The Producer Declaration is used by a Record Label to obtain the ownership rights in the master recording when a producer signs a producer contract with the artist instead of signing directly with the record label. Independent labels and more and more major labels ask the artist to enter into the agreement with the producer making it the responsibility of the artist to oversee the services of the producer, pay the producer's fee from the money the label gives the artist and account to the producer for royalties. The most important rights a label needs from the producer is the  ownership in the masters as a work for hire and a warranty that the masters are original and will not infringe on the rights of any third party. 

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