How do streaming royalties work?
Streaming platforms pay royalties based on the number of streams, but the per-stream rate varies by platform, territory, subscription tier, and the contractual terms between the label/distributor and the platform. Understanding how these rates flow through to the artist requires analysis of both the distribution agreement and the recording contract.
What are sync licenses?
Synchronization licenses allow a third party to use a musical composition in timed synchronization with visual content, such as a film, television show, commercial, or video game. Sync placements can generate significant income and exposure, and the terms of sync licenses should be carefully negotiated.
Do I need a lawyer if I have a manager?
Yes. A manager advises on career strategy and identifies opportunities. A lawyer reviews and negotiates the legal documents, protects your legal rights, and ensures that the written agreements reflect the business terms your manager negotiated.
What is recoupment and why does it matter?
Recoupment is the process by which a label or studio recovers its investment (advances, recording costs, marketing) from the artist’s royalty earnings before paying royalties. The recoupment formula determines how long it takes for the artist to begin receiving royalty checks, and unfavorable recoupment provisions can delay payment indefinitely.
Who should own the master recordings?
The artist, whenever possible. Master ownership gives the artist long-term control over the most valuable asset in a recording career. When labels insist on ownership, we negotiate reversion provisions that return ownership to the artist after a specified period or upon recoupment.
Can a brand use my image after the deal ends?
Only if the agreement grants post-termination usage rights, which should be clearly defined, limited in scope and duration, and negotiated as part of the overall compensation. We ensure that post-term usage provisions are fair and time-limited.
Do I need to disclose that a post is sponsored?
Yes. The FTC requires clear and conspicuous disclosure of material connections between endorsers and brands. Non-compliance can result in enforcement actions and penalties against both the endorser and the brand.
What is a morality clause and should I worry about it?
A morality clause allows the brand to terminate the deal based on your personal conduct. Poorly drafted morality clauses give the brand too much power. We negotiate balanced provisions that define actionable conduct specifically and include notice and cure protections.
Can I endorse competing brands?
It depends on the exclusivity provisions in your existing agreements. We review all current contracts before advising on new endorsement opportunities to ensure there are no conflicts.
How much should I get paid for an endorsement deal?
Compensation depends on your audience size, engagement, sport or entertainment category, the scope of the endorsement, and the brand’s budget. An experienced attorney evaluates the offer against market benchmarks to ensure fair compensation.
