Sunday, 17 July 2011
Recording Contracts (Part 1)
Recording contracts are documents that spell out the terms and conditions under which a talent and a production house enter into a business proposition with one party taking the risk of investing and the other party is willing to give their services with the hope that there will be a return on investment. The heaviest burden of success or failure rests with the production house especially if the production house has a good track record. As a result the production house must develop a contract that will ensure that the terms and conditions that govern the agreement binding both parties is comprehensive and makes business sense. From the talent perspective it is expected that they enter into this contract having considered all the pros and cons of entering into this contract. It is very important to seek legal counsel for guidance as this will help manage irreconcilable differences that may later emerge. If at some point both parties disagree, then the agreement should be guided by the termination clauses to avoid unecessary misunderstandings. Unfortunately as observed in this market (EA) most of the time one party to the agreement goes balistic and does press releases without due consideration of the consequences. If both parties can reconcile with the fact that this is a business to run, it is often easier to manage the transition and look for opportunities. The important point to remember here is that talent is not of much use to anybody unless it is nurtured and supported to achieve the desired objectives.