A common question in the music industry is whether record labels own the music artists create. Understanding ownership is crucial for both artists and labels to avoid disputes and maximize revenue. This guide explains ownership rights, contracts, and industry practices in Nigeria and internationally.
Do Record Labels Own an Artist’s Music?
Whether a label owns an artist’s music depends on the contract type. In traditional recording deals, the label typically owns the masters, while the artist retains publishing rights unless otherwise specified. In distribution-only or joint venture deals, artists may retain full ownership or co-ownership of their music. International labels often secure master ownership but provide larger advances and promotion support.
Understanding Music Rights
Music ownership involves several components:
- Master Rights: The actual recording of the song. Labels often claim ownership in traditional contracts.
- Publishing Rights: Songwriting and composition. Artists or labels can administer publishing; many labels take a percentage for administration.
- Mechanical Rights: Royalties from physical or digital copies; usually shared between label and artist depending on the contract.
- Synchronization Rights: Usage in films, commercials, and shows; can be negotiated separately.
Contract Types and Ownership
Ownership depends heavily on the agreement signed:
- Traditional Recording Deal: Label owns masters; recoups production and marketing costs; artist earns royalties from sales, streaming, and performance.
- Joint Venture Deal: Masters may be co-owned; profits and responsibilities shared; ideal for established artists seeking more control.
- Distribution Only: Artist keeps masters; label/distributor earns 10–30% for promotion and distribution.
- 360 Deal: Label may not own masters but takes revenue from multiple streams, including touring, merchandise, and endorsements.
Nigerian vs International Practices
In Nigeria:
- Many emerging labels require master ownership to secure investment in production and promotion.
- Some modern Nigerian labels adopt joint venture or 360 models to attract established talent.
Internationally:
- Labels often purchase or license masters but provide larger advances, global distribution, and marketing.
- Top-tier international artists negotiate master ownership retention, using labels for promotion and distribution.
Implications for Artists
- Owning your masters gives long-term revenue security.
- Labels invest heavily when they own masters; this investment often includes recording, marketing, and tour support.
- Publishing and songwriting rights can remain separate, providing artists with recurring income independent of the label.
- Negotiation is key: artists should clarify which rights they are assigning and under what conditions.
Practical Examples
- A Nigerian artist signed to a traditional label may earn 20–25% royalties while the label owns the master.
- An independent artist using a distribution platform retains masters and earns 70–85% of revenue after platform fees.
- International deals may involve a $50k–$500k advance for master rights acquisition, with additional marketing support.
Strategies for Artists and Labels
- Artists should evaluate whether retaining master rights outweighs immediate advance benefits.
- Labels should invest in artists with clear contract structures and exit clauses.
- Both parties should register publishing and mechanical rights with relevant authorities (PROs) to secure revenue streams.
- Joint venture agreements can balance control and investment risk.
Common Mistakes to Avoid
- Artists signing without understanding master vs publishing rights.
- Labels claiming ambiguous rights not outlined in the contract.
- Neglecting proper registration of music with PROs and digital platforms.
- Failing to include recoupment or reversion clauses for long-term clarity.
Conclusion
Labels may or may not own an artist’s music depending on the contract. Ownership includes masters, publishing, mechanical, and sync rights. Nigerian labels often require master ownership, while international labels may negotiate retention or co-ownership. Artists and labels that understand rights, contracts, and long-term revenue potential can create profitable, sustainable partnerships.
