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Contract Red Flags

A single clause can lock away royalties, rights, or future leverage. Use the snapshots below to flag the terms that need fixing before you sign.

February 7, 2026

Perpetual, worldwide grants

Clauses that assign or license rights “in perpetuity,” “worldwide,” or “in all media now known or hereafter devised” leave creators without room to re-license or renegotiate future formats, so push for narrowing the term and territory.

Work-for-hire without clarity

When the contract recites a work-for-hire or assignment but the project elements are undefined, confirm the expressed consideration, whether residuals are owed, and the treatment of future derivatives.

Undefined deliverables and payment

Vague statements about “content” or deliverables that omit payment timing invite scope creep; insist on concrete milestones, payment dates, and a revision budget.

No audit or termination protections

Agreements that deny audit or terminate only “for cause” trap creators even when the company sits on inaccurate accounting; ask for audit access and a defined cure period.

Blanket exclusivity or warranty promises

Broad warranties about infringement or exclusivity should be scoped to the creator’s actual control and limited to the agreed deliverables so the artist is not on the hook for unknown third-party rights.

Checklist

  • Get all underlying assignments or licenses in writing so the lead contract can cite clean chain-of-title pages.
  • Demand a defined audit clause with a reasonable notice period and caps on audit burdens.
  • Clarify exit rights: at a minimum, negotiate a short cure period and a termination-for-convenience fall-back.
  • Make sure all territories, media, and timeframes are enumerated; if not, treat them as limited to the initial campaign.

References

Entertainment Contract Red Flag Checklist (opens in a new window)Common Entertainment Contract Red Flags (opens in a new window)Contract Decoder Guide to Keeping Control (opens in a new window)

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