Wednesday, February 29, 2012

Music Business/Law Tips - "Breaking A Record Contract" (Final Part)

The downside to the contract dissolution methods discussed over the last few weeks is that when an artist enters into a legal battle with a record company, the resulting action can take years to settle and can often temporarily derail the artist's career because it takes the artist out of the public eye for a period of time. Knowing this, labels frequently use stalling tactics in such contract disputes because they understand that since an artist's career usually only lasts for a few years, time is on the label's side, and an artist involved in a protracted legal battle might get frustrated and discontinue the dispute.

The practitioner representing a new artist at the initial contract negotiation stage should consider building artist protections - such as monetary enhancements or an "out" clause - into the agreement which can be triggered by the artist having a hit record, or the label not fulfilling its end of the agreement, whichever is applicable. In the final analysis, although it might seem easy, "Breaking Up Is Hard To Do."

Ben McLane Esq

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