What are the main deal points in a recording studio agreement?

If a recording studio agreement is being considered, there are certain key issues that should be addressed and clarified. Some, but not all, include:

(1) Parties to the Recording: Obviously, all parties expected to be involved and paid in the recording process should be expressly identified or dealt with in the studio recording contract. For example, if there is a band agreement, who has power to sign the studio recording agreement?

(2) Studio Rates: Studios generally charge on an hourly basis. Determine in advance what they will charge you per hour, and be sure to tell them how many CD’s and cassettes you plan to press. Also advise them how long you expect to take to record your demo.

(3) Studio Hidden Costs and Surcharges: Ensure in advance exactly what you are being charged for and what is (and is not) included. Sometimes studios charge extra for engineer or producer fees, mixing and mastering , drum set-up time, etc. Also, studios generally charge different hourly rates for recording, mixing and mastering services.

(4) Rate Reductions: Sometimes you may want to ask for certain “discounts.” For example, if you lay down your own tracks with your personal engineer or music producer, those service charges should not be included. And, try to get a exclusion or reduction in the hourly studio time price for setting-up your own drums.

(5) Method and Manner of Payments: Clarify in writing if you need to pay the studio up-front, or in payments. Determine if the studio gets paid an “all-in” payment, or whether the engineer or music producer and paid separately.

(6) Refunds: If you have to pay the full studio recording fee in full and in advance, be sure to provide for a partial reduction in the studio fees if the project is not completed due to reasons beyond the control of the parties.

(7) Indemnification: This is a legal clause in a contract that many studios insist on to help protect them from costs of lawsuits and attorney fees. Studios often require you to guarantee them against any copyright infringement suits.

(8) Recording Schedule: Put down in writing a time-frame for the completion of your project. Inquire what other recording commitments the studio and/or engineer has that may potentially interfere with the timely recording of your production.

As in all music-related agreements, all provisions are negotiable, but largely dependent on your clout. Whenever possible, a music lawyer should be consulted before any recording studio agreement is signed.

(Reprinted with permission of Ruben Salazar, Esq.)

Navigating Recording Studio Agreements: Case Studies and Insurance Considerations

Case Study 1: General Liability Insurance

Sarah, an independent artist, booked a recording session at a professional recording studio to work on her new album. Prior to the session, the studio required Sarah to provide proof of general liability insurance. This insurance coverage protected both Sarah and the recording studio in case of accidents or injuries that occurred during the recording process.

For example, if a visitor to the studio tripped and fell, general liability insurance would cover the medical expenses and potential legal costs associated with the incident. By having insurance in place, both Sarah and the studio were protected from financial liabilities that could arise from unforeseen circumstances.

Case Study 2: Equipment Insurance

John, a music producer, owned a recording studio and leased out his space and equipment to artists. As part of the studio rental agreement, John required the artists to obtain equipment insurance. This insurance coverage protected the artists’ equipment from potential damage or theft that could occur within the studio premises.

If an artist’s equipment was accidentally damaged or stolen while using the studio, their equipment insurance would cover the cost of repairs or replacement. This arrangement provided peace of mind for both the studio owner and the artists, ensuring that valuable equipment was adequately protected.

Case Study 3: Professional Liability Insurance

The recording studio entered into a contract with a well-known band to produce their new album. As part of the agreement, the studio was responsible for recording, mixing, and mastering the band’s music. To protect themselves from potential claims of negligence or errors in the production process, the studio obtained professional liability insurance, also known as errors and omissions insurance.

This insurance coverage protected the studio in case of legal disputes arising from issues such as missed deadlines, subpar production quality, or copyright infringement claims. Professional liability insurance provided financial protection by covering legal defense costs and potential damages awarded to the band or other affected parties.