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A music industry revolution is underway, led by a new wave of female artists who, inspired by Taylor Swift, are taking ownership of their music rights and rejecting contracts that give full control to music companies.
Swift is close to completing her project of re-recording her initial six albums, which were originally produced for Big Machine Records. This is a deliberate move to bring attention to her argument that the original versions were taken away from her without her consent. Each album serves as a form of both creative and commercial retaliation. Her public battle for ownership extended to her 2018 contract with Republic Records, a division of Universal Music Group (UMG), which included a non-negotiable demand for ownership of her future master recordings and the ability to license them to the label.
This is a power-play template designed for emerging artists, particularly female pop stars who have historically been exploited in the music industry. These artists are now aware of the importance of owning their recordings and songwriting. Olivia Rodrigo, inspired by Taylor Swift, made it a requirement to own her masters before signing with Geffen Records in 2020. Zara Larsson also took ownership of her recorded music and started her own label, Sommer House, in 2022. Similarly, Dua Lipa purchased her publishing rights from TaP Music Publishing, a company she had left in early 2022.
During last summer’s Glastonbury festival, Rina Sawayama indirectly criticized Matty Healy of the 1975 for his participation in a podcast where racist comments were made. She also mentioned his ownership of her masters, as he was previously a director at Dirty Hit Limited (although this role ended in April 2023). This statement about ownership overlooks the complexities of contract law – it is likely that Sawayama agreed to give up rights to her recordings in exchange for the label’s financial support. However, it resonates with fans who view “the industry” as a threat to artistic and creative independence. Brian Message, a partner at Courtyard Management, believes that artists should have emotional ownership over their works since they are the ones who create them.
The new rules of engagement between artists and labels have been adjusted due to the increased availability of information on the complex world of music contract law. In the early 2000s, music industry knowledge was exclusive and primarily found in trade publications like Billboard, Music Week, and Music & Copyright, or in books like Donald S Passman’s. However, nowadays, industry matters are discussed in mainstream media and artists can utilize social media to voice their complaints or expose unfair contract terms. In 2021, Raye publicly criticized her label, Polydor, for preventing her from releasing her first solo album; as a result, she was released from her contract and her independently released debut album in 2023, My 21st Century Blues, received widespread praise.
Today’s artists are more knowledgeable about the music industry and the mistakes of the past, as they have no choice but to be. Many older musicians, including George Michael and Prince, had to take legal action when they felt they were being cheated or mistreated. Others, like Radiohead, have made it a priority to retain ownership of their rights during negotiations for economic and ethical reasons. Some artists were lucky to have savvy managers on their side, such as Bono’s recollection in his book Surrender that their manager, Paul McGuinness, negotiated with Island Records for U2 to have a lower advance and royalties in order to regain ownership of their recordings after a certain period of time.
The stories of Prince and George Michael serve as cautionary tales from the past, but the actions taken by Swift, Rodrigo and others can serve as guides for the future. This shift in the music industry has also led to a move away from contracts based on ownership. There are two types of rights involved in this issue: the rights to an artist’s master recordings and the rights to their songwriting, also known as publishing. A high-ranking executive in the music publishing industry explains that they were ahead of the game, as their deals typically involve exclusive licensing or retention periods. They note that publishers have shifted their focus from owning rights to managing them. The length of these retention periods has decreased over time, from approximately 25 years three decades ago to now averaging between 12 and 15 years.
According to David Martin, the CEO of the Featured Artists Coalition, many artists have a desire to own their rights, but some are willing to give them away in hopes of achieving success. Despite this, there are still members who are signing deals with major labels, and Martin believes they should carefully consider the terms being offered.
He suggests avoiding contracts based on ownership. He states, “We generally do not recommend our artists to enter into lifelong copyright agreements. While we may still consider them, we strongly advise pursuing a licensing agreement instead.”
This is the ideological underpinning of BMG and AWAL (Artists Without a Label), which is now under the ownership of Sony Music Entertainment. “The philosophy is flipping the relationship,” says Alistair Norbury, president of repertoire and marketing at BMG UK. “There had to be a fairer and more transparent way to work with the creative community.”
The artists signed to BMG, such as Kylie Minogue, Suede, Sigur Rós, and Louis Tomlinson, have licensing or assignment agreements in place. This means that eventually, they will regain ownership of their recordings. According to Norbury, these artists prefer to be with a record label that allows them creative control and the opportunity to reclaim ownership in the future.
AWAL follows a similar ideology. According to Paul Hitchman, the global COO of the company, AWAL was created to assist what we now refer to as “independent artists” in maintaining their independence. This means having ownership of their rights and retaining control over their career, while still having access to valuable expertise and support and being able to achieve global success without making compromises.
According to Norbury, as the number of options for performances increases, music companies must continuously demonstrate their value and consider mutual benefits instead of only offering agreements that solely benefit themselves and are opportunistic in securing all rights. He asserts, “It is better to have a successful long-term partnership rather than owning something that ultimately fails.”
Given these circumstances, the major labels are now required to provide more adaptable contract conditions. Additionally, they are making significant investments in other music-related businesses representing individual artists and record labels in order to tap into the growing trend of DIY and independent acts. Sony holds ownership of Awal and the Orchard, while UMG has Virgin Music Label & Artist Services and Ingrooves. Similarly, Warner Music Group has Ada.
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Stormzy is perhaps the most successful alumnus of this approach, with his own Merky label going through Ada. He subsequently signed with 0207 Def Jam, part of UMG UK, in 2020, but rapped that “I own all my masters, I ain’t got masters” in his 2022 track Mel Made Me Do It.
According to US music lawyer Erin M Jacobson, traditional labels must explore alternative structures or agreements that are more favorable for artists in order to remain competitive. Independent labels tend to be more equal in terms of rights compared to major labels. Jacobson notes that some independent labels take pride in providing artist-friendly terms that are not commonly offered by other companies.
Cliff Fluet, a partner at the law firm Lewis Silkin, is not as charmed by the allure of independent companies. “Many indie labels offer 50/50 agreements, which may seem fair at first glance,” he explains. “But what exactly does that 50% cover? There have been numerous instances where indie labels have faced disputes over ownership, exploitation, and digital royalties.” Fluet does not specify, but the recent lawsuit between Domino Records and Four Tet – in which Kieran Hebden settled a disagreement over past royalty rates with the label – is a prime example.
Fluet strongly believes that major labels are crucial for launching new artists on a global scale. He dismisses the notion that labels are becoming obsolete, stating, “I have yet to witness a successful global artist who did not have the support of a major label.”
For acts burned by prior label experiences, who have signed away ownership of their masters, the enormous success of Taylor Swift’s re-recordings suggests a workaround – but one that labels are increasingly awake to. Simply Red, Def Leppard and Squeeze have all attempted it, but with only a fraction of the success Swift has had. And Billboard reported in October 2023that the majors are inserting new clauses in contracts precluding artists from re-recording tracks for up to 30 years.
Jacobson verifies that these provisions are increasing in length. She explains, “Re-recordings generate competition for the assets owned by the label and subsequently, the revenue that the label can acquire. They do not want their product to be substituted by another.”
Fluet cautions against viewing Swift’s approach as applicable to everyone. He explains, “Including re-recording clauses in agreements is not a new concept. Every major label contract I’ve seen in the past 5 to 25 years has included them.” He believes that having successful re-recordings is unique to Taylor Swift and not a concern for most UK companies.
According to the head of a music publishing company, it is common for artists to request re-recordings in synchronization deals in order to receive a larger portion of the fee. However, they warn that these new versions may not live up to the original recordings. They express concern about the special circumstances that contributed to the creation of the masters, such as imperfections caused by a singer’s sore throat or technical issues in the studio.
The landscape of the music industry has changed drastically in the last ten years, and up-and-coming artists are becoming more assertive in their requests. While not every new artist may have the upper hand in negotiations, they can use their knowledge of industry issues to their advantage, particularly with younger fans who are becoming more informed about these matters. By publicly calling out unfair practices by music companies, new artists can strengthen their negotiating power. The era of blindly following industry norms is being challenged in this increasingly competitive fight for control.
Source: theguardian.com
