As part of a production agreement, the manufacturer can assume full responsibility for the A-R and recording tasks and simply hand over the master recordings to the label at the end of the process. More and more record companies are outsourcing the process of artist development to trusted producers and smaller independent labels, or simply relying on the delivery of finished products, which can then be marketed and marketed. As a result, the producer`s role as a creator and businessman has expanded. Whether you`re producing dance melodies in your bedroom, working with a chart-topping act on a major label, or producing bands in a local studio, you need to be familiar with the legal and contractual side of your business if you want to stay in the game and get paid for your efforts. An essential advantage of the production-company agreement is for the manufacturer that more than one artist can sign a production contract with the same company. However, the artist is bound by an exclusive contract and relies on the reputation and talents of a producer. If the production company involves the artist or does not guarantee the promised record contract, the artist`s only return will be to retain a right of termination in case of non-compliance with the agreed objectives. have a question about contracts in general. I`m a producer who works with a friend who is a rapper and he buys my beats and we just made contracts on how we go per song but doesn`t really decide who gets what copyright and where, when it comes to PROs, Soundexchange, etc., still unsure how we would give all those percentages in a contract. Would appreciate any help If an artist simply works with one producer to explore new sounds or experiment with each other`s creative styles, a contract may not be necessary immediately. However, once they have decided to cooperate on a project, each party should clearly state its intentions in order to avoid excessive confusion in the future. For example, the parties should discuss whether they intend to be common authors in musical work, or whether the recording is considered a work for rent. As a general rule, an agreement should be reached when there is money on the table or if there is a significant risk, but both artists and producers should speak to a music lawyer to assess the risk of pursuing a relationship without a written agreement and calculate the cost of negotiating and developing such an agreement.