Kurt Cobain and the Death Clause
By Hank Harrison
A recording contract can be a box of snakes, but one clause, known as the “Death Clause” also known as a non-performance or failure of performance clause, has always been a big problem. I first saw this clause in a contract from Warner Brothers when I was connected to the Grateful Dead. I saw it again when I got a smell of Janis Joplin being usurped away from Big Brother and the Holding Company and it has a distinct stench to it. In addition to the legal headaches that arise for anyone negotiating something like this, the “Death Clause” can literally be lethal. This clause is a way of assuring the recording company will collect all of their money (and yours) if you die, no matter how you die.
Examples:
1) Company shall have the right to secure insurance equivalent to ten times the estimated value of the Artists earnings (from any source of revenue) for Company’s sole benefit. In Cobain’s case that amounted to several BILLION, with a B
2) Company shall be allowed to employ ANY insurance carrier or combination of same to assure this benefit and need not consult or require signature compliance from artist.
3) Company shall keep such information confidential, except that Company may disclose such information to the applicable insurance carrier(s) or as required by law.
4) Artist or Artist’s estate shall have “NO” right to review or claim the benefit of any such policy obtained by Company.
In short, the company (i.e., record label) will take out a life insurance policy on the artist and reap any benefit if the Artist cannot comply with production requirements, becomes ill or “DIES”.
The clause in question was invented back in the days when the MOB ran Chicago, New York and Hollywood, (and who says they still don’t?). In short, here is what a Death Clause does in my humble opinion: “If an artist fails to perform or pay back advances, the artist becomes more profitable dead.”
Today, the hit clause still exists, but it is more subtle and whereas it used to be worth thousands it’s now potentially worth Billions. Labels invest millions in new talent and the insurance policy is a protection against loss or a way of collecting projected profits for music, t-shirts, books, foreign rights and everything else in all forms.
In the event of death, a musician can’t earn anything so a non-performance policy provides insurance to protect the investment. This is one of the many topics I didn’t include in my book on Cobain, but I hinted at it. This clause is why I knew what happened in the Cobain case from the first day, way back on Easter Sunday, 1994. Cobain did not kill himself, but it really didn’t matter to the policyholders. The “Death Clause” is why all those people got paid off and are still being paid off. No Names please.
This is a dangerous topic, the last person who wrote a book about it was a young and healthy lawyer and she died suddenly.
