Need HELP! Is this normal in an agent's contract?!?
Jenna
I need help in finding out whether this is normal in a agent's
contract. There's some stuff in it that I'm not sure is normal...
This is for a 1-year contract. They told me verbally that the
percentage for bookings they get for my artist is 15% (I thought the
legal limit was 10%), but that doesn't appear on this contract as far
as I can see... Here we go!
::
::
2. Cost Shopping Artist: Artist Shall Pay to Agent the fee of
$_________. An arrangement can be made with the Agent to make
installment payments. Said fee shall be paid totally within 30 days.
It is hereby agreed that there shall be ________ installment payments
for the amount of $__________ each.
3. Materials needed from artist, Agent shall receive from Artist any
audio cassettes, CDs, DATs, or other audio material as well as
biographical material and promotional product that agent needs to
present to record label. Artist must provide agent with commercially
ready and professional material for shopping. Agent has the right to
return artist any material that the agent does not believe is suitable
for shopping. Shopping materials must be provided to Agent no later
than fifteen (15) days from the date of this agreement. Any material
submitted to agent after that date will not be responsible or
obligated to return material submitted to agent by artist.
4. Compensation, Artist agrees that Agent shall receive the following
forms of compensation, if the artist receives a second contract as a
result of the efforts of agent.
a) Signing bonus of fifteen- percent (15) of the first advance that
Artist receives from record label.
b) Two and a half (2 1/2) Point from the single or album for the term
of recording contract.
5. Agents Efforts, Agent efforts may be defined as any telephone
calls, trips, meetings or conference calls, letters and proposals
prepared, executed and performed by agent and it's employees that is
the proximate cause of artist receiving a recording contract. Agent
pays for all costs incurred from the agents own funds and the artist
is not liable to reimburse the agent for any of the agents out of
pocket cost.
6. Agents' Representations, Agent represents that at all times
pertinent. Agent will conduct itself in a professional manner, agent
will not commit any contract; and agent shall not conduct itself in
any way that would harm the reputation of the artist.
7. Artist Representations, Artist represents that at all times
pertinent. Artist will conduct itself in a professional manner; Artist
will not commit any deliberate acts that could interfere with the
agent's ability to obtain a recording contract on artist behalf; and
artist shall not conduct itself in any way that would harm the
reputation of the agent.
::
::
That ends the portions about which I have questions.
My main concerns are that They would get 2.5 points on any record deal
PLUS 15% of the advance!!! Is this normal for an agency? I know
producers try to get points, too, and publishing cuts as well, but if
you have an agent and 3 producers, it seems like you'd make jack from
of this kind of deal. There'd be no points left for the artist if you
only get the minimum allowable royalty points in the contract itself!
Plus, this contract doesn't say what they told me verbally, which is
that the contract is non-exclusive. They told me that they wouldn't
charge a fee for this artist to shop him, I guess because they can get
$$ for booking him, but it doesn't say the first thing about bookings
on here, either. (I'm guessing that's a separate contract)
So, I'm daring to ask: What do y'all think???
-----Jenna
ACEford1
lawyer versed in the entertainment (read: music) business.
Ace "I wish I was back in Texas" Ford
www.texpatriate.com
Snabbu
You must see a Lawyer, I am concerned on a quick read of the clauses you have
posted one ( clause 3) doesn't even make sense, which is a bit of a worry.
The advance is a loan to the artists which has to be paid back by the artist
out of royalties surely it would be reasonable for the agent to pay back
their part of the advance out of their points wouldn't it?.
I mean it's OK for an agent to get a percentage of earnings but an advance is
not earnings it is a loan against future earnings.
Cheers
Gary
-- --semper sume remedium casum--
http://www.soundclick.com/bands/garyyeomans.htm
http://www.mp3.com.au/artist.asp?id=11367
http://www.mp3.com/GaryYeomans
Snabbu
Tips for Music
Tape-Shopping Deals
In recent years, with the rise in industry litigation, record companies have
become more fearful of becoming targets of copyright infringement suits brought
by plaintiffs who claim their songs have been stolen. As a result, many record
companies are now reluctant to accept unsolicited demo tapes from artists
seeking recording contracts. This has created a cottage industry in
tape-shopping deals. Under these arrangements, industry dealmakers -- often
music lawyers -- with whom record companies are already familiar agree to try to
get an artist's tapes to the ears of record company executives in
exchange for a fee and/or percentage of monies earned under a record contract
the artist may then obtain.
Here are some of the deal points an artist can expect to find in an agreement
with a tape-shopping representative: Whether or not any fee the artist
guarantees the tape shopper must be paid partially or wholly up front, or can be
paid out of an advance given the artist by a record company.
Whether the tape shopper will be entitled to a percentage of the first album
advance, a percentage of first album advance and royalties, a percentage of all
the royalties and advances under the recording contract or some compromise in
between. (A tape shopper may ask for from five percent to 20 percent of what an
artist receives.)
How long the tape shopper will have the right to shop the demo tape (usually six
to 12 months) and whether or not the artist may also shop the tape during that
time.
Whether or not an attorney shopping the tape will be allowed to negotiate the
contract with the record company, considering that the attorney usually has an
interest in closing the deal to obtain greater payment.
Original article by
By Stan Soocher, entertainment attorney and Editor-in-Chief of the New
York-based industry newsletter Entertainment Law & Finance
This information is for educational purposes only and is not
intended to serve as a comprehensive drafting guide. Rather,
the advice of legal counsel should be sought for each specific
situation that may arise.
There may be further matters there that you would like to read
the Site address is http://www.starvingartistslaw.com/industries/music_law.htm
Bobby D
I never tried to sell myself as a singer/songwriter. But I've been
gigging for decades doing mostly cover material. From my experience an
agent works for you getting you gigs period. Don't sign an exlusive
contract with any agent. 15 percent is a normal rate, some charge 10
and I've got one that gets 20 which maybe over the legal limit. It
varies from state to state.
If you go exclusive with an agent that fails to get you gigs you're
screwed. I use two agents and signed a contract with one of them which
only states that once he books me somewhere, I can't book myself at
the same place for two years without paying the agency.
I guess the bigger agencies might have more ways to squeeze money out
of you. I don't really know about that, but I would look at a few
agents to find the best deal. And I wouldn't sign anything.
Bobby
Jenna
I definitely won't sign anything without the attorney, but I'd rather
weed out the bum deals myself and not pay the attorney $150 to do it!
:)
Thanks for the tip!
-----Jenna, GRex
GREX - For people who like great music
Jenna
> > audio cassettes, CDs, DATs, or other audio material as well as
> > biographical material and promotional product that agent needs to
> > present to record label. Artist must provide agent with commercially
> > ready and professional material for shopping. Agent has the right to
> > return artist any material that the agent does not believe is suitable
> > for shopping. Shopping materials must be provided to Agent no later
> > than fifteen (15) days from the date of this agreement. Any material
> > submitted to agent after that date will not be responsible or
> > obligated to return material submitted to agent by artist.
>
> You must see a Lawyer, I am concerned on a quick read of the clauses you have
> posted one ( clause 3) doesn't even make sense, which is a bit of a worry.
>
> The advance is a loan to the artists which has to be paid back by the artist
> out of royalties surely it would be reasonable for the agent to pay back
> their part of the advance out of their points wouldn't it?.
> I mean it's OK for an agent to get a percentage of earnings but an advance is
> not earnings it is a loan against future earnings.
Since everyone seems to have trouble buying into either clause 2 or 3,
it's attorney time! I thought all of that myself, but didn't know if
this was now the "industry standard" hosing over.
Thanks!
Jenna
"tape shopper" info was perfect. Thanks so much!
-----Jenna, GRex
GREX - For people who like great music
http://stage.vitaminic.com/giles_ascap2
http://www.soundclick.com/gilesascap
Snabbu <sna...@optushome.com.au> wrote in message news:<3E920E58...@optushome.com.au>...
Mike Morgan
"Jenna" <jenn...@mindspring.com> wrote in message
news:9e56313c.03040...@posting.google.com...
> Hi all!
>
> I need help in finding out whether this is normal in a agent's
> contract. There's some stuff in it that I'm not sure is normal...
>
> This is for a 1-year contract. They told me verbally that the
> percentage for bookings they get for my artist is 15% (I thought the
> legal limit was 10%), but that doesn't appear on this contract as far
> as I can see... Here we go!
> ::
Allow me to explain in simple terms.
When somebody asks for a percentage from a record deal, they are not asking
for a percentage of your earnings, they are asking for a percentage of the
net profits from that record. (or it might be the gross profits - but it
worls out the same so we'll say net for the purposes of my Don Passman-esque
analysis)
When a publisher takes 3%, this is three percent of the total. When you get
10% it is ten percent of the total. If the agent wants 2.5% that comes from
the total too.
but their slice comes out of yours, because the record deal has no agreement
with them.
So you end up with, 10% - 3% - 2.5% = 4.5% royalty.
It is not unheard of for an artist to end up paying out more than he earns.
Imagine a manager taking a further 3%, the producer taking 4% instead of 3%
and an old agreement for a demo deal accounts for a further 2%.
This would mean that you have 10% net royalty
producer wants 4% of NET
agent wants 2.5% of NET
demo company wants 2% of NET
manager wants 3% of NET
rounding up to 11.5% and you only got ten
Look out, Kid!
This would mean that any record deal you signed would guarantee you to be in
some degree of debt - and the more records you sold, the more money you
would owe.
You're only hope would be for the record company to drop you.
Do not be fooled for a second by people who claim this sort of thing does
not happen. The music industry is full of fucking scumbags.
So as for the kind of deal you've been offered, I'd give it a miss. Also
there was talk of the artist paying money up front at the beginning - that
is definitely a bad sign IMO.
Patience may will bring better offers from better people. Take care and good
luck!