written by Oluwatise Benson & Fatima Bashir
In our previous article, we talked about creativity in Nigeria, how it’s a dynamic landscape filled with rich cultural heritage but behind all the glamour and gold jewelries, lies a series of paperwork called CONTRACTS and LEGAL AGREEMENTS that oversee the relationship between artists, record labels, managers and stakeholders. Understanding the difficulties of these contracts is crucial for artists to protect their rights, sail the competitive domain of the industry and avoid exploitation.
Contracts in the Nigerian music industry come in various forms, including management agreements, recording contracts, licensing deals, publishing agreements and performance contracts. Each type of contract dictates different aspects of an artist’s career and in this article, we will be taking a good look at each aspect.
MANAGEMENT AGREEMENTS:
Management contracts govern the relationship between artists and their managers, shaping the scope of services, compensation structure and time frame of the agreement. Managers play an important role in an artist’s career, securing features, shows and events and maximizing their earning potential. In spite of that, artists must be careful when entering into management contracts to ensure responsibility and avoid conflicts of interest.
In 2019, Douglas Jack Agu (popularly known as Runtown) became caught up in a legal dispute with his former record label, Eric Many Entertainment, over breach of contract and mismanagement. Runtown accused the label and its CEO of withholding royalties, exploiting his intellectual property rights and interfering with his career. He further revealed that his former label boss went as far threatening him with a gun in order to make him renew his contract with the label
RECORDING CONTRACTS:
This is the most common type of contract in the music industry, also controlling the relationship between management and artists. These contracts outline the terms of the recording process, number of albums and singles to recorded, production cost, royalty rates and ownership of master recording.
In 2018, Ọlawale “Ọlọfọrọ” Ashimi (popularly known as Brymo) also filed a lawsuit against his former record label, Chocolate City, also over an alleged breach of contract and unpaid royalties. He claimed the label had failed to fulfill its obligations, including the release and promotion of his albums.
PUBLISHING DEALS:
Publishing deals oversee the abuse of songwriters’ musical genius, including the distribution, licensing and synchronization of their songs. Contracts in this field are drawn to outline the terms of ownership, royalties and copyright protection, making sure that songwriters are properly compensated for their creative work. Artists are advised to negotiate favorable terms in publishing deals to protect their intellectual property rights and also increase their earnings.
In 2020, Nigerian songwriter and record producer, Osabuohien Osaretin (also known as SARZ) also filed a lawsuit against Sony/ATV Music Publishing, accusing the company of breach of contract, Sarz said that the publishing company had failed to collect and properly distribute his royalties for his compositions.
One thing an artist should never toy with is explicitly reading/understanding a contract before signing regardless of how incomprehensible it can be.
It is very pertinent for an artist to watch out for red flags before appending his/her signature on any form of written contract-
Below are few pitfalls an artist should look out for
WORD OF MOUTH AGREEMENT: In this generation, oga run! The concept of a contract is to help both party reach a consensus and to a large extent protect the artist from any form of extortion.
2. Unfavorable Payment Terms: As an artist, know your worth! The money the contract entails low compensation rates, complex payment structure or delayed payments, bro flee! If you have a problem with any payment term, ensure you negotiate such terms before signing the contract.
3. Termination and Renewal terms: Understand the terms and conditions for terminating the contract and any provisions for renewal. Look out for clauses that may restrict your ability to exit the contract or negotiate better terms in the future.
To get a good record label can be a whole lot of task but an artist has to put in the work. You don’t want to end up with a record label that will almost take your life before or after your stardom hence you should ensure you do you research well, make good music, build your own personal brand and network.
The highlighted cases in this article shows the importance of properly going through contracts and deals, clear communication between artists and record labels, ensuring fair treatments in protecting artists rights. Contracts play a vital role in not just shaping an artist’s career, but also forming relationships within the industry. It provides a structure for collaboration, negotiation, and also settling dispute. Artist should be educated about the intricates of their contracts, advocate for their rights in all aspects of their career and also seek legal counsel. By understanding these things, they can empower themselves to thrive in a competitive environment of the music industry and also avoid cases of lawsuits.