No. 49Legal & Compliance
Dispute Resolution
Also called arbitration clause, mediation clause, ADR, alternative dispute resolution
How disagreements between artist and label are resolved, through courts or private arbitration.
Watch closely
Mandatory arbitration can limit remedies and impose costs that deter an artist from pursuing valid claims.
- Appears in
- Recording Agreement, Publishing Deal, Distribution Agreement, 360 Deal
- Topic
- Jurisdiction
- Jurisdiction
- United States
- Reviewed
- July 2026
In plain English
Dispute resolution clauses determine whether disagreements go to public court (litigation) or private arbitration. Arbitration is faster and more confidential but has less discovery, limits appeals, and can be expensive. Labels often prefer arbitration because outcomes are confidential and cannot set public precedent.
Why it matters
Arbitration clauses can deprive artists of jury trials and public court processes. They can also require both parties to split arbitration fees upfront, which can be prohibitive for an artist with limited resources.
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.
- Mandatory binding arbitration with no appeal right
- Artist must split arbitration costs with the label upfront
- Arbitration venue in a city the artist cannot easily access
- Arbitration required for all disputes including non-payment of royalties
- No provision for expedited arbitration in urgent cases
- Mediation before arbitration, parties must attempt resolution first
- Label bears all arbitration filing fees for claims under a defined threshold
- Option for court proceedings in cases of irreparable harm
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.