I understand that such contracts are necessary, but I always find it sad to see how full of rules and laws they are. For me, this shows how little humanity (can) trust itself. I hope she will renew her contract after it ends In May 2007, Gaga signed a 5-album contract and a 360° contract with Streamline/Interscope Records. At the same time, they acquired 29 songs from Gaga and Rob Fusari in 2006-2007. Her stage name was written lady gaga. Later, she signed a contract with Bravado to produce and sell her official products. When it comes to the music industry, labels still have a lot of influence. You can certainly help an artist succeed if they are motivated (and contractually obligated to do so). However, like everything else in life, these are record contracts and no one has ever called record companies non-profit organizations. Since Gaga`s business documents were leaked, some have taken a look at some of Gaga`s legal work. Among the leaked documents were Gaga`s hosting agreement and changes made since then. I have read the documents.
I do not claim to be a lawyer and therefore I do not claim that I am 100% right with my interpretations of the different formulations of the contract, but here are some things that I found interesting in the May 2007 agreement and various amendments. I`m not going to type word for word what each part says, but I`m going to quote where you can find it. All information cited is taken from the May 2007 Agreement, unless otherwise noted. I agree, and I`m sure the recording contracts were much easier in the beginning. I feel like she was only able to use songs on the albums they were recorded for was a direct reaction to Michael Jackson who destroyed Sony during a concert and said he only had 1 album left and he could give them any song he had recorded before. -Interscope obtains the possibility to extend the contract to 7 albums (1d). -Gaga initially signed for up to 5 albums (1.02). It`s up to Interscope to let Gaga know if they will exercise the right to an additional album within 6 months of the U.S. release date. If Interscope does not notify Gaga in writing that they are renewing within this 6-month period, Gaga may request termination by written request.
Interscope has 10 days to respond after receiving the cancellation request, and if there is no response, Gaga will be released from her contract on the 11th day (1:02 a.m.). In 2002, JCOR founder Jay Faires filed a $30 million infringement lawsuit alleging that Interscope had withheld millions of dollars to bankrupt it. Interscope responded that JCOR had concealed its true financial situation at the time of signing its distribution agreement and had attempted to use Interscope`s money to fund its activities. [87] AceShowbiz – Lady GaGa`s team « is deeply involved in the process of renegotiating the breakthrough artist`s contract with Interscope, » according to HITS Daily Double. The Dance Queen camp and the people at the record company hope to finalize the new deal before the release of their new studio album. A good lawyer can not only help negotiate the amounts the label receives from these different sources of revenue (merchandise, tours, digital products, publishing, endorsements, appearances, etc.), but also indicate in contract form what the label must do for its percentage of each revenue stream. For example, suppose the label wants 25% of all profits from the merchandise. The artist can ask the label to manufacture, deliver and sell the goods in exchange for this 25%. This means that the artist must work according to the booking rules (that the buyer be careful) and take as much care as possible, or better yet, hire a competent entertainment lawyer to represent him. Not only is a lot of potential income threatened, under the terms of the contract, but the artist might be able to essentially be a contract servant for many years. The contract extension proposal was apparently proposed to the label by the GaGa team after learning that it had become « a big stroke of luck » for Interscope. The « Poker Face » singer has sold millions of copies with his two albums « The Fame » and « The Fame Monster », not to mention several hit singles around the world and many sold-out concerts.
Then there is the old « net profit » versus « gross profit ». All artist commission payments to the label must be based on net and not gross profits, otherwise the artist may never get out of the contract. In early 1992, Interscope negotiated a $10 million deal with Dr. Dre and Marion « Suge » Knight to finance and distribute their label Death Row Records. It was initiated by McClain, who met Dre when he recorded his first solo album The Chronic. Initial plans were for the album to be released by Sony, but Sony passed on The Chronic due to the « crazy things happening around Death Row » and Dr. Dre`s contractual status. After listening to the album, Iovine agreed to release it, although this required a complicated distribution deal with Priority Records, Dre`s label as a member of N.W.A. The Chronic was released in December 1992. [14] [15] It must be so frustrating for Gaga to follow so many rules – Interscope must release an album in the US within 120 days of receiving the album. If this does not happen, Gaga may request that the contract be terminated within 60 days of the expiration of the 120-day period.
Interscope must then release the album within 60 days of receiving this request and this period is called the « Healing Period » (8.06a). If the album is not released within the cure period, Gaga has 60 days to send a cancellation terminating the contract. If it does not send notice of termination within 60 days of the spa period, it waives its right to terminate the contract for that album period. -Gaga does not own her own masters, artwork or website material (7.01). This part of the contract also states that Gaga grants Interscope a power of attorney for certain works of which she could be considered an « author » and allows Interscope to protect her works on her behalf. -Gaga will be consulted to approve the promotional material. He may object and present alternative promotional material that Interscope may approve. .