Featured Artist Agreements – key terms and conditions explained
A so-called ‘featured artist’ provides performances on a recording to a record label or producer – usually this is a vocal performance. For example, she could be a renowned recording artist who wishes to collaborate with another recording artist (think Alicia Keys with Jay-Z) or an unknown/up and coming singer who is looking for exposure and willing to work with anyone who is willing to spend the time and energy involved.
Whatever their status, a Featured Artist Agreement should be signed by the parties involved in order to protect their interests. The agreement should clearly specify the extent of the services the featured artist will perform on the recording, what promotional commitments are required, the rights the record company has to exploit those recordings and how the featured artist will be paid for such services. For example, the fee paid to a featured artist could be a buy-out of their services such as a one-off session musician fee. Alternatively the fee could be a royalty based on the sale of records or downloads of the recording.
If a performer is approached to appear as a featured artist on a recording, then the above key terms should be examined to ensure a fair deal is struck. Commercial terms that are often negotiable include the following:-
- Advance: this is a payment by the party making the recording (ie such as the record label or producer) to the featured artist. Some featured artists will always require an advance payment before even going into the studio to cut a track. The amount can vary from £1 for someone starting out up to thousands of pounds for a famous performer. Whatever the amount agreed and paid as an advance is always fully recoupable from royalty payments and any other income due from the paying party to the featured artist.
- Royalty Rate: some featured artists will want to be paid a share of profits from the eventual exploitation of the recording embodying their performance. This royalty is usually paid to the featured artist once monies laid out by the record company are recouped, including recording costs and any other advances or session musician fees and so on. It is important that the featured artist ensures that any unusual expenses are not deductible and that they are also subject to the same royalty calculations as those applicable to the main recording artist.
- Availability, promotion and expenses: it is usual for the featured artist to expect to make themselves available upon reasonable request (subject to the featured artist’s own prior professional commitments) to take part in all publicity and related promotional events relating to the recording, including rehearsals, personal appearances and interviews as well as recording any required video. She should check to ensure all reasonable out of pocket expenses will be paid by the record company in undertaking such promotional activities, which is usually not a problem upon presentation of proper receipts.
- Credit: it is important for a featured artist to have a credit (ie their name) on all packaging and other promotional material relating to the marketing and sale of the recording. For a new artist it could be the recognition they need to have some bearing in the industry. Check that the record company will use their best endeavours to ensure all packaging and relevant marketing material embodies the necessary credit. Note that a failure to do so by the record company will not usually be considered a material breach of the agreement giving the featured artist a remedy to take legal action – the usual compromise is that the record label will agree to do their best to rectify any such omission upon being given notice by the featured artist.
- Substitution: it sounds odd, but there is also usually a provision in the agreement granting the right for the record company to engage a third party substitute to perform as the featured artist should they not be available for promotional activities (ie to mime when doing a PA at a nightclub). As unattractive as this is for the featured artist, the most they can often hope for is to have approval over their chosen substitute. An established artist however will usually always be able to insist that no such substitution will ever be allowed.
- Non Recording Ancillary (‘NRA’) income: The main recording artist’s record label or production company may insert a clause in the agreement allowing it to charge a percentage of all NRA income arising from any song writing, live, sponsorship, endorsement and merchandising activities undertaken by the featured artist during the term of the agreement. This is very unusual and the featured artist should not agree to this unless the record label is willing to make a substantial financial advance or other significant contribution towards the promotion of the featured artist’s career.
Chris Phillips and Mike Shepherd who head up the Media and Entertainment department here at Bolt Burdon are experienced lawyers used to negotiating and advising on all types of music industry agreements.
To find out more about Featured Artist agreements, and how we can represent you, please contact us for a free initial consultation on 0207 288 4706.