Clause 40

This clause is incredibly overreaching, asking the author to give up too much.

CLAUSE TEXT:

All Master Recordings recorded during the Term which embody the performances of Artist, from the inception of the recording thereof, and all artwork ("Artwork") created for use on or in connection with Phonograph Records or other derivatives of such Master Recordings, shall be deemed "works made for hire" for [Company]. All such Master Recordings, from the inception of the recording thereof, and all Phonograph Records and other reproductions made therefrom, together with the performances embodied therein, and all Artwork, and all copyrights therein and thereto, and all renewals and extensions thereof, shall be entirely [Company's] property, free of any claims whatsoever by Grantor, Artist, or any other Person, throughout the world and in perpetuity. Accordingly, [Company] shall have the exclusive right to obtain registration of copyright (and all renewals and extensions) in those Master Recordings and in all Artwork, in [Company's] name, as the owner and author thereof. If for any reason any such Master Recording(s) or Artwork are deemed not to be "works made for hire", then Grantor and Artist hereby irrevocably assign to [Company] all of Grantor's and Artist's right, title and interest in and to such Master Recordings and Artwork (including, without limitation, all copyright therein, and all renewals and extensions thereof). Without limiting the generality of the foregoing, [Company] and its subsidiaries, affiliates, licensees and designees shall have the sole and exclusive right, throughout the world and in perpetuity, to manufacture Records, by any method(s) now or hereafter known embodying all or any portion(s) of the performances embodied on such Master Recordings and/or all or any portion(s) of any such Artwork; to publicly perform such Records; to import, export, sell, transfer, lease, license, rent, deal in or otherwise dispose of or exploit such Master Recordings, Artwork and Records derived therefrom throughout the world under any trademarks, trade names or labels designated by [Company]; to edit or adapt such Master Recordings and/or Artwork to conform to the technological or commercial requirements of Phonograph Records in various formats now or hereafter known or developed, or to eliminate material which might subject [Company] to any civil or criminal action; to exploit such Master Recordings for background music, synchronization in motion pictures and television soundtracks and other similar purposes, including, without limitation, use on transportation facilities, without any additional payments to Artist or Grantor other than as expressly set forth in [the discussion of royalty payments herein]; or, notwithstanding the provisions of this agreement, [Company] and its subsidiaries, affiliates and licensees may, at their election, delay or refrain from doing any one or more of the foregoing.

EXPLANATION:

This contract not only demands a total assignment of rights in the musical recording, it also categorizes the recording (and accompanying artwork) as a "work made for hire," which means that the actual creator has no copyright whatsoever. There is, however, some uncertainty concerning whether musical recordings are in fact "works made for hire." If, under the law, they are not, then saying they are in a contract won't make it so.