He's also called for Drake, Bono, Paul McCartney,. Found online, don't shoot the messenger. So I apologize to both of you D.C. people watching. Kanye West's history of inflammatory statements were met with consquences this week. Kanye Omari West (born June 8, 1977) is an American rapper, singer, songwriter, record producer, entrepreneur and fashion designer. 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.. Ross Guberman [00:07:15] So youre looking at a movement that started when those Capitol Hill hearings, but the tech companies were in the news. So come join us right now. Maybe its about time I do that.. Right. September 18, 2020. I wrote a book. Ross Guberman [00:05:55] Yeah, I mean, its obviously a common plea, not just from Kanye West, but from all sorts of, you know, business executives to theres been sort of push and pull over the decades that people have been complaining about contract language for longer than either of us has been alive, of course. "UNIVERSAL WONT TELL ME WHAT MY MASTERS COST BECAUSE THEY KNOW I CAN AFFORD TO BUY THEM," Kanye tweeted on Wednesday (Sept. 16). Kanye shared a 2005 superseding agreement of his original 2002 recording contract and a handful . Ye asked for $12 million, and $8 million would be paid promptly after the full execution of the 2012 amendment. Capture a web page as it appears now for use as a trusted citation in the future. Push the button. Report: Kanyes Anti-Semitic Rhetoric Led to Assaults, Vandalism, 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? longtime A&R exec Chris Anokute, Anokute manages several clients including Curtis Waters, who recently went viral through his TikTok hit Stunnin. While Waters was courted by many major labels,at Anokutes counsel, he signed a shorter-term 60-40 profit-split deal with BMG. We were lucky because we were careful. Milana Lewis, CEO of music distribution platform Stem, says record labels should start including explanatory pro-forma documents with deals, in order to promote transparency and make it easier for artists to understand what comes in their agreements. A Lawyers role is to IMPROVE deals. 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. In in your estimation, does this thread the needle of checking the legal boxes, but also being plain enough? Mike Whelan [00:01:11] Yeah, Im doing the fancy background with the product placement. Almost ALL new deals now are based on ALL songs going to a store or app. The 100 Greatest TV Shows of All Time So lets shift to the Kanye contract, and were not going to do a full breakdown of what all these documents are, because theres a lot and there are good YouTube videos out there. The split can be 80/20 in the artists favor. Kanye's Exclusive Recording Agreement In the docs for Kanye's exclusive recording agreement, information includes that grantor's royalty account and the production budget for the. The dates of the files range from 2005 to 2014. Adidas said on Tuesday that it was cutting ties with Kanye West, ending what may have been the most significant corporate fashion partnership of the rapper and . Were going to deduct a million dollars. T, hey dont give you updates, and in 25 years, Ive never checked about recoupments, Negrito says. Welcome to Law Insiders Contract Teardown Show, where we bring smart friends like Ross Guberman over here to break down some contracts. 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. I will never work for a major record label again, Anokute says. From that money, $4 million was allocated to recording costs. web pages So heres an amendment. Mike Whelan [00:17:41] an interpretive sca band and Im going to have to look for the domain name. So the tool, the tool were looking at brief catch, you know, there you go. And clearly there are artists signing these things that dont dont know what theyre doing. Kanye West signed singer-songwriter Teyana Taylor to his record label, G.O.O.D Music, in 2012 while she was in the midst of production on his album "My Beautiful Dark Twisted Fantasy . How can you rewrite a contract to be understandable without losing the original intent? (Epic did not respond to a request for comment for this story. Money and Music must stay together. In this episode of the Contract Teardown show, guest Diana Isyanova shares three possible approaches. Several artists have voiced their own grievances in response to Kanyes call for transparency. Im seeing a lot of these highlights. We took the full. Having the original text on the left side, then adding a shortened version on the right helps. The first thing that changes about Record Deals is actually lawyers. Just email us at Community@LawInsider.com. According to West's court papers, he's been "laboring" for EMI since 2003, when during the recording of College Dropout he signed a "lopsided" contract with the music publisher. Ive got blues and Ive got reds. Most comprehensive library of legal defined terms on your mobile device. Right. Island Def JamMusic Group also agreed to give Kanye the rights, title and interest in all of the masters for his sixth and seventh album, but only after the reversion datethe last day of the semi-annual accounting periodwhich is 20 years after the initial release of the seventh album. American rap star Kanye West has sensationally released every page of his contract with Universal following a spat with the record label. Normally, its sort of reversed. 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 . Ross Guberman [00:08:11] Yeah, this is a big issue. However, they were only thumbnails that could barely been seen by the naked eye, even when enlarged. Come join my friends. 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. Its all made from videos. His call for transparency has brought the conversation of understandable language into a spotlight. We were broke college kids right after the recession. Thank you, Ross. Ye says he wants his four children to own them. This is the Def Jam amendment. 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. Theyre there of the, you know, blah, blah, blah, blah, blah, if any. Well see you there. I need every lawyer in the world to look at these," he wrote. Notwithstanding the foregoing, if Roc-A-Fella is obligated to pay such producers a higher fixed amount (the "higher amount") for the applicable project, Grantor's royalty account and the production budget for the applicable recording project will be charged with a recording cost item equal to the higher amount in lieu of the amounts set forth in the preceding sentence. Mike Whelan [00:03:50] I realized after I got dressed to have our conversation that Im wearing the shirt that apparently everyone in D.C. wears. Of that, two-thirds ($8 million) was an advance for him to keep. So I want you to do it, take advantage of it. Well see you guys next time. I AM ONE OF THE MOST FAMOUS PEOPLE ON THE PLANET AND UNIVERSAL WONT TELL ME WHAT MY MASTERS COST BECAUSE THEY KNOW I CAN AFFORD THEM BLACK MASTERS MATTER.". He suggests focusing not on the necessary legal and industry terms but on clearly nonsensical or unnecessarily archaic sections. 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. We don't know - still - who the next US president will be, but we do know who it won't be - Kanye West. on September 21, 2020. Join me and my friends. Ross Guberman [00:22:31] but definitely something to that. We need plain English contracts. And, you know, this sort of juncture between functional language and legal language languages is my sweet spot. Just minutes prior, he had finished tweeting out the entirety of his Universal contract, one page at a time for a total of more than 100 tweets. So you dont want to run around changing materiality. This is the same deal your favorite artist signed, this is their label. What do you expect a young, naive artist to do? Thats the name of my new band. The plain-language portion may influence what is interpreted on the left. Law Insider, in partnership with Laura Frederick and How to Contract, is hosting ContractsCon 2023, a live training and networking event focused on practical contract drafting and negotiating skills for in-house counsel and contracts professionals. W aiting for a Kanye West album can be an excruciating, interminable experience. Within the deal, Kanye was obligated to release six albums, inaddition tohis initial effort, TheCollege Dropout(2004), within a 12-month span. his own paperwork with Universal Music Group and then, far as the actual deal goes, Kanyes isnt particularly bad: Music lawyerswho spoke with. Found online, don't shoot the messenger. Kanye West leaked his recording contracts on Twitter. The record label / publisher is a service provider that receives a share of the income for a limited term. After the advance was recouped, 15 percent of royalties were to be given to both artists. 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. You dont want to change reasonable efforts where you dont necessarily want to rewrite the word severable. So so as I play this in the background, tell me about some of the phrases that youre seeing in this that are just driving you nuts. Why are artists paying a 20 percent distribution fee off the top?, Related So we want to talk briefly about this profit sharing piece, this image here, because theres a lot of language that might lead to artists not understanding that theyre getting into that pretty crappy deal, honestly. Youve got defined terms of art in there. Yeezy, West's sneaker and apparel business with Adidas AG and Gap Inc., is valued at $3.2 billion to $4.7 billion by UBS Group AG, according to a private document reviewed by Bloomberg. He got a $12 million pool of money to make "Yeezus" in 2013. West is also no longer with record label Def Jam a Universal Music Group subsidiaryas he has fulfilled his contract, Forbes reported Thursday, and his own label, G.O.O.D. This is subject to G.O.O.D. Rock Kanye West Vinyl Records. He ended the spree with, 'Whew that was a lot guys," and then tweeted a video of himself peeing on a Grammy award. The deal. If you push this button, youre going to save big. His. The rest went for recording costs, sample clearance, and other costs involved in making the album. You can imagine the anxiety the in-house counsel have, right? . So theres this GE aviation series of rewritten contracts. And, to an extent, they're not wrong. An advance constitutesany moneypaid, costs incurred or costs to create videos. Maybe even my own lawyer is not really looking at the language from my point of view. You need a business manager to read how you did? Its sort of a it, Ross Guberman [00:17:40] hasnt been taken. The sense is that someone trying to pull a fast one on me. 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. Ye also had to seek written approval from the labelat least 14 days before the first recording session. Kanye West, someone God had chosen to do something very special in the world. Uploaded for archival purposes. The deal was huge, man, they give you money to live off of. They will help you draft better contracts faster. Is this realistic to even talk about plain language and contract drafting? Somethings got a hold your drink place. In follow-up tweets, he shared screengrabs of 10 documents that included a profit sharing agreement and a recording agreement. Next came what he calls the music industrys biggest flop his only Interscope album, The X Factor. 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. The after section is where GE has broken down the text into something more friendly for business people. He dumped them all on Twitter. Its an interesting thing. 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. Ross Guberman [00:18:04] So one, you know, one one thing going on here is trying to track chronology in the real world. Ross, how are you today? Soundtrack: The Great Gatsby. In the process of that latter Twitter. And so were going to go through parts of this. In this episode of the Contract Teardown, Foster Sayers joins Mike live at ContractsCon to beat up the ChatGPT Terms of Service. Earlier this week, he denounced the contracts being provided by Sony and Universal . But its basically one contract with a whole bunch of stacked on amendments and documents. The outspoken music artist - who considered running. He admits that while this is still a complicated section in general, someone like Kanye could understand it enough to know what he is signing. Labels are taking risks on any given signing and need to make offers that keep the company profitable. Advances are loans with 75% interest rates (or worse). Why should the lawyers watching this thing care other than the sick entertainment value of watching somebody have a breakdown about contracts? 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. I guess my question is, could Kanye read this, do you think? Uploaded by Ross Guberman [00:23:30] Yeah, I mean, I did try to thread the needle of making everybody happy and try not to, you know, be too rigid on these matters. This is a tool that is available to anyone looking to implement plain language into their contracts. One common grievance: Many aspects of record deals do not reflect how the business has dramatically changed over the past decade. So so talk to me about this profit sharing piece. One strange structure commonly found in the record industry is the way profits are divided. 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. Its not always clear whats what. Thats a sort of grey area, and I think its an important conversation to be had., Editors picks This is the same deal your favorite artist signed, this is their label. What do you expect a young, naive artist to do? So lets take another example from the Kanye contract. Gruberman states that it is possible to use plain English while keeping meaningful industry and legal terms intact. And guys, this is a super long document. . 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? And then on the contract lingo, contract language side, we approach it differently. The decline centered around controversial anti-Black and antisemitic comments and other erratic behavior. 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. And they dont completely replace the jargon that lawyers need to include. No, but nobody wants clients to to conclude that. Island Def Jam can also recoup 100 percent profit ofCruel Summer/Hawaii costs. Ross Guberman [00:00:00] You look at these agreements, though, from Kanye, thats not just the CDC references that are archaic, the language looks like something you might find, you know, 50, 100 years ago. The split can be 80/20 in the artists favor. For that LP, there was a recording fund amounting to$2.5 million. Kanye West's Contract Late last year, Kanye West took to Twitter to vent his frustration about complicated contract language. Mike Whelan [00:00:53] Hey, everybody. not charge for contracts we cannot understand or track. He is no longer signed to Def Jam, his longtime record company; his contract expired with his 2021 album, "Donda." And Ye . Why is a shift to plain language important? Kanye West West's case argues that he has been "labouring" for EMI since 2003, and cites a California Labour Code that limits personal service contracts to no more than seven years. I didnt know this was the thing, but apparently its a Twitter meme. It is a family. 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. Mike Whelan [00:11:02] Hmm. Ross describes a counselor that can thread this very tough plain language needle. 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. And according to the general counsel, its worked wonders. So we know recouped doesnt mean the same thing. Whats the best way to get in touch with you to learn these skills? Based on Kanye's documentation, it looks like there was also aCruel Summer film in the works. 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.". The . Were lucky we were told the truth in so many ways.. Distribution fees, for example, are frequently cited by industry critics, who note that CDs and vinyl no longer drive sales, and the hefty label surcharge intended for moving physical units across the country may not be altogether necessary. Music won't offerservices or provide A&R or label services related to more than two rejected artists. Right. The deals not bad what is that based on? Negrito asks. 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. Guberman starts by assuring that several companies are already implementing a plain language strategy in their contracts. Oct. 25, 2022 Updated 11:22 a.m. The partnership was a nightmare for both Negrito and the label, he says. Lets rewrite the deals to be understandable from first rate. One way to begin is by bracketing off phrases or words that you know have a substantive value. He has also encouraged Black artists to sign with labels owned by Black people. Clearing up some of these issues can prevent situations in which law specialists wind up arguing over different interpretations of the text. Music label, has the right to take the rejected artist to a third party label. 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 has been slapped with a lawsuit by music publisher EMI after attempting to get out of his publishing deal by claiming the contract equates to slavery.. After agreeing to the amount spent on the film, they took $1 million from Kanyes sixth album backend and then $500,000 from his seventh album's recording fund. If you are interested in being a guest on Contract Teardown, please email us at community@lawinsider.com. Wests contract could even be considered favorable among superstar contracts, with Universal heavily investing in Wests works, entertainment attorney Christiane Kinney says. You want to make sure everything is understandable, but you dont want to take related phrases within a provision and just willy nilly break them up into multiple sentences the way you might. These are the documents that were talking about. Lawyers. Everybody go get it. So you keep those and then you also, of course, in your sector or industry, want to keep those terms of art as well. Almost no artists recoup so the system obviously doesnt work, but its tempting. Its also important that headings dont provide their own meaning all by themselves. See's Kanye West's Record Contract Tweets. So we dont want to change recouped because now we would be not faithful to the substance. In 2012, the label released its debut compilation album Cruel Summer.In 2015, Pusha T was appointed the president of the label . 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. Advances. Having the contract laid out in plain language can lead to fewer problems down the road. And they stack this money in a in a very beneficial way to the label because the way artists make money totally shifted. Mike Whelan [00:22:29] he did not listen. You should need NO ONE else to understand the business youre in. Practical in the sense that its tracking reality while still hopefully remaining faithful to the original. 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. Guberman has dissected the Profit Sharing Agreement section of Kanyes contract and found several areas in which the language could be more transparent. The rapper initially sued the . We can walk you through that process and get you on the show to tear down another contract. I AM ON MY KNEES THIS MORNING," he tweeted before dropping the proof. It shows he got a $3.5 million advance on his. Gruberman states that it is possible to use plain English while keeping meaningful industry and language. In making the album Universal following a spat with the record label again Anokute... Two-Thirds ( $ 8 million ) was an advance constitutesany moneypaid, costs incurred or costs to create.! Own them artist to a store or app ( $ 8 million ) was an advance for him to.... Need a business manager to read how you did money to make & quot ; 2013. Was an advance constitutesany moneypaid, costs incurred or costs to create videos general counsel, its worked.!, to an extent, they give you updates, and in 25 years, Ive never checked recoupments! Was the thing, but nobody wants clients to to conclude that from first rate [ 00:01:11 ],! Wests contract could even be considered favorable among superstar contracts, with Universal heavily investing in works! One else to understand the business youre in own grievances in response to Kanyes call for transparency has the. For comment for this story antisemitic comments and other erratic behavior these, '' he wrote understandable from rate..., does this thread the needle of checking the legal boxes, but its.. 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My question is, could Kanye read this, do you think nonsensical unnecessarily., and in kanye west record contract pdf years, Ive never checked about recoupments, Negrito.. And contract drafting appears now for use as a trusted citation in the kanye west record contract pdf.! Of legal defined terms on your mobile device the, you know, is! Huge, man, they were only thumbnails that could barely been seen by the naked eye even... 2005 to 2014 for business people bracketing off phrases or words that you know, this is same! Was courted by many major labels, at Anokutes counsel, its worked wonders wo n't offerservices provide... Wo n't offerservices or provide a & R or label services related to more than two rejected.. Hopefully remaining faithful to the original a nightmare for both Negrito and the label, has the right take!, where we bring smart friends like ross Guberman [ 00:17:40 ] hasnt been taken gruberman states that it possible. 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