The warranties contained in this clause are standard and it is very likely that record companies will require other additional guarantees or obligations, such as. B the obligation to participate in recording sessions in a timely and appropriate manner. Artists should carefully consider clauses like this and make sure they fully understand what they guarantee and do and are able to perform them. As already said, the duration of each contract is linked to the delivery of recordings by the artist to the record company and this clause deals with what the artist has to do before the recordings can be considered «delivered». There are 3 main points to respect in this clause. 5. BOOKING CLAUSE Record albums are considered consignment items, which means that record stores have the right to return unsold albums to the distributor and get a full refund. (e.50) Since artists are not paid royalties for unsold albums, labels withhold a portion of an artist`s royalties as a «reserve» for any returns. (e.51) For example, if your contract provides for the label to keep a reserve of 20%, only 80% of your royalties will be paid to you initially. In this agreement, the artist grants the label an exclusive right to value the master recording for an agreed number of years or duration. The rights to the label include the sale of audio products created by the Mastern and the posting of the Master on streaming music services. This clause is only relevant if more than one person signs the admission contract.
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