No. 55Legal & Compliance
Confidentiality
Also called NDA, non-disclosure, confidentiality clause, non-disclosure agreement
Restrictions on either party disclosing the terms or existence of the deal to third parties.
Watch closely
One-sided confidentiality that prevents artists from sharing terms with advisors creates information asymmetry.
- Appears in
- Recording Agreement, Publishing Deal, Distribution Agreement, 360 Deal
- Topic
- Privacy
- Jurisdiction
- United States
- Reviewed
- July 2026
In plain English
A confidentiality clause prevents one or both parties from disclosing the deal's terms, royalty rates, advances, and specific provisions, to third parties. Labels typically insist on confidentiality to prevent artists from using deal terms as leverage in negotiations and to maintain information asymmetry in future signings.
Why it matters
Artists often cannot tell their own advisors about deal terms without triggering the confidentiality clause. This impedes informed negotiation in future deals and prevents collective knowledge about industry standards from spreading among artists.
Where it can land
The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.
- Artist cannot disclose deal terms to personal managers, lawyers, or accountants
- Confidentiality obligation is permanent with no expiry
- Label has no equivalent confidentiality obligation
- Confidentiality limits ability to discuss the deal publicly (acceptable) but also with professional advisors
- Breach of confidentiality results in contract termination
- Carve-outs for disclosure to professional advisors (lawyer, manager, accountant) bound by equivalent confidentiality
- Mutual confidentiality obligation
- Confidentiality expires after the contract term or a defined number of years
The language
The drafting language and the negotiation moves for this clause are part of the workspace.
You have read what the clause means and where the risk sits. The rest is the side-by-side of how it reads when it is against you and when it is not, plus the specific moves that get it there.