So, Ross, were going to tear down the contracts that Kanye shared. The rest is either just plain generically legaleese like hereinafter referred to or to the extent that that we can easily change because theres no special contract law layer there or or actually concrete things that are understandable, like sixth album recording. Thats not the game here, Noonan recalls as the mindset when negotiating contracts. Prior toKanye's relentless tweeting session, heinformed his followers that he wasgoing to share 10 of his contracts with UMG, the parent label to his G.O.O.D. Blues singer Fantastic Negrito, a two-time Grammy winner, first signed a major record deal with Interscope in the Nineties, giving him what he says was a $400,000 advance. . What is this document? Wests contract could even be considered favorable among superstar contracts, with Universal heavily investing in Wests works, entertainment attorney Christiane Kinney says. All contents of the lawinsider.com excluding publicly sourced documents are Copyright 2013-. Dependents. Music; a backronym for Getting Out Our Dreams) is an American independent record label founded by rapper Kanye West in 2004. 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. Why are artists paying a 20 percent distribution fee off the top?, Related 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. I need every lawyer in the world to look at these," he wrote. He has also encouraged Black artists to sign with labels owned by Black people. The language looks like something you might find, you know, 50, 100 years ago. The split can be 80/20 in the artists favor. American rap star Kanye West has sensationally released every page of his contract with Universal following a spat with the record label. Practical in the sense that its tracking reality while still hopefully remaining faithful to the original. Next came what he calls the music industrys biggest flop his only Interscope album, The X Factor. Kanyes main issue wasnt that the contract itself was impossible to understand but that no one had sat down with him to put it into terms he could comprehend. Rather than looking at potential profits when labels were courting them, Noonan says Karmin was advised to take the most money they could up front, given how few artists end up recouping from their records. (In response, the label played down the conflict: Theres no more independent plants, no more putting all these CDs in a truck and shipping them from store to store across the country, Chris Anokute, founder of entertainment company Young Forever Inc. and a former A&R executive for labels including Capitol and Island Def Jam, tells, Anokute manages several clients including Curtis Waters, who recently, While Anokute points the barrel primarily at the labels dishing out deals arguing that these deals perpetuate the very inequalities for black artists that the, 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? Anokute says. Rewrite deals to be understandable from FIRST READ. This is a tool that is available to anyone looking to implement plain language into their contracts. Kanye West's War Against Record Contracts Could Actually Work for Kanye, Anyway Kanye West wants his rights back. 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. Kanye West had already been burning bridges in the music industry. So we dont want to change recouped because now we would be not faithful to the substance. His musical career has been marked by dramatic changes in styles, incorporating an eclectic range of influences including soul, baroque pop, electro, indie rock, synth-pop, industrial and gospel. his own paperwork with Universal Music Group and then, far as the actual deal goes, Kanyes isnt particularly bad: Music lawyerswho spoke with. To fans' delight, Kanye shared the documents in full and large enough to view as a way to let folks know the ins and outs of his record deal. And then if theres some kind of a difference between that amount and the recording costs. Mike Whelan [00:14:30] So then talk to me about this after Im looking at the after version of the profit sharing agreement. Until then, Ross, I appreciate you being here. Thats the name of my new band. Were going to pay that to you. Having the contract laid out in plain language can lead to fewer problems down the road. So theres this GE aviation series of rewritten contracts. And so Kanye is at this point where hes like, dude, I got to have some other ways to make money. Ross Guberman [00:01:18] If it works, right? Its all digital. So come join us right now. On Wednesday afternoon (Sept. 16), Yeezy shared over 100 pages of documents tweet by tweet, containing information pertaining to his recording agreement with the powerhouse, album amendments, profit sharing agreements, label agreements and documents on his joint album with Jay-Z,Watch the Throne. 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? The deal starts where he doesnt have as much clout, hell get mutual creative control, but later he gets more, and the deals get better as Kanye becomes Kanye, says Kinney, who has worked with platinum-selling artists, producers, and estates. Those are four ways to keep the conversation going. The sense is that someone trying to pull a fast one on me. Pearl Jam Vinyl Records. Entrepreneur and musician Kanye West lost his lucrative multi-year deal to design sneaker brand Yeezy for Adidas after making antisemitic comments. So one of Kaynes and all musicians, big beef is that essentially the artists are paying for production of music videos. But theres also the issue of this is supposed to represent a meeting of the minds. Earlier this week, he denounced the contracts being provided by Sony and Universal . After a slight struggle trying to share the files, Kanye boasted that him revealing his old record label contracts was going to be a literal game changer. Lawyers. 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. We didnt spend our advance on cars or jewelry, we bought a house. The label additionally had the right to release one Greatest Hits album. Several artists have voiced their own grievances in response to Kanyes call for transparency. West's contracts laid it all out. Mike Whelan [00:19:16] Well, and on that, I, I sort of want to get to principles, to things that lawyers can learn from this example, which is really the purpose of this show. Contract #3. Its its unfortunately the the words and phrases that are operative to. But they were reluctant to strike a deal with the young producer/rapper. The plain-language portion may influence what is interpreted on the left. Theyre taking risks and investing in acts, Kinney says. 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. Artists like Kanye feel that they are being cheated. And theyre advised accordingly by an attorney at law whos telling them to sign this contract, and they say this contract is standard. (Epic did not respond to a request for comment for this story. He declared his contract was industry standard, but that didnt mean it was fair. UMG is the parent company of Def Jam and West's G.O.O.D. Are not just for royalties. Of that, two-thirds ($8 million) was an advance for him to keep. Money and Music must stay together. Maintaining the Integrity of the Contract, Lawyer Forward: Finding Your Place in the Future of Law, How to Choose Arbitration Language Consistent with the Relationship. They are long. Youll get access to more content like this. So I apologize to both of you D.C. people watching. The after section shows which changes Gruberman suggests need to be made. Mike Whelan [00:01:11] Yeah, Im doing the fancy background with the product placement. Guberman starts by assuring that several companies are already implementing a plain language strategy in their contracts. 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. Kanye West's history of inflammatory statements were met with consquences this week. June 21, 2019, 2:27 PM PDT. Were at sales@LawInsider.com. I hope youre enjoying this episode of the contract tear down show. For the sixth album, Kanye received a $12 million advance. Normally, its sort of reversed. Youre not trying to make it really friendly for consumers, but you are trying to make it friendly for business people while still preserving, as you can see in the rewrite as most of the actual terms of art. Whats the principle here? If Kanye wanted to release his tentatively titled project, Lost Yeezus Tapes, he could have and it would've been considered a press and distribution album. Before we do, Ross, I want you to tell me about yourself. Music won't offerservices or provide A&R or label services related to more than two rejected artists. The Record Label / Publisher is a service provider that receives a share of the income for a limited term. He tweeted them so I made PDFs. call Wests deal standard for an artist at his level. Oct. 28 (UPI) -- Kanye West has been sued for breach of contract in Florida for allegedly failing to pay for a rental space he wanted to use as a recording studio. Right. And for Kanye and for all these performers, they were really giving money based on albums, unlike CD sales, which is not a thing anymore. If West went over the $4-million budget in making the album, he would have to pay . Youve been dealing with this for a while. How are businesses shifting to using plain language? Music. NO other business in the world takes a look at the business, buys shares, starts to profit when it profits. Absolutely not. Almost no artists recoup so the system obviously doesnt work, but its tempting. Youve got defined terms of art in there. Copyright 2023 Penske Business Media, LLC. All Rights reserved. In September 2020, "Kanye West Record Deal" started trending. And we want you to know, even if the recording agreement to you indicate something else, this is whats going to happen. KANYE WEST, an individual, and WEST . Ye went from $6.6 billion to maybe $400 million. The record label / publisher is a service provider that receives a share of the income for a limited term. And there there are lots of there are lots of issues in the original that many, many, you know, entertainment law specialists would probably argue over which which actually, you know, brings up another issue is, is is this plain english movement really just for the clients or are you actually uncovering some conflicts or ambiguities or vagueness or nonsensical expressions altogether in the original if youre, you know, challenging yourself to put them in terms of normal people can understand? As far as the actual deal goes, Kanyes isnt particularly bad: Music lawyerswho spoke with Rolling Stone call Wests deal standard for an artist at his level. He is no longer signed to Def Jam, his longtime record company; his contract expired with his 2021 album, "Donda." And Ye . Found online, don't shoot the messenger. So this is something later in the series, I imagine theres a back story, you know, tense, tense discussions about the money part. Kanye West has been active on Twitter once again. The contract indicates that these figures would increase with each release, and Kanye West and his company would receive 20 percent of each minimum after notifying the label that the. on September 21, 2020. Portals. However, only 50 percent of video costscan berecouped from audio-only record royalties. Kanye Westmade good on his promise by sharing the many pages ofhis recording contracts with his label Universal Music Group. 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.. And the reason that it applies to us is this awesome tweet that all the lawyers got excited about, where he says the first thing that changes about record deals is actually lawyers. 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. 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.". The decline centered around controversial anti-Black and antisemitic comments and other erratic behavior. web pages Should the labels be able to make a profit off of this? Somethings got a hold your drink place. When your term ends, download it all. 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. Every audio file, every asset, every deal stored WITH the money. Gruberman emphasizes that you can preserve the contract law-based elements in the before section while still simplifying the text in a consumer-friendly way. Now, with a click of a finger, your music goes wide to 7 billion people if you want it to. In 2011, Kanye and Jay-Z joined forces musically and created theirWatch the Thronejoint album. Well see you there. You know, its a little some people would say, well, you dont want to mess around with indemnification, but in this case, it seems close enough to the original to be faithful legally while still being understandable. . Im going to give people a little bit of background on the Twitter rant about contracts. We talk about differentiating between archaic language thats necessary and archaic language you should cut, as well as tools you can use to identify that language. Not every artist has time to read the, Amy Noonan, who records as Qveen Herby and was formerly half of 2010s pop duo. Moments later, Kanye shared screenshots of five files. Its not always clear whats what. The suit said West. Theres no more independent plants, no more putting all these CDs in a truck and shipping them from store to store across the country, Chris Anokute, founder of entertainment company Young Forever Inc. and a former A&R executive for labels including Capitol and Island Def Jam, tells Rolling Stone. 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. So what I what I what I did here is just pull pull one of the key provisions on the substantive side from this profit sharing agreement so we could try to figure out again whats possible for for the Kanye West of the world. Mike Whelan [00:22:56] So, Ross, I appreciate your thoughts on this. Youve got a before and an after, and Ill share with you guys as well the sort of color coding that Ross is using for the different kinds of language on here. We want to hear it. Right. Rosss balanced language approach will help you meet your clients demands for both clarity and effectiveness. We need plain English contracts. The 500 Greatest Songs of All Time 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.. And thats why the color coding comes in. If Im the lawyer there, there are terms of art. You want to get in and get as much as you can is what we were told. The first thing that changes about Record Deals is actually lawyers. Right. Intro Voice [00:00:10] Welcome to the Contract Teardown Show from Law Insider, where legal experts tear down contracts from some of the most well-known companies and high profile executives around the world. So you pay to see your money!!! 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. Another example is General Electric. Well see you guys next time. But there is some movement, especially in the tech industry, also consumer facing company, some movement, and then a little bit, too, in the more staid commercial world. In early October, Ye, the rap artist and mogul also known as Kanye West, posed during Paris Fashion . Mike Whelan [00:24:07] That is perfect. LinkedIns method is still too new for us to know if disputes will come from the different sections. Kanye West's recent Twitter rant has led to himrevealing the intricate details of his record label contract, which he initially signed over adecade ago. What am I looking at here? In a follow-up tweet, Yeezy said, "I have to tweet page by page The PDF is not loading on twitter.". Ross Guberman [00:22:31] but definitely something to that. The partnership was a nightmare for both Negrito and the label, he says. This is the same deal your favorite artist signed, this is their label. What do you expect a young, naive artist to do? Some of the phrases are unnecessarily complicated. 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. So I have to keep it versus this is archaic and useless. Kanye West has posted dozens of pages of record contracts, and a video of a Grammy being urinated on, in a lengthy string of tweets criticizing the music industry. Mike Whelan [00:12:56] So what are the some of just some of the language pieces that stand out to you? Looking back, I've thought many times about what makes Kanye Kanye. mrbonesHOK musical compositions embodied on albums released by a major record label per year (or longer if West needed more time) (each a "Contract Year") for . Welcome to Law Insiders Contract Teardown Show, where we bring smart friends like Ross Guberman over here to break down some contracts. And you guys, if you want to see this contract and want to get the show notes from this tear down where we can link you to these documents and to other resources that interpret the document, just go to lawinsider.com/resources. Some examples would be words such as materiality, reasonable efforts, and severable. Are they making too much? Kanye West Says He Won't Release New Music Until Freed From Sony and Universal Contracts: Declaring himself "the new Moses" while demanding apologies from Drake and J. Cole. In the weeks following its release, Donda surpassed a billion streams on Spotify globally. But we at Law Insider put them all together in PDF, will make sure that you have a link to it. Although, there is a concern here. What do you see? He suggests focusing not on the necessary legal and industry terms but on clearly nonsensical or unnecessarily archaic sections. No, but nobody wants clients to to conclude that. Kanye West tweets Univeral Label Contract. The deals not bad what is that based on? Negrito asks. Mike Whelan [00:01:20] Pretty classy nightstand, Ross. Ross Guberman [00:13:17] Yeah, so, you know, you want to you want to look at these provisions in chunks or blocs or categories so you can sort of thread the needle between, you know, what what the clients might demand and what lawyers think is is in their interests. The after section is where GE has broken down the text into something more friendly for business people. What is your story, Ross Guberman? Ross Guberman [00:18:04] So one, you know, one one thing going on here is trying to track chronology in the real world. Right. . So as you can see, this is quite different from what LinkedIn is going to do. not charge for contracts we cannot understand or track. Come join my friends. It seems that the artists themselves are paying for the production and promotion of their work since their cut goes towards expenses, but the labels cut does not. Mike Whelan [00:07:53] Well, and heres another one from LinkedIn, this sort of two column set up in the license image. 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. So those are those are the impediments. Whats your background? His. Ross Guberman [00:16:40] Yeah, you really hit the nail on the head. We need plain English contracts. Miguel Candela / Anadolu Agency via Getty Images file They have before and after 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. Music label, has the right to take the rejected artist to a third party label. The 100 Greatest TV Shows of All Time But then Ive also you know, Ive also indicated which provisions are really in the realm of contract lingo or contract law. 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. 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. There was about 100 pages of documents that he probably should not have posted on Twitter, but he did anyway. Were lucky we were told the truth in so many ways.. Mike Whelan [00:03:02] Thats right. 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. Undoubtedly, who You should need NO ONE else to understand the business youre in. Naive artist to do erratic behavior, but that didnt mean it fair... West wants his rights back thought many times about what makes Kanye Kanye Interscope album Kanye... 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