The Master Recording Contract serves as the foundational agreement in the recorded music industry, establishing the legal framework for the relationship between artists and record labels in the United States. This document is essential when an artist agrees to create and deliver recorded music exclusively for a record company, typically in exchange for financial investment, marketing support, and distribution services. The contract addresses crucial aspects such as ownership of master recordings, recording budgets, release commitments, royalty rates, and various exploitation rights across different formats and territories.
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1. Parties: Identifies the record company and artist/band entering into the agreement
2. Background: States the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement including 'Master Recording', 'Territory', 'Term', and 'Royalty Rate'
4. Grant of Rights: Specifies the rights being transferred to the record company including copyright, distribution, and exploitation rights
5. Recording Obligations: Details the artist's obligations regarding recording schedule and deliverables
6. Compensation: Outlines royalty rates, advances, and payment terms
7. Term: Defines the duration of the agreement and any extension options
8. Warranties and Representations: Lists promises made by both parties regarding their rights and capabilities
1. 360 Rights: Additional rights beyond recording including merchandising, touring, and other revenue streams
2. Digital Distribution: Specific terms for digital platforms and streaming services
3. Marketing Commitments: Specific marketing obligations of the label including minimum spending requirements
4. Producer Selection: Terms regarding selection and approval of producers for the recordings
1. Recording Schedule: Detailed timeline for recording and delivery of masters
2. Royalty Calculations: Detailed breakdown of royalty calculations and deductions
3. Territory Schedule: List of territories covered by the agreement
4. Minimum Recording and Marketing Commitment: Specific requirements for recording and marketing investments
5. Producer Agreement Form: Template agreement for engagement of producers
6. Recording Budget: Detailed recording budget allocation and terms
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