Source: https://musictechpolicy.com/2012/01/09/more-questions-for-artists-record-producer-agreements-part-7-accountings-and-producer-letters-of-direction/
Timestamp: 2017-07-27 00:27:51
Document Index: 271534888

Matched Legal Cases: ['art 7', 'art 7', 'art 7', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8', 'art 9', 'art 10', 'art 11', 'art 12', 'art 13']

More Questions for Artists: Record Producer Agreements, Part 7: Accountings and Producer Letters of Direction | MUSIC • TECHNOLOGY • POLICY
> 20 more questions for artists	> More Questions for Artists: Record Producer Agreements, Part 7: Accountings and Producer Letters of Direction	More Questions for Artists: Record Producer Agreements, Part 7: Accountings and Producer Letters of Direction
Chris Castle	Please note: This is an installment in a multi-part post. Each post has information relevant to prior posts, so until we get to the “Final” there will be more information to come. See also More Questions for Artists: Record Producer Agreements, Part 1, Part 2, Part 3, Part 4, Part 5. Part 6 , Part 7, Part 8 , Part 9, Part 10, Part 11, Part 12 and Part 13 Watch this space for further installments, or subscribe to the RSS feed. A post with all the current parts in one post is available here, and see also “Artist Management Agreements” on the Semaphore Music blog.
There is a lot of energy expended by lawyers negotiating these clauses and it’s really not worth it. If two lawyers spend a lot of time negotiating these clauses, they will probably bill their clients more than will ever be made as a result of their work. Obviously, for superstar artists and producers this is not the case, but even then it is rare for a producer to actually audit an artist. For those contracts, it is my view that it is more important for the artist to know that the artist can lay off part of the cost of the audit onto the producer’s recovery, and for the producer to be sure that if he produced the only hit the artist ever had that he’s not in effect bearing the cost of auditing 5 LPs when there was only one that made any money. It’s also well to remember that the producer’s royalties (and so audit recovery) are not cross-collateralized across albums even if the producer produces several for the same artist.
From the producer’s point of view, she does not want to create a de facto cross-collateralization through the audit clause.