Common Red Flags in Music Publishing Contracts
Signing a music publishing contract can be an exciting milestone in a musician’’s career. However, navigating the fine print of such agreements requires diligence and understanding. A poorly structured contract can lead to significant losses in income, creative control, and opportunities. Below, we’ll unpack some of the most common red flags in music publishing contracts and how to address them.
1. Ambiguous Ownership Terms
What to Look For:
Clauses that vaguely define who owns the rights to your music.
Terms like "transfer of ownership" without clear explanations of duration or reversibility.
Why It’s a Red Flag: Ambiguity about ownership can result in losing control over your songs permanently. For example, a “work-for-hire” clause might mean you’re giving up ownership altogether without realizing it.
How to Address It:
Ensure that ownership details are explicitly stated.
Look for terms outlining reversion rights, which allow you to regain ownership after a specific period.
How my company Elizabeth Music Group solves this:
We offer publishing administration agreements where musicians maintain full ownership of their compositions.
2. Unclear Royalty Splits
What to Look For:
No breakdown of how royalties are divided (e.g., mechanical, performance, sync).
Broad statements like “you’ll receive a percentage” without specifying amounts.
Why It’s a Red Flag: If the royalty splits aren’t detailed, publishers might withhold more than their fair share. Misunderstanding these terms could result in lower earnings for you.
How to Address It:
Insist on clear percentages for each revenue stream.
Verify that the splits align with industry standards.
Request royalty payment schedules.
How my company Elizabeth Music Group solves this:
We clearly explain to our signed musicians what our commission is on royalties we collect. We also have a cutting-edge royalty portal that provides a full financial breakdown and royalty accounting that each signed musician can access.
3. Excessively Long Contract Duration
What to Look For:
Contracts that lock you in for an indefinite period.
Terms tied to the “life of the copyright” or other lengthy durations.
Why It’s a Red Flag: An overly long contract can trap you in an unfavorable arrangement and limit your ability to explore better opportunities elsewhere.
How my company Elizabeth Music Group solves this:
In our publishing administration agreement, we have a one year term with a one year post term collection period. This is done intentionally, with the goal of having a short-term, flexible deal. At Elizabeth Music Group, we don’t believe in locking creatives into long-term deals but rather providing strong service and support over the course of our short-term agreement so that musicians can see our value.
4. Lack of Transparency in Accounting
What to Look For:
No clear statement about how and when royalties will be paid.
Why It’s a Red Flag: Without transparent accounting practices, publishers might underreport earnings or delay payments.
How to Address It:
Insist on regular royalty statements (quarterly is common).
How my company Elizabeth Music Group solves this:
At Elizabeth Music Group, we have a cutting-edge royalty portal that provides each client with a full financial breakdown and regular accounting statements that can be accessed online or downloaded at any time during the length of our agreement.
5. Restrictive Creative Control
What to Look For:
Clauses that allow publishers to dictate how and where your music is used.
Restrictions on writing for other artists or projects.
Why It’s a Red Flag: Restrictive clauses can limit your creative freedom and prevent you from pursuing other lucrative opportunities.
How to Address It:
Retain the right to approve sync placements or alterations to your work.
Negotiate for flexibility to collaborate with other artists or companies.
How my company Elizabeth Music Group solves this:
At Elizabeth Music Group, we allow our signed musicians the ability to approve or deny all uses of their music. We also have no restrictions on who you can collaborate with. We believe in creative-first deals and that includes giving creatives the freedom to work with whoever they would like.
Final Thoughts
Music publishing contracts are a cornerstone of a successful music career, but they’re also fraught with potential pitfalls. By understanding these common red flags and seeking professional advice, you can protect your rights and ensure your career thrives. Always remember, it’s better to delay signing a contract than to enter into one you don’t fully understand. If in doubt, consult a music attorney to safeguard your interests.
