Summer Walker Can Use This Law to Break Her Record Deal. But There’s a $50 Million Catch.
Walker’s fight with Interscope highlights a California law also used by Fuerza Regida, H.E.R. and other stars — and the huge pitfalls for artists who invoke it.
Summer Walker found herself embroiled in a legal battle with her record label, Universal Music Group, over her 2017 contract. The dispute began when Walker, in August, notified the label that she was terminating the agreement. However, the origins of this particular legal issue trace back to a 1872 California law that imposed strict time limits on labor contracts following the Civil War.
Over the years, these laws evolved into what is now known as the "seven-year rule," which bars contracts longer than seven years. Walker invoked this rule to break her deal with Interscope. Interestingly, other artists, including Fuerza Regida and H.E.R., have also used this same rule to seek release from their contracts.
However, the application of this rule to record deals is unique due to a 1987 exemption lobbied for by the music industry. This exemption allows labels to sue artists for lost profits if they break the contract under the seven-year rule. In Walker's case, Interscope alleged that she had released only three of the five albums required by her contract.
Given the success of her previous albums, which topped the Billboard 200 charts, Interscope claims Walker owes them $50 million in damages for failing to deliver the remaining albums. This legal threat makes the seven-year rule a particularly challenging aspect of Walker's situation, as it places artists in a unique position compared to other workers in California.
Dina LaPolt, a prominent artist attorney, argues that record artists are often trapped in these deals.
On the other hand, record labels argue that they face significant risks and investments when developing and promoting artists. They contend that a strict time limit on contracts would be impractical given the nature of music production and the need for touring artists to continuously create new music. Labels also argue that they would be reluctant to invest in artists if they could easily walk away after seven years.
Thus, the seven-year rule remains a contentious issue within the music industry, benefiting established artists who benefit economically from their long-term contracts while posing significant financial risks to emerging artists.
Written by urgent.news from Billboard's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
