Inducement letter – Music Law
If you are negotiating master recording contracts, it is not uncommon to have the artist sign a so-called Inducement letter, in which the artist confirms to transfer all necessary rights to the label.
This is often necessary because german law doesnt know the bona fide acquisition of rights. If a label signs a master recording contract with a producerst, the producer assures that he has sufficient rights to the material – in case the artist has not transferred those to the producer, the latter risks not only a warning notice but also the loss of investments already made due to the lack of effective rights. It is therefore strongly recommended that the granting of rights by the artists should be confirmed by an inducement letter.
This declaration should include all the necessary grants of rights and the artist’s personal obligations. At the same time, the artist’s letter should contain the obligation to deliver the production to the label, should the actual tape provider not be able or entitled to do so. In this case, therefore, the artist owes the label the contract recordings.
The following points should be included in an artist letter.
The names of the parties involved
The indication that the master recording contract between the producer and and the label is known to the artist.
The exact name of the tracks
The obligation to be willing to fulfill the master recording contract even if the contract with the should not be valid.
The term of the contract
The granting of the exploitation rights
The right to use the artist’s name
Artist exclusicity (?)
Obligation to cooperate in marketing the product
The regulations should correspond with the agreements in the master recording contract. Which further provisions should be included depends on the individual case. If the master recording contract is attached, reference can be made to its contents; otherwise important regulations should be formulated.
Our articles cannot replace legal advice. They are only intended as a first indication of the legal matter, as the approach may vary from case to case. We will happily answer any questions you may have. Call us!
Rechtsanwalt Kai Jüdemann
Specialist attorney for copyright and media law.