Sometimes these are distributed through other labels or distributers, sometimes they’re completely standalone. All retail sales will be reported to SoundScan. In this example, all of the gross expenses incurred by the label are deducted from only the artist’s share of gross income rather than from the total gross income. MECHANICAL LICENSING AND ROYALTIES: All musical compositions or material recorded pursuant to this Agreement, which are written or composed, in whole or in part, or owned or controlled directly or indirectly by Artist or any producer of Masters subject thereto (herein "Controlled Compositions"), shall be and are hereby licensed to Company for a period of ten (10) years in the United States and Canada at a royalty per selection equal to Seventy-five (75%) percent of the mechanical statutory per selection rate (with regard to playing time) effective on the date of initial U.S. commercial release of the Masters concerned hereinafter sometimes to be referred to as the "Per Selection Rate". Remember that signing to a label isn't the end goal for all artists, it's just one option. In pressing and distribution (P&D) deals, you deliver a fully mixed recording master and artwork to the record label, which then assumes the responsibility of manufacturing and distributing your records in the form of compact discs—and vinyl, if you release your recordings in the vinyl medium. The promoter agrees to remunerate DJ for the satisfactory performance of the engagement and to meet certain requirements as requested by DJ (including a safe performance area, electrical outlets, and crowd control personnel). J/ 0 1 2 2 "5 £8 º; æ. c. Net Receipts shall mean Gross Receipts received by Company less Expenses. 20. If you run a record label then this package is the perfect one for you. As an alternative, if the company provides marketing and promotion, these expenses also could be deducted as direct costs, along with the distribution fee and manufacturing costs, with the balance paid to you. In these agreements, the artist can be either a single person or a group and the company is usually an organized entity. Example: if two collaborators get together to write a song and one writes the lyrics and the other writes the music, either author can grant non-exclusive licenses for the entire composition (provided they pay each other their share of income) BUT neither is allowed to just pick their part of the composition and leave the other without continuing to pay their percentage of all the income if such is generated from the use of the part which the party wrote and re-used. Those platforms then get the royalties or the money back to the distributor which we then get back to the artists”. Most major recording labels actively discourage this practice. The promoter agrees to be solely responsible for all costs related to the promotion and marketing of the event and to be liable for any fines imposed on the venue related to said promotion. If Company becomes a party to any such union agreement, Company shall give Artist written notice of such action. That is not always the case, however. Give advice in connection with image, branding, advertising, trends, and publicity. “There is no way to know whether an artist is genuinely independent without actually seeing the terms of the deal” says McGruther. This is a very tricky subject and a very emotive one, which is why the band should deal with it at the beginning of the relationship before money starts to be earned. Those are all distributors with Australian operations. They want to protect their investment costs and attendant financial risks incurred in developing an artist. This is an exclusive agreement whereby an Artist grants merchandising rights to a company which allows the latter to use the Artist’s name, logo, likeness, picture, artwork, trademarks etc., throughout a defined territory in connection with manufacture and sale of products of any kind. 14. Artist, or a certified public accountant, in Artist's behalf, may, at Artist's sole expense, examine our said books relating to the sale of Records hereunder, solely for the purpose of verifying the accuracy thereof, only during our normal business hours and upon reasonable written notice. Some indie labels have adopted policies of writing contracts with artists as 50-50 shares of net income in lieu of paying a royalty per unit sold. For this reason, artists should seek out attorneys that have experience in making these types of deals. Art and design—$4 thousand Payment of a 15% royalty on a 99-cent download (i.e., 15 cents), plus statutory mechanicals (namely, 9.1 cents, at the rate in effect as of January 1, 2016), leaves a nice margin for the label, with the digital music service downloader paying the label 70 cents on the download. Set of two contracts which provide you with everything you need to clear the recording of a sample and the composition embedded in the recordings. No matter what type of deal you’re signing, even if it is with a digital label that is only distributing your music as a free download, the agreement should include language for both digital and physical royalties. "Recording Costs" shall mean all costs incurred with respect to the production of Masters embodying the Artist's performances, including audio visual recordings, and which are customarily recognized as Recording Costs in the phonograph record industry including but not limited to all expenses incurred in connection with the production of audio and/or visual masters and all payments and/or advances to Artist hereunder, as well as payments to all of the musicians (including without limitation, instrumentalists, leaders, arrangers, orchestrators, copyists and contractors) vocalists and producers, if any, rendering services in connection with any recordings hereunder, payments to union pension and welfare funds, costs of cartage and instruments hire, studio or hall rentals, editing costs, distribution fees, licensing fees, payroll taxes and other payments to third parties on Artist's behalf, tour support, liability and medical insurance and legal accounting fees payable to Artist's own legal counsel or accountant (if any such payments are actually made by Company) and customary artwork if done by other than in-house artists, all taxes, third parties fees, fees for replay or a sampling licenses, and other reasonable expenses incurred by Company for the purpose of production of the Masters and Records and all costs attributed to promotional costs, marketing and advertising costs expended in furtherance of the sale of Records produced from the Masters. But for all intents and purposes, we'll call it a distribution deal’”, In the end, the only way to know if an artist is truly ‘independent’ is to see their contract, and even then it can be massaged to look a certain way. "Net Sales" shall mean sales of Records paid for or credited and not returned except as specifically set forth to be different in this Agreement.