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How to Save Music Recording Contract in PPR

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whats up guys damian keys here welcome back to the channel its every musicians dream to be signed to that major label have your own huge recording contract lambos private jets stadiums the problem is contracts have changed so much over the past few decades so what does it actually mean to have a recording contract in this day and age and why oh why to so many massive artists who are going through that process of having massive massive deals so utterly demonetized when they come out the other end now i am not a music industry lawyer but i do get sent record contracts from artists on a regular basis sometimes every single week and they all look completely different so today we are going to look at what is a record contract whats in a record contract and what are the things that you should look out for so that you dont become the next horror story statistic when it comes to being a massive artist falling out of favor with a label so if we want to look at recording contracts today we

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What is included in recoupable costs?

Recoupable Costs means the aggregate of (A) all monies paid to a Qualifying Artist as required under the applicable Recording Agreement (for example, a signing advance), but excluding royalties, video costs, tour support, extra-contractual advances and marketing and promotion costs, (B) all recording funds paid under a

What does recoupable mean in music?

Advances are typically not refundable by the artist or producer unless they are in bdocHub of their agreement. They are usually recoupable (see Recoupment), that is, recoverable by the record label by holding back future royalties (see Royalty) until the advance has been earned back.

What is a non recoupable fee?

A non-recoupable advance is a gift or bonus. While some people still mistakenly confuse an advance as free money, a non-recoupable advance is free money.

What happens if you get a record deal?

When you sign with a recording label, you are agreeing to make sound recordings and audiovisual recordings (i.e., music videos) exclusively for them. This means that during the Term of the contract, you cannot record or release music for anyone besides the label.

Can you leave a record deal?

The recording contract will usually require the artist to sign to the label exclusively. This means that they cant record for another label without permission, nor can they leave the contract if theyre unhappy. The label, however, remains free to sign and promote as many artists as it wishes.

Are recording costs recoupable?

Under a traditional recording deal, only recording costs are recoupable (and even that is not always the case). Under the net profit deal, marketing, promotion, tour support, recording costs, and corporate costs are all recoupable.

Is a record deal advance taxable?

AJE: Royalty advances are considered taxable income in the year they are received. When your label or publisher writes you a check, this is taxable income that must be reported. Typically, royalties received from the work you do are considered self-employment income.

Are recording budgets recoupable?

Recording Budgets / Marketing Spend: These are recoupable advances that you cant freely spend. Usually, in addition to cash advances, labels will establish these dedicated resource pools to cover the costs of making and promoting music.

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