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No. 49Legal & Compliance
Also called arbitration clause, mediation clause, ADR, alternative dispute resolution
How disagreements between artist and label are resolved, through courts or private arbitration.
Watch closely
Mandatory arbitration can limit remedies and impose costs that deter an artist from pursuing valid claims.
Dispute resolution clauses determine whether disagreements go to public court (litigation) or private arbitration. Arbitration is faster and more confidential but has less discovery, limits appeals, and can be expensive. Labels often prefer arbitration because outcomes are confidential and cannot set public precedent.
Arbitration clauses can deprive artists of jury trials and public court processes. They can also require both parties to split arbitration fees upfront, which can be prohibitive for an artist with limited resources.
The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.
The drafting language and the negotiation moves for this clause are part of the workspace.
You have read what the clause means and where the risk sits. The rest is the side-by-side of how it reads when it is against you and when it is not, plus the specific moves that get it there.