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How to Save Music Recording Contract in PPR

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Damian Keys discusses the evolving nature of recording contracts in the music industry, highlighting the common aspiration of artists to secure major label deals. He addresses the complexities of modern contracts, noting that many big-name artists experience significant financial losses after signing. While not a lawyer, Keys regularly reviews diverse recording contracts and aims to explain their key components. The video will cover what a record contract entails and critical factors artists should consider to avoid negative outcomes and become another cautionary tale in the industry.

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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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