The Importance of Carefully Reviewing Contracts to Limit Legal Liabilities

When entering the entertainment industry you must be sure that you have the proper legal representation. Why is this important? Not only is it important for you as an artist have any run ins with the law, but it is important to ensure that all contracts that are in place have been properly reviewed. Such as contracts pertaining to touring, use of image, and/or publishing & distribution. I recently came across several articles that outlined the importance and discussed breaching of contracts in each of these ways.

Well Ne-Yo, Ginuwine, and Tyson Beckford definitely understand the importance of carefully reviewing and having a contract. Many of you might be familiar with the case Ne-Yo filed against the R. Kelly promoter (Rowe Entertainment) claiming breach of contract. If not, Ne-Yo filed a lawsuit due to his premature dismissal from R. Kelly’s “Double Up tour”. In this lawsuit he requested that he be paid even though he was released prior to the end of the tour. Rowe Ent. Then stated that the reasoning behind was not receiving a fully executed contract from Ne-Yo. In layman’s terms: there were some signatures missing and Rowe Ent. stated, "From a business perspective, it would have been extremely difficult for me to continue under this cloud of uncertainty." The tour was eventually canceled due to legalities that R. Kelly himself had.

In Ginuwine’s mid 2007 contract conflict, he filed a lawsuit against King Music Group for breach of contract, negligent representation, and fraud. In this case Ginuwine alleged that he was falsely convinced to sign a recording artist contract with King Music Group. King Music Group didn’t seem to exist however. The terms & conditions of said contract were that Ginuwine had to produce one album for the company for $1.75 million with an advance of $500,000. There was a signing between the two parties however there seems to be no listing for King Music Group nor has the artist received any financial backing. With Ginuwine being bound to the previously mentioned contract he was unable to make any records for any other companies for fear to be sued himself for a breach of contract with King Music Group.

Tyson Beckford is an internationally know model who has known for being a Sean Jean model, in his law suit he filed also for breach of contract as well as trademark infringement. Beckford claims that there was a contract between himself and Sean Jean to lend his face and image for an advertising campaign in the amount of $1.2 million. The reason the contract was deemed breached was due to all of the payments not being made. He was to receive for $300,000 payments however, only received the 1st payment, part of the 2nd, and neither of the 3rd or 4th payments. With these actions happening, the contract between Beckford and Sean Jean was said to now be null and void. Though this was so, his images were still used for the campaign.

As an artist manager, I urge our clients to ensure that they carefully review all of their contracts (especially those between them and myself). Even the most seasoned artist can fall victim to a fraudulent contract or businessperson. Not only do we have a lawyer on staff at Rising Phoenix Entertainment Group but also, we advise our clients to ensure that everything has been covered in the contracts and looked over carefully by their personal representation. After reading these articles, I personally feel that all contracts are extremely important and should never be taken lightly. You always want to make sure that all “I”s are dotted and all “t”s are crossed (i.e. Ne-Yo contract). As well as make sure you carefully research the company you are considering signing a contract with. (i.e. Ginuwine)


Sources: Music Recording Contract Fraud; Tyson Beckford Sues Diddy for Breach of Contract; Ne-Yo Sues R. Kelly Tour Promoter for Breach of Contract