordings in.Watch
- Contract TermHow long the label controls your recordings and services.High risk
- Option PeriodsThe label's right to extend the deal for additional albums, which only they can choose to exercise.High risk
- Auto-RenewalThe contract silently renews unless you send a termination notice within a specific window.Watch
- 360 DealThe label takes a percentage of all your income streams, not just recordings.High risk
- Joint VentureArtist and label co-own the recordings and split net profits after costs are recovered.Neutral
- Co-Publishing DealA publisher takes a share of your song copyright in exchange for administration and advances.Watch
Financial Terms13
- Recording Royalty RateThe percentage of sales revenue paid to the artist after deductions.Watch
- Royalty BaseThe price your royalty percentage is applied to, often reduced by deductions before the percentage is even calculated.Watch
- Mechanical RoyaltiesRoyalties paid to songwriters for each reproduction of their composition, and how labels try to reduce them.High risk
- Streaming RoyaltiesHow your share of streaming revenue is calculated, typically a small fraction of what platforms pay the label.High risk
- Sync FeesFees paid when your recording is licensed for use in film, TV, advertising, or games.Watch
- AdvanceUpfront money from the label that is repaid from your future royalties, not a gift.Neutral
- RecoupmentThe label recoups its advance from your royalty share, not from its own margin, before you see any money.Watch
- Cross-CollateralizationProfits from one album are applied to recoup losses from another before the artist is paid.High risk
- Reserve Against ReturnsThe label withholds a percentage of earned royalties in case physical products are returned, even long after streaming dominates.Watch
- Accounting PeriodsHow often the label calculates and pays royalties, and how long they have after each period to actually pay.Watch
- Audit RightsYour right to inspect the label's financial records to verify royalty calculations are correct.Artist-friendly
- 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
- Fund-Based DealsA single budget covers both artist advance and recording costs, with the artist keeping any unspent portion.Neutral
Rights & Licenses10
- Copyright AssignmentA permanent transfer of your copyright ownership to the label, as opposed to a licence for a limited term.High risk
- Master Recording RightsWho owns the actual recorded version of your music, one of the most valuable assets in music.High risk
- Synchronization RightsThe right to pair your music with visual content, film, TV, ads, games, and online video.Watch
- Neighboring RightsRoyalties paid to performers and record labels when recordings are played on radio, TV, or in public.Watch
- Remix RightsWho controls the right to create and release remixes of your recordings.Watch
- Sampling RightsThe obligation to clear samples of third-party recordings, and who bears the cost.Watch
- Music Video RightsWho owns and controls music videos, and whether their costs are charged back to the artist.Watch
- SublicensingThe label's right to licence your recordings to third parties without your approval.Watch
- Compilation RightsThe label's right to include your recordings on compilation albums or playlists.Watch
- Work for HireClassifies recordings as employer-commissioned works, permanently removing the artist's right to reclaim copyright after 35 years.High risk
Release & Reversion6
- Release CommitmentA binding obligation on the label to commercially release your recordings.High risk
- Release WindowThe maximum time between delivering your recording and the label commercially releasing it.Watch
- Reversion ClauseRights in your recordings return to you if the label fails to release or actively exploit them.High risk
- Inactivity ReversionRights revert to you if the label stops actively exploiting your recordings for a defined period.Watch
- Key Person ClauseA clause allowing you to terminate the deal if a specific person, the one who signed you, leaves the label.Neutral
- Cure PeriodA window of time given to the breaching party to fix a breach before termination can be triggered.Neutral
AI & Digital5
- AI / ML Training RightsWhether your recordings can be used to train artificial intelligence or machine learning models.High risk
- NFT & Blockchain RightsWho controls the right to create and sell NFTs or blockchain-based tokens tied to your recordings.Watch
- UGC MonetizationWho controls and collects income from fan videos, social media posts, and other user-generated content that uses your music.Watch
- Social Media RightsWho controls and benefits from licensing your music for use on social media platforms.Watch
- Streaming Exclusivity WindowsPeriods during which a recording is available only on one streaming platform before a wider release.Watch
Creative Controls5
- Artistic ApprovalYour right to have final say over the creative content of your recordings and releases.Watch
- Marketing ApprovalYour right to review and approve promotional materials and campaigns before they go live.Watch
- Artwork ApprovalYour right to approve the cover art, packaging design, and visual presentation of your releases.Watch
- Endorsement ApprovalWho controls your right to enter brand deals, sponsorships, and endorsements.High risk
- Deemed ApprovalA clause that treats your silence within a short window as approval for a proposed action.Watch
Legal & Compliance8
- Governing LawWhich state or country's laws apply to your contract, and where disputes must be resolved.Neutral
- Dispute ResolutionHow disagreements between artist and label are resolved, through courts or private arbitration.Watch
- IndemnificationWho pays legal costs and damages if a third party sues over the recordings.Watch
- Force MajeureWhat happens to the contract during unforeseeable events, pandemics, natural disasters, government actions, that prevent performance.Neutral
- Assignment RightsWhether the label can transfer your contract to another company without your consent.High risk
- ISRC / ISNI ComplianceStandard identifiers that enable accurate royalty tracking and payment across global systems.Artist-friendly
- Moral RightsYour right to be credited as the creator of your work and to object to distorted or mutilated uses.Watch
- ConfidentialityRestrictions on either party disclosing the terms or existence of the deal to third parties.Watch