Artist collaboration disputes have gained increasing attention in South Africa. Many big songs are plagued by disagreements over ownership, royalties and credits. Featured Artist Agreements are designed to minimise such disputes.
Here are 6 key points to look out for in a Featured Artist Agreement:
1. MASTER OWNERSHIP
Typically, the primary artist or the record label will own the copyright in the sound recording (also known as the (“master”). This is because the primary artist or the label would have paid for the making of the sound recording. It’s not uncommon, however, for parties to agree to jointly own the sound recording.
2. COMPENSATION
The primary artist and featured artist should set out their desired compensation structure. The featured artist may receive a flat fee or percentage from the sales and streaming of the sound recording or a combination of both.
Additionally, accounting periods should be clearly stipulated i.e. how often the featured artist will receive financial reports and payment. There seems to be a tendency of artists to conclude agreements that only specify their respective shares in the song without addressing the timing of payments and other aspects. This is a recipe for disaster.
3. PERSONALITY RIGHTS
A clause addressing how the featured artist’s name, likeness and personal attributes are to be used is very important in a Featured Artist Agreement. To prevent unwanted associations or endorsements, featured artists should ensure that the agreement confines the usage of their name, likeness and personal attributes solely to the promotion of the song.
4. MARKETING AND PROMOTION
The primary artist or the record label will usually take the responsibility of promoting the song. However, a big part of collaboration is to leverage the featured artist’s involvement. As such, the primary artist may want to clearly define the featured artist’s participation in promotional activities such as the shooting of a music video, public appearances, interviews or social media posts related to the song. Can you imagine incurring the cost of a music video and the featured artist doesn’t show up?
5. CREDIT
Attribution is one of the most important aspects of collaboration. The agreement should detail how and where the featured artist will be credited. Crediting artists not only enhances reputation and visibility but may affect the payment of royalties. For instance, the South African Music Performance Rights Association (“SAMPRA”) will want to satisfy itself of the featured artist’s participation as a performer on the sound recording prior to allocating needletime royalties.
6. COMPOSITION ROYALTIES/ PUBLISHING
The agreement should set out the featured artist’s ownership share in the copyright in the composition if the featured artist made a songwriting contribution. If not, the agreement should still clearly identify the writers and their respective shares in the composition.
NOTE: The points outlined above are not exhaustive and should not be considered hard and fast rules. Every agreement is unique and should be tailored to fit the specific needs and circumstances of the parties involved. It is always advisable to seek legal advice.