How to Read a Music Contract Without a Lawyer (But Maybe Get One Anyway)

TL;DR

Never sign anything that assigns your copyright in perpetuity. Always negotiate the term length, territory, and reversion clauses. The three most important things in any music contract are: what rights you're giving away, for how long, and under what conditions you get them back.

The Anatomy of a Music Contract

Every music contract — whether it's a record deal, publishing deal, management agreement, or distribution contract — contains the same fundamental elements: who's involved (the parties), what rights are being transferred or licensed, for how long (the term), where it applies (the territory), and how money is split.

The language is deliberately complex. Contracts are written by lawyers for lawyers, and the opacity serves the drafter's interests. Terms like 'in perpetuity throughout the universe' (yes, real language from real contracts) and 'exclusive irrevocable licence' are designed to give the other party maximum control with minimum obligation.

But here's the thing: contracts are negotiable. Every clause, every percentage, every term length is a starting point for discussion. The party presenting the contract knows this — they're starting with the terms most favourable to them, expecting you to negotiate. Walking in assuming everything is fixed is the most expensive mistake you can make.

Red Flags That Should Make You Pause

Any contract that assigns your copyright — rather than licensing it — should trigger serious caution. Assignment means you're transferring ownership of your music permanently. Licensing means you're granting permission to use it under specific conditions, and the ownership stays with you. The difference is enormous.

Watch for 'in perpetuity' or 'for the life of copyright' term lengths. These mean the deal lasts essentially forever — life of the author plus 70 years in the UK. For a record deal, acceptable terms are typically 1-5 years with specific album commitments. Anything beyond that should require exceptional justification and compensation.

360 deals (where the label takes a percentage of all your income streams — recordings, publishing, touring, merchandise, endorsements) are increasingly common and not inherently bad, but the percentages must be fair. A label taking 20% of your touring income is very different from one taking 50%, and the services they provide in return (tour support, marketing, advance) need to justify the take.

The Clauses That Actually Matter Most

The reversion clause is arguably the most important clause in any music contract. This specifies under what conditions your rights return to you. A good reversion clause says something like: 'If the label fails to release the recording within 12 months, or if the recording falls below a minimum sales threshold for 2 consecutive years, all rights revert to the artist.' Without this, your music can be shelved indefinitely.

Accounting and audit rights matter more than you'd think. Your contract should specify how often you receive royalty statements (quarterly is standard), when payments are due (within 30-60 days of statement), and your right to audit the other party's books. Without audit rights, you're trusting them to calculate your royalties correctly with no way to verify.

Option clauses in record deals give the label the right to extend the contract for additional albums. These should always specify minimum commitment terms — the label can't just sit on the option forever. And ideally, option terms should improve in your favour (higher royalty rate, larger advance) with each option exercised.

Negotiation Tips for Artists Without Leverage

Even if you're a brand-new artist with no leverage, you can negotiate. Start by asking questions rather than making demands: 'Can you explain why the term is 7 years? Is there flexibility on the territory?' This signals you're paying attention without being confrontational.

Never negotiate against yourself. If you want a higher royalty rate, state your ask and let them respond. Don't say 'I'd like 20% but I'd accept 15%' — you've just negotiated yourself down before they even replied.

Get everything in writing. Verbal promises ('we'll renegotiate after the first album does well') are worthless unless they're in the contract. If someone promises something, ask them to put it in a clause. If they refuse, the promise was never real.

The best leverage is alternatives. Having interest from multiple labels, publishers, or managers gives you genuine negotiating power. Even if you prefer one offer, the existence of competition changes the dynamic. And walking away is always an option — no deal is better than a bad deal.

When to Get a Music Lawyer (Which Is Always)

We said 'without a lawyer' in the title, and we've given you the knowledge to understand contracts. But our actual advice: always get a music lawyer to review any contract before you sign it. The cost (typically £200-500 for a contract review) is trivial compared to the value of the rights you're signing away.

Music lawyers don't just review — they negotiate. A good music solicitor has seen hundreds of these contracts and knows what's standard, what's aggressive, and what's unacceptable. They know which clauses have flexibility and which are deal-breakers for the other side. That knowledge is worth every penny.

Organisations like the Musicians' Union and the Music Managers Forum offer legal advice to members. The Featured Artists Coalition provides resources and advocacy for artists' rights. And if you genuinely can't afford a lawyer, at minimum have a knowledgeable manager or mentor review the contract with you.

At Noise, we believe in fair contracts that respect artists as equal partners, not commodities to be exploited. The more artists understand their contracts, the more the industry has to offer fair terms. Knowledge is leverage.