Ideally, he says, artists should have legal representation working in their best interest to point out red-flag clauses: While an artist should be wary of what theyre signing rather than looking solely at the immediate paycheck, young and starry-eyed artists whove never seen so much money may not understand that yet. Advances are just loans!! In the event that Kanye's sixth album, Cruel Summer,exceeds 2.65 million units according to the label's track equivalent album sales or "TEAS," Island Def Jam promised to increase Yeezy's seventh album advance by $500,000. Dependents. Mike Whelan [00:04:08] wearing the shirt. LA Man Charged With Hate Crimes Threatened Classmate: I Want You Dead, Jew Send us a tip using our anonymous form. Whats the language that stands out to you as particularly harmful to the understanding of the parties, which is really what a contract is supposed to do, right? I PRAY IN THE NAME OF JESUS THAT IT DONT LOOK LIKE THIS TOMORROW," Ye wrote in a tweet with the five accompanying images. Right. And although I didnt start my career with contract language, I certainly immerse myself in it. Was the pissing on the Grammy to much? One seems to be this issue of Ive got to check some legal boxes. Rewrite deals to be understandable from FIRST READ. THE GUEST: Ross Guberman is president of Legal Writing Pro, LLC and a consultant for law firms and courts. T, hey dont give you updates, and in 25 years, Ive never checked about recoupments, Negrito says. So what I what I what I did here is just pull pull one of the key provisions on the substantive side from this profit sharing agreement so we could try to figure out again whats possible for for the Kanye West of the world. Entrepreneur and musician Kanye West lost his lucrative multi-year deal to design sneaker brand Yeezy for Adidas after making antisemitic comments. Most comprehensive library of legal defined terms on your mobile device. So you dont want to run around changing materiality. The rapper has put out nine albums over 17 years through Roc-a-Fella Records. Kenny Beats tweeted that something needs to change in the structure of the music industry to protect artists and specifically Black artists. And in a lengthy post on Instagram, Hit-Boy, whos produced platinum songs including Sicko Mode and N-s in Paris, said that multiple attorneys who have seen the deal he signed as a 19-year-old with Universal Music Publishing Group in the mid-2000s called it the worst publishing contract theyd ever seen. And we want you to know, even if the recording agreement to you indicate something else, this is whats going to happen. Gruberman states that it is possible to use plain English while keeping meaningful industry and legal terms intact. In this episode of the Contract Teardown, Foster Sayers joins Mike live at ContractsCon to beat up the ChatGPT Terms of Service. Soundtrack: The Great Gatsby. Kanye West is seen at a Donda listening event at Mercedes-Benz Stadium on July 22, 2021 in Atlanta, Georgia. Ye's business manager's inability to . Thank you, Ross. The suit said West. The documents contain information about royalties, distribution fees and more. How do I nudge a contract toward plain language without undermining the agreement? Why is a shift to plain language important? Pearl Jam Vinyl Records. . Epic spent a fortune making that Karmin album. Is it fair? Come join me. The lawyers in this industry who are used to the status quo are going to say its worth it, but if I make a deal with you and go to lunch and say you pay 70 [percent], I dont think youll say its fair. Found online, don't shoot the messenger. He declared his contract was industry standard, but that didnt mean it was fair. Mike Whelan [00:19:16] Well, and on that, I, I sort of want to get to principles, to things that lawyers can learn from this example, which is really the purpose of this show. Were at sales@LawInsider.com. We would like to show you a description here but the site won't allow us. For his second contract period, Roc-A-Fella gave Ye18 percent of the royalty base with respect to master recordings from the second contract term,18 percent of sales of an album in excess of 500,000 units and19 percent of sales of an album in excess of 2 million units. Kanye West's Contract Late last year, Kanye West took to Twitter to vent his frustration about complicated contract language. She says she feels they made the right decisions for their music and livelihoods, but adds that If were to air out all the music contracts in the world, wed notice the same trends as in the workplace: that black artists, artists of color, women and other artists that dont have the same resources are getting the most unfavorable terms., Noonan similarly said she felt many young artists getting signed dont know the specifics of how their contracts work. Theyll follow their attorneys recommendation. Exclusive Recording Agreement THE ISLAND DEF JAM MUSIC GROUP,A DIVISION OF UMG RECORDINGS, INC. 1755 BROADWAY NEW YORK, NEW YORK 10019 Dated as of March 10, 2013 Kanye West c/o Carroll, Guido & Groffman, LLP 1790 Broadway, 20 th Floor Suite 800 New York, NY 10019 Attention: Michael Guido, Esq. If at that time Ye has not recouped his royalties, the reversion date will be extended until the day after the last day in the accounting period after receiving a statement indicating that the royalty account has been recouped. Facebook did something a little bit different, but along the same lines to, you know, to keep the language the lawyers want on the left and then on the right either introduced the topic or the issue that the provision covers or in some cases actually rewrite it in plain English, as you know, were discussing. Donda 2, due for release on Tuesday (February 22), is the follow-up to Ye's Grammy-nominated Donda, which achieved one of the biggest ever first weeks for an album on both Spotify and Apple Music when it was released in August last year.. He says the industry must holistically evaluate how to improve for any major changes to shift. Thats not the game here, Noonan recalls as the mindset when negotiating contracts. Its an interesting thing. West made about a 100 posts and shared screenshots of pages from his recording contract. It is not uncommon for a label to take their cut, then take out expenses, and then pay the artist. Royalty portals need to show (and do not now) Every song you delivered, Every store you are in, How many streams per song Income per song. And it was actually really hard to get through because they were just images. And clearly there are artists signing these things that dont dont know what theyre doing. They are long. Ross Guberman [00:20:11] Yeah, I think part of that is really bracketing off, just as you are saying, words and phrases that a lawyer knows have substantive value. Right. Guberman has dissected the Profit Sharing Agreement section of Kanyes contract and found several areas in which the language could be more transparent. Miguel Candela / Anadolu Agency via Getty Images file West's contracts laid it all out. They are for your entire business. I have a lot of free articles and a lot of these before and after is also on Twitter. Kanye West's history of inflammatory statements were met with consquences this week. Mike Whelan [00:11:02] Hmm. A lawyers role is to improve deals, not charge for contracts we cannot understand or track. In this episode of the Contract Teardown show, guest Diana Isyanova shares three possible approaches. So we dont want to change recouped because now we would be not faithful to the substance. Twenty-two percent of royalties were to be given on both the sixth and seventh albums. And so Kanye is at this point where hes like, dude, I got to have some other ways to make money. The deals not bad what is that based on? Negrito asks. West filed suit . Lawyers. Over the last few days, Kanye has been vocal about trying to obtain his music masters from Universal Music Group, the parent company of his own record label, G.O.O.D. Obviously, we cant share the whole thing, but well make sure that you have a link to the whole thing in the show notes over at LawInsider.com/Resources. Mike Whelan [00:24:07] That is perfect. "NEW RECORDING AND PUBLISHING DEAL GUIDELINES," he tweeted at 1:26 p.m. We don't know - still - who the next US president will be, but we do know who it won't be - Kanye West. Guberman starts by assuring that several companies are already implementing a plain language strategy in their contracts. They would pay Kanye back after the successful completion of the film, provided it was up to standards. Due to a planned power outage on Friday, 1/14, between 8am-1pm PST, some services may be impacted. Search the history of over 797 billion Thats why we brought contract language expert Ross Guberman onto the Contract Teardown show. Mike Whelan [00:01:20] Pretty classy nightstand, Ross. And the record business that it means in normal English. Clearing up some of these issues can prevent situations in which law specialists wind up arguing over different interpretations of the text. Thats not the game here, Noonan recalls as the mindset when negotiating contracts. Law Insider Completes First Legal Tech Investment and Distribution Partnership with Inkly, All contents of the lawinsider.com excluding publicly sourced documents are Copyright 2013-. Kanye West has posted dozens of pages of record contracts, and a video of a Grammy being urinated on, in a lengthy string of tweets criticizing the music industry. Whats your background? Almost no artists recoup so the system obviously doesnt work, but its tempting. Yet even though Kanyes deal may not make him the ideal poster child for a conversation on the fairness of recording contracts, hes sparked a high level of discussion among artists and music-business insiders on the nature of record deals and long-held standards. Kanye West signed his co-publishing contract with music publisher EMIwho is now owned by Sony/ATVin 2003, before the completion and release of his 2004 debut album, The College Dropout. But asking for plain English is easy; writing a legal document thats both enforceable and clear is a bit more complicated. We were lucky because we were careful. As Kanye West escalates his battle with Universal Music Group, the Chicago rapper decided to share the entirety of his record contract on Twitter. web pages What do you think of Kanye West leaking his own contracts to make a point? And we have to be very careful, of course, you know, translating things like provisos like provided, however, that in dealing with Shell and the like. Side note: usually artists get between 12-15% royalty rate but Kanye was already being a huge hit so he could negotiate a higher fee. Money and Music must stay together. But as the music industry comes out of its 20-year tailspin, with streaming fueling new growth, artists arent satisfied with that arrangement, and many are demanding newfound power. See everything we've learned from his record label deals below. When your term ends, download it all. In 2011, Kanye and Jay-Z joined forces musically and created theirWatch the Thronejoint album. Now, with a click of a finger, your music goes wide to 7 billion people if you want it to. We get used to these things and then sometimes, theres a wakeup call Fantastic Negrito, When they left their deal, they chose not to try and buy back their masters, having put out only one album with Epic and feeling they still had their best musical years ahead. Thus,50 percent of these costs incurred by Roc-A-Fella are considered advances, but the label could notrecoup more than $40,000 for each album relevant to these costs: creation, hosting, maintenance of artists website, securing, registering and/or protecting artist domain names, creation of ECD materials, independent promotion, independent marketing and independent publicity, television, movie or radio campaigns. Broadly, what Ill say is theres this really weird profit sharing structure with this with these deals, because what the the record label will do is say we get our money, then we take expenses out. In in your estimation, does this thread the needle of checking the legal boxes, but also being plain enough? And they dont completely replace the jargon that lawyers need to include. He said, were going to transparently change every album deal, every publishing deal. September 18, 2020. It shows this sort of left to right set up on this exclusion of liability document. On Wednesday afternoon (Sept. 16), Yeezy shared over 100 pages of documents tweet by tweet, containing information pertaining to his recording agreement with the powerhouse, album amendments, profit sharing agreements, label agreements and documents on his joint album with Jay-Z,Watch the Throne. So if Im a lawyer and Im negotiating with another side and youre very practical about these things, like although the plain language movement is nice, in theory, youve got to negotiate with somebody else who might like that archaic language. The rapper initially sued the . First is this one from Kanye. Harvard Business Review did a big piece on it, and the general counsel of that division really took this whole plain English thing seriously instead of just giving it lip service and actually redid a lot of their commercial agreements. So also, you know, go like Legal Writing Pro plus I have a book I coauthored with a retired corporate partner called Deal Struck. They have before and after sections. Every audio file, every asset, every deal stored WITH the money. Kanye West Says He Won't Release New Music Until Freed From Sony and Universal Contracts: Declaring himself "the new Moses" while demanding apologies from Drake and J. Cole. The partnership was a nightmare for both Negrito and the label, he says. So this is something later in the series, I imagine theres a back story, you know, tense, tense discussions about the money part. We didnt spend our advance on cars or jewelry, we bought a house. Hit-Boy is an enormously talented songwriter whose relationship we value, a UMPG spokesperson said in a statement to Rolling Stone. Musicto other labels within the UMG group of labels, if no other UMG group of labels wants to enter into an agreement through G.O.O.D. Russ and I are going to do a pretty fun and weird thing today. #kanyewest #dramaalert #grammyWanna continu. Maybe its about time I do that.. You want to get in and get as much as you can is what we were told. $26.59 New. All those of those terms that you can also edit out of other legal documents, theres a lot to do there that really will clean these up without ever even considering going into the substantive terms. Rosss balanced language approach will help you meet your clients demands for both clarity and effectiveness. Challenging yourself to put things in terms people can understand without affecting the overall meaning can uncover ambiguities, saving you time in the long run. Theres even a reference to a so-called PDF I guest. Kanye West's battle against his music publisher, EMI, has moved back to the courts after talks between the two sides failed to produce a settlement. Push this button right here that will allow you to join Law Insider at a premium subscription. call Wests deal standard for an artist at his level. Over the course of dozens of tweets, West. We have been engaged in an ongoing dialogue with Hit-Boy and all the concerned parties to address his concerns and will continue to do so until a reasonable solution is achieved.). The language looks like something you might find, you know, 50, 100 years ago. Next came what he calls the music industrys biggest flop his only Interscope album, The X Factor. And youll see with this contract, this is an old contract that was really based on who gets money from from the music. Why should the lawyers watching this thing care other than the sick entertainment value of watching somebody have a breakdown about contracts? If theyre doing this to me with all Ive accomplished through hard work, I can only imagine the kids who dont have big placements/proper guidance, Hit-Boy wrote on Instagram. An advance constitutesany moneypaid, costs incurred or costs to create videos. Right, right. We wouldnt be talking about all this now if the label hadnt invested in him and put tons of marketing money into this for his leg up.. And according to the general counsel, its worked wonders. "Today artists get just 12% of the money the industry makes. Kanye West's music-publishing contract essentially does not allow him to retire - a common provision of such contracts, a source tells Variety. Well see you guys next time. Some are asking what took so long. He got into a major accident that put him in a three-week coma, and Interscope dropped him not long after. Will we be seeing a President Kanye? The label signed an exclusive long-term worldwide label agreement with the Island Def Jam Music Group in 2011. this summer, doesnt point the finger at any one entity or group for the nature of these deals. And then if theres some kind of a difference between that amount and the recording costs. You want to get in and get as much as you can is what we were told. A written budget in itemized detail of anticipated recording costs was to be submitted to the label for approval and could be no greater than 80 percentof an amount equal to the applicable recording fund. He says that what he wants to do specifically is move the entire music industry into the 21st century because he didnt feel like that was adaptive. So we know recouped doesnt mean the same thing. Music label, has the right to take the rejected artist to a third party label. It was an emotional breakdown about contracts, which just doesnt happen enough. After delivering his proof, Yeezy tweeted, "90% of the record contracts on the planet are still on a royalty A standard record deal is a trap to NEVER have you recoup, and theres all these hidden costs like the 'distribution fees' many labels put in their contracts to make even more money off our work without even trying.". When youre awake to this, you cant be the perpetrator anymore.. Other brands and companies that cut ties to West . Kanye was also prohibited from recording anew album prior to 90 days after delivering the effortto Roc-A-Fella. Based on the agreement,Universal Music Group gave Kanye a $3.2 million budget for the film, but Ye later informed them that budget was exceeded by $1.5 million. In order to maintain the original intent, some legal jargon and industry terms must remain intact. Another example is General Electric. The sense is that someone trying to pull a fast one on me. Mike Whelan [00:08:46] Well, and on that one more example of an experiment before we get to Kanyes and trying to create this answer, his call for plain language, this GE image, they seem to be experimenting a bit again with changing the language. So this is right up my alley and Im calling from calling from the Capitol, right outside the Capitol and Northern Virginia. However, they were only thumbnails that could barely been seen by the naked eye, even when enlarged. Almost ALL new deals now are based on ALL songs going to a store or app. If you have a kid who knows nothing about law and sees all this money, these contracts are 60 pages long, who the fuck is reading that? Anokute says. August 6, 2021 3:35 PM EDT. Ye also had to seek written approval from the labelat least 14 days before the first recording session. Its all made from events. Ross Guberman [00:03:18] And so Im the president of legal writing prose, so Ive been doing workshops and consulting on all different aspects of lawyer writing and judicial writing for a couple of decades now. He tweeted them so I made PDFs. on the Internet. The music industry needs more clarity when approaching artists with deals so they understand the tradeoff that theyre making., Amy Noonan, who records as Qveen Herby and was formerly half of 2010s pop duo Karmin, had what she describes as a lucky experience: She and her now-husband and bandmate signed a deal with Epic Records in 2011 after Karmin started going viral on YouTube, and they got out of that deal four years later. The papers indicate that he started on a royalty deal frequently afforded to upcoming artists, which later evolved into a more artist-friendly pressing and distribution deal that gave Kanye more of the profits and bigger budgets as he became a superstar. He ended the spree with, 'Whew that was a lot guys," and then tweeted a video of himself peeing on a Grammy award. Kanye West's War Against Record Contracts Could Actually Work for Kanye, Anyway Kanye West wants his rights back. But first, the record labels getting their money. Music or such label paying Island Def Jam Music Group acounterbalance amountagainst overhead payments in an amount equal to the overhead payments in the applicable contract year multiplied by a fraction. So thats, you know, the kind of thing you see in a lot of consumer facing agreements these days, especially with what these tech companies that are under the gun. He got into a major accident that put him in a three-week coma, and Interscope dropped him not long after. Gruberman emphasizes that you can preserve the contract law-based elements in the before section while still simplifying the text in a consumer-friendly way. Kanye West had some more thoughts to share about recording contracts in a series of tweets on Sunday (Sept. 20). Were were coloring pictures for you so you understand whats happening here? Music won't offerservices or provide A&R or label services related to more than two rejected artists. At no point was Kanye allowed to object to a track being on the record if it achievedTop 100 chart success on any national trade publication at any time prior to when the Greatest Hits album was released. Well make sure you get a deal as well. Lets get back to the show. Join me and my friends. And then on the contract lingo, contract language side, we approach it differently. For the sixth album, Kanye received a $12 million advance. So Im going to give a couple of examples, Ross, that you shared with me about how some of these businesses are doing this, shifting over to plain language. The remaining$1millionwas to be paid upon completion. So its cut down on negotiation time and led to better, you know, better deals. Rock Kanye West Vinyl Records. Artists like Kanye feel that they are being cheated. So heres an amendment. Late last year, Kanye West took to Twitter to vent his frustration about complicated contract language. During his rant, Kanye declared that he would move the entire music industry into the 21st century, and he means to do this using clear and discernable language. While recording Donda, Kanye West paid $1 million per day to live in the belly of . Scooter Braun Projects is a talent management company that is more than just a company. A Lawyers role is to IMPROVE deals. So lets take another example from the Kanye contract. Its not always clear whats what. Right. Contract #3. Kanye West continues his campaign against major record labels. I didnt know this was the thing, but apparently its a Twitter meme. Youve been dealing with this for a while. Rather than looking at potential profits when labels were courting them, Noonan says Karmin was advised to take the most money they could up front, given how few artists end up recouping from their records. So, yeah, there you go. It would also give Adele the largest record deal for a British musician by surpassing . 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