LEGAL SIDEPIECE

Recent news highlights the ongoing struggle artists face when dealing with record labels. Before the unexpected death of Singer Angie Stone on the 1st of March, 2025, she publicly accused Universal Music Group of withholding her royalties, sparking a wider conversation about the importance of protecting artistic earnings. This issue affects not only artists but also their beneficiaries, who may be left without a financial legacy.

Understanding Royalty Payments

Royalties are payments made to artists for the use of their work, such as music, literature, or art. Record labels typically handle royalty payments, but disputes can arise over the accuracy of these payments. As an artist, the following legal steps may help secure your royalties:

1. Before Signing a Record Deal

• Register your work with the copyright office: Before signing with a label, register your music, lyrics, or other creative works with the relevant copyright office depending on your country of domicile or applicable jurisdiction. This establishes a public record of your ownership.
• Negotiate a fair contract: When signing with a record label, negotiate a contract that clearly outlines royalty rates, payment terms, and the label’s obligations. Seek professional advice from a lawyer or manager.

2. Negotiating the Record Deal

• Seek professional advice: Consult with a lawyer or experienced music industry professional to review and negotiate the contract.
• Retain some ownership rights: Try to negotiate retaining some ownership rights such as publishing rights or a percentage of the master recordings rights.
• Register with Performance Rights Organizations (PROs): Register your work with PROs like American Society of Composers (ASCAP), Broadcast Music Inc. (BMI), Society of European Stage Authors and Composers (SESAC).
• Label Partnerships: Consider exploring partnerships with labels that offer more favourable terms, such as joint ventures or profit-sharing agreements.

3. After Signing the Record Deal

• Register your work with the record label: Ensure the record label registers your work with the relevant PROs and copyright office (e.g., U. S. Copyright Office).
• Monitor Royalty Statements: Regularly review royalty statements to ensure accurate payments and detect any discrepancies.
• Utilize the services of a Music Rights Administrator: Music Rights Administrators also known as Publishing Administrators can help artists manage their music rights and ensure accurate royalty payments. These Music Administrators also provide Royalty Tracking Services to accurately track royalty payments. Examples are; Songtrust, Audiam, and Music Reports.
• Auditing and Transparency: Demand regular audits and transparency from your record label to ensure fair payment practices. The conduct of regular audits and frequency rate should already be agreed upon and included in the contract.
• Plan for the future: Establish a Will, Trust or Estate Plan to ensure your royalties continue to benefit your beneficaries in the event of incapacitation or death.

By taking proactive steps to secure your royalties and protect your legacy, you can largely guarantee fair compensation for your work.

Disclaimer: This article does not constitute professional legal advice. Please consult a legal professional if you are in need of professional legal advice.