Exploitive Music

Contracts and
Their Impact on
the Racial Wealth
Gap
ALLYSA BRYANT
“Every Man has Property in his
own Person [and thus] the Labour
of his body and the work of his
hands is properly his.”

- JOHN LOCKE, PHILOSOPHER

 Real Property v. Intellectual Property
Real Property: Land and any property attached
directly to it.
Examples include buildings, ponds, canals, roads.
Rights include the right of use, control, and
disposition of the land and its attached objects.
“Ownership of property has long been central to the
American experience, and vital to success, status, and
prosperity in America.” K.J. Greene
James Chen, Real Property, Investopedia.com (2019)
K.J. Greene, Copyright, Culture & Black Music: A Legacy of Unequal Protection,21 Hastings Comm. & Ent. L.J. 339 (1998).
Intellectual Property: Creations of the mind; owned
through patents, copyrights, and trademarks.
Copyright is the right of an author to control
reproduction of his intellectual creation.
Examples include literary or artistic works, designs,
products, symbols, creative names or images.
U.S. Copyright Law rights include the right to
reproduce or make copies, prepare derivative works,
distribute copies, publicly perform, publicly display,
or perform sound recordings publicly. (17 U.S. Code
Section 106)
 Property Ownership: The Racial Wealth
Gap
The racial wealth gap is the term for the disparity in median household wealth between the different races.

 The Economic Policy Institute reported that 25% of black households have zero or negative net worth. Only 10% of
white families are that poor. Since so many black families own nothing or are in debt, it drags down average wealth for the
entire race. As a result, black families have $5.04 in net worth for every $100 held by white families.

A 2018 Duke University study reported that reducing the racial homeownership would narrow the racial wealth gap by
31 percent.

Thus, the racial wealth gap is directly tied to real property ownership but is intellectual property ownership also
contributing to the growing disparities?

Kimberley Amadeo, Home Equity and the Racial Wealth Gap, The Balance (2019)
 Intellectual Property Ownership: The
Racial Wealth Gap
K.J. Greene author of “Intellectual Property at the Intersection of Race and Gender” states, “”At its core, Intellectual
Property in America “is understood almost exclusively as being about incentives [money].” Despite, the prevalence of
blacks in the arts, the history of black artists within U.S. IP law, however has been one of appropriation, degradation, and
devaluation beginning with the creation of the nation until the 1950’s and 60’s.””

Greene continues, “Time after time. Foundational artists who developed ragtime, blues, and jazz, found their copyrights
divested, and through inequitable contracts, their earnings pilfered. I argued elsewhere that for a long period of U.S.
history, the work of black blues artists was essentially dedicated to the public domain[unprotected by IP and thus “free”
for all].

K.J. Greene, Intellectual Property at the Intersection of Race and Gender: Lady Sings the Blues, American University Journal of Gender, Social Policy & the
Law. 16, no. 3 (2008)
 Artist’s Agents and Exploitive Music
Contracts
Most artists are ignorant of the music business, therefore they are advised by agents, personal and/or business managers, as
well as an advising attorney. Therefore, should the artist’s agents face liability for advising the artist to enter an exploitive
contract.
Duty of Entertainment Attorneys  An attorney has a duty to act solely in the client’s best interests, to disclose any potential
conflict of interest, and to withdraw if a conflict would impair the attorney’s ability to represent the client.
Does conflict of interest arise when an attorney represents both the music label and the new signing artist? Further, are
attorney’s agents in the exploitation of the artists?
Contracts are the means through which rights are exchanged for money. As one article states, “Record contracts cause
performers to give away the rights to their master recordings in exchange for a share of the revenue generated; known as
royalties which can then be resold with or without the artists permission.”

Kenneth J. Abdo, The Artist Attorney Expanding Role in the New Music Business, Building Your Artist’s Brand as a Business, (2011)
 Types of Recording Contracts
Standard Recording Deal  The most common contract prior to the digital revolution; Focus placed on album sales
and recorded music.

360 Deal  Label receives a percentage of income from the artists recordings, touring, merchandising, fan club,
commercials, etc. ; The belief is that the record label helped to generate all of these sources of income for the artist by
promoting the artist.

Single(s) Deal  Common in many European Territories; The focus is on saving money by not creating an entire
album but generating income by one or more singles; Traditionally labels usually “push” a few singles off of an album
which generates the majority of income.

Licensing Deal  Also referred to as gaining a label partner; Licensing an album to a label, which allows the artist to
maintain the copyright.

EP Deal Similar to singles deals, the label will test the market prior to publically signing an artist before

MFRASCOG, 8 Types of Record Deals, Musicglobalization.com (2015)

 Blues Artists Accepting Exploitive Music
Contracts
Record companies offered the blues artists a flat fee for recording a song, to which the uneducated, descendants of slaves
would sign the contracts while simultaneously losing all ownership rights including royalties.

“Many black blues artists from 1920 to 1930 were subject to work-for-hire contracts, where an artist would be paid for his
work but would subsequently assign his copyright to his employer. The copyright owner or constructive “author” of a song
has an exclusive right to reproduce and distribute the song [and thus the exclusive right to any profits from that song].”
Candace Hines

Originally black blues artists were excluded from the American Society of Composers, Artists, and Performers (ASCAP)
therefore the few artists who did have royalty agreements had no way to enforce them when white artists remade their
songs.

For instance, Fred Parris wrote “In the Still of the Night” which sold about 12 million units. Parris should’ve received
about $100,000 in royalties but instead he received the flat fee of $783. Not only did Parris turn over the rights to his song
but the rerecording sold far more records than the original artist.
Erin Blakemore, How ‘Race Records’ Turned Black Music Into Big Business, History Stories (2018)
Roger Schlueter, White Singers Paid the Fees, but Black Singers Didn’t Get the Money, Belleville News-Democrat (2017)
Candace G. Hines, Black Musical Traditions and Copyright Law: Historical Tensions. 10 Mich. J. Racce & L. 463 (2005)
 360 Music Contracts
The form of recording contract in which the recording company generates income from all aspects of the artist’s work in
addition to the sale of music records.

360 contracts reached popularity during the early 2000’s due to the increase in streaming services resulting in loss
profits.

Also referred to as “multi-rights deals” as the receiver could generate income from concert merchandise, touring,
commercials, fan sites ancillary to the music that the artist produces under the general contract.

May be between artists and record labels or between performers and promoters.
 Music Sales Profit Distribution
Mark Tavern, Blueface Doesn’t Understand His Record Deal. Do you?, DJBooth (2019)

Universal Music Group, and Sony Music Entertainment,

Warner Music Group known as the big 3 in the music industry responsible

for about 50% of music on the radio.

If an artist sells 304,400 units of their album at $15 each, they would amass

$4,566,000 which would then need to be distributed to all of the parties

that participated in the sale of those units. (Musicindustryhowto.com)

Let’s say the contract is drafted so that the artists receives 10% the

artist would be entitled to $450,000 from $4.5m after paying the associated

costs.

If the artist was independent then it may be assumed that they would

Have far less revenue from record sales but could receive a “larger cut”.
Copyright Ownership and Racial Wealth
Gap
Copyright ownership  Profit Distribution  Racial Wealth Gap
For a music artist, with a beneficial music contract an artist would be able to retain a large
percentage of copyright ownership  copyright ownership = residual income if another artist
were to cover that artists music  residual income would allow the artist and their descendants
to generate continued income from that music in the future  thus, through ownership of their
intellectual property/music the artist would continue to generate a large percentage of profit for
future years  therefore, the artist’s descendants would also inherit the fruits from that residual
income  helping to lower the division between the racial wealth gap
 Artists Bound to Exploitive Music
Contracts
1. Little Richard – sold the publishing rights including the sound recording to his hit single “Tutti Frutti” for $50 allegedly; and
received only half a cent royalty rate per record.

2. TLC – the group received about 7%, approximately 60 cents on the sale of each album to split after paying the deductions
included in the contract; allegedly 40 times less than the profit divided amongst the management, production, and record
companies representing the group.

3. Sam Cooke – manager Allen Klein received full copyright ownership to all of the music upon Cooke’s passing. Leaving nothing
for his estate.

4. George Clinton – signed over the rights to over 150 songs written and performed by him and his band.

5. Soulja Boy – gave 5% of record sales income forever to his manager and 50% of copyright ownership to his label.

6. Bessie Smith – highest selling artist of her time but signed an exploitive contract due to her inability to understand the terms.

7. Mase – performed on Bad Boy Records “No Way Out Tour” for FREE before quitting halfway.

Chuck Philips, Group Tops Charts but Claims Bankruptcy, Los Angeles Times (1996 )
Meghan Williams, Old Slaves: Entertainers Who Signed Bad Record Deals, Madamnoire (2013)
 Conclusion
To summarize, owning property, both real property and intellectual property may be the solution to solving the racial
wealth gap and ensuring equality.

Intellectual property ideals were not drafted to include rights for minorities leading to the ecploitation of black artists. In
fact the first mention of intellectual property was during slavery times. However with proper education, advising, and
refusal to accept the first terms offered, artists can achieve fair music contracts.

Music is the entity that connects all people and equity in music contracts would provide stability for the next generations.