For several decades, the dominant model for album production has been the exclusive recording contract, also known as the album contract, record contract, exclusivity contract or phonogram production contract. Although this model has been considerably superseded by the self-production model, it is still very common and not a document to be signed lightly. Before you even enter the studio, it's vital to reach agreement with the production company* on the terms and conditions of your recording contract.
For the sake of clarity, an "exclusive recording contract" is a contract whereby the production retains the exclusive services of one or more artists to produce a sound recording for exploitation. It is the production that assumes the financing of this sound recording.
Exclusivity clauses and options
Duration of exclusivity
Exclusivity exists to encourage productions to invest in a project where the artists, and more often the star artists, won't leave to record elsewhere. When signing such a contract, you need to be aware of the duration and scope of the commitment.
Make sure you are not already bound by another exclusivity agreement that is still in force. If this is the case, the production to which you are initially bound could invalidate the new recording contract or claim sums from you for breach of its own contract. In the case of a group, check whether any of the group members are already bound by such an agreement or, conversely, whether the agreement you are about to sign will allow the group members to record solo albums in parallel, during the exclusivity period.
Long-term exclusivity is generally to the advantage of the production company, while the opposite is to the artist's advantage. In effect, the artist sacrifices his or her freedom to record elsewhere for a given period in exchange for the production's services. If the situation turns sour, you may not be able to record for a certain period of time.
Options
Clauses stipulating that the production may take advantage of one or more album options are also commonplace. They exist for the same reasons as exclusivity. By investing in a first album, it may be reasonable for the production company to want to be able to produce and exploit subsequent albums if the first proves successful. As an artist, you should try to limit as far as possible the number of options you agree to. Beyond one option (i.e. two albums), you are committing yourself for many years. For example, an exclusive recording contract with 4 options (i.e. a total of 5 albums) could bind you to a production for almost 12 years!
Under normal circumstances, producers have a certain number of months after the release of the first album to exercise their option. Make sure you are aware of these deadlines so that they are respected.
Artists' associations such as the Union des artistes (UDA) and the Guilde des musiciens et des musiciennes du Québec (GMMQ) have specific guidelines regarding the duration of exclusivity and album options. These are limited in time and number. Please refer to the applicable collective agreements. By requesting UDA or Guild contracts from productions, you benefit from these protections, but we encourage you to negotiate better terms than the maximums stipulated for the duration of exclusivity and the number of options.
If you have any questions about this type of contract, please do not hesitate to contact your respective artists' associations, who will be happy to answer them!
* By production we mean the producer
