Deal with Warner opens door to artists’ rights

The music industry should prepare to be rocked by this deal.

More than two decades after Prince scrawled “slave” on his face to protest his record label, the artist has reconciled with Warner Bros. Records as part of a truce that will give him control over his master recordings.

Under the partnership, the eccentric singer will be able to exploit his own song catalog for commercial gain. In exchange, Warner Bros. will get to release his new album and a remastered 30th anniversary edition of his 1984 masterpiece, “Purple Rain.”

“A brand-new studio album is on the way and both Warner Bros. Records and Eye [sic] are quite pleased with the results of the negotiations and look forward to a fruitful working relationship,” Prince said in a statement that used his unconventional spelling for the pronoun.

Prince also agreed to sign an exclusive global licensing partnership covering every album from 1978 through the ’90s, including “Dirty Mind,” “Controversy” and “1999.” Financial terms weren’t disclosed.

While both sides portrayed it as a win-win situation, the landmark deal to end their long-running dispute over who owns the copyright to his original recordings could inspire other artists to claw back ownership of their catalogs.

Thanks to an often-overlooked change in copyright laws dating back to the mid-1970s, musicians, writers and other artists can exercise so-called “termination rights.”

The provision, which took effect last year with recordings from 1978, enables the creators of music to win back their US rights after 35 years, so long as they can show that they weren’t employees of the record label. Other artists who released big-selling albums in 1978 include Dire Straits and Van Halen.

The law applies even if an artist or songwriter signed a contract with a record label to transfer all the rights to their work.

With the recording industry still reeling from piracy and declining sales, the provision could lead to more headaches for major record labels.

However, “terminations” are not automatic and usually entail extensive litigation when the law applies.

While Prince and his record label didn’t address the copyright law, there is little doubt that it could have been used as leverage in the negotiations with both sides likely eager to avoid an expensive legal battle.

Indeed, some in the music business expressed surprise that Warner would cave given the huge value of Prince’s works. The “Purple Rain” soundtrack, for instance, is one of the most popular of all time and has sold 20 million copies.

“It’s a big no-no under most circumstances,” said one music source, referring to giving back master rights.

Industry sources speculate that Warner desperately wanted access to Prince’s new material with his latest band, 3rd Eye Girl, while capitalizing on the 30th anniversary of “Purple Rain.”

Warner Bros. Entertainment, which is no longer allied with the music label, is said to be re-releasing the classic ’80s movie of the same name with Prince in the lead role.

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