One strange structure commonly found in the record industry is the way profits are divided. Record Companies have to buy into you, not loan you. This is what were going after. Send us a tip using our anonymous form. For years, the rapper has set release dates with his label, only to blow by them with . And you guys, if you want to see this contract and want to get the show notes from this tear down where we can link you to these documents and to other resources that interpret the document, just go to lawinsider.com/resources. Mike Whelan [00:21:42] Yeah, I sort of feel like the conclusion for me from this and this probably isnt a popular take, is that the issue here was not necessarily that he had to do the beautiful mind thing and put documents all over the place with strings, attaching them in a great conspiracy or whatever it was that he didnt have somebody to help do that for him. A pair of shoes designed and worn by the musician Kanye West have sold for $1.8m (1.3m) at auction - the highest amount ever paid for trainers. I want you to do me a quick favor. What do you see? Moments later, Kanye shared screenshots of five files. And for Kanye and for all these performers, they were really giving money based on albums, unlike CD sales, which is not a thing anymore. If you are interested in being a guest on Contract Teardown, please email us at community@lawinsider.com. Rock Kanye West Vinyl Records. Practical in the sense that its tracking reality while still hopefully remaining faithful to the original. Cruel Summer/Hawaii costs shall befully cross-collateralized with Kanye's main royalties account. . The defined terms, look, the defined terms are this is conventional, we dont want to completely revolutionize everything theyre necessary because of this intersecting set of agreements. The first thing that changes about Record Deals is actually lawyers. ), 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. In the docs forKanye's exclusive recording agreement, information includes that grantor's royalty account and the production budget for the applicable recording project will be charged with a record cost item of $30,000 per album (or $3,000 per side for a project for the recording of less than an album). Portals. Found online, don't shoot the messenger. So lets take another example from the Kanye contract. Twitter users, who were waiting to get their hands on the documents after much suspense, were completely underwhelmed. After a slight struggle trying to share the files, Kanye boasted that him revealing his old record label contracts was going to be a literal game changer. Soundtrack: The Great Gatsby. "Today artists get just 12% of the money the industry makes. So I think when you tell lawyers that you can be part of the plain English movement while still, of course, using your good sense and keeping legally meaningful terms intact and certainly keeping industry, you know, meaningful terms intact and then explain that its the rest rights, the rest the pursuant to the full execution. And so were going to go through parts of this. To fans' delight, Kanye shared the documents in full and large enough to view as a way to let folks know the ins and outs of his record deal. He dumped them all on Twitter. Youre not trying to make it really friendly for consumers, but you are trying to make it friendly for business people while still preserving, as you can see in the rewrite as most of the actual terms of art. Pearl Jam Vinyl Records. The 43-year-old rapper has conceded after his. Its an exclusion, a liability. Kanye Wests Record Deal Is Standard. Theres a lot going on here. LA Man Charged With Hate Crimes Threatened Classmate: I Want You Dead, Jew Kanye shared a 2005 superseding agreement of his original 2002 recording contract and a handful . Kanye West gave the world a rare glimpse into the music industry 's labyrinth of recording contracts last week when he tweeted out his own paperwork with Universal Music Group and then. If you want to be on a future contract tear down. #kanyewest #dramaalert #grammyWanna continu. The rest went for recording costs, sample clearance, and other costs involved in making the album. Mike Whelan [00:16:08] in a brief. If Kanye wanted to release his tentatively titled project, Lost Yeezus Tapes, he could have and it would've been considered a press and distribution album. This method perhaps isnt as friendly to consumers as LinkedIns method, but its close enough to the source material and still understandable. You know, the I remember the general counsel, GE Aviation said, you know, a 12th grader, a teenager should be able to read this. And thats, you know, damaging conclusion from many perspectives. Watch to see how three transactions handled alternative dispute resolution options. The decline centered around controversial anti-Black and antisemitic comments and other erratic behavior. And it was actually really hard to get through because they were just images. And theyre advised accordingly by an attorney at law whos telling them to sign this contract, and they say this contract is standard. See BBC report here. So youre seeing some attempt by LinkedIn. Music; a backronym for Getting Out Our Dreams) is an American independent record label founded by rapper Kanye West in 2004. UMG is the parent company of Def Jam and West's G.O.O.D. So you dont have to blow the whole thing up in order to meet Kanye West at least half way. The equity is the Artists. And whether whether its, you know, a lawyer literally turning the contract into plain language or turning to Kanye and saying, let me tell you what this means. Somethings got a hold your drink place. 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. 2. So also, you know, go like Legal Writing Pro plus I have a book I coauthored with a retired corporate partner called Deal Struck. Right. In the contract Kanye shared, a lot of the language used to describe this relationship is obviously archaic and can be simplified. The you know, the goal is not the same. You want to get in and get as much as you can is what we were told. 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. June 21, 2019, 2:27 PM PDT. The dates of the files range from 2005 to 2014. So this is right up my alley and Im calling from calling from the Capitol, right outside the Capitol and Northern Virginia. That said, Yeezy made it clear that his mission has been to inform the masses of the inner workings of his record label contacts, which he deems unfair, in hopes of trying to get UMG to budge on letting him buy his masters. Theres theres a counseling function in addition to a drafting function that seems to be really important that lawyers didnt do here. So the rest, you know, if its not a one of those categories, its either an industry term of art or just normal English talking about finance or recording. And the record business that it means in normal English. West filed suit . However, only 50 percent of video costscan berecouped from audio-only record royalties. call Wests deal standard for an artist at his level. Last modified on Thu 13 Jan 2022 14.04 EST. Why is he so decidedly different, incredibly talented, bitingly frank, frequently controversial, and surpris-ingly or arguably humble all at once? In 2011, Kanye and Jay-Z joined forces musically and created theirWatch the Thronejoint album. If you push this button, youre going to save big. Of that, two-thirds ($8 million) was an advance for him to keep. So, Ross, were going to tear down the contracts that Kanye shared. August 6, 2021 3:35 PM EDT. All Rights reserved. Its a fine line to walk: simplifying without completely changing the meaning of the terms. Is it fair? Mike Whelan [00:17:41] an interpretive sca band and Im going to have to look for the domain name. You meme creators, but you, Ross Guberman [00:04:05] look a little to hip to be from D.C., though, and. Were going to deduct a million dollars. And youll see with this contract, this is an old contract that was really based on who gets money from from the music. 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. He tweeted them so I made PDFs. Not every artist has time to read the, Amy Noonan, who records as Qveen Herby and was formerly half of 2010s pop duo. In this episode of the Contract Teardown, Foster Sayers joins Mike live at ContractsCon to beat up the ChatGPT Terms of Service. What am I looking at here? We want to hear it. Why should the lawyers watching this thing care other than the sick entertainment value of watching somebody have a breakdown about contracts? The first agreement in the series was around the time PDF were new. 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. THE HOST:Mike Whelan is the author of Lawyer Forward: Finding Your Place in the Future of Law and host of the Lawyer Forward community. Kanye West, also now known as Ye, has been named as a suspect in a battery report taken by the Los Angeles police department in the early hours of . Kanye West is at war with the music industry over the ownership of masters and unfair contracts. An advance constitutesany moneypaid, costs incurred or costs to create videos. The rapper has put out nine albums over 17 years through Roc-a-Fella Records. Theyre not to be I mean, this is classic, completely unnecessary, archaic language you see in a lot of commercial agreements. I AM ON MY KNEES THIS MORNING," he tweeted before dropping the proof. Kanye Westmade good on his promise by sharing the many pages ofhis recording contracts with his label Universal Music Group. Using plain language isnt just a benefit to clients. 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. For example, LinkedIn has made some effort to provide easy-to-understand language. Contract #3. Most comprehensive library of legal defined terms on your mobile device. Were going to pay that to you. Like others, Negrito, who released his third independent LPHave You Lost Your Mind Yet? And theyre advised accordingly by an attorney at law whos telling them to sign this contract, and they say this contract is standard. Ye went from $6.6 billion to maybe $400 million. As for Kanye's royalties, the percentages varied for his first, second and third contract periods. Ross Guberman [00:16:40] Yeah, you really hit the nail on the head. Youve got defined terms of art in there. Im going to give people a little bit of background on the Twitter rant about contracts. There are no reviews yet. So the tool, the tool were looking at brief catch, you know, there you go. 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. 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.". Push this button right here that will allow you to join Law Insider at a premium subscription. There was about 100 pages of documents that he probably should not have posted on Twitter, but he did anyway. Are they making too much? He declared his contract was industry standard, but that didnt mean it was fair. Histhird contract period consisted of15 percent of the royalty base with respect to master recordings during third contract period,15 percent of sales of an album in excess of 500,000 units and16 percent of sales of an album in excess of 1 million units. I mean, there there are many words and phrases that do need to remain intact because the risk of trying to translate them informally into common terms is is much bigger than any benefit. If we were to legit tear down, wed be here till 2021, assuming we all live that long. Its an interesting thing. So theres this GE aviation series of rewritten contracts. Ive got blues and Ive got reds. But there is some movement, especially in the tech industry, also consumer facing company, some movement, and then a little bit, too, in the more staid commercial world. Youll get access to more content like this. Ross and I dig into Kanyes request for plain language drafting and whether its even realistic. Hit-Boy is an enormously talented songwriter whose relationship we value, a UMPG spokesperson said in a statement to Rolling Stone. on the Internet. We need plain English contracts. this summer, doesnt point the finger at any one entity or group for the nature of these deals. If Im the lawyer there, there are terms of art. I do a lot of these kind of microlevel edits that people seem to like. Coming from the tech space, when we raise money and talk with investors to get capital into our business, were armed with a pro-forma that lets us understand how much were taking on and see exactly how the numbers work out. And there there are lots of there are lots of issues in the original that many, many, you know, entertainment law specialists would probably argue over which which actually, you know, brings up another issue is, is is this plain english movement really just for the clients or are you actually uncovering some conflicts or ambiguities or vagueness or nonsensical expressions altogether in the original if youre, you know, challenging yourself to put them in terms of normal people can understand? This helps cut down on negotiation time, which can lead to making better deals. This is subject to G.O.O.D. Ye says he wants his four children to own them. For Kanye's follow-up to TheCollege Dropout, which wasLate Registration, Roc-A-Fella gave him anadvance equal to the excess of $3.5 million over recording costs. This is the same deal your favorite artist signed, this is their label. What do you expect a young, naive artist to do? Mike Whelan [00:04:08] wearing the shirt. All contents of the lawinsider.com excluding publicly sourced documents are Copyright 2013-. The label additionally had the right to release one Greatest Hits album. Mike Whelan [00:01:11] Yeah, Im doing the fancy background with the product placement. Ye. Youre going to sign the amendment. . Kanye West has been active on Twitter once again. Every audio file, every asset, every deal stored WITH the money. Well, what we said the provision means is not what it means, but again, you need to know. So those are those are the impediments. Right. 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. The rapper initially sued the . Is this realistic to even talk about plain language and contract drafting? The 200 Greatest Singers of All Time He said, were going to transparently change every album deal, every publishing deal. Mike Whelan [00:00:53] Hey, everybody. As artists, we know its something thats been happening, but we get used to a lot of things, like voting numbers or police brutality. Absolutely. I have a lot of free articles and a lot of these before and after is also on Twitter. 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. The plain-language portion may influence what is interpreted on the left. He got a $12 million pool of money to make "Yeezus" in 2013. Dependents. So so talk to me about this profit sharing piece. LinkedIns method is still too new for us to know if disputes will come from the different sections. Contract #1 [PDF] Contact #2 [PDF] Contract #3 [PDF] Contract #4 [PDF] Contract #5 [PDF] Contract #6 [PDF] Contract #7 [PDF] Contract #8 [PDF] Contract #9 New Recording and Publishing Deal Guidelines [ PDF] Rap superstar Kanye West is leading a revolt against . Were at sales@LawInsider.com. (In response, the label played down the conflict: Theres no more independent plants, no more putting all these CDs in a truck and shipping them from store to store across the country, Chris Anokute, founder of entertainment company Young Forever Inc. and a former A&R executive for labels including Capitol and Island Def Jam, tells, Anokute manages several clients including Curtis Waters, who recently, While Anokute points the barrel primarily at the labels dishing out deals arguing that these deals perpetuate the very inequalities for black artists that the, 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. Theyll follow their attorneys recommendation. We talk about differentiating between archaic language thats necessary and archaic language you should cut, as well as tools you can use to identify that language. web pages on September 21, 2020. Nirvana Vinyl Records. And guys, this is a super long document. Its not always clear whats what. Kanye West signed to Roc-A-Fella Records, which was under Island Def Jam Music Group, whose parent company is Universal Music Group, on April 13, 2005. THE GUEST: Ross Guberman is president of Legal Writing Pro, LLC and a consultant for law firms and courts. For his initial contract period, Yeezy received 8percent of all singles and long-play singles,14 percent of the royalty base with respect to master recordings during initial contract period,14 percent of sales of an album in excess of 500,000 units and15 percent of sales of an album in excess of 1 million units. 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. No, but nobody wants clients to to conclude that. 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.. 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. 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. So tell me, is the language on the right? Then you, Kanye, get your money. T, hey dont give you updates, and in 25 years, Ive never checked about recoupments, Negrito says. Music won't offerservices or provide A&R or label services related to more than two rejected artists. 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. Thank you, Ross. He was also responsible for50 percent of the total amount of out-of-pocket expenses incurred or paid by Roc-A-Fellain connection with the preparation of his album's artwork. And the reason that it applies to us is this awesome tweet that all the lawyers got excited about, where he says the first thing that changes about record deals is actually lawyers. Why are artists paying a 20 percent distribution fee off the top?, Related He was given a $6 million advance for his seventh album with $3 million designated to recording costs. Clearing up some of these issues can prevent situations in which law specialists wind up arguing over different interpretations of the text. These are the documents that were talking about. . Push the button. $20.99 Used. As Kanye West escalates his battle with Universal Music Group, the Chicago rapper decided to share the entirety of his record contract on Twitter. 88-Keys . A Lawyers role is to IMPROVE deals. His musical career has been marked by dramatic changes in styles, incorporating an eclectic range of influences including soul, baroque pop, electro, indie rock, synth-pop, industrial and gospel. Absolutely not. This is a situation were in. See everything we've learned from his record label deals below. Its all digital. I will not share the image of Kanye West urinating on his Grammy, though. Scooter Braun Projects is a talent management company that is more than just a company. Labels generally hedge their bets on younger artists not just so the labels can reap considerable profits, but in order to protect their ongoing existence: Most artists who get signed wont break through, and the success of one major star can help make up for those bad bets. First is this one from Kanye. If Island Def Jam Music Group were to pass on an artist,Getting Out Our Dreams Inc., the acronym for Kanye's G.O.O.D. Undoubtedly, who Right. In 2012, the label released its debut compilation album Cruel Summer.In 2015, Pusha T was appointed the president of the label . So as you can see, this is quite different from what LinkedIn is going to do. How can you rewrite a contract to be understandable without losing the original intent? For Kanye West's profit share agreement with Island Def Jam/UMG, there was a 50 percent profit split for his sixth and seventh album, whichincludes distribution, marketing, recording and any other expenses. So, Ross, this brings us to this whole conversation about plain language in contract writing. 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. He has also encouraged Black artists to sign with labels owned by Black people. Theyre there of the, you know, blah, blah, blah, blah, blah, if any. And so Kanye is at this point where hes like, dude, I got to have some other ways to make money. This past Wednesday, September 16, Kanye West, in an attempt to " change the music industry for good ," shared his recording contracts with Roc-A-Fella, Def Jam Recordings, and Universal. 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. Thats the name of my new band. Some examples would be words such as materiality, reasonable efforts, and severable. Kanye West's history of inflammatory statements were met with consquences this week. However, Gruberman says this is still a good way to use plain language for understandability. About this profit sharing piece said in a statement to Rolling Stone that changes about record is... Free articles and a lot of free articles and a consultant for law firms and courts method perhaps isnt friendly! What we said the provision means is not what it means in normal.... To to conclude that negotiation time, which can lead to making better deals on negotiation time, can! That he probably should not have posted on Twitter of video costscan berecouped from audio-only record royalties calling... Use plain language for understandability some effort to provide easy-to-understand language mean, this is right up my alley Im. Ross and i dig into Kanyes request for plain language drafting and whether even. Were told Pro, LLC and a consultant for law firms and courts in! ; in 2013 mike live at ContractsCon to beat up the ChatGPT terms of art American! 14.04 EST, doesnt point the finger at any one entity or Group for the domain name with! Sense that its tracking reality while still hopefully remaining faithful to the original 've learned from record! Really important that lawyers didnt do here the ChatGPT terms of art he declared his contract was kanye west record contract pdf., though of rewritten contracts this summer, doesnt point the finger at one... Jan 2022 14.04 EST Guberman [ 00:16:40 ] Yeah, Im doing the fancy with! Decline centered around controversial anti-Black and antisemitic comments and other costs involved in making the album artists just... 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