
Traditionally, a producer was seen as the overarching creative and technical supervisor of a recording project, while a beatmaker focused on creating the instrumental tracks, or “beats.” In recent years, the roles of producers and beatmaker have increasingly overlapped, to the point where they are often considered the same.
The rise of popular music genres such as Amapiano, House and Hip Hop has brought with it, disputes over royalties, credit, and ownership. Many of these disputes often involve producers.
These issues highlight the need for producers and artists/labels to enter into clear and comprehensive Producer Agreements to reduce disputes.
Here are 6 KEY POINTS to consider in a Producer Agreement:
1. MASTER OWNERSHIP
Generally, the artist or label will fund the recording and as such, will want to own the copyright in the sound recording (also known as the “Master”). The Producer Agreement will usually contain language requiring the Producer to transfer any rights he/she may have in the Master to the artist or label.
2. COMPOSITION ROYALTIES/PUBLISHING
If the producer made a contribution to the songwriting, (this includes making the beat and/or melody) the Producer is entitled to a share in the copyright in the musical work (also known as the “Composition”). A Producer Agreement should specify the composition ownership splits alternatively it should cross reference a split sheet.
3. PRODUCER POINTS
While a producer will typically not own the Master, the producer can participate in the revenue flowing from the sales and streaming of the Master. producer points are a percentage of the sales and streaming of the Master that the producer is entitled to. One point represents one percent.
The typical rate for a producer working with an artist signed to a major label is 3-4% of the artist’s royalty rate. Yes, the producer points are usually deducted from the artist’s royalty rate. In a traditional major label deal, an artist generally earns 16-20% of the sales and streaming revenue.
However, a producer working with an independent artist should be able to negotiate 15-20% of sales and streaming revenue. Big-name producers may be able to negotiate an even higher percentage.
4. UPFRONT FEE
The Producer may request an upfront fee for their participation in the project. The Producer Agreement should clearly outline when the fee is payable and the remedies available to the producer should the fee not be paid.
Some labels may want to recoup this fee before the producer earns from sales and streaming. As with everything else, this is negotiable.
5. CREDIT
Naturally, a producer should be credited as such. A producer will also be credited as a co-writer (where applicable). In addition, some producers may want to be credited as a Featured Artist e.g. ‘Artist XYZ Feat. Kelvin Momo’. This usually happens with big-name producers who release their own music as the primary artist.
Credit is crucial as attributing producers to their work is a promotional tool that opens up future opportunities. Similarly, an artist may want to benefit from being listed alongside a big-name producer. The parties should negotiate their preferred credit specifications.
6. ACCOUNTING & AUDITING
A Producer Agreement should include provisions for regular accounting statements and the right to audit the artist or label’s records. This helps producers verify their earnings and address discrepancies.
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 to ensure that all relevant aspects are adequately addressed and that the agreement reflects the true intent of the collaboration.