Guide · labels & record companies

Record Label Contracts : what to check before signing.

A label contract governs the signing of an artist, the production of their recordings, and their commercial exploitation. This guide details the types of agreements, their essential clauses, and negotiation points.

See the Label package Find my contract (quiz, 1 min)
Headphones placed next to a vinyl, the universe of a music label

Summary

  • A label contract governs an artist's signing by a record company: production, distribution, and promotion in exchange for a revenue share.
  • There are several formats — classic recording contract, co-production, distribution, or broader 360 agreement.
  • Duration, ownership of the masters, royalty rate, and exit conditions are the four points to check first.
Understand

What is a label contract?

A label contract (or record deal) formalises the relationship between an artist and an entity that finances, produces, and exploits their recordings. In exchange for this investment, the label receives a share of the revenue generated from the commercial exploitation of the music — sales, streaming, synchronization.

Depending on the relationship

The main types agreements.

  • Classic recording contract — the label finances and owns the masters, in exchange for royalties (PPD/PVP) paid to the artist.
  • Co-production contract — the financing and ownership of the masters are shared between the label and the artist or their producer.
  • Distribution agreement — the label does not finance the production but ensures the distribution, for a commission.
  • 360 Agreement — the label participates in various revenue streams (tours, merchandising) in exchange for broader support.

For a detailed 360 agreement, see our dedicated guide.

Points of vigilance

Subject of the contract — album, EP, singles, performance.

  • Remuneration and royalties — initial term and number of albums covered, with the possibility of renewal.
  • Ownership of the masters — who owns the recordings, and under what conditions they can be reclaimed.
  • Royalty rate — percentage paid to the artist, calculated on gross or net revenue depending on the case.
  • Recoupable advances — amounts paid to the artist, recouped from future earnings.
  • Promotion obligations — commitments from the label regarding marketing and distribution.
  • Release conditions — termination, non-renewal, and return of the masters.
Before and after signing

The ecosystem MusiLaw.

Four complementary tools, useful at every stage of your relationship with a label.

Before signing

TuneLockr

Protect and date your creations before any negotiation with a label.

Discover TuneLockr Before signing

VoiceLockr

Secure your voice identity before starting a signing process.

Discover VoiceLockr During the search

Feedzback

Get professional feedback to refine your project before approaching labels.

Discover Feedzback Once signed

Beathoven

Promote your musical project to the right audiences, alongside the label's work.

Discover Beathoven
See also
Official resources

To verify and delve deeper.

SACEMCopyright and collective management SCPPRecord producers SPPFIndependent record producers CNMNational Music Center
Frequently asked questions

Before signing.

What is the difference between a traditional contract and a 360 deal?

A traditional contract only covers recording revenue. A 360 deal allows the label to take a share from other sources (tours, merchandising) in exchange for broader support.

Who owns the masters once the contract is finished?

It depends on the negotiated terms — some contracts stipulate a return of rights to the artist after a defined period, while others keep ownership with the label. To be checked before signing.

How is the royalty rate calculated?

On gross or net revenue depending on the contracts — an important point to clarify, as the gap between the two can be significant on the amount actually received.

Are the templates customizable?

Yes. The templates are provided in Word and PDF, designed to be adapted to your negotiation: duration, territory, percentages, and obligations.

Does this guide replace a lawyer?

No. It helps you understand the stakes before negotiating. A high-stakes financial signature may require appropriate legal advice.

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