Are there any cons for partially owning master recording rights?

Question

I recently signed a music publishing deal and the artist who will sing my song, who also owns his own label, told me that I can partially own the masters even though I am just a songwriter and I do not monetize the recording production or promotion.

James L. Arrasmith · Answer

While owning master recording rights can be valuable, there are several potential drawbacks to consider when accepting partial ownership of masters as a songwriter. 
 
The main challenge is that you'll share responsibility for recording costs, marketing expenses, and any legal issues related to the master recordings - even though you're not directly involved in these aspects. This means you could be liable for unexpected expenses or legal complications that arise from the recording and distribution process, despite having limited control over these decisions. 
 
Additionally, partial master ownership can complicate your relationship with other potential collaborators or labels in the future. Some artists or labels might hesitate to work with you if they know you have existing master ownership arrangements with another party. You'll also need to carefully review the specific terms of the agreement to understand how decisions about licensing, distribution, and revenue sharing will be handled between all partial owners. 
 
Moreover, tax implications and accounting responsibilities become more complex with partial master ownership. Before accepting such an arrangement, you should consult with both an entertainment lawyer and tax professional to fully understand your obligations and ensure the agreement truly benefits you as a songwriter.

Q: Are there any cons for partially owning master recording rights?