What is a Featured Artist Contract?

A featured artist contract (also known as a side artist recording contract) is an agreement between a record label, artist, or producer and a musician or singer who is not part of the artist's regular band or group. This contract is used when the external musician has a significant role and will receive credit as a featured artist along with some royalties. Such contracts detail each party's artistic contribution, financial compensation, copyright rights, and the promotional duties related to the work.

How Does a Featured Artist Contract Work?

Imagine pop singer Esther Estrella wants to collaborate with rapper MC Maldonado on her new song. Both artists and Estrella's record company, Real Records, agree to enter into a featured artist contract. In this agreement, MC Maldonado will contribute his rap skills to the song. Real Records will handle all production and recording costs. In return for his contribution, MC Maldonado will receive a specific payment, the details of which are confidential.

Real Records will own all rights to the master recording. MC Maldonado will be credited as the lyricist for his contributions and is entitled to publishing royalties based on the percentage negotiated in the split sheet. Additionally, Real Records has the right to use MC Maldonado’s name and image to promote the song, and he will be properly credited on the audio product packaging and other related formats.

What Happens If You Collaborate Without a Featured Artist Contract?

Collaborating without a featured artist contract can lead to overpayment or split rights over a song with others. Therefore, if you want clear rights and royalties for each party, a featured artist contract is necessary.

Should You Include Clauses for the Composition and the Master?

Copyright law treats the composition and the master as separate works. Therefore, a featured artist contract typically includes necessary clauses related to the collaboration. For instance, if the guest talent's involvement is limited to performing, there's no need to address composition. However, if they also participated in creating the song, the contract must include clauses specifying how copyright over the composition will be handled. Often, a split sheet is attached to the contract under these circumstances.

What Information Is Typically Included in a Featured Artist Contract?

A featured artist contract typically includes:

• Identification of Parties: Legal and artistic names of the artists involved.
• Project Description: Details about the recording, song title, and any relevant aspects.
• Artistic Contributions: Description of each artist’s responsibilities and contributions to the collaboration.
• Financial Compensation: Amount and method of payment, including royalties, advances, and revenue sharing, if any.
• Copyright: Share of copyright each artist holds in the work.
• Services of the Artist: Specifies that the guest artist will provide vocals or performance for the song recording. The final product owner, usually a record label, may include the featured artist's contribution in audio products for sale.
• Recording: Recording will occur on agreed-upon dates and hours, with the label covering associated production costs.
• Compensation: The label pays the guest artist a specified amount for their services. The details of this compensation are confidential.
• Master Ownership: The label owns all rights to the master recording. This clause includes work-for-hire language and assignment terms, giving the label exclusive rights to register and control the copyrights.
• Musical Compositions: If the guest artist contributes to the musical composition, they are considered an author or composer, credited as such, and their ownership percentage is outlined in an accompanying split sheet.
• Use of Name: The label can use and allow others to use the guest artist's name, likeness, and biographical material in connection with the master and its derivatives.
• Credit: The label will credit the guest artist on the audio product packaging and other related formats. Failure to credit due to error does not constitute a breach if corrected upon notification.
• Promotion and Marketing: Responsibilities and commitments of each party regarding the promotion of the recording.
• Duration and Terms of Contract: Duration of the contract and conditions for its validity, including potential termination reasons.
• Warranties and Representations: Statements that the parties have the right to engage in the collaboration and do not infringe on third-party rights.
• Confidentiality and Non-Competition Clauses: Restrictions on disclosing confidential information or engaging in similar collaborations for a specified period.

This summary outlines the critical elements of a featured artist contract, ensuring both the guest artist and the hiring party understand their rights, responsibilities, and the legal framework of their collaboration. Each contract can vary based on the specific needs and agreements between the parties, and it's crucial to thoroughly review and understand the contract before signing.

Is a Lawyer Necessary to Create a Featured Artist Contract?

As a general rule, a lawyer is not necessary to create a featured artist contract. However, there are cases where it is advisable to have a lawyer with experience in the music and entertainment industry.

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