A number of examples of music chords. The territory of this agreement is “the world and its solar system.” Although it is often possible to limit the scope of recording agreements, this is generally not the case for production contracts, as the production company will repeat that it must be able to offer these rights to a third-party record company. The territory of this agreement is “the world and its solar system.” Although it is common for admission contracts to cover the whole world, it is no stranger to artists signing different labels for different territories. For example, it is not uncommon for artists in the UK to sign a domestic label for Europe and an American label for the rest of the world, including North America – the permutations are endless. The reason for the division of territories may be that if an artist signs to a smaller label, they may not be sure that the label has the resources or marketing capabilities to promote the group, for example in the United States. An advantage for the label is that if the territory is smaller than the whole world, the progress it must pay the artist will almost certainly be reduced. By signing the recording contract, the artist agrees that the copyright be at the record company for all recordings (including videos) made during the lifetime. (This should not be confused with the copyright in the underlying compositions, which generally belong to the author or his publisher). Unlike publishing contracts, which often provide that copyrights on compositions are returned to songwriters after a few years, record labels almost always require copyright on recordings for the life of such copyright, which is currently 50 years from the first publication.

This agreement provides that the selection of material, producers and works of art for the recordings to be taken under the agreement is subject to the mutual consent of the record company and the artist. Many agreements, especially for new artists, give the artist only the right to consult, which means that the record company also controls the artistic elements of the recording process. And even if mutual agreement is required, the company often insists on the last word in case of disagreement.