Lesson time: (1min 39sec)
Judge Jules explains what an option is in a record deal - the label's right to take on more of your tracks - and why labels push for them.
This lesson is part of the course Legals & Deals: The Basics of The Music Industry
Watch a preview of the full course below.
Lesson transcript:
Many record labels insist upon an option. They will sign one track, and in their opinion, especially if they paid you a bit of advance, recoupable against your royalty income, they feel that they've taken a chance on you. Therefore, there is both a business case and maybe a moral case for them to be rewarded for taking that chance.
An option means that the label has the right to take on more of your tracks. Options can vary in shapes and sizes:
Totally depends on the structure of the record deal.
It's crucial to grasp that it's not the artist's option; it is at the behest of the record company:
There are certain peculiarities about the way an option clause in a record deal works:
This situation may seem a bit unfair, but it reflects how things have evolved in record deals.
Options are very much the label's friend and not necessarily the artist's friend, but it is what it is.
Jules O'Riordan has over 30 years of experience across the entire spectrum of the music industry. This includes nearly a decade as an A&R for the Universal umbrella of labels, 15 years as a presenter on BBC Radio 1, over 150 record releases and remixes in his own capacity as a recording artist, plus a 30-year career as one of Britain's best-known, globally-travelled DJs (Judge Jules), with over 5000 gigs under his belt, plus extensive experience as an event promoter and artist manager at the highest level. Suffice to say, Jules knows the music industry inside-out, and his clients regard him as a trusted advisor for whom no legal or business affairs challenge or problem is too large or small. Jules has been a lawyer for 10 years. His practice takes in the entire breadth of the music-focused entertainment industry. His legal and deal expertise includes management, recording, publishing, distribution and label services, music-based apps, games and tech projects, production deals, producers, featured artists, endorsements, merchandising, neighbouring rights, TV/film scores, live performance, events and venue agreements, plus copyright and rights infringement and many other disputes. Jules's clients include artists, management companies, record labels, songwriters, event promoters, producers, music tech businesses, production companies, live agents, music publishers and DJs. He has spoken on many panels and seminars including ADE, Brighton Music Conference and AIM events, and has been a guest speaker on legal issues across a number of on and off-line media outlets, including BBC Radio 5 Live, BBC Introducing, Financial Times, The Sun, The Times and Mixmag. Jules speaks fluent Spanish. Who better to demystify the contracts and deals every musician eventually faces? In his course, Jules turns three decades of hard-won industry knowledge into plain-English guidance, so you can understand the business side of music and protect your work long before you sign on the dotted line. read more
