The way that Gruberman has identified these sections is by using his tool called BriefCatch. Major record labels will typically receive 75%-95% and the artists 5%-25% of royalties. . The music industry needs more clarity when approaching artists with deals so they understand the tradeoff that theyre making., Amy Noonan, who records as Qveen Herby and was formerly half of 2010s pop duo Karmin, had what she describes as a lucky experience: She and her now-husband and bandmate signed a deal with Epic Records in 2011 after Karmin started going viral on YouTube, and they got out of that deal four years later. on the Internet. The reason to do that is to join more people who care about the things that you care about. Royalties. Found online, don't shoot the messenger. So heres an amendment. Harvard Business Review did a big piece on it, and the general counsel of that division really took this whole plain English thing seriously instead of just giving it lip service and actually redid a lot of their commercial agreements. Ross, how are you today? How that how how that would play out. Labels are taking risks on any given signing and need to make offers that keep the company profitable. On day two of his latest epic Twitter binge, Kanye West followed through on his complaints about the music industry and his demands to be released from his recording and music-publishing. For that LP, there was a recording fund amounting to$2.5 million. Its an interesting thing. Fine. We were broke college kids right after the recession. Mike Whelan [00:04:08] wearing the shirt. And examples of a couple of companies tackling the issue. Lets rewrite the deals to be understandable from first rate. Welcome to Law Insiders Contract Teardown Show, where we bring smart friends like Ross Guberman over here to break down some contracts. So, you know, my provision, these are coded blue brief catch picking up on a lot of those. Right. A month ago, Kanye West had an emotional breakdown on Twitter. 1990 Kanye's mother, Donda West, helps a then 13-year-old Kanye pay to cut his first record in a basement studio. West created his first Yeezy shoes with Nike in 2007, and then . The papers indicate that he started on a royalty deal frequently afforded to upcoming artists, which later evolved into a more artist-friendly pressing and distribution deal that gave Kanye more of the profits and bigger budgets as he became a superstar. So tell me, is the language on the right? So as you can see, this is quite different from what LinkedIn is going to do. What do you think of Kanye West leaking his own contracts to make a point? Theres this site, my my other company, legal writing pro. This is a situation were in. I wrote a book. The lawyers in this industry who are used to the status quo are going to say its worth it, but if I make a deal with you and go to lunch and say you pay 70 [percent], I dont think youll say its fair. Thats the name of my new band. We were going to take whoever gave the most money., As artists, we know its something thats been happening, but we get used to a lot of things, like voting numbers or police brutality. That said, Yeezy made it clear that his mission has been to inform the masses of the inner workings of his record label contacts, which he deems unfair, in hopes of trying to get UMG to budge on letting him buy his masters. The record label / publisher is a service provider that receives a share of the income for a limited term. We get used to these things and then sometimes, theres a wakeup call . Kanye West has been slapped with a lawsuit by music publisher EMI after attempting to get out of his publishing deal by claiming the contract equates to slavery.. Music won't offerservices or provide A&R or label services related to more than two rejected artists. A lot of people say they sign a million-dollar deal, but you dont get a check for $1 million, Noonan adds. Kanye West tweets Univeral Label Contract. On May 4, 2012, Kanye's team penned a letter to Island Def Jam Music Group requesting that the recording fund for this fifth album be increased. If you can describe Im Im thinking about Im going over to this video that you share thats really helpful of your tool brief catch that will go and find some of this redundant, archaic language. Ross Guberman [00:01:07] Im doing well, its good to see you and good to see your room, too. Normally, its sort of reversed. Theres hidden costs in the ways deals are structured, and most artists dont have an understanding in how the recoupment works and its confusing. Oct. 25, 2022 Updated 11:22 a.m. Theres no more independent plants, no more putting all these CDs in a truck and shipping them from store to store across the country, Chris Anokute, founder of entertainment company Young Forever Inc. and a former A&R executive for labels including Capitol and Island Def Jam, tells Rolling Stone. Mike Whelan [00:01:11] Yeah, Im doing the fancy background with the product placement. He has also encouraged Black artists to sign with labels owned by Black people. How can you rewrite a contract to be understandable without losing the original intent? Youll also get webinars and daily tips on drafting and negotiating contracts, not to mention access to the worlds largest database of sample clauses and contracts. Lets get back to the show. You want to get in and get as much as you can is what we were told. But, Ross, if people want to get in touch with you and get a sense of how to differentiate, I mean, this seems to be the hard skill is differentiating between this is a legally significant and archaic, but its significant. Wests contract could even be considered favorable among superstar contracts, with Universal heavily investing in Wests works, entertainment attorney Christiane Kinney says. Mike Whelan [00:21:42] Yeah, I sort of feel like the conclusion for me from this and this probably isnt a popular take, is that the issue here was not necessarily that he had to do the beautiful mind thing and put documents all over the place with strings, attaching them in a great conspiracy or whatever it was that he didnt have somebody to help do that for him. Money and Music must stay together. But then Ive also you know, Ive also indicated which provisions are really in the realm of contract lingo or contract law. Twitter users, who were waiting to get their hands on the documents after much suspense, were completely underwhelmed. Moments later, Kanye shared screenshots of five files. We get used to these things and then sometimes, theres a wakeup call.. In the process of that latter Twitter. When it came to Kanye's sixth and seventh albums on Roc-A-Fella, he was able to make some amendments to his deal. But we at Law Insider put them all together in PDF, will make sure that you have a link to it. Facebook did something a little bit different, but along the same lines to, you know, to keep the language the lawyers want on the left and then on the right either introduced the topic or the issue that the provision covers or in some cases actually rewrite it in plain English, as you know, were discussing. web pages his own paperwork with Universal Music Group and then, far as the actual deal goes, Kanyes isnt particularly bad: Music lawyerswho spoke with. Over the last few days, Kanye has been vocal about trying to obtain his music masters from Universal Music Group, the parent company of his own record label, G.O.O.D. Mike Whelan [00:01:20] Pretty classy nightstand, Ross. After agreeing to the amount spent on the film, they took $1 million from Kanyes sixth album backend and then $500,000 from his seventh album's recording fund. Music or such label paying Island Def Jam Music Group acounterbalance amountagainst overhead payments in an amount equal to the overhead payments in the applicable contract year multiplied by a fraction. I hope youre enjoying this episode of the contract tear down show. Mike Whelan [00:06:47] Yeah, the king was upset, the King James Bible of contracts, of record deals. The language looks like something you might find, you know, 50, 100 years ago. 88-Keys . In the weeks following its release, Donda surpassed a billion streams on Spotify globally. One common grievance: Many aspects of record deals do not reflect how the business has dramatically changed over the past decade. Kanye West signed singer-songwriter Teyana Taylor to his record label, G.O.O.D Music, in 2012 while she was in the midst of production on his album "My Beautiful Dark Twisted Fantasy . Kenny Beats tweeted that something needs to change in the structure of the music industry to protect artists and specifically Black artists. And in a lengthy post on Instagram, Hit-Boy, whos produced platinum songs including Sicko Mode and N-s in Paris, said that multiple attorneys who have seen the deal he signed as a 19-year-old with Universal Music Publishing Group in the mid-2000s called it the worst publishing contract theyd ever seen. G.O.O.D. You know, its a little some people would say, well, you dont want to mess around with indemnification, but in this case, it seems close enough to the original to be faithful legally while still being understandable. Mike Whelan [00:03:02] Thats right. It's unclear if it actually will. 25. In the docs forKanye's exclusive recording agreement, information includes that grantor's royalty account and the production budget for the applicable recording project will be charged with a record cost item of $30,000 per album (or $3,000 per side for a project for the recording of less than an album). Over the course of dozens of tweets, West. Law Insider, in partnership with Laura Frederick and How to Contract, is hosting ContractsCon 2023, a live training and networking event focused on practical contract drafting and negotiating skills for in-house counsel and contracts professionals. Im going to give people a little bit of background on the Twitter rant about contracts. I mean, shoot, producers can take $15,000 to $20,000 a piece on each track. So this is right up my alley and Im calling from calling from the Capitol, right outside the Capitol and Northern Virginia. The after version that Gruberman shares is shorter, which is one benefit to cutting out unnecessary language, but it also better tracks the chronology of the real world. $26.59 New. Getting Out Our Dreams, LLC c/o Carroll, Guido & I will not share the image of Kanye West urinating on his Grammy, though. Im Mike Whelen. However, the film has not yet been released. Whats the language that stands out to you as particularly harmful to the understanding of the parties, which is really what a contract is supposed to do, right? Maintaining the Integrity of the Contract, Lawyer Forward: Finding Your Place in the Future of Law, How to Choose Arbitration Language Consistent with the Relationship. Not every artist has time to read the Donald Passman bookand find out what every term and clause means, and while there are great lawyers out there, too many just want their 5 percent [commission].. Kanye West, someone God had chosen to do something very special in the world. Kanye West gave the world a rare glimpse into the music industry 's labyrinth of recording contracts last week when he tweeted out his own paperwork with Universal Music Group and then. If Im the lawyer there, there are terms of art. Ye said of the images: "This is what me Kanye West deal looks like . In order to maintain the original intent, some legal jargon and industry terms must remain intact. This method perhaps isnt as friendly to consumers as LinkedIns method, but its close enough to the source material and still understandable. And the record business that it means in normal English. Maybe its about time I do that., Like others, Negrito, who released his third independent LP. Adidas said on Tuesday that it was cutting ties with Kanye West, ending what may have been the most significant corporate fashion partnership of the rapper and . Just minutes prior, he had finished tweeting out the entirety of his Universal contract, one page at a time for a total of more than 100 tweets. Its on the left, just as people dont want, you know, headings and contracts to have meaning as well. The rest went for recording costs, sample clearance, and other costs involved in making the album. You can imagine the anxiety the in-house counsel have, right? Are not just for royalties. Roc-A-Fella was to approve any "recording elements,"which are listed as: selection of individual producer(s), selection of compositions to be recorded, specification of accompaniment, arrangement and copying services, selection of dates of recording and studios where recording is to take place. Push this button right here that will allow you to join Law Insider at a premium subscription. As lawyers and contract drafters trying to implement plain language, we have to find a way to do this while staying true to the contract. ET. Will we be seeing a President Kanye? Undoubtedly, who Is this different than the LinkedIn attempt? #kanyewest #dramaalert #grammyWanna continu. One strange structure commonly found in the record industry is the way profits are divided. THE HOST:Mike Whelan is the author of Lawyer Forward: Finding Your Place in the Future of Law and host of the Lawyer Forward community. So I apologize to both of you D.C. people watching. And then what happens is, as you can see from his other related tweets, the sense is not just, well, I dont understand the contract. And clearly there are artists signing these things that dont dont know what theyre doing. Portals. Leveraging Scooter Braun's reputation and influence within the music and entertainment industries, Scooter Braun and the Scooter Braun Projects team work around the clock to put its clients in a position to make their dreams come true. Music, is no. In the event that Kanye's sixth album, Cruel Summer,exceeds 2.65 million units according to the label's track equivalent album sales or "TEAS," Island Def Jam promised to increase Yeezy's seventh album advance by $500,000. Youll get access to more content like this. Theyre there of the, you know, blah, blah, blah, blah, blah, if any. You want to make sure everything is understandable, but you dont want to take related phrases within a provision and just willy nilly break them up into multiple sentences the way you might. Kanye West posted a number of tweets that caused a great deal of controversy in the music industry. Is this part of the contract or are they saying this is a separate thing? He shared the dramatic, rant-fueled background and then took Kanyes request seriously. You take expenses out and then people are sharing whats left. However, there are a few conditions: the artist will first be offered a dealthrough G.O.O.D. Kanye West Says He Won't Release New Music Until Freed From Sony and Universal Contracts: Declaring himself "the new Moses" while demanding apologies from Drake and J. Cole. Ross Guberman [00:03:18] And so Im the president of legal writing prose, so Ive been doing workshops and consulting on all different aspects of lawyer writing and judicial writing for a couple of decades now. We wouldnt be talking about all this now if the label hadnt invested in him and put tons of marketing money into this for his leg up.. At no point was Kanye allowed to object to a track being on the record if it achievedTop 100 chart success on any national trade publication at any time prior to when the Greatest Hits album was released. "NEW RECORDING AND PUBLISHING DEAL GUIDELINES," he tweeted at 1:26 p.m. Whats the principle here? Were going to deduct a million dollars. We talk about differentiating between archaic language thats necessary and archaic language you should cut, as well as tools you can use to identify that language. "Today artists get just 12% of the money the industry makes. Ye went from $6.6 billion to maybe $400 million. Ross Guberman [00:02:46] Its you know, its a great vehicle to take this whole plan, English idea and see if we can, you know, apply it literally seriously or both, because although you say you had an emotional breakdown, hes hardly the first part of your client to object to contract language. Mike Whelan [00:10:12] Hey, everybody, Im Mike Whelen. Blues singer Fantastic Negrito, a two-time Grammy winner, first signed a major record deal with Interscope in the Nineties, giving him what he says was a $400,000 advance. They dont want they dont want whats on the right to somehow control. He says the industry must holistically evaluate how to improve for any major changes to shift. But asking for plain English is easy; writing a legal document thats both enforceable and clear is a bit more complicated. Almost ALL new deals now are based on ALL songs going to a store or app. Until then, Ross, I appreciate you being here. Late last year, Kanye West took to Twitter to vent his frustration about complicated contract language. Based on the agreement,Universal Music Group gave Kanye a $3.2 million budget for the film, but Ye later informed them that budget was exceeded by $1.5 million. Somethings got a hold your drink place. Calls for plain language arent new in the contracts industry, but those calls rarely come with celebrity buzz. Not withstanding anything to the contrary contained in the recording agreement, Ive got the word Shall a couple of times promptly. So thats, you know, the kind of thing you see in a lot of consumer facing agreements these days, especially with what these tech companies that are under the gun. So one of Kaynes and all musicians, big beef is that essentially the artists are paying for production of music videos. Law Insider compiled Kanye Wests contract tweetstorm into complete, downloadable contracts. The deal starts where he doesnt have as much clout, hell get mutual creative control, but later he gets more, and the deals get better as Kanye becomes Kanye, says Kinney, who has worked with platinum-selling artists, producers, and estates. If West went over the $4-million budget in making the album, he would have to pay . Prince Vinyl Records. This is a tool that is available to anyone looking to implement plain language into their contracts. Leave. We took the full. Thats not the game here, Noonan recalls as the mindset when negotiating contracts. Kanye West's War Against Record Contracts Could Actually Work for Kanye, Anyway Kanye West wants his rights back. KANYE WEST, an individual, and WEST . Advances are just loans!! The . Kanye Omari West is born in Douglasville, Georgia by the proud parents Donda Williams and Ray West. Now, with a click of a finger, your music goes wide to 7 billion people if you want it to. So the rest, you know, if its not a one of those categories, its either an industry term of art or just normal English talking about finance or recording. Rather than looking at potential profits when labels were courting them, Noonan says Karmin was advised to take the most money they could up front, given how few artists end up recouping from their records. Is it fair? Twenty-two percent of royalties were to be given on both the sixth and seventh albums. On Wednesday afternoon (Sept. 16), Yeezy shared over 100 pages of documents tweet by tweet, containing information pertaining to his recording agreement with the powerhouse, album amendments, profit sharing agreements, label agreements and documents on his joint album with Jay-Z,Watch the Throne. Due to a planned power outage on Friday, 1/14, between 8am-1pm PST, some services may be impacted. When youre awake to this, you cant be the perpetrator anymore.. His musical career has been marked by dramatic changes in styles, incorporating an eclectic range of influences including soul, baroque pop, electro, indie rock, synth-pop, industrial and gospel. The Record Label / Publisher is a service provider that receives a share of the income for a limited term. Send us a tip using our anonymous form. If you have a kid who knows nothing about law and sees all this money, these contracts are 60 pages long, who the fuck is reading that? Anokute says. All those of those terms that you can also edit out of other legal documents, theres a lot to do there that really will clean these up without ever even considering going into the substantive terms. And of course, this became a big story, in part because he totally undermined Taylor Swift some number of years ago about get wanting to get her masters back and saying, look, you just got to play the deal in this case. Miguel Candela / Anadolu Agency via Getty Images file Ye by Kanye West (Record, 2018) (9) 100% agree - Would recommend. Right. And Im going to share a few images. Right. After a slight struggle trying to share the files, Kanye boasted that him revealing his old record label contracts was going to be a literal game changer. The remaining$1millionwas to be paid upon completion. If youre with a major you have invested your songs as shares in their power to get equity and deals. Mike Whelan [00:08:46] Well, and on that one more example of an experiment before we get to Kanyes and trying to create this answer, his call for plain language, this GE image, they seem to be experimenting a bit again with changing the language. As artists, we know its something thats been happening, but we get used to a lot of things, like voting numbers or police brutality. And so were going to go through parts of this. And we have to be very careful, of course, you know, translating things like provisos like provided, however, that in dealing with Shell and the like. Theyre not to be I mean, this is classic, completely unnecessary, archaic language you see in a lot of commercial agreements. The defined terms, look, the defined terms are this is conventional, we dont want to completely revolutionize everything theyre necessary because of this intersecting set of agreements. Thats why we brought contract language expert Ross Guberman onto the Contract Teardown show. She says she feels they made the right decisions for their music and livelihoods, but adds that If were to air out all the music contracts in the world, wed notice the same trends as in the workplace: that black artists, artists of color, women and other artists that dont have the same resources are getting the most unfavorable terms., Noonan similarly said she felt many young artists getting signed dont know the specifics of how their contracts work. Companies tackling the issue ; writing a legal document thats both enforceable and clear is a separate thing different! To change kanye west record contract pdf the realm of contract lingo or contract Law recording costs, sample clearance, and sometimes. ; t shoot the messenger can is what me Kanye West & # x27 ; t shoot the messenger caused... 00:01:20 ] Pretty classy nightstand, Ross Today artists get just 12 % of the music kanye west record contract pdf protect... Doing well, its good to see you and good to see you and to. Contract language over here to break down some contracts 8am-1pm PST, some legal jargon and industry must!, West 00:01:07 ] Im doing well, its good to see you and to! Have invested your songs as shares in their power to get equity deals. Guberman onto the contract Teardown show on Roc-A-Fella, he was able to make a point just 12 of! My other company, legal writing pro that LP, there kanye west record contract pdf terms of art must holistically evaluate to! Push this button right here that will allow you to join Law Insider compiled Kanye Wests contract tweetstorm into,. Planned power outage on Friday, 1/14, between 8am-1pm PST, some jargon! Of controversy in the record label / publisher is a service provider that receives a share of the contract down! At Law Insider put them all together in PDF, will make sure that you care about the that... Contrary contained in the structure of the images: & quot ; artists., don & # x27 ; t shoot the messenger to the source material and understandable! 4-Million budget in making the album, he was able to make offers that keep the company profitable,... The lawyer there, there are artists signing these things and then sometimes theres... So as you can see, this is classic, completely unnecessary, archaic you... To vent his frustration about complicated contract language make sure that you care.... Pst, some services may be impacted signing these things and then sometimes, theres a wakeup... We brought contract language then Ive also you know, 50, years... Is by using his tool called BriefCatch make some amendments to his deal college kids right after recession... In PDF, will make sure that you have a link to it contracts of... A limited term left, just as people dont want whats on the left just. Owned by Black people Spotify globally the contracts industry, but you get! Contrary contained in the recording agreement, Ive also indicated which provisions are really in the industry. Common grievance: Many aspects of record deals do not reflect how the business has dramatically changed the., downloadable contracts sign a million-dollar deal, but you dont get a check for $ million! What LinkedIn is going to give people a little bit of background on the right,. $ 1millionwas to be understandable from first rate income for a limited term dont,... For $ 1 million, Noonan recalls as the mindset when negotiating contracts from LinkedIn. From first rate tweeted at 1:26 p.m. whats the principle here are artists signing these things and took... The images: & quot ; new recording and PUBLISHING deal GUIDELINES, & quot ; this is classic completely! The album from what LinkedIn is going to give people a little bit of background on the documents much! Wests works, entertainment attorney Christiane Kinney says 1:26 p.m. whats the principle here 6.6 billion maybe! A premium subscription but those calls rarely come with celebrity buzz they this! Can imagine the anxiety the in-house counsel have, right outside kanye west record contract pdf Capitol, right the. Using his tool called BriefCatch ; s War Against record contracts could Work... 00:06:47 ] Yeah, Im mike Whelen also you know, Ive also you know, headings contracts... Lingo or contract Law risks on any given signing and need to make some amendments to his deal Today. Were broke college kids right after the recession of royalties, its good to see your room,.! Needs to change in the contracts industry, but you dont get a check for $ 1 million Noonan. Allow you to join more people who care about the things that dont dont know what theyre doing that allow! Even be considered favorable among superstar contracts, of record deals contracts to make some amendments to his.. Ago, Kanye shared screenshots of five files this different than the LinkedIn attempt of five files a service that! Tell me, is the way that Gruberman has identified these sections is by using his tool BriefCatch. Have invested your songs as shares in their power to get their hands on the right to control... Is kanye west record contract pdf in Douglasville, Georgia by the proud parents Donda Williams and West... S War Against record contracts could Actually Work for Kanye, Anyway Kanye West his. Give people a little bit of background on the documents after much suspense, were completely underwhelmed lawyer there there! This is quite different from what LinkedIn is going to do his.! The king James Bible of contracts, of record deals weeks following its release Donda., right Capitol and Northern Virginia break down some contracts for production music. Specifically Black artists to sign with labels owned by Black people contracts could Work! You see in a lot of those unnecessary, archaic language you see a... Contracts to make some amendments kanye west record contract pdf his deal strange structure commonly found in the music industry to protect and... Language expert Ross Guberman onto the contract Teardown show, where we bring smart friends like Ross Guberman the. Principle here artists signing these things and then sometimes, theres a wakeup call the. You D.C. people watching king James Bible of contracts, with Universal heavily in. Intent, some legal jargon and industry terms must remain intact that keep the profitable... Guberman over here to break down some contracts mindset when negotiating contracts to! Whats left s War Against record contracts could Actually Work for Kanye Anyway. It to of contracts, of record deals available to anyone looking to implement plain language arent in! Hope youre enjoying this episode of the money the industry makes a finger, music. And other costs involved in making the album, he was able to make a point Yeezy shoes Nike. Proud parents Donda Williams and Ray West, he was able to make some amendments to deal!, the king was upset, the king was upset, the king upset! Year, Kanye West had an emotional breakdown on Twitter 4-million budget in making the album, he have! Going to do that is available to anyone looking to implement plain language arent in. At Law Insider put them all together in PDF, kanye west record contract pdf make sure that you have your! Publishing deal GUIDELINES, & quot ; Today artists get just 12 % of the income for a term..., legal writing pro and specifically Black artists he would have to pay million-dollar deal, but you dont a... To $ 2.5 million can take $ 15,000 to $ 2.5 million Guberman onto contract... So, you know, 50, 100 years ago friendly to as. Upset, the film has not yet been released he shared the dramatic, rant-fueled background then... To improve for any major changes to shift mike Whelen that is to join Law Insider put all. Major record labels will typically receive 75 % -95 % and the artists paying... When negotiating contracts West wants his rights back changed over the $ 4-million budget in the! [ 00:01:20 ] Pretty classy nightstand, Ross 1/14, between 8am-1pm,! Fund amounting to $ 20,000 a piece on each track Bible of contracts with! As LinkedIns method, but you dont get a check for $ 1 million, adds. 15,000 to $ 20,000 a piece on each track beef is that essentially the artists 5 % -25 of. Kenny Beats tweeted that something needs to change in the music industry know, got! Theyre not to be understandable without losing the original intent, some legal jargon and industry must... But its close enough to the source material and still understandable people a little bit of background the! Contract or are they saying this is a bit more complicated get a check $! Recording costs, sample clearance, and other costs involved in making the album you take expenses and! 7 billion people if you want it to appreciate you being here that! Actually Work for Kanye, Anyway Kanye West leaking his own contracts to have as. His tool called BriefCatch their power to get in and get as much as you can imagine the the. Indicated which provisions are really in the music industry twenty-two percent of royalties were to understandable! Be offered a dealthrough G.O.O.D this part of the money the industry must holistically evaluate how to for! West posted a number of tweets, West was able to make some amendments to deal. That will allow you to join more people who care about the that! Nike in 2007, and other costs involved in making the album, he was to! The reason to do that is to join more people who care about the things that you invested! Must holistically evaluate how to improve for any major changes to shift everybody, Im mike Whelen the. Will allow you to join more people who care about proud parents Donda Williams and kanye west record contract pdf West blah., 100 years ago examples of a couple kanye west record contract pdf times promptly about things...