What to check in a music or recording contract before you sign

Check who owns your music, how and when you get paid, how long you're tied in, and how you get out. Those four questions cover most of what goes wrong in music and recording contracts. If a contract is hard to understand, that's a reason to slow down, not a reason to trust it.

Why is this the moment people sign too fast?

I've made music myself, so I know the feeling. You've put in years. Somebody finally says yes, and they put a contract in front of you. Every instinct says to sign before they change their mind.

That excitement is exactly when the contract matters most. A deal that sounds like a break can quietly decide who owns your songs, how much you're paid for them, and whether you can ever release music on your own again. You have more room to ask questions than it feels like. A serious partner expects them.

Who will own your music?

A contract can transfer ownership of your recordings, your songs, or both. Look closely at wording like "assigns," "owns," or "in perpetuity." Assigning your rights is very different from licensing them for a set time.

Two things are easy to confuse. Master rights cover the recorded version of a song. Publishing rights cover the song itself, meaning the lyrics and music. They can be owned by different people and earn income in different ways, and they're often negotiated separately. Whatever the deal says, ask whether the rights ever come back to you and what has to happen first.

How will you get paid?

The royalty percentage matters, but so does what it's calculated on and what gets deducted before you see it. An advance is usually recoupable, which means it's paid back out of your royalties before you earn anything more. Find out who pays for recording, videos, and marketing, and whether those costs are recouped from you.

Then look at the mechanics. How often do you get statements, and do you have the right to audit them? And check how streaming, sync licensing, merch, and live shows are treated, because they're not always treated alike.

How long are you tied in?

The term might be one album, a set number of years, or a number of recordings you have to deliver. Look for options that let the other side extend the deal without your agreement. Check exclusivity, which decides whether you can record or release music with anyone else during the term. And check territory, meaning whether the deal covers Canada or the world.

What else can catch you out?

A few things deserve a slower read. In a 360 deal, the label takes a share of income beyond recordings, like touring and merch. That isn't always unfair, but it depends on what the label provides in return. Check who approves songs, artwork, singles, and release dates. Find out whether the other side can sell or transfer the contract to someone else. Make sure it's clear who clears samples and features and who pays. And confirm your credits for writing, producing, and performing in writing.

How do you get out?

Read the termination section before the money section. Look for what happens if the other side doesn't release your music, doesn't pay on time, or stops promoting it. Also look for what survives after the deal ends, like ongoing royalties or rights you can't get back. A contract that's easy to enter and impossible to leave is a very different deal from one that works both ways.

What if there's no formal contract?

Some of the worst music disputes begin with a text message or a handshake. If you're co-writing, put the ownership splits in writing before the song is released, on what's called a split sheet. If someone is producing, mixing, or featuring on your track, agree on payment and credit in writing too. It feels awkward, and it's much easier than the dispute you're avoiding.

Should you get advice before you sign?

Yes, especially when the contract affects ownership, a long term, or exclusivity. A lawyer can explain it in plain language and tell you what to ask for. Some deals also require independent legal advice before they're signed. You don't need to be told something is "standard." You need to know what it means for you.

Have the uncomfortable conversations, as it could save a lot of time, headache and money in the future.

If you have a music contract in front of you, get in touch and tell us about the deal and the deadline. We'll explain the contract in plain language and tell you what to look at before you sign.

This post is general information for artists in Ontario. It isn't legal advice about your contract.

Let's talk about it. Get in touch or call +1-437-438-1080.