Traditionally, record companies want as many option periods as possible, when it is in the interest of artists to grant as few options as possible. This agreement provides for three option periods that would be considered short enough for a larger agreement, with 4 or 5 more frequent option periods. If the record company insists on more option periods, it`s a good idea to get them to commit to two albums for later option periods. (It`s worth trying for the first period or the first option period, as it ensures that the artist has more time to establish himself without the risk of being abandoned by the label, but this is obviously harder to get). v. The choice of label words in relation to the three-quarters rate can be misleading. In the case of traditional “points” (for which the artist receives a royalty calculated as a percentage of the retail or distributor price of each record sold), the recording fees paid by the record company are reimbursed by the artist`s royalty. In the case of deals like this (usually referred to as “Net Profit Deals”), the recording fees and all other fees are reimbursed by the record company from the gross income before the rest of the pot (net income) is shared between the record company and the artist. However, in the event that sales are not sufficient to cover the recording costs, it is important that the artist is not required to repay out of his own pocket to the record company (as a contractual debt) part of these unpaid expenses. Robbie Williams, meanwhile, was able to use his considerable stature to brandish a revolutionary agreement that ensures his masters eventually return to him. More generous advances should be negotiated for the exercise of successive options, i.e.
when the next album expires, whether or not previous progress has been amortized. . . .