How musicians get trapped by record labels' exploitative contracts

Just like any other business, the music industry is dotted with wonderful stories of grass to grace.

On the flip side, there are untold stories of suffering and pain as talented individuals find themselves entangled in contractual obligations that, once signed in the glittering lights of joy, have now turned into yokes of burden, sinking them into the pits of oblivion.

When artistes are signed, they are offered what they believe is the best thing to happen to them, but in between the lines lies the devil.

The perks, which include a lifestyle allowance, advanced recording on state-of-the-art studios and other forms of enticing things an artiste would probably be in need of.

The concept of record labels and contract signing arose with the invention of mass-produced, recorded music, primarily in the late 19th & early 20th centuries.

Early record labels emerged as a way to distribute and profit from the burgeoning music industry, and contracts were established to manage the relationship between artistes and those who funded and distributed their music. The latter will always be the norm, with a need for keen scrutiny by the artistes into what they are signing.

Once executives from the big labels spot a talent, they will do everything to sign them up and dangle the carrot so irresistibly. The contracts normally vary but the most egregious is the typical 360 Degree deal, which is responsible for a lot of artiste’s unhappiness.

“In such a deal, the label has access to an artiste’s image rights, copyright, performance fees, syndication fees, royalties, publishing rights and literally any other income the artiste earns from,” explains Angela Ndambuki, a Kenyan advocate specialising in intellectual property law.

Angela who is the regional director in the sub-Saharan region for The International Federation of the Phonographic Industry, says

“What many do not know or assume is that all these other perks are considered loans from the record label, an investment the label makes in an artiste, and like any other investment, a healthy return is expected,” she says.

Artistes fancy the assurance of financial support, marketing, distribution, and personal career management. Conversely, this multi-rights deal agreements enable a record label to participate largely in the profits realised from artiste’s sales, music publishing income, touring income and all other profits due to the artiste. This depicts a high stake of exploitation and loss of artistic freedom.

“Artistes should be vigilant of what they sign. The company gives you money, pay for your videos, songwriters, marketing and distribution et cetera, it also arranges contracts. That’s a loan investment in you. In return, they take a per cent in your earnings. Artistes should just be vigilant with what they sign,” says IP Lawyer Essendi Kenneth.

Once in a while, the curtain is pulled back, and the façade of bottle popping and fresh whips gets put firmly in the spotlight.

However, as the adage goes, even the best-laid plans often go awry, and it does not take long for the internal turbulence to start seeping out.

“Artistes continue to vie for the attention of local and international record labels, not only seeking to improve their brand but also distribute their music across the region. Allured by its goodie bags, many artistes fall prey to the restrictive and exploitative terms inscribed in the record label contracts,” explains Essendi. Tanzanian singer Ibraah has recently found himself caught between a dream and a debt he says he cannot afford. In a heartfelt cry for help shared on social media, the young artiste revealed that his current label, Konde Music Worldwide, wants him to pay a staggering TSh 1 billion (roughly Shs 48 million) to be released from his contract.

Ibraah, who was signed by Bongo Superstar Harmonize just a few years ago, now wants out, but freedom, it seems, comes at a steep price.

His predicament reflects the very journey Harmonize undertook. The Konde Gang founder faced a significant cost of TSh 600 million (around Sh26.8 million) to leave Diamond Platnumz’s WCB Wasafi label, which played a vital role in his rise to fame.

Harmonize opted to pursue a solo career just four years into a lengthy 15-year contract, a decision that was costly but allowed him the freedom he desired. Now, Ibraah finds himself in a similar position, eager to break free.

“I don’t depend on the money from the artiste. They know the commitment and energy that I put in place for their careers. If you see me charging for their exit, it is because they have wronged me. I do much for them, so I also ask them to follow the contractual obligation. I don’t depend on that money because it is minimal compared to my other earnings. That’s why for Mbosso, we have mutual respect for each other. For Lava Lava, I am the one who initiated the talks for his exit, and I did not charge him anything,” said Diamond in a recent press conference.

Historically, creative artistic contracts must depict the following: the production of a set of albums and songs, giving the label ownership of rights and branding and sometimes assets, strict termination and suspension terms in case of breach.

These factors call for a need for independent, transparent and accountable legal representation. Hence, balanced agreements that protect both the artiste’s creative and financial interests and label investments.

“The key thing is to have transparent communication. I maintain open and honest discussions with our talents about their contracts, payment structures, and any additional benefits. This approach helps manage expectations and builds trust,” says Kaka Empire CoFounder and managing director Dennis Njenga.

“Beyond immediate remuneration, we focus on long-term growth. This includes negotiating fair rates, securing lucrative gigs, and exploring new revenue streams to ensure financial stability for our talents,” he adds.

In Kenya, no case has been as widely discussed as that of Xtatic, who, having signed a historic deal with Sony Music Entertainment Africa less than five years earlier, had to cut-short her great deal and depart from the label, citing failure of her management to get her enough shows for increased exposure. Her resignation from the contract could not prevent the label from releasing her albums.

“Being there would have been more grounding, but I guess they had to focus on other people. I felt like there was a strategy, but I submitted to them like 21 songs, and that is why I was like why was it being held back and released five years later?'” She posed on the Iko Nini podcast.

Gengetone artiste Parroty says such situations and other encounters in the industry fueled his curiosity in and he took time to learn the ropes in the game.

“I remember attending workshops, and experienced artistes would cry about their work being exploited, and despite the fame accrued over the decades, their wallets depict a different and worrying state. Then I learnt about contracts and rights. This was an eye-opener for me,” he informs Pulse.

The Lewa hitmaker says he had to get a lawyer friend to help him navigate the murky waters of showbiz and that he proudly owns the masters of all his work.

Celebrated American songstress Taylor Swift took control of her legacy by re-recording her first six albums, following a high-profile dispute over the ownership of her original master recordings.

Under her former contract with Big Machine Records, which ended in 2018, the label retained the rights to the masters of Swift’s early work. After she left Big Machine and signed with Universal Music Group, the label was sold to Scooter Braun’s Ithaca Holdings, a deal Swift publicly opposed.

In response, Swift announced she would re-record her early albums, creating new masters she could fully own and license. While she already held the publishing rights to her songs, re-recording allowed her to take back commercial control.

Following the end of his record deal with Interscope Records, rapper Tory Lanez, in an interview with Billboard, talked about his rap freedom and how he does not plan to be swayed by other labels offering him big checks.

“To be 100 per cent, there are so many labels offering me so much money, like millions of dollars,” he said. “I’ve gotten offers that are life-changing offers, but I don’t care. I already own my masters and publishing and everything. So I don’t see any reason to give that to somebody else.” He stated.