Recoupment
Recovering advances and costs from royalties before sharing
Related
Recoupment is the recovery of advances, recording costs, marketing and other contractually allowed deductions from royalties; only after recoupment may the artist receive additional royalty shares. It is the distance between "the work earned money" and "the artist got paid".
The usual mistake is to assume high streams mean income: if the contract counts large costs as recoupable, streaming income can sit below the line for a long time. Ask the contract: which costs recoup, in what order, and whether they cross-collateralise across works.
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Sources
- 回本机制与合同扣项，参通行音乐产业教材；本文为通识说明，不构成法律意见
Used for fact-checking only; all prose is original.