What happens to masters when a recording contract term expires?

• A. Masters may revert to the artist or ownership terms may be negotiated upon expiry.
• B. Masters automatically transfer to the label at expiry.
• C. Masters become public domain at expiry.
• D. Masters are destroyed at expiry.

Answer: (A)

When a recording contract ends, what happens to the masters depends on the agreement's ownership and reversion terms. In many deals the label owns the masters during the term, but there can be a reversion provision that returns ownership to the artist after expiry, or at least gives the artist a path to renegotiate new terms. If there’s a reversion clause, the artist may regain ownership once the term is finished, sometimes with conditions or a transition period. If there isn’t a reversion provision, the label may continue to own the masters or the parties may negotiate a new deal that sets new ownership and licensing terms. So expiry creates an opening for either reversion or renegotiation, rather than an automatic transfer or other drastic outcomes.