No Carve-Outs For Brand Deals You Source Yourself - Traps & Scams Every Musician Must Avoid

Short version You pitched the brand. You closed the deal. You played the show, made the content, and now someone in a contract wants to take your brand money and give you nothing in return. That is not legal drama. That is a very real industry move that happens when musicians do not protect themselves. This guide tells you how that move works, why it is a scam, and exactly what to say and sign to stop it.

Everything here is written for working musicians and artists who hustle. You will find clear definitions for all legal words and acronyms. You will get real life examples you can laugh at until you want to cry. You will get scripts, a negotiation checklist, contract language you can copy, and steps to recover if someone already took advantage of you. Read this before you accept your next free product or vague promise of exposure.

What does carve out mean

A carve out is an exception inside a contract that reserves certain rights or revenue for one party while the other party keeps the rest. In music and brand deals a carve out might allow you to keep deals you sourced yourself or it might do the opposite. If a label or third party puts a clause that says no carve outs for brand deals you source yourself it means they want to control and collect from any brand partnership even if you brought the brand to them.

Imagine you are on a busking bench, then a local sneaker brand slides into your DMs and offers you cash plus free shoes to create a four week campaign. You sign a one page deal with the brand. Two months later your label sends you a contract that says every brand deal you participate in belongs to the label. No carve outs for deals you source yourself reads like a suitcase they want to take from your locker. If you did not check the contract you just gave them the shoes and all the cash too.

Why this matters more than you think

• Money Brand deals often pay more per minute than a festival slot after costs.
• Rights A single clause can give control of a song, a video, and future uses for years and across all media.
• Career leverage Brands introduce you to audiences and to other sponsors. Losing control kills future bargaining power.
• Tax and compliance Who reports the payment, who gets a 1099, and whether the payment counts as income for your company can change what you owe to the taxman.

Common traps and scams explained

The blanket ownership clause

What it says

Language that assigns ownership or exclusive rights to any content you create during a contract term or while under agreement. It often uses words like forever, worldwide, irrevocable, and exclusive. These words mean you gave up the keys to your work.

Real life example

You did a short grid video for a brand paying you to use your song as the backing music. The brand posts the clip. Later your label claims the entire video and its ad revenue because the contract you signed with them includes blanket rights over content you created while signed to the label.

The no carve outs clause for self sourced deals

What it says

Language that says the company gets a share or full control of any brand deal you participate in even if you approached the brand and closed the deal yourself. The intent is to funnel outside income through the middleman.

Real life example

You negotiate a paid collaboration with a headphone company directly. The brand pays you. Your publisher or manager claims the right to a percent because your main agreement gives them rights to all brand deals you do. You end up splitting the fee down the middle or worse.

The invisible assignment in a long agreement

What it says

Long term agreements with vague definitions of entrepreneurial activities or promotions that can be read to include influencer posts, sponsored streams, and product collaborations. The clause is buried in the middle and signed while you are excited about release day.

Real life example

Signed a distribution support agreement for an EP. Ten pages in there is a clause that says your promotional services and attempts to monetize your audience are subject to company consent. You later realize your merch collab with a designer requires company approval and carries a revenue share.

Fake brand offer scam

What it looks like

A brand reaches out via DM offering a large sum for content. They ask for a sample video before sending a contract. If you send content the scammer can repurpose it and ghost you. Sometimes they want banking details for a deposit then ask you to return the deposit via a payment app. Classic reverse refund scam.

Real life example

A purported lifestyle company offers $5,000 and asks you to send an invoice with bank details. They send a fake wire confirmation. After you send content and return a fake deposit they disappear. Your content is then used elsewhere.

Essential contract terms every musician must demand

Before you sign anything get these points in writing. Use plain language where possible. If a clause reads like legal soup ask for a rewrite. If the counterparty refuses walk away.

• Clear payment schedule State exact amounts, currency, and dates. Ask for 50 percent upfront for new or first time brand partners. Upfront money reduces your exposure to ghost payers.
• Scope of use Define exactly what the brand can use. Limit media types, duration, and territory. Example clauses include limited use on the brand social channels for six months inside the United States only.
• License type Specify whether it is a non exclusive license, an exclusive license for a limited time, or an assignment of rights. Non exclusive is safest for you as it allows reuse and other deals.
• Work title and assets List the specific song, recording, video, or artwork. Do not allow language that covers all current and future works without your explicit consent.
• Credit and attribution Require on camera or copy credit on any posting. Brand support counts when it is visible.
• Termination and kill fee If the brand cancels, you get a kill fee proportional to prep time and production costs.
• Indemnity and liability cap Minimize your liability for brand misuse. Brands should indemnify you if they use your content unlawfully. Cap the liability to the fee paid or a reasonable multiple.
• Payment method and invoicing Use an invoice system. Specify whether the brand pays via ACH, bank wire, or payment platform. For international deals use escrow or verified payment gateway.
• Audit rights If a revenue share applies you need the right to audit the brand s reporting and have an independent accountant review the books.
• Right to reclaim content If you and the brand part ways give yourself the right to remove the content after the license expires or in the event of breach.

Terms and acronyms you will see and exactly what they mean

• NDA Means Non Disclosure Agreement. A promise to keep information secret. NDAs are fine. Make sure they do not hide a transfer of rights.
• Sync license This is permission to use a song with visual media. Sync stands for synchronization. There are separate sync licenses for composition and master recording. Do not confuse them.
• Master use license The permission to use the recorded performance. If you do not own the master you need permission from whoever owns it.
• Work for hire A legal designation where the employer is the author of the work. Saying yes here usually transfers copyright to the buyer. Avoid work for hire unless you are being paid a true buyout.
• Buyout A payment that compensates you for transferring rights permanently. Buyouts need to be significant and clear in scope. A small gift is not a buyout.
• PRO Performance Rights Organization. Examples are BMI, ASCAP, and SESAC. They collect performance royalties when music is played on radio, TV, or some streaming and public performances. Brand content that triggers public performance may owe PRO royalties depending on the license.
• ISRC International Standard Recording Code. A unique identifier for a recording. Useful when brands or platforms need to report usage.
• W9 and 1099 W9 is what a US payee gives to a payer so the payer can issue a 1099 at year end. 1099 is a tax reporting form for non employee compensation. Outside the US there are equivalent tax forms. Keep records.
• FTC rules Federal Trade Commission rules require disclosed sponsorship for US based creators. Use clear language like paid partnership when you post brand content. If you do not disclose you risk fines and reputation damage.
• Escrow A neutral third party holds funds until agreed deliverables are met. Use escrow for first time large deals with new brands.

Practical red flags to spot in five seconds

• Brand asks for first release of full rights without payment.
• They want raw files or multitracks with no escrow or licensing plan.
• Contract uses forever, worldwide, irrevocable, or similar words without defined scope.
• Payment is promised as exposure or credits only. Real money matters more than Instagram shout outs.
• They insist you sign immediately and discourage legal review. This is pressure not leadership.
• Brand asks for bank details before you have a signed contract and verified company contact.
• Emails come from free accounts like Gmail with sloppy domain names that mimic real brands. Phishing lookalikes are common.

Scripts you can use right now when negotiating

When a brand offers exposure but no money

Thanks so much for reaching out. I love what your brand is doing. I can make the content you want. My rate for this scope is X dollars plus a product allowance. If budget is a constraint we can discuss a smaller package. I do not work for exposure only.

When your label says no carve outs

I appreciate the partnership and the label s investment. For brand deals I sourced directly I need a carve out so I can maintain direct relationships and manage payment and compliance. Proposed terms are that the label receives 10 percent of net brand revenue from deals I sourced myself for the term of this agreement only. All deals will be notified in writing and require no label approval to proceed. Please confirm.

When a brand asks you to sign a broad rights assignment

I am happy to license this content. For clarity I need the agreement to reflect a non exclusive license limited to the campaign assets, the brand s owned social channels, and a term of six months in the United States. If you require longer or global rights we can discuss a buyout fee. I am not able to assign full copyright.

Sample contract language you can propose

Use these as starting points and run them by your lawyer or trusted manager. Replace X with specific numbers and replace BrandName with the actual company name.

Carve out clause for artist sourced deals

"Artist retains the right to enter into and monetize brand partnerships that Artist solicits and closes directly. Company will be notified in writing within five business days of any such agreement. For deals Artist sources directly Company will receive a revenue share equal to ten percent of gross fees received from the BrandName campaign for a period of twelve months from the date of the first payment. Company will have no approval rights over the terms of Artist sourced deals."

Non exclusive license example

"Artist grants BrandName a non exclusive, worldwide license to use the specified recording and video assets solely in connection with the Campaign for a period of six months from the first posting. BrandName s license shall not include the right to sublicense or assign without Artist s prior written consent."

Payment and kill fee

"Fifty percent of the fee is due within ten business days of contract execution. Remaining fifty percent is due within ten business days of final delivery. If BrandName terminates without cause prior to final delivery Artist is entitled to a kill fee equal to thirty percent of the total fee plus documented out of pocket costs."

How to verify a brand and avoid fake offers

1. Check the brand s website. Confirm contact details and look for consistent domain email addresses.
2. Search the brand on Trustpilot or similar sites for complaints. Scammers often leave a trail.
3. Ask for a point of contact with a company email and call that number. Live voice checks reduce fraud risk fast.
4. Verify payment methods. For large first time deals use escrow or wired payments to a verified company account only. Avoid payment apps for first time large transactions.
5. Use a short Google reverse image search on the person s profile photo. Many fake accounts use stock photos.
6. Ask for a previous campaign example and confirm the creator who did the campaign exists. Real campaigns have digital footprints.

When your team or label tries to control your brand income

Labels, managers, and publishers may try to collect a cut of brand deals because the deals involve your music or your audience. That can be legitimate when they add value like negotiating, handling payments, or offering campaign production. It is not legitimate when their only contribution is inserting themselves to take a percentage.

Do this instead

• Ask for proof of value. If they want a share demand they show how they will improve the offer and what deliverables they will provide.
• Negotiate a lower cut for artist sourced deals. For example 10 percent company fee versus 20 to 30 percent for deals they bring you.
• Insist on no approval rights for deals you source. Approval can be used to block deals you want.
• Get carve outs in writing that last for a defined term rather than in perpetuity.

Tax, accounting, and formation basics you cannot ignore

Brand money is income. Treat it like income. You may earn money as a sole proprietor or through an LLC or company. Choose the structure that suits your tax situation and liability tolerance. At minimum do these things.

• Keep invoices and contracts in one folder and save bank receipts for every brand payment.
• If you are in the United States provide a W9 to the payer. You will receive a 1099 at year end for non employee compensation. Outside the US learn your local reporting requirements.
• Pay estimated taxes if your brand income is significant. Missing taxes will cost you more later in penalties and interest.
• Hire a CPA who understands creative industry income. Tell them about royalty structures and revenue shares. A good CPA will save you more than they cost.

What to do if you already signed away rights

1. Read your contract fully and mark the clauses that control brand deals. Look for assignment, exclusivity, and scope clauses.
2. Contact the other party to negotiate an amendment. Ask to restore carve outs for deals you sourced yourself and offer a modest revenue share to close the gap.
3. If negotiation fails consult an entertainment lawyer. Small claims courts are not the right venue for copyright disputes. A lawyer can send a targeted demand letter.
4. Document everything. Save communications, DMs, text messages, and emails related to the deal you sourced and the brand s promise.
5. If the other party used the content unlawfully consider filing a DMCA takedown if the content is online and you own the copyright.

Real life horror story you will recognize from your nightmares

Band signs a five year management and label services contract after a hot tour. The contract includes a clause that grants the company a share of endorsement and sponsorship income. The band later negotiates a sneaker deal directly with the sneaker company for a six month run. The company claims half the fee and threatens to block the campaign unless the band routes future deals through them. The band loses the direct relationship with the sneaker company and a promised future tour sponsor. The band could have protected themselves by adding a carve out for artist sourced deals limited to a reasonable period and a fixed company fee.

Checklist before you sign

• Do I have a written contract with specific payment terms
• Is the license limited in time and media
• Does the contract avoid work for hire unless there is a clear buyout
• Do I retain rights to works not specified in the agreement
• Is there a carve out for deals I source myself or is there a fair commission rate
• Is payment secured by escrow for first time or foreign partners
• Is there a kill fee if the brand cancels late
• Do I understand tax reporting requirements for the payment
• Has someone I trust read the contract and asked smart questions

Negotiation tactics that work for artists

• Anchor high Set a rate that recognizes the value of your audience. Brand budgets can shrink if you lowball yourself.
• Use currency in deliverables Translate creative work into hours, edits, and deliverables. Brands get clarity when you use measurable outputs.
• Offer tiers A basic package with social posts only and a premium package with creatives and rights. Let them choose up to their budget.
• Make money first Keep the first payment non refundable and upfront for new relationships.
• Be ready to walk If a brand or partner refuses reasonable terms and asks for indefinite rights walk away. Your audience and content are worth protecting.

FAQ

Can a manager or label really claim my brand deals

Yes if you signed a contract that grants them that right. Always read agreements carefully. If you cannot find the clause get a lawyer to help you locate ambiguous language that could be used against you.

Is it ever okay to give a brand permanent rights

Only if you are paid a fair buyout and you understand the full value of what you are giving away. Permanent rights are a sale of an asset. Treat it like selling a song or a master. Do the math and consider future lost income.

How do I get paid safely for international brand deals

Use escrow services, verified bank transfer to a company account, or payment processors that offer seller protection. Avoid sending raw materials until funds clear. If a brand uses a platform you do not know ask for references and check the platform s reputation.

Can I license my song to a brand while my label controls publishing

You may need permission from whoever controls the publishing and the master. Look at your publishing and recording agreements. If control is split you will need a split license where both sides agree. This is common for sync licensing.

What do I do if a brand uses my content without paying

Contact them in writing requesting payment and referencing the contract. If that fails and the brand used copyright protected content you own consider a DMCA takedown or consult a lawyer about breach and potential damages.

Are verbal agreements enforceable

Verbal agreements can be enforceable in some jurisdictions but they are hard to prove. Always get it in writing. A signed contract or a clear invoice and accepted payment reduce disputes and provide evidence.

Action plan you can use today

1. Before your next brand conversation create a one page standard rider that outlines your minimum terms including payment, scope, and rights. Use it as a starting point.
2. When approached ask for the brand s legal name and billing contact and do a quick verification call. If they refuse do not proceed.
3. Insist on 50 percent upfront for new or unverified brands and use escrow for large sums.
4. Include a carve out clause for artist sourced deals in any new management or label agreement. Aim for 10 percent company fee on those deals rather than full takeover.
5. Keep copies of all deliverables and invoices for tax and audit readiness. Bring a CPA into the conversation early if your brand income grows.

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