UNDERSTANDING A GOOD RECORD DEAL ||

In 2020, Cynthia Morgan came online and accused her former label boss, Jude Okoye, of taking control of her VEVO account and other assets connected to her music career. Jude denied several of her allegations. But he admitted that he had taken control of her VEVO account. His explanation? He said he was trying to recover the money he had invested in her career. Jude claimed he had spent more than ₦40 million on Cynthia Morgan's career, including expenses such as her house rent, a Range Rover and other career-related costs. Then something interesting came out. The contract Jude released reportedly showed that Northside Music Inc. agreed to cover 100% of Cynthia Morgan's expenses as a new artiste, with those expenses to be deducted from her earnings. The reported income split was 50/50. In fact, when Cynthia Morgan later sued Northside Entertainment, court documents reported by Punch stated that the agreement provided that her compensation would be withheld until the company recovered the expenses it had incurred in promoting her. Cynthia disputed how much the label had actually invested and demanded a full account of the income and expenses connected to her intellectual property. Now, forget the argument between Cynthia Morgan and Jude Okoye for a moment. take a look at the topic of the day, "HOW TO KNOW A GOOD RECORD CONTRACT" Part 1 In this series, we'll be looking at clauses that help protect the label and clauses that protect the artiste. Let's start with the clauses that protect the label. 1. RECOUPMENT CLAUSE A label can spend huge amounts of money developing an artiste. Studio sessions. Music videos. Marketing. Publicity. Distribution. Travel. Accommodation. And other expenses. A recoupment clause allows the label to recover certain agreed expenses from revenue generated by the artiste before the artiste receives certain royalty payments. A clear example is the situation between Cynthia Morgan and Northside Music Inc. You need to know exactly what the label can recoup and what it cannot. And this is also why the percentage you see in a contract doesn't tell you the whole story. An artiste could see: “I get 50%.” And feel happy. But if the label is entitled to recoup millions of naira before that 50% becomes payable, the real economics of the deal are very different. 2. EXCLUSIVITY CLAUSE If a label invests money into developing you, it doesn't want you recording and releasing music for another label at the same time. That's why many record deals contain exclusivity provisions. The artiste may be required to record exclusively for the label during the contract period. This protects the label's investment and prevents another company from benefiting from an artiste the label is funding. But as an artiste, pay attention to how broad the exclusivity is and how long it lasts. 3. DELIVERY CLAUSE A label needs to know what it is getting in exchange for its investment. A delivery clause can specify the number of songs, EPs or albums the artiste is required to deliver. It can also specify when those recordings must be delivered and what requirements they must meet. Imagine spending millions developing an artiste and the artiste later refuses to deliver the agreed music. The delivery clause gives the label contractual protection. So when you see: “The artiste shall deliver 10 masters.” Don't just skip it. Find out exactly what those 10 masters mean. 4. OPTION CLAUSE You sign a deal for one album. The album becomes successful. The label wants another album. An option clause can give the label the right to extend the relationship for additional projects or periods under agreed conditions. This protects the label because it gives the company an opportunity to continue working with an artiste it has invested in. But for the artiste, this clause can determine how long you remain tied to the label. Know how many options the label has and what conditions apply. 5. MASTER OWNERSHIP CLAUSE The master recording is the actual recorded version of a song. Depending on the agreement, the label may own the masters or receive exclusive rights to exploit them. This protects the label because masters are valuable assets that can generate revenue for years. Taylor Swift's dispute with Big Machine is one of the most famous examples of why master ownership matters. Her original agreement resulted in Big Machine owning the masters of her first six albums. The dispute eventually led to her re-recording those albums as Taylor's Version, before she announced in 2025 that she had acquired the original masters. The lesson is simple: Understand who owns your masters before you sign. 6. REPRESENTATIONS AND WARRANTIES The label doesn't want to spend millions on an artiste only to discover that the artiste doesn't actually have the rights to the music being delivered. This clause requires the artiste to make certain promises to the label. For example, the artiste may confirm that they have the authority to enter the agreement and that the music they deliver doesn't knowingly infringe another person's rights. This protects the label from certain legal problems caused by the artiste. 7. INDEMNIFICATION CLAUSE This clause can protect the label against certain losses, claims, damages or legal expenses arising from specified actions or breaches by the artiste. For example, if the artiste breaches a contractual promise and that creates a legal problem for the label, the artiste may be required to cover certain costs. The exact wording matters. Don't sign an indemnity clause simply because you don't understand it. 8. APPROVAL CLAUSES Some record deals give the label approval rights over certain aspects of the artiste's career. This could include collaborations, releases, artwork, branding, management arrangements or other commercial activities. The reason is simple. The label has invested in building the artiste's brand and may want to protect that investment. But this can also affect the artiste's freedom. So you need to know exactly what the label can approve, what it cannot approve and what happens if there is disagreement. SO, ARE THESE CLAUSES BAD? Not necessarily. A record label is a business. If a label invests ₦100 million into an artiste, it has every right to structure a contract that protects its investment. The problem isn't that these clauses exist. The problem is when the artiste signs them without understanding what they mean. And remember, a contract shouldn't only contain clauses that protect the label. There should also be provisions that protect the artiste. What happens if the label doesn't release your music? What happens if the label stops funding your career? What happens if the label doesn't fulfil its obligations? What happens when the contract expires? Can you audit your royalties? Can you terminate the agreement if the label breaches the contract? Those are the clauses that protect YOU. And that's what I'll be talking about in the next episode.

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