The Verbal Agreement
"We agreed 50/50", said every artist before a dispute.
A verbal or handshake agreement about who owns what share of a song is not a contract, and it is not enforceable. Courts, PROs, and distributors all require formal documentation — on paper, signed, and dated — before they will recognise any change of ownership. Most collaborations start this way anyway: a handshake or a WhatsApp message, ignored while the track earns a modest amount. Then it lands a sync deal, goes viral, or gets licensed to an ad campaign, and every party's memory of "what we agreed" becomes a completely different number.
A producer and songwriter agree verbally to split a track 60/40. The track gets picked up by a TV show. The sync fee is €15,000. The producer's recollection is now 50/50. The songwriter remembers 70/30. With no signed split sheet, both parties pay lawyers. The legal costs consume the sync fee entirely.
Without a timestamped signed agreement, neither party can prove their share. Distributors will not re-register ownership mid-dispute. PROs will not re-allocate royalties until a court order or signed agreement is produced. The dispute freezes all payments to all parties, sometimes for years.