Personal Service Agreements Law and Legal Definition

A personal service agreement is an important legal instrument in the entertainment industry entered between an artist and a company that manufactures, promotes, and distributes the artist's goods or services. The agreement often binds the artist to create works or products for one company for a certain period of time. Personal service agreements are usually governed by statutes and are a subject of litigation because they lay out certain restrictions to the rights of artists. By entering into such an agreement, an artist’s right to perform or create work is limited to the company with whom they have contracted.

Personal service agreements are used by producers to bind artists for a certain time. Companies use such agreements as a measure to ensure that the artists who generate a profit for the company remain with them. These agreements are entered by artists in order to manufacture, market, and distribute their goods or services.

In some entertainment industries, personal service agreements are formed using options. Options give a producer the right to extend an agreement for several time periods. Under option contracts, producers can keep artists for many years, or to the extent the artists remain profitable.