ABSTRACT
An original multitrack recording either on tape, disc, or computer file from which productions are developed for later mixing.
Due to the importance of the master recording, copies are made in case of damage. Because the master is considered intellectual property, possession entitles the owner to certain rights under copyright law. Therefore, the value of a master is inherently determined by the cost of production and its potential to sell albums. For an artist, the cost of producing the recording is recoupable against all incomes earned from royalties. In a contractual relationship with a record label, the artist will receive an advance to produce the master. In certain circumstances, such as an independent artist or production deal, if the artist finances the production of the master, he may own all rights in it. Major record labels have an interest in owning a master as it gives them the ability to control the production of music over a long period of time, thus increasing the potential profit from their initial investment and reducing the risk involved in producing the recording. Even if album sales do not cover the cost of producing the master, a record label can cross-collaterize this cost against an artist’s future record sales to recoup initial funds.
