Jon StojanBad deals and troubled contracts don’t just make the news–they go down in music history. Entertainment industry lawyer Matt Buser sits down with us to share his framework for negotiating long lasting album deals, along with a new dynamic for artist and label relationships.
Melodies make songs. Contracts make the business behind them. Before the studio lights can go on, a deal has to be in ink.
Music is a complicated business–and these contracts often become more of the story than the artists and the labels would like. Timeline, budget, exclusivity, and licensing are just a few of the burdens a contract has to be strong enough to carry.
When it comes time to play the music, some deals can’t keep to the beat.
When a contract or a business relationship sours, that’s when you see things like John Fogerty getting sued for sounding like John Fogerty, Dr. Dre taking a defunct (and aptly named) Death Row to court twice over for digital royalties, and Taylor Swift re-recording and re-releasing her own albums (Taylor’s Version).
Even the Artist Formerly Known as Prince wouldn’t have given up his name if not for the contract he signed with Warner Bros–and the tumultuous battle that ensued. In fall 2023, Megan Thee Stallion’s legal bout with Label 1501–now coming to an “amicable” close–sits top of mind when discussing album contracts.
Contracts that work, however, aren’t so often discussed. They simply provide a foundation for the artists and their albums that we love to listen to. The ones that go bad earn a place in music history. Given this, it’s worth learning what exactly goes into an album deal. We reached out to entertainment industry Lawyer Matt Buser, Esq. to learn about the process of inking deals that stand up to the test.
“We’re trying to create a partnership,” says Buser, whose client roster boasts multi-platinum artists and producers including 15 nominees of the February 2024 Grammy Awards across 24 nominations. “That’s how I’m framing it with my clients. And fortunately, I know that many of the labels are also starting to look more so at it that way than in prior years.”
As we’ve seen from the past, it’s all too easy to fall into an artist vs. label mindset. But with newfound clarity on the business of music in the digital age and dozens of case studies showing the pitfalls of bad contracts, power dynamics are shifting. With the right legal representation and management behind them, artists can play a more active role in the label’s process–but only if they are first able to see themselves as partners, rather than just the creator of commodified art.
“I don’t tell my clients that they’re signing to a label,” Buser says, “I say they’re getting an investor—a partner—an extension of our team.”
This is a two-way street.
“The labels, whether they want to do it or not–or if it’s just a PR move–have to be more in tune with the evolving landscape that the artist expects to see in these relationships,” the Tampa and LA-based lawyer continues.
A partnership has to begin with a solid understanding. So what exactly goes into an album contract?
The term length, product commitment, ownership, license period (if applicable), territory, marketing budgets, record budgets, in-pocket advances, tour support, exclusivity, and brand income are some of the most important components for setting these contracts in stone.
Buser, applying business principles to the creative work of his clients, tends to start with the product commitment. This sets the scope for the partnership–and gives Buser clarity to discuss the term, or timeline, with his clients.
“That’s how I value deals,” he says. “I want to know exactly what the label wants product-wise so we know how much funding we need to properly deliver.”
The term of the contract doesn’t just apply to the artist’s timeline for recording. The term is typically broken out into three key periods. The first is for delivering: “capital “D” deliver, with all the clearances done and all files turned in,” Buser clarifies. The next is when the label is obligated to initially commercially release the applicable product on a global scale. The last covers the rest of the contract period, typically nine months following the initial release date or twelve months from the commencement of the applicable contract period.
However, with today’s release model which depends largely on social media virality of single songs versus lengthy projects, there are other negotiation considerations at hand. “If you’re releasing singles,” Buser explains, “it gets more complicated to keep moving the term along.”
Singles are a popular choice for artists these days–especially for emerging talent not quite ready to put out a full body of music. The typical language defining contract periods revolve around the release of albums, so there are some adjustments needed when singles are on the menu. This impacts the contract period lengths (as artists cannot be expected to wait as long between releases compared to an album structure) and the delivery commitment.
That’s when exclusivity rights come into play. In a record deal, artists are signed exclusively for the length of the term. In a distribution deal, that exclusivity becomes twofold. Part of the exclusivity is for the music delivered under the contract, which can be anywhere from one to thirty years or more (also known as the “license period”).
In addition to this, there is exclusivity of the artists themselves. “This is typically a lot shorter,” Buser says, “but also necessary as the label doesn’t want the artist to step on his or her own release by putting out music with someone else immediately after the last release.”
That’s when Buser tackles continuing rights, outlining if a contract will span multiple albums.
“These labels don’t want to invest so much money and release a product and then not have some kind of bite at the apple,” Buser says. “To move forward, especially with a newer artist, they really want to have some continuing participation. Otherwise they could be setting the artist up for success—but with a competing company. I try to see both sides when I negotiate, and do so from a business capacity.”
As much can change for the marketability of an artist over a multi-album deal, negotiating these from the jump can be tricky.
“We want to have legs to stand on from a renegotiation capacity,” Buser says. “With a shorter term and smaller product commitments, then the ripening of the deal comes sooner.”
Buser, understanding the power of shorter-term contracts while understanding the needs and considerations of the label, likes to employ first rights of negotiation and matching (the latter being where the company has a right to match the terms of a competing offer) in order to build long term relationships with his clients and the label.
“It’s all about navigating, building and strengthening the relationship,” Buser says.
As a tireless advocate for his clients, Buser comes to the table with a deep understanding of what the label needs from the relationship–for it is the success of both parties that causes an artist to realize his or her highest potential.
And that’s when the music makes the headlines–not the contract.
For more insider takes from Matt Buser, Esq., visit his LinkedIn.