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A Brief History of the Predatory Record Deal

todayMay 1, 2025 2

A Brief History of the Predatory Record Deal
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On “Check the Rhyme” from A Tribe Called Quest’s 1991 vanguard The Low End Theory, Q-Tip memorably quipped, “Industry Rule No. 4080: Record company people are shady.” There are legions of artists who would agree with the sentiments of The Abstract, who have encountered the evils of such economic exploitation.

The record business has (allegedly) scammed countless musicians out of their masters, publishing rights, royalties, and just about everything else under the sun. Artists who lacked the proper knowledge and/or — more importantly — legal representation would be taken advantage of by labels and publishers with complex contracts.

While America was caught in the wave that was rock and roll music in the ‘50s, Black musicians were unsurprisingly gate-kept from and exploited by labels all too eager to profit off their blood, sweat, and melodies. Chuck Berry, widely regarded as the founding father of the genre, launched his career with his iconic tune “Maybelline” on Chess Records. However, Alan Freed (a radio disc jockey credited with actually popularizing the term “rock and roll”) and Russ Fratto (the landlord of Chess Records, the label Berry was signed to) were credited as the song’s co-writers, giving them a share of the royalties. For decades, Berry persistently fought a legal battle to reclaim ownership of his work, and in 1986, his efforts were finally recognized when he was officially awarded full credit for the song.

Little Richard’s masterpiece lined other pockets

Similarly, in 1956, Little Richard sold the publishing rights to his classic “Tutti Frutti” to Specialty Records owner Art Rupe for a mere $50. Additionally, his contract would only pay him less than one cent for each record sold, significantly less than the standard 3-5 percent rate that artists received. While the 1955 classic “Tutti Frutti” would go on to sell over 500,000 copies, Little Richard would only receive $25,000 from those sales. To add insult to injury, Richard would not receive royalties even when his music was covered by other artists, notably Pat Boonein 1956. In 1984, Little Richard filed a $112 million lawsuit against Specialty Records, claiming he hadn’t received royalties since leaving the label in 1959. He eventually settled out of court for an undisclosed amount, and later, after Michael Jackson purchased ATV in 1985, which, among with The Beatles, owned the rights to Little Richard’s publishing — Jackson returned those rights to him.

Prince and Michael Jackson missed out on millions

Prince performs on stage wearing 'Slave' tattoo, on 'The Ultimate Live Experience' tour at Wembley Arena on March 4th, 1995 in London, United Kingdom.

Prince performs on stage wearing ‘Slave’ tattoo, on ‘The Ultimate Live Experience’ tour at Wembley Arena on March 4th, 1995 in London, United Kingdom.

Photo by Pete Still/Redferns.

Prince and Michael Jackson were two of the most critically acclaimed and commercially successful artists of all time. Yet both legends were forced to fight their labels over contracts that exploited their talents and denied them a fair share of the profits from their work.

Prince endured a four-decade battle with Warner Music, all stemming from when he signed his first deal in 1977 at the naive age of 18. Following the massive success he experienced in the 1980s, The Purple One would ink a $100 million deal with the label in 1991, which at the time was considered the biggest recording contract in history. But things soured quickly, as Prince felt that under the deal with Warner, they owned and controlled his name as well as any music released under that name. As a result, Prince would change his name to an unpronounceable emblem (called the “Love Symbol”) and would be referred to as “The Artist Formerly Known As Prince,” and during live appearances and performances wrote “Slave” on his face in protest. To get out of the deal, Prince would have to fulfill his contractual obligations with several album releases between 1995 and 1996: The Gold Experience, Chaos and Disorder, Emancipation, and the soundtrack to the film Girl 6. Once freed from his deal, Prince became a vocal advocate for artists’ rights, subsequently opting for distribution deals with labels rather than traditional record contracts until his passing in 2016.

Following his legendary run from 1979’s Off the Wall to 1995’s HIStory: Past, Present and Future (released via Epic Records, a Sony label), Jackson grew increasingly critical of the label and its then-CEO Tommy Mottola, accusing him of “racist” and “manipulative” business practices after what he felt was the mishandling of his 2001 album Invincible. He also expressed frustration over the release of the compilation album Number Ones in 2003. In a twist of irony, in 2016 Sony acquired the Jackson estate’s remaining 50 percent stake in Sony/ATV for $750 million, securing full ownership of the publishing catalog, after previously purchasing half of Jackson’s own music catalog for a reported $600 million.

Jackson would pass away in 2009, at the age of 50.

De La Soul’s years of missed streaming revenue

De La Soul arrive at the 2004 MTV Video Music Awards at the American Airlines Arena August 29, 2004 in Miami, Florida.

De La Soul arrive at the 2004 MTV Video Music Awards at the American Airlines Arena August 29, 2004 in Miami, Florida.

Photo by Frank Micelotta/Getty Images.

De La Soul is a cautionary tale for how a shoddy record deal can have a devastating impact in the streaming era. For years, the Native Tongues trio was embroiled in a complicated contractual dispute over sample clearances with their label Tommy Boy Records when they sued for copyright infringement. After Tommy Boy reacquired the rights to their first six albums from Warner Bros., the group alleged that label founder and CEO Tom Silverman offered them a 90/10 profit split ahead of plans to bring their music to streaming platforms in 2019. The long shadow of their early contracts meant the group missed out on years of streaming revenue, as their music remained absent from digital platforms and ownership of their master recordings remained out of reach. While De La Soul was able to reach a deal with Reservoir Records to release their music and finally own their masters David Jude Jolicoeur — also known as Trugoy the Dove, Plug Two, or just Dave — would pass away in 2023, mere weeks before their full catalog officially hit streaming platforms.

Clipse slips from bad label deal to bad label deal

For Non-Editorial use please seek approval from Fashion House) No Malice and Pusha T of Clipse attend the Louis Vuitton Menswear Spring/Summer 2025 show as part of Paris Fashion Week on June 18, 2024 in Paris, France.

For Non-Editorial use please seek approval from Fashion House) No Malice and Pusha T of Clipse attend the Louis Vuitton Menswear Spring/Summer 2025 show as part of Paris Fashion Week on June 18, 2024 in Paris, France.

Photo by Julien M. Hekimian/Getty Images.

Pusha T and Malice, better known as Clipse, have endured more false starts than a deaf track-and-field runner, thanks largely to label issues. After their original debut album, Exclusive Audio Footage, was shelved in 1999, they finally released their official debut, Lord Willin’, in 2002 through the Neptunes’ Star Trak Entertainment, under Arista Records. A label restructuring in 2004 shifted Clipse to Jive Records, while Star Trak moved under Interscope, effectively trapping the Thornton brothers in a music industry Phantom Zone. Four years after Lord Willin’ — and following two critically acclaimed We Got It 4 Cheap mixtapes — Clipse sued Jive and eventually negotiated a deal to release their long-delayed sophomore album, Hell Hath No Fury, through their own Re-Up Gang Records imprint in 2006. In 2007, they parted ways with Jive, signing a new deal with Columbia Records.

Though Pusha T’s erstwhile rival Lil Wayne has been tied to Cash Money Records since his teenage years, he too has found himself entangled in the predatory practices of the music industry. In 2015, he sued Cash Money for a whopping $51 million, citing their refusal to release his album Tha Carter V, unpaid royalties, and control of his Young Money Entertainment (at that time the home to Drake and Nicki Minaj). Eventually, Wayne and Birdman would come to an agreement, and The Carter V was finally released in 2018, seven years after its predecessor.

Megan Thee Stallion and 1501 Certified Entertainment

Megan Thee Stallion performs at Coachella Stage during the 2025 Coachella Valley Music and Arts Festival on April 20, 2025 in Indio, California.

Megan Thee Stallion performs at Coachella Stage during the 2025 Coachella Valley Music and Arts Festival on April 20, 2025 in Indio, California.

Photo by Arturo Holmes/Getty Images for Coachella.

The issues between Megan Thee Stallion and her former label, 1501 Certified Entertainment, are well-documented. In 2018, Megan signed with former baseball star Carl Crawford’s imprint, reportedly receiving a modest $10,000 advance — a figure considered well below industry standards. She later claimed the deal was a “360 agreement,” allowing the label to collect a share of her earnings beyond album sales, including revenue from live performances and merchandise. Tensions escalated when Megan sued 1501 Certified Entertainment, after the label disputed whether her 2021 release Something for Thee Hotties qualified as an official album under her contract. Meanwhile, the label’s actions reportedly stalled the release of her new music. After a years-long court battle, Megan and 1501 agreed to a settlement in 2023, with Megan a few months later reaching a distribution deal with Warner Music to release music through her own imprint, Hot Girl Productions, while retaining complete ownership of her masters and publishing rights.

Bad record deals seem more common than not

The members of N'Sync arrive at the 43rd Annual Grammy Awards at Staples Center in Los Angeles, CA on February 21, 2001.

The members of N’Sync arrive at the 43rd Annual Grammy Awards at Staples Center in Los Angeles, CA on February 21, 2001.

Photo by Frank Micelotta/Getty Images.

Across genres, exploitative contracts have ensnared some of music’s most iconic talents — many of whom may have remained unheard if not for their own outcry and the intervention of key industry power players. Before coming to prominence, Van Morrison found himself stuck in a record deal that nearly derailed his burgeoning career. Billy Joel’s ten-album deal with Family Productions in 1971 was so deplorable that — thanks to signing away his publishing and recording rights — his debut album Cold Spring Harbor was marred by a mastering mistake that altered its sound, while Joel remained powerless to do anything until the late record executive Walter Yentikoff purchased his publishing rights and returned them to him. Taylor Swift famously released her “Taylor’s Version” re-recordings after her former label sold the masters of her first six albums to Scooter Braun for a reported $300 million. In 1999, *NSYNC sued both their former label, Trans Continental Records (later RCA Records), and manager Lou Pearlman for fraud and misrepresentation. Kesha was caught in a nearly decade-long legal war with her record label, Kemosabe Records, and Dr. Luke, the owner of the label, over her six-album contract. Kesha would also accuse Luke of sexual, physical, and emotional abuse. Both parties settled in 2023.

As long as there are talented artists, there will always be those who will try to exploit their gifts for financial gain. In today’s music climate, artists are more than aware of the pitfalls of artist-unfriendly contracts and have more entrepreneurial opportunities than the previous generation of musicians. Despite this, however, powerful record labels and music corporations still have the means to finesse artists out of their artistic livelihoods. When considering the record industry’s long track record of exploiting artists, the words of Prince remain true: “If you don’t own your masters,” Prince said in 1996, “your master owns you.”

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Written by: jarvis

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