SMAT GOLD MULTI Business - Rc:2487540

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06/01/2025

Last year, Burna Boy bought back the master rights to songs he released under his former label, Aristokrat Records. This move is a smart one because, no matter how much wealth you acquire during your active years, master rights are your greatest asset as a musician.

But what exactly are master rights, and why are they such a huge asset?

That will be the first part of my series for this week. I started the introduction on Saturday.

RECORD DEAL CLAUSES EVERY UPCOMING ARTIST SHOULD KNOW: Part 1 - Master Rights

1. Ownership and Control of Masters (Master Rights)

Explanation: The master recordings are the original versions of your songs. Whoever owns the masters has control over how the music is used, licensed, and monetized. Traditionally, record labels own the masters, especially in a 360 deal.

For an artist, retaining control over your masters is crucial because they are your most valuable asset but not easy to acquire if you started your career with a record label before hitting the limelight. If you own your masters, you control how your music is used in movies, commercials, video games, or even sampled by other artists. You also earn royalties directly from your music’s usage.

Here are some real-life examples:

EME still owns Wizkid’s Ayo and Superstar albums.

HKN Music owns Davido’s debut album Omo Baba Olowo.

G-Worldwide still owns Kizz Daniel's master rights for Woju, Laye, and New Era album. He only moved the songs from his old profile (Kiss Daniel) to his current profile (Kizz Daniel) after reconciling with is former label boss.

Aristokrat Records used to own Burna Boy’s L.I.F.E and On A Spaceship albums until he bought back the rights last year.

All songs that Korede Bello, Reekado Banks, and Tiwa Savage released under Mavin Records still belong to the label, while they receive a percentage of streaming royalties for these songs, Mavin Records owns the master rights, meaning the label can license the songs for movies, games, or even samples without the artist’s direct consent.

Clause to get your master right:

For unknown artists, convincing a label to give you complete control over your masters can be difficult because they helped build your image during your early career.

However, you can negotiate a buy-back clause when signing a record contract. This allows the label to own the masters initially but gives you the right to purchase part of it or the full rights after a set period (e.g., 5-10 years) for a pre-agreed amount.

This compromise ensures that:

The label profits from their investment.

You have the opportunity to regain control of your music in the future.

Why This Matters:

Master rights represent your long-term wealth. No matter how popular you become during your active career, your masters will continue to generate income for you and your children long after you've stopped making music.

Final Thoughts:

The music industry is a business. Record labels aren’t charity organizations — they are in business to make a profit. But as an artist, you need to protect your long-term interests.

Don't rush to sign any contract without understanding what you're giving up.

Tomorrow, I’ll talk about another essential clause — “Term and Options (Contract Duration)” — and how to negotiate it smartly.

My name is Obama-Naija, and all through this week, I’ll be breaking down each clause every artist must consider before signing a record deal.

Follow my page to stay updated!

06/01/2025

When Asake signed with YBNL, he claimed he didn't have an entertainment lawyer to help him review his contract because of his trust in Olamide, his boss. He believed Olamide had his best interests at heart, but looking at his recent actions, it seems that decision might have backfired.

Fast forward three years later — Asake has gone silent on social media, unfollowed everyone, deleted his posts, and missed all major December shows, including his boss’s event. Rumors are circulating that he’s about to split with YBNL, but because of the contract he signed without legal advice, leaving might not be so easy.

The lesson here is simple: No matter how much you trust your record label boss, always hire your own lawyer. There are hidden clauses in contracts that won’t make sense until they play out in real life.

A record label can either elevate or destroy your career, and your success depends more on your negotiation skills than the label itself.

Remember These Rules:

a. There’s no such thing as a bad contract — you get what you negotiate.
b. Record labels are not charities; they’re businesses looking to profit.
c. The record label’s lawyer is not your lawyer. Always hire your own lawyer.
d. What happens during your deal will shape your future career.
e. Never sign out of excitement. Understand every clause first.

Below are a list of essential clauses every upcoming artist should demand and realistic compromises that labels might accept.

1. Ownership and Control of Masters (Master Rights)
2. Term and Options (Contract Duration)
3. Creative Control
4. Royalty Rates and Escalation
5. 360 Deal (Revenue Sharing)
6. Sunset Clause
7. Marketing and Promotion Commitment
8. Touring and Merchandise Rights
9. Audit Rights
10. Exit Clause

My name is Obama-Naija and I talk about music and music business, so do well to follow my page I will be explaining each of the clause one after the other all through next week starting Monday - 9AM

20/12/2024

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