The music industry was rocked when news broke that Scooter Braun's Ithaca Holdings had sold Taylor Swift's master recordings to an undisclosed investment fund for a sum believed to be north of $300 million. This deal, finalized in late 2020, involved the master rights to Swift's first six albums, spanning from her 2006 self-titled debut to 2017's "Reputation." But how did this all start, and why does it matter so much?

The Beginning of the Conflict

The conflict dates back to June 2019 when Ithaca Holdings acquired Big Machine Label Group (BMLG) for just over $300 million. This purchase included all of Big Machine's recorded music assets, among which Swift's catalog was a significant part, valued at around $140 million. Swift, who had been with Big Machine since the start of her career, found herself in a distressing situation as she had tried to purchase her masters but was unsuccessful.

Swift's displeasure was public and vocal. She accused Braun of "bullying" and criticized the entire transaction process, stating that she was not given an opportunity to buy her music outright. This led to a public feud, with Swift expressing her frustration over private equity firms' involvement and their disregard for her artistic rights.

Types of Musical Copyrights

Understanding the types of copyrights that protect musical works is crucial for grasping the full scope of this conflict. There are two main types of musical copyrights relevant to musicians:

• Musical Composition Copyright: This covers the music and lyrics. It protects the melody, harmony, and lyrics of your song.

• Sound Recording Copyright: This protects the actual recording of your song. It covers the specific performance and production of the music as it appears on a CD, digital download, or streaming service.

In Swift's case, the master recordings represent the sound recording copyright. This type of copyright is distinct from the musical composition copyright, which remains with the songwriter and publisher. Owning the masters means controlling the specific performances and recordings, which can significantly impact how the music is used commercially and financially.

The Re-recording Strategy

A key aspect of Swift's contract allowed her to re-record her previous albums starting in November 2020. By re-recording her music, Swift aimed to regain control over her work, ensuring that her new versions would be the ones most played and licensed in the future. This strategic move was both a personal reclaiming of her art and a financial maneuver to redirect revenue streams from her old masters to her new recordings.

Swift's announcement in August 2019 about re-recording her albums was met with widespread support from fans and fellow artists. This move not only allowed her to take back ownership but also raised awareness about artists' rights and the importance of owning one's work.

Ownership and Control: A Crucial Understanding for Artists

Swift's battle underscores the critical importance of artists understanding and owning their master recordings. When an artist owns their masters, they have control over how their music is used, which can significantly impact both their legacy and financial earnings.

Knowing what you're giving up in a contract is essential; without ownership, an artist may lose the ability to make key decisions about their work, potentially limiting their career growth and financial stability. Swift's situation serves as a powerful reminder of the need for artists to be fully aware of the long-term implications of their agreements and to strive for ownership whenever possible.

It's understandable that Taylor Swift felt frustrated and outraged, as she was being unfairly restricted from performing her own music and sharing her life's work with her fans.

Here's a note to her fans:

Six Key Contract Considerations for Artists

Taylor Swift's situation offers valuable lessons on how artists can protect their music contractually. Here’s a breakdown and explanation of six crucial points:

1. Transparency

Explanation in Plain English: Before signing any contract, it's crucial for artists to fully understand what they are committing to. This means carefully reading and comprehending every clause and condition in the agreement.

Why It's Important: Transparency ensures that artists are not caught off guard by any hidden terms or conditions that could negatively impact their career. Consulting with a knowledgeable music attorney can provide the necessary clarity and help artists make informed decisions.

2. Retaining Ownership of Masters

Explanation in Plain English: Artists should negotiate to retain ownership of their master recordings whenever possible. Master recordings are the original recordings of their music.

Why It's Important: Owning the masters means having control over how the music is used commercially. This can significantly impact the artist's legacy and financial earnings, allowing them to benefit directly from the use and licensing of their recordings.

3. First Right of Refusal

Explanation in Plain English: Including a first right of refusal clause in contracts means that if the label decides to sell the master recordings, the artist gets the first opportunity to buy them back before anyone else.

Why It's Important: This clause provides a safety net for artists, ensuring they have the chance to regain control over their masters if the label decides to sell them. It protects the artist’s interests and prevents third parties from gaining ownership without the artist having a chance to intervene.

4. Shorter Contract Terms

Explanation in Plain English: Artists should negotiate for shorter contract terms, meaning the duration of the contract should be limited to a few years rather than an extended period.

Why It's Important: Shorter contract terms provide artists with more flexibility and opportunities to renegotiate better terms as their careers progress. This ensures that artists are not locked into potentially unfavorable conditions for too long.

5. Re-recording Clauses

Explanation in Plain English: Artists should ensure that their contracts allow them to re-record their music after a certain period. This means they can create new versions of their songs and release them.

Why It's Important: Re-recording clauses give artists a backup plan in case they lose control of their masters. By re-recording their music, artists can regain some control and revenue, ensuring that their new versions are the ones used commercially.

6. Regular Legal Review

Explanation in Plain English: Contracts should not be static documents. Artists should have their agreements reviewed regularly by a legal professional, especially when there are changes in the industry or new opportunities arise.

Why It's Important: Regular legal review ensures that the contract remains fair and in the best interest of the artist. It allows for adjustments and renegotiations to address new developments, protecting the artist’s rights and interests over time.

Tools for Musicians

For musicians looking to protect their work, understanding musical agreements and copyrights is crucial. Platforms like Song Safety offer tools to distill complex legal language, making it easier for musicians to understand and protect their music. Additionally, Song Safety provides templated legal documents at a fraction of the cost, ensuring that musicians have what they need upfront to set clear expectations with collaborators, producers, and even labels when appropriate. These tools equip musicians with the knowledge and resources to safeguard their art, maintain control, and reap the benefits of their creativity.

Conclusion

It's important to note that Taylor Swift's situation wasn't her fault and is entirely understandable. Musicians, naturally, want their music to be heard and shared. However, it's crucial that they are fully aware of what they are getting into contractually. Understanding and implementing these six key points can help artists protect their work and maintain control over their careers. Taylor Swift's proactive steps to re-record her music and openly discuss her struggles with her former label have set a powerful precedent. By leveraging tools like Song Safety and ensuring careful contract negotiation and review, musicians can navigate the complexities of the industry and safeguard their creative output.

As Swift continues to re-record and release her albums on her terms, her story serves as a reminder of the importance of ownership, transparency, and artists' rights in the music industry.