Producer Agreements

However, many producers, new or emerging, offer their rhythms at a low price, or perhaps even give up a fee in advance in exchange for a royalty to pay if the artist makes money from the song. Record companies pay their royalties to producers after repayment of all advances paid to the producer. However, the manufacturer should strongly oppose provisions requiring it to reimburse the registration fee – or part of it – before receiving royalties. The usual practice is to delay the payment of producers` license fees until the label has deducted the registration fee from the artist`s license account. At that time, the label paid producers royalties “retroactively to record” – that is, the first record sold. To begin this part of the series, it`s helpful to sketch out the differences between the agreements that major labels use for producers and the contracts a producer may encounter in the independent world…