In the dazzling entertainment world, where dreams of stardom can quickly overshadow reason, countless artistes sign contracts that seem like golden tickets to fame and fortune.
Yet, the harsh reality is that many of these contracts are traps—laden with clauses that stifle creativity, drain earnings, and, in some cases, bind artistes into unending cycles of exploitation. It is no longer uncommon that every year, new headlines emerge about disputes between artistes and their record labels, most of which could have been avoided with the proper guidance.
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Nigerian music stars have often been caught in legal quagmires due to the complexity of contract terms. Stars like Kizz Daniel, Runtown, Cynthia Morgan, Vector, Mercy Chinwo, Shalipopi, and many others highlight the necessity of this step.
To address this recurring issue, PREMIUM TIMES spoke to seasoned entertainment lawyers who shared five actionable steps every aspiring or established artiste must take before signing a contract.
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1. Secure specialised entertainment legal counsel—Rockson Igelige
One of the most common mistakes artistes make is assuming that any lawyer can represent their interests regarding entertainment contracts. Rockson Igelige, a renowned Nigerian entertainment lawyer specialising in intellectual property rights (IPRs), says this approach is “highly flawed.”
Giving an insight first on how critical contracts are, Mr Igelige stated, “Traditional contracts are based on offer, acceptance, consideration, and signing, which courts can enforce. However, recording contracts are different and have evolved. Standard contracts in the music industry are long-standing agreements with fixed, non-negotiable terms. They are ‘take it or leave it’ agreements, meaning artistes have little or no say in the terms.
“Entertainment contracts differ from regular agreements; they often limit an artiste’s creativity, earnings, and future opportunities. Some record labels treat artistes as profit-making commodities, and bad contracts have hurt many big names. Artistes often rush to sign, seeing it as a status symbol, and believe the label needs them less than they need the label,” the 2022 UK Alumni Awards Social Action Award’s finalist explained.
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“Before signing any contract, artistes should choose a lawyer specialising in entertainment law. A specialised lawyer will protect you and help you negotiate better terms, as many general lawyers may not fully understand royalty structures, licensing rights, or intellectual property clauses.”
The Friends of the Creator Artistic Foundation co-founder cautioned artistes against desperation when selecting legal representation, emphasising the importance of a balanced perspective in contract negotiations.
“Sometimes artistes are so eager to sign that they overlook some labels’ lopsided bargaining power. An entertainment lawyer can level the playing field by ensuring the contract has a human face. Labels often design these contracts to favour themselves disproportionately, leaving artistes at a disadvantage.”
He further pointed out that the absence of specialised advice often leads to artistes losing rights to their music catalogue or being stuck in unfavourable deals. “Think of your lawyer as your shield; without one, you’re vulnerable to exploitation.”
2. Never ignore the fine print or verbal promises — Amanda Uzoagba
Many artistes enter agreements based on verbal promises made by label executives, only to find that these promises don’t hold up when scrutinised against the actual contract. Amanda Uzoagba, an entertainment lawyer, consultant, and Head of Licensing, Mdundo West Africa, provided valuable insights.
“A major issue in the music industry is that many artistes still don’t understand contracts. Labels must be clear on their expectations, and artistes should avoid being swayed by big names without proper legal advice,” Ms Uzoagba pointed out.
“Trusting personal relationships over contract terms is dangerous. Artistes often focus on the promises of advances and marketing but overlook critical details like catalogue, feature, and release restrictions. While awareness of legal support is improving, many still fall into bad deals due to desperation.
“Many artistes rely on verbal assurances, such as promises of better revenue splits, creative control, luxury or international tours. But in legal terms, if it’s not written down, it doesn’t exist. Verbal promises mean nothing if not documented, and only the signed agreement matters,” she stated firmly.
The legal practitioner advised artistes to scrutinise every clause in the contract, paying particular attention to the fine print.
“This is where labels often hide unfavourable terms, such as catalogue restrictions or unfavourable distribution percentages. If you don’t understand a clause, don’t sign until your lawyer explains it.”
3. Understand the rights you’re giving away—Lucklyn Audu
Artistes must have a clear understanding of the rights they are transferring to the label upon signing, particularly when dealing with 360 deals.
Lucklyn Audu, an entertainment lawyer and Wande Coal’s business manager, highlighted the potential pitfalls of such agreements.
“The first step in navigating international contracts is having a lawyer who understands the agreement and can explain your rights and obligations. You need to know what rights you’re keeping and what you’re giving away to avoid feeling cheated later.
“A 360 deal allows the label to take a share from all your revenue streams—not just music. This includes live performances, merchandise, endorsements, and even digital earnings. If you don’t fully understand this, it can lead to frustration when you realise others keep their live performance earnings while you have to share yours,” she said.
Ms Audu explained that while 360 deals can provide comprehensive support for an artiste’s career, they often leave little room for financial independence.
“Artistes should ask themselves: ‘What do I retain, and what am I relinquishing?’ A lawyer can help identify these agreements’ hidden costs and advise on less exploitative negotiating terms. Labels often present these deals as ‘standard’, but they’re far from it.”
4. Avoid long-term and restrictive contracts —Uzoagba Audu
One of the most damaging traps artistes fall into is signing contracts that tie them down for excessively long periods or include restrictive clauses. Ms Uzoagba and Ms Audu both addressed this issue.
“Lengthy contracts are another red flag. Deals spanning up to 12 years with automatic renewals should be carefully scrutinised. Some contracts stipulate that an artiste must produce a specific number of ‘bodies of work’ rather than work within a fixed timeframe. This gives labels absolute control over when and how songs or albums are released, leaving artistes powerless to fulfil their contractual obligations,” Ms Uzoagba advised.
Ms Audu highlighted another common pitfall: the inclusion of “sole-discretion renewal clauses”.
“Be wary of clauses that give labels the sole discretion to renew the contract after the initial term. These clauses allow labels to extend contracts without the artiste’s consent unilaterally. Essentially, the artiste’s career becomes an asset the label can manipulate indefinitely. Before signing, artistes must push for clauses that allow them to walk away if the partnership no longer serves their interests.”
5. Be realistic about advance payments and promises – Uzoagba
Advance payments may seem like a blessing for artistes looking to kickstart their careers, but Ms Uzoagba warned that these funds often come with strings attached.
“Advances are not gifts; they’re loans that must be recouped from your earnings. If you’re given a large advance, you could spend years paying it off before seeing any royalties,” she explained.
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She encouraged artistes to request moderate advances and focus on the long-term potential of their contracts rather than immediate financial gains.
“Don’t overpromise in your deliverables. Some contracts require artistes to produce a song or video every month, which can lead to creative burnout. Negotiate achievable targets to avoid breaching your contract.”
Bonus –Termination
You may want to ask what happens when you’ve already signed a bad contract. Well, exiting depends on the termination clauses.
Ms Audu advises understanding buyout options or reimbursement terms. Mr Igelige stresses that courts uphold contracts once signed, and breaking away is only possible under the agreed terms. He added that today, the court of equity counters restraint of trade clauses in contracts that unfairly limit an artiste’s freedom to work with others, emphasising the importance of having an expert lawyer in entertainment law.
Ms Uzoagba warns that an expired contract doesn’t guarantee success, and upcoming artistes can struggle financially despite public perception. She emphasises the need for legal assistance to secure proper clearance before signing a new label.
With these few points, you would agree that the entertainment industry is rewarding but risky, with many stories of betrayal and exploitation. Get solid legal advice, review contracts carefully, and avoid long commitments to protect your career and avoid becoming a cautionary tale.
Remember: Your artistry is your power before you sign that contract. Protect it wisely. Good luck.
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