What is a music producer contract?
An agreement with a music producer is a crucial document in the music industry that guides the relationship between an artist and a producer or production team. From the perspective of a producer, the standard agreement is generally referred to as a "Producer Agreement".
A music industry Producer Agreement typically contains the terms of the relationship between a record label, a recording artist and a producer or production team.
An artist or band searching for an agreement for their next album/EP needs to first determine whether their record label will pay for the completion of the recording. If so, then a standard Producer Agreement could be used. If the artist or band is self-funding the recording and wishes to handle the recording themselves (in whole or in part), then a separate agreement will be required.
In basic terms, a Producer Agreement is for independent producers or production teams and used in circumstances where the record label is not paying for the completion of a recording. As noted above, there are different types of agreements used in the music industry, but each of them are unique to the parties bound by them, in that each agreement contains terms and clauses that cover different arrangements and relationships.
In circumstances where the artist/producer (or represented by label) requires its artist to follow an "outside" producer, then it will likely be subject to a separate agreement called a "Producer Agreement . "
The Producer Agreement does not include a "work for hire" provision. In the music industry, the "work for hire" provision applies to a recording artist that is an individual (not a band), an employee of the record label or a partnership. In the context of a record label and an artist, a "work for hire" provision means that the record label owns all the rights to the sound recording, including any lyrics or melody created by the artist that are recorded and fixed in a tangible medium, and produced or commissioned. But in the case of a Producer Agreement, the un-recouped costs incurred by the producer in the recording process are covered. These costs are included in the recoupment of the artist’s account.
The scope of services is another significant aspect of a Producer Agreement. The scope of services covers how the producer interacts with the artist and/or label, and the extent to which the producer can require developments to be made to the work. If there are more than one producer involved on a project, the scope of services will identify each producer and their expected contribution. For example, if a producer brings in or utilizes another producer while under the Producer Agreement, that additional producer will need to be included and notified in the right of rights, excluding the original producer from receiving any additional compensation for the services of the second producer.
Elements of a producer contract
Indemnification – These clauses typically require the artist to indemnify and hold the producer harmless for claims arising out of a claim that the recording infringes third-party rights, or on account of production delays caused by the artist.
Term – This clause specifies the length of the producer’s services, and also includes the "extension right," which permits a producer to block a termination upon timely notice and payment of additional fees.
Representations and Warranties – The producer normally warrants that the producer is not subject to any contractual obligations that would interfere with the performance of the agreement. The producer also warrants that he has the necessary funds for the project, and will obtain the necessary rights to all material utilized in the project.
Creative Control – Producers often demand creative control clauses, and have a style and track record that is so unique that the artist wants to capture the producer’s sound. Often, producers desire to lock themselves into this artistic control, for fear that the artist may later seek to have someone else produce a remix or updated version of the work. Some producers also want to reserve their own artistic rights to the material, for use in other works.
Credit – This clause spells out when and how the producer should be given credit for the work they’ve done. This can be either the most creative aspect, or some of the most mundane and sometimes overlooked aspects, of producing an album. There should also be a clause that covers credit for artwork and website design and development.
Credit on the Recording – Some producers will even go so far as to dictate where their credit should be located on the cover of the disc or on the traycard.
Negotiating with a music producer
Negotiating terms in a producer agreement can be a complex and sensitive process, but it is essential for both parties to ensure that they are entering into a mutually beneficial relationship. When entering into negotiations, it is important to have a clear understanding of what you want from the relationship and what you are willing to give up. When negotiating terms with a music producer, artists should consider the following: 1. Budget – It’s important to have a clear understanding of the budget for the project, and to communicate this to the producer from the outset. Many producers have different rate cards, depending on whether the artist is signed or not, and what label they are releasing the project on. As an artist, it is your responsibility to make sure that you have clearly communicated what you want, and if you need the producer to work within a strict budget, then both parties will need to come to an agreement that works. 2. Length of Relationship – Not all producer deals will result in a long-term relationship. Some artists work with producers on a one-off basis, to get a particular job done, and then move on to a different producer. Others are interested in forging a long-term working relationship with their producer, and building a collaborative partnership that will help take them to the next level. There is no right or wrong answer, but each party needs to be upfront and honest about what they are looking for at the outset of the process. 3. Future Projects – It’s also worth considering whether the artist would consider working with the producer on a longer-term basis in the future. This information can be helpful when it comes to determining a budget that works for both parties as it gives the producer more of a stake in the relationship, and will allow them to invest more time and money in the project, safe in the knowledge that they may receive a return on this investment in the future. 4. Costs – It is usually the responsibility of the producer to cover all costs associated with the recording process, including the cost of studio time, session musicians, equipment hire and any additional production services. However, it is worth discussing what these costs will be at the outset of the process, and making sure that both parties agree on who will cover the cost of each item. It is also important to allow the artist to have some creative control over the creative process. While an artist should trust their producer to deliver a great-toned product, there is a need for the artist to be able to have a say over the artwork for an album, or the type of music video that should be released as a single. This gives the artist a stake in the creative process, which is particularly important if the producer has further aspirations for the artist’s music beyond the status of single.
Common mistakes
Mistake: Failing to understand the split of ownership and profits generated from the material produced. A common misconception is that just because a producer is credited as an "executive producer" on a project, they are entitled to a larger slice of the pie from royalties and profits generated by material they’ve worked on. Not so fast. Unless specifically amended in writing, most production agreements will have a clause to the effect of stating that everyone who is employed to work on a project, regardless of position or title, will receive a royalty percentage of that project according to the same points scale. For example, if an artist who wrote the song gets 10% for the song, and the singer whose vocals were recorded in the song gets 5%, then generally speaking, the producer will also receive 10% of the royalties of the sales of that song simply because he was hired to be that project’s producer. It’s an easy way for producers to make money off of music even when they’re not the ones performing the music.
Mistake: Forgetting to ask the producer(s) for their credits and discography list. It’s important to make sure you know who you’ll be working with before officially entering into an agreement with them. Do your due diligence and research the producer! What clients have they worked with? What have those clients had to say about the producer’s work? Are they known for producing rock songs, pop songs, or rap songs? What if they’re doing a genre you’re unfamiliar with? Find out!
Mistake: Assuming the producer will do everything for the producer fee they are getting paid. This goes back to the issue of crediting and discography. A lot of times, people will choose the producer who is the cheapest and assume that if they’re paying them all this money , it’s fine that the producer wasn’t doing as much work as other producers did, and that they were assuming more work would be done simply because they’re getting paid more. Neither party should ever operate under these assumptions. This leaves a lot of room for disputes down the line. Make sure you know what you’ll be paying the producer for in the agreement, and make sure that there aren’t any other services you expect the producer to fulfill as part of the same deal. If you have a special requirement for a project, and you’re paying more for that service, make sure it’s clearly written into the agreement so the producer knows that it’s required of them.
Mistake: Assuming the producer knows exactly what you want them to do subsumed within the FEE you’re paying them. Make sure you’ve correctly indicated on the contract what you’ll be expecting from the producer when you’ve hired them. If you don’t need them to arrange the song, or write additional hooks or melodies for a verse or chorus, indicates this in the agreement. Make sure that the contract clearly states how much recording time you expect from the producer, and how many revisions or take sessions you expect them to facilitate. If you wanted something more than just considering or responding to your requests, make sure you specify that in the agreement. Many producers will take a percentage of sales of the project in lieu of payment for services provided to cover the time they spent in the studio making the project turn out exactly how a client wanted it to. If you want a product produced for a specific fee and the producer has agreed to perform certain services, make sure that the amount of time that will be spent on that project jives with the amount you’re paying and why. As they say: Time is money and opportunity is priceless.
Legal issues
Music producer agreements can give rise to a variety of legal issues. As discussed above, the payment terms of a music producer agreement can be complex and may involve royalties. Accordingly, depending on the specific terms of the agreement, ongoing revenue calculations may be required, which entails the analysis of royalties- a legal minefield in and of itself.
Additionally, if the recording agreement does not fully vest all rights in the recording artist, the producer agreement may conflict with the recording agreement, a situation that could potentially give rise to litigation. Ownership and control over the master recordings, as well as who has the obligation to pay the recording producer’s bills, can create tension between the parties. Some music producer agreements contract away a producer’s ability to challenge audio or video film (including DVDs) that use the producer’s work, which could also be problematic for a music producer who wants to retain approval rights over audio and video of his/her work.
The foregoing legal issues clearly show how important it is for both parties to correctly identify the legal issues that will be created by the music producer agreement. A discussion with a lawyer experienced in intellectual property matters, particularly those related to music, may be advisable.
Sample producer contract
Template agreements are widely available either as downloadable files or as fill-in the blank forms. They can be an efficient way of expressing the intentions of the parties and they are certainly the most affordable way to create a producer agreement, with a good level of protection for the producer. As with all written agreements, however, it is important that the parties understand what they are signing. The use of template agreements also assumes that there is a relationship between the parties that will endure beyond the recording session and there will be follow on work.
A good example of a template producer agreement is the one available from the American Federation of Musicians ("AFM"). Many recording musicians are AFM-represented, so if a recording is produced for a major label it is likely that the AFM will have a standard AFM musician’s recording contract that will govern the musicians’ participation in the recording of the album. If an AFM-represented artist wishes a producer to participate in the record project , they should be sure the producer and the label sign a more comprehensive producer agreement that supersedes the AFM musician’s contract. This does not mean the artist’s contract with the AFM will go away – it will be replaced by the producer agreement that covers the producer’s rights to royalties and participation in the creative process. It also means that the producer will have to get the approval of the AFM for the producer agreement – but that shouldn’t be difficult to obtain.
In the embellishment of the AFM template, it is useful to add applicable copyright language that will provide some automatic copyright protection, as discussed above. Other language can be added to reflect the requirements of the parties. For example, if the producer is going to get half of all producer royalties, the words "and artist/mechanicals," the original or creative portion of the royalties the producer is entitled would be added after the word "producer" and prior to the word "royalties."