Is a verbal agreement enough?

Not for transferring copyright. Under the Copyright Act, 1957, an assignment of copyright must be in writing. Even for simpler arrangements, a short written agreement prevents most disputes.

What happens if a contract doesn't say how long it lasts?

Under Section 19 of the Copyright Act, if an assignment doesn't specify its period, it's treated as five years, and if it doesn't specify a territory, it's treated as covering India. Courts have applied this, for example in a case involving composer Ilaiyaraja.

What does recoupable mean?

A recoupable advance or cost is money a label or partner pays upfront and then takes back from your share of future royalties before you receive anything more.

Should I get a lawyer for a small deal?

For anything that transfers rights, lasts more than a year, or involves an advance, yes. A short consultation costs far less than a bad clause that runs for years.

The contracts you'll be offered, and what to check

This module explains how music contracts work so you can ask better questions. It isn't legal advice. Before you sign anything that transfers rights, involves money upfront or lasts more than a year, have a lawyer read it.

Two words that change everything: assign and license

Assign means you transfer ownership. After an assignment, the other party owns the rights described.
License means you give permission to use something while you keep ownership.

A distribution deal should normally be a licence. Many label deals are assignments. Know which one you're signing.

What Indian law says about assignments

Under Section 19 of the Copyright Act, 1957:

An assignment of copyright must be in writing.
It should identify the work, the rights, the period and the territory.
If it doesn't state a period, it's treated as five years.
If it doesn't state a territory, it's treated as covering India.

These defaults have been tested in court. In a dispute involving composer Ilaiyaraja, the Madras High Court held that where no term was stated, the five-year default applied.

Songwriters also have a protection that can't be signed away. Since the 2012 amendment, authors of songs used in films and sound recordings keep a right to an equal share of royalties from uses outside the cinema hall, except where it passes to legal heirs or a copyright society.

The five questions to ask of every contract

What rights am I giving? Recording, song, name and likeness, everything "now known or hereafter devised"?
For how long? A fixed term, a number of releases, or forever?
Where? India, specific countries, or the world?
How is money split, and what is recouped first?
How do I get out? Termination, notice and what happens to the rights afterwards.

Label deals

A label usually funds recording and marketing, and in return takes ownership or control of the masters and a large share of income.

Clause	What it means	What to check
Advance	Money paid upfront	Is it recoupable? From which income?
Royalty rate	Your share of income	Of what: gross, net, after which costs?
Recoupment	Costs taken back from your share before you're paid	Which costs count: recording, videos, marketing?
Term	How long the deal runs	Fixed period, or a number of albums with options?
Options	The label's right to extend	Who decides: only the label?
Ownership	Who owns the masters	Forever, or do they revert to you? When?
Territory	Where the deal applies	Worldwide is common; check it's deliberate
360 rights	A share of other income: live, brands, merch	Is it justified by what the label will do?

Recoupment, worked through

Say a label gives you an advance of ₹2,00,000 and your royalty is 20% of what it receives. If the label receives ₹5,00,000 from your music, your 20% is ₹1,00,000. That goes towards repaying the advance, so you receive nothing more yet, and you still owe ₹1,00,000 in recoupment. You start receiving royalties again only once your share has covered the full advance and any other recoupable costs. Unless your contract says otherwise, you usually don't pay an unrecouped advance back out of your own pocket, but check.

Distribution deals

Usually simpler, but read for:

Exclusivity: can you release elsewhere?
Term and notice: how to leave, and whether there's a minimum term.
Rights: a licence to distribute, not an assignment of your masters.
Fees and commission, and whether they change after a period.
Advances: some distributors offer advances against future royalties. They are recoupable, and may extend your term.

Producer agreements

When someone produces your track, agree before the session:

Fee, share or both. A flat fee (often a buyout), a share of master income ("points"), or a mix.
Ownership of the master: who owns it, and in what shares.
Songwriting credit: if the producer contributes to the song itself, agree their writing share separately, and register it with IPRS.
Credit: how they'll be named on platforms.
Delivery: stems, instrumentals and project files.

Management agreements

A manager helps run your career in exchange for commission.

Commission: the percentage, and of which income: gross or net, and does it include income from deals made before they joined?
Term: how long, and under what conditions you can end it.
Sunset clause: how long they keep earning commission after you part ways, and on what.
Authority: can they sign on your behalf? Usually they shouldn't, without your written approval.
Conflicts: do they also run your label, publisher or booking agency?

Publishing deals

A publisher manages and promotes your songs in exchange for a share of publishing income.

What's included: only songs written during the term, or your whole back catalogue too?
The split: how publishing income is divided between you and the publisher.
Term and retention: how long the publisher keeps the songs after the deal ends.
Your royalty right: the share protected by the 2012 amendment shouldn't be waived.

Red flags

"All rights, throughout the universe, in perpetuity" with nothing in return that justifies it.
No clear way to end the deal.
Costs recouped from your share that aren't defined.
Pressure to sign the same day.
Anything asking you to waive royalties the law protects.
Verbal promises that aren't in the written contract.

Your checklist

Ask for the contract in writing, and time to read it.
Answer the five questions for it on one page.
Mark every clause you don't understand.
Get a lawyer to review anything that assigns rights, involves an advance or lasts over a year.
Keep signed copies of everything, with dates.