Allegedly through rival American producer Scott Storch, Timbaland boasts about the Nelly Furtado Track `Give It To Me: Entrepeneurial producers are increasingly acting as talent scouts, looking for promising new acts and signing them for production contracts to concede the resulting recordings to record companies. As has already been said, many producers now play the role of talent recruiter, discover new artists and develop their sound well before a record company gets involved. Often, the producer works with the artist on songs, gathers a group of musicians around the project and invests his time and money to produce demos or even quality masters. In addition to taking care of the artist, often over several years, the producer can organize industrial showcases and put the artist on labels to obtain a recording contract. The label benefits, of course, because if a producer has done all the preparatory work, all they have to do is market the album. In addition, until recent years, 3 to 4% of the retail price (subject to certain deductions) has been paid to producers, not at wholesale prices. And because the wholesale price is significantly lower than the retail price, producers today are often paid less in dollars and cents (for each dataset sold) than retail licensing fees. An essential advantage of the production-company agreement is for the manufacturer that more than one artist can sign a production contract with the same company. However, the artist is bound by an exclusive contract and relies on the reputation and talents of a producer. If the production company involves the artist or does not guarantee the promised record contract, the artist`s only return will be to retain a right of termination in case of non-compliance with the agreed objectives. An important protection that the producer should aim for is a provision that allows him to continue to produce the artist in situations where a large or independent label tries to carve out the producer by directly signing the artist.
Of course, the artist would violate his production agreement and allow the producer to sue him, but he cannot force the artist to continue recording for him. An alternative is that a record label legally buys the artist from the production contract. Sometimes, even where the artist stays with the production company, he can put downward pressure on a label, dig the recordings and call on another name producer. Note to Independent/Unsigned Artists: In many cases, an unsigned independent artist will hire a record producer instead of a record company. In this case, the terms of the agreement will be very similar under the terms of the contracts between the record companies and the manufacturers. Therefore, if you are an independent artist who is about to enter into a contract with a producer, you do work as your own record company, and the conditions described below, which apply to record companies, are generally considered an artist/label. Royalties and/or “points” are the percentage of revenue from record sales collected by an artist or producer. The Recording Studio Rental Agreement is used when an artist or record label contracts with a recording studio for the use of studio facilities and other services that the studio (i.e. the recording engineer) could provide for the recording of an artists` album.