California has some of the most artist-friendly laws in the land, which may get friendlier if Sacramento passes a bill allowing musicians and episodic TV actors to exit exclusive contracts earlier and easier.
A proposed amendment to California’s Seven Year Statute – a long-standing law that says talent who reside in the state can’t be held for longer than seven years to an exclusive deal – would make it even easier for talent with a seven-year itch to switch deals or renegotiate better terms.
The current law is less friendly to recording artists than to actors, due to an amendment the record industry won in 1987. It’s a loophole that allows labels to sue recording artists who try to leave their contracts after seven years without first turning in all recordings they promised.
So while actors, athletes, dancers, jugglers, sword-swallowers, and even some executives, can walk from contracts after seven years without consequence, it’s different for recording artists currently. While they still have a right to leave a deal and sign elsewhere after seven years, a label may nonetheless haul them into court and wind up with a money judgment against them.
With passage of Assembly Bill 1385 — the Free Artists From Industry Restrictions (FAIR) Act – introduced by Assemblywoman Lorena Gonzalez, D-San Diego — recording artists, too, could ankle a contract after seven years scot-free.
“This could result in a mad rush to re-examine every current contract and potentially renegotiate them to avoid talent suddenly acquiring an ability they didn’t have before to get out of a deal,” says entertainment attorney Gregg Ramer (Bruce Ramer’s son). “That’s a recipe for disaster for companies doing business with California talent. A much simpler solution would be to just eliminate the 1987 loophole for recording artists” rather than adding the option part.