In September 2020, “Kanye West Record Deal” started trending. Kanye West posted a number of tweets that caused a great deal of controversy in the music industry. See BBC report here. West made about a 100 posts and shared screenshots of pages from his recording contract. West complained that his record label was not allowing him to buy back his master recordings (which, at this point, he can afford). West also tweeted this statement:
“When you sign a music deal you sign away your rights. Without the masters you cannot do anything with your own music. Someone else controls where it is played and when it is played. Artists have nothing except fame, touring, and merch.”
West also noted that now, during the COVID-19 panic, artists have not been able to tour and give concerts. West said artists were starving without their master tapes and without the ability to tour.
Over the years, other artists have expressed similar views when it comes to recording deals. In 2015, Prince famously stated that:
“Record contracts are just like — I’m gonna say the word – slavery. I would tell any young artist… don’t sign.”
What is This Controversy All About?
When an artist signs with a record label, they sign a contract. Generally, there are not many substantive provisions in the contract that record labels are willing to change for new artists because they know they have the majority of the leverage when it comes to new artists and their first music deal. With respect to the master recordings, every record label contract contains a provision that states something like this: “Artist acknowledges that RECORD LABEL is the sole and exclusive owner of all Masters Tapes.” Often, the contract then has several paragraphs explaining that sole and exclusive ownership entitles the record label to:
- Ownership of all duplicates and copies of the master tapes
- Ownership of any video or other tapes made at the time and in the place was the master tapes were made
- To manufacture, advertise, sell, lease, license, synchronize with any medium, or otherwise use or dispose of masters (with such rights generally being states as “for all time” and “throughout the Universe”)
- To use and permit others to use the artist’s likeness and biographical material
- To release records manufactured from the masters
- To allow others to release records made from the masters without needing the consent of the Artist
- To release songs/compositions as part of albums or other compilations
- To publicly perform the music and/or allow others to publicly perform the music
Note that these provisions related to the label’s ownership of the master tapes is forever. This is what West meant by the tweet quoted above. Even though you performed the music, you have no rights whatsoever with respect to the recording or how the recording is used. As can be seen, record contracts are very one-sided.
In addition to criticizing the fact that artists are forced to give up ownership of their music, West tweeted criticisms of the common practice of record labels taking reimbursements from the royalty payments. These are generally called “recoupments.” A typical contract will allow “recoupment” of expenses like recording studio expenses and fees, mixing and mastering service fees, photography and graphic art design fees, manufacturing costs for records, discs or other media, rental costs for equipment, etc. One may legitimately wonder what the record company pays for that does not end up being “recouped.”
West’s solution to the Kanye West record deal controversy seems to be a union of music artists, something like the Screenwriters and Actors Guilds that operate in the film and television industry. Other artists have tried and those efforts have not succeeded. We here at Cordero Law will be watching developments with interest.
Contact an Experienced New York Music Lawyer Today
For more information, contact the business, entertainment, and IP lawyers at Cordero Law. Our approach is to provide top-tier legal services by working with our clients rather than simply working for them. Our entertainment law practice focuses on the music industry. Having a good music lawyer is essential for the success of new and established artists. Contact us via our online Contact Page or by calling (212) 960-8890.