Such agreements may also include the clause relating to the use of technicians and other studio facilities. It is important for the artist to recognize that, although most production agreements provide that the artist receives at least half of the proceeds, all the copyright will belong to the recordings of the production company. The production company will justify this decision by the fact that it must be able to transfer the copyright to a third party. It is worth saying that the recordings should only be granted to the production company, but they will probably object because it will be more difficult for them to interest a large record company. Often, a major label will enter into a contract with a production company (“company”) for the services of a host artist. The company will then hire music producers directly. Here are some of the important provisions of such an agreement: it is also likely that the production will include in a clause such as this a catch-all provision which provides that if one of the conditions of the third party agreement is less favourable to the artist than that contained in the production agreement, it will be considered replaced. It is often difficult to combat these clauses, but at least it is necessary to ensure that the record company cannot claim a longer-term or larger minimum option or obligation than that contained in the production agreement and that, when the taker`s agreement with the production company ends , the terms of the production agreement are expected to fall back on what they were before. An essential advantage of the production-company agreement is for the manufacturer that more than one artist can sign a production contract with the same company. However, the artist is bound by an exclusive contract and relies on the reputation and talents of a producer. If the production company involves the artist or does not guarantee the promised record contract, the artist`s only return will be to retain a right of termination in case of non-compliance with the agreed objectives. Topics: Legal – Money, Music Business 101, Production The record label expects that the producer`s interest in all mechanical and synchronization rights will also be attributed to the record company.
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