From the course: Music Law: Recording, Management, Rights, and Performance Contracts

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Deductions

Deductions

From the course: Music Law: Recording, Management, Rights, and Performance Contracts

Start my 1-month free trial

Deductions

“

- You've heard the expression, "There's no such thing as a free lunch." In the music business, that is literally true. Artists are often surprised to find that the cost for the complimentary sandwiches and beverages provided at a record company reception, later mysteriously appear as an expense on the artist's royalty statement. Welcome to the world of deductions, sums that are subtracted from the artist's paycheck. These deductions are always expressed in the record contract, usually in the Payments or Royalties section. As you're probably aware, royalties are calculated by multiplying the artist's percentage or points against the incoming revenue. Deductions may be subtracted from the incoming revenue before the royalties are calculated, or in most cases, they're deducted from the royalties after they're calculated. The timing makes a difference. Deducting it before calculation is always better for the artist. For example, consider an artist with a 12% royalty, whose record…

Contents