Legal Glossary

Enforceable. Once an agreement is binding, each side can be held to it.

In practiceOn keysig, nothing is binding until every party has signed. A draft binds no one.

The other side of the agreement. Any party that is not you.

In practicekeysig calls people 'parties' while you draft and 'signers' when you send. A counterparty is simply a party that isn't you.

A signature made electronically instead of on paper. Legally recognized in the US and most of the world.

In practicekeysig sends each signer a private signing link by email. The completed document carries a signing certificate.

The date the agreement starts applying. Not always the same day it is signed.

In practiceAn agreement can be signed today with an effective date in the past (covering work already done) or the future.

Signed by everyone. Once an agreement is executed, it is in force.

In practicekeysig's interface says 'Signed'; 'executed' is the word the documents themselves use for the same state.

Your saved profile details: legal name, PRO, IPI, publisher. keysig fills them into every agreement so you type them once.

A person or company named on the agreement and bound by it once they sign.

In practiceEvery keysig agreement needs at least two parties. The parties named in the document are exactly the people who sign it.

A marked-up copy of the agreement showing the changes the other side wants.

In practiceThe redline loop: you send a Word copy, their lawyer marks it up, and the changes come back for you to accept or reject.

A party who signs. On keysig, every named party signs, and you always sign first.

In practice'Party' is the drafting-time word and 'signer' is the sending-time word for the same person.

The private link keysig emails each signer. Opening it shows them the agreement and lets them sign it.

Taking back a sent agreement before everyone has signed. The signing links stop working and it returns to an editable draft.

In practiceWithdrawing is the right way to make changes after sending: take it back, edit, and send again. Signatures already collected no longer count.

A person who signs only to confirm they watched the parties sign. They are not bound by the deal itself.

In practiceMost music agreements don't need witnesses; the role exists for documents where an extra attestation is wanted.

A recording agreement where the label receives a percentage of ALL artist revenue streams (touring, merchandise, endorsements, and publishing), not just music sales.

In practice360 deals emerged in the 2000s as labels sought to share in artists' diverse revenue streams. While they may offer larger advances, they reduce your overall earnings percentage.

Watch outHigh-risk clause: reduces all revenue streams, not just recorded music

Working out which music agreement fits your situation. Ask whether it is about the song (composition), the recording (master), using existing music, keeping something private, or getting paid, and the right document follows.

In practiceSome situations need more than one document. A producer who co-writes needs both a producer agreement (for the master) and a split sheet (for the composition).

An arrangement where a songwriter retains a portion of their publishing rights (often 50%) while assigning the balance to a publisher in exchange for services and advances.

In practiceThe writer retains the "writer's share" (50% of performance royalties paid directly by PRO) regardless. The co-publishing deal affects the "publisher's share."

Watch outBetter than a full publishing deal: you retain partial ownership

Your right to approve creative decisions about your work. It can mean anything from being asked to having the final say, so the wording matters.

In practiceVaries from consultation to full approval rights.

Watch outNegotiate for approval rights where possible

A contract governing the delivery of recordings to streaming platforms, retailers, and physical outlets, specifying revenue splits, term, and territory.

In practiceIndie distributor splits are typically 15 to 30% for digital. Look for non-exclusive terms, transparent reporting, and rapid settlement cycles. Avoid perpetual term agreements.

Watch outPrefer non-exclusive agreements with clear termination rights

The deal for when one artist appears on another artist's track (the "feat." on the title). It sets the fee, any royalty, how the feature is credited, and the rights to use their name and image to promote the release.

In practiceFeature royalties, when a royalty is given at all, often fall in the 10 to 25 percent range of the master, though plenty of features are fee-only.

Business arrangement where parties share profits and control.

In practiceAlternative to traditional label deals.

Watch outShared ownership and control

Your exit if your person leaves. You name the individual you are signing to, and you can end the deal if they go.

In practiceKey person clauses protect artists from being handed off to managers or executives they didn't choose. Name the individual and specify the termination window after their departure.

Watch outProtective. Name the specific person you are signing to

Marketing and admin services without requiring master ownership.

In practiceAWAL, Ingrooves offer label support while you retain ownership.

Watch outMiddle ground between label deal and pure distribution

A contract between an artist and a personal manager governing the manager's role, commission rate, term, and scope of representation.

In practiceStandard commission is 15 to 20% of gross income. Managers typically want a long term; artists benefit from short initial terms with renewal options. Sunset clauses, key man provisions, and scope definitions are critical.

Watch outCommission applies to all income: scope and sunset clauses are essential

Label or publisher's obligation to release or promote minimum works.

In practiceProtects against shelving your work.

Watch outDemand quantifiable minimums

Their right to keep you. The other side, not you, decides whether the deal runs for another round.

In practiceGives them control over future projects.

Watch outLocks in future work. Negotiate terms carefully

A guarantee that the label will release your work within a specified timeframe, or rights revert to you.

In practicePrevents labels from shelving your work indefinitely.

Watch outEssential protection. Negotiate release commitments

A legal authorization allowing one party to act on another's behalf in specified matters. In music, often limited to registering works or signing specific documents.

In practiceA broad power of attorney is risky. Ensure it is limited to specific, defined actions rather than authorizing open-ended decisions.

Watch outLimit scope precisely; broad POA carries significant risk

A contract between a recording artist (or label) and a music producer governing creative services, producer points, advance, and rights.

In practiceDefines whether the producer is a work-for-hire employee (no royalties) or an independent contractor earning points. Also covers sample clearance responsibility and credit requirements.

Watch outDocument all producer relationships: verbal agreements lead to disputes

A contract between a songwriter and a music publisher governing the ownership, administration, and licensing of musical compositions.

In practiceRange from full publishing deals (publisher takes 50% or more of ownership) to admin deals (publisher takes 10 to 25% fee, writer keeps all ownership). The spectrum matters enormously to long-term earnings.

Watch outUnderstand ownership vs. administration: they are not the same

A contract between an artist and a record label (or distributor) governing the creation, delivery, ownership, and commercial exploitation of sound recordings.

In practiceThe most significant agreement most artists will sign. Covers master ownership, royalty rates, advances, options, territory, and obligations for both parties.

Watch outOne of the most consequential documents in an artist's career: get legal counsel

The written permission from a rights holder to use a portion of their work in a new recording. It names the exact portion used, the rights being granted, the territory, the term, the media, and what is being paid.

In practiceA sample of a released record normally needs two of these: one from whoever controls the master recording, and one from whoever controls the composition. The rights holder can simply say no, so ask before the release is locked.

Watch outA clearance only covers the rights it names. Anything it does not name is still uncleared.

A contract between people who wrote a song together. It records the ownership splits the way a split sheet does, and adds credit protection, originality warranties, and rules for how changes get handled.

In practiceUse a split sheet for a quick, friendly co-write, and a songwriter agreement when the stakes are higher, the relationship is newer, or you want real protection.

Agreement where advances increase with each option period.

In practiceRewards success with higher advances for subsequent projects.

Watch outUnderstand step-ups and triggers

A smaller share a manager keeps earning on deals they set up, for a while after the agreement itself has ended.

In practiceUsually 1 to 3 years after the agreement ends, sometimes on a declining schedule.

Watch outLimits post-term obligations

A contract granting permission to synchronize a musical work with visual media, specifying the use, territory, media, term, and fee.

In practiceA full sync placement requires two agreements: a sync license for the composition and a master use license for the recording. Both typically needed from separate rights holders.

Watch outEnsure both composition and master licenses are secured for any placement

A document where someone who appears on camera gives written permission to use their image and likeness in your video or content. Anyone under eighteen needs a parent or guardian to sign.

In practiceFor a music video with several performers, collect a release from each recognizable person up front rather than chasing them after the shoot.

Handing ownership over for good. Unlike a license, the right leaves you and does not come back.

In practiceDeals often assigned to affiliated entities or successors.

Watch outWant consent rights before assignment

Using the work in any way that earns money: sales, streams, downloads, licensing, merchandise, and everything similar. Royalties are usually calculated on the income this produces.

In practiceRoyalties and points are usually calculated on the income commercial exploitation produces, so this phrase defines the pot the percentages come out of.

What each side gives the other to make the agreement enforceable: money, services, or rights. A contract needs consideration flowing both ways.

Separate signed copies of the same agreement. Everyone signs their own copy, and together they count as one.

Being locked to one side. While the agreement runs, you cannot do the same kind of work with anyone else.

In practiceCommon in label deals. Negotiate carve-outs for collaborations.

Watch outLimits flexibility. Negotiate carve-outs

In a contract this is a neutral word: to use the work commercially in any money-making way, like selling, streaming, licensing, or promotion. It does not imply anything unfair.

Acting honestly and fairly, without trying to defeat the spirit of the deal on a technicality.

Legalese for "by this document, right now". "Producer hereby grants" means the grant takes effect the moment the agreement is signed.

Legalese for "in this document".

Legalese for "under this agreement", meaning as a result of what this agreement sets up.

Cannot be taken back. Once an irrevocable right is granted, the person who granted it cannot cancel or undo it later.

In practiceGrants in work-for-hire deals, releases, and licenses are often irrevocable. Read what is being granted carefully before signing, because there is no changing your mind afterward.

Watch outAn irrevocable grant is permanent. Be sure of the scope before signing

An MFN clause ensures that if one party receives better terms, all parties with MFN status must receive the same terms.

In practiceCommon in producer agreements.

Watch outProtective. Ensures parity with other parties

Set by law rather than negotiated. A statutory rate or statutory right comes from legislation and applies whether or not the contract mentions it.

Keeps applying even after the agreement ends. A clause that survives termination, like confidentiality or an earned commission, outlives the deal itself.

How long the agreement runs before it ends or renews.

In practiceShorter terms with options are preferable. Understand whether based on years, releases, or both.

Watch outShorter terms with options give you more leverage

The part of the world an agreement covers.

In practiceDigital releases are typically worldwide. Physical may vary.

Watch outWorldwide is standard for digital

Legalese for "of that", pointing back at the thing the sentence just mentioned.

A private dispute resolution process in which a neutral arbitrator issues a binding decision. Faster than litigation but eliminates the right to appeal and may waive class-action rights.

In practiceMany music contracts require binding arbitration. The AAA (American Arbitration Association) administers common rules. Arbitration is generally final and cannot be appealed on the merits.

Watch outBinding: no meaningful appeal; waives jury trial

Breaking a promise the agreement contains. A breach can entitle the other side to compensation or, if serious enough, to end the agreement.

The specific information the agreement requires to be kept private. The agreement itself defines what counts, and the definition is worth reading closely.

An obligation to keep specified information private and not disclose it to third parties. Common in NDAs, management agreements, and any deal involving sensitive financial or creative information.

In practiceConfidentiality obligations typically survive the termination of the agreement for a defined period. Ensure the definition of "confidential information" is specific enough to be enforceable.

Watch outDefine what is confidential precisely; carve out publicly available information

Fixing a breach within the allowed window. "Fails to cure" means the problem was not put right in time, which usually unlocks the other side's right to end the deal.

A false statement presented as fact that damages someone's reputation. Appearance releases often waive defamation claims for the uses the release permits.

The agreed process for resolving disagreements, from informal negotiation, to mediation, to binding arbitration, or litigation in court.

In practiceArbitration clauses often waive your right to jury trial and class actions. Understand what you are agreeing to before you sign.

Watch outArbitration waives jury trial rights. Understand the trade-off

What is written is all of it. Anything promised in a call or an email but left out of the document does not count.

In practiceAfter signing, you cannot rely on side conversations or email promises that are not in the contract.

Watch outEverything agreed must be in writing. Verbal promises have no legal effect

Nobody's fault. If something neither side could control stops the work, like a disaster, neither side is blamed for it.

In practiceStandard provision for natural disasters, pandemics, etc.

Watch outStandard. Understand impact on obligations

Which state's rules apply when reading the agreement or settling a dispute about it.

In practiceGoverning law often pairs with a venue clause specifying where disputes must be litigated. Negotiate for your home jurisdiction where possible.

Watch outNegotiate for your home jurisdiction where possible

A promise not to blame. You agree not to come after the other side for the things the agreement lists.

A promise to cover the other side's losses and legal costs if a claim comes out of something you were responsible for.

In practiceCommon in all agreements regarding copyright claims.

Watch outStandard. Understand scope of indemnity

Court order requiring party to do or stop doing something.

In practiceCan stop releases that infringe your rights.

Watch outEnforcement mechanism for protecting rights

A claim about your private life, image, or information being used without permission. An appearance release usually signs it away for the uses it names.

What you look like: your image, photo, or any recognizable depiction of you. A likeness right controls how your appearance can be used commercially.

In practiceVideo releases and promotion clauses grant the use of your name and likeness. Check what uses are covered and for how long.

An agreed price for breaking the deal. Both sides fix the number in advance instead of arguing about it later.

In practiceMust be reasonable estimate of actual damages.

Watch outProvides certainty about breach consequences

Breaking the agreement in a way that goes to the heart of the deal, not a technicality. A material breach usually lets the other side end the agreement.

In practiceTermination clauses often require a material breach that stays uncured (unfixed) after written notice before the agreement can be ended.

A nondisclosure agreement. Everyone who signs agrees to keep the named information private.

In practiceMutual NDAs provide equal protection. Unilateral NDAs protect only one party.

Watch outMutual NDAs are fairer; ensure duration and scope are defined

Giving up the right to complain later. By signing, you agree not to bring a claim about the things the document lists.

In practiceA release is difficult to undo. Understand precisely what claims you are giving up before signing. Broad language like "any and all claims" should be narrowed to specific subject matter.

Watch outWaives future legal rights: define scope carefully

A formal promise that stated facts are true, for example that you actually own what you are granting. If the promise turns out false, the other side can hold you responsible for the consequences.

In practiceIf a warranted fact turns out false, the other side can hold you responsible for the fallout, which is what the indemnification clause is usually about.

Watch outOnly warrant facts you actually know to be true

The legal right of an individual to control commercial use of their name, image, likeness, and voice. Governed by state law in the US.

In practiceVideo release agreements and endorsement deals implicate right of publicity. Limit any consent in scope, territory, and duration.

Watch outLimit scope, duration, and media uses when granting any consent

One bad part does not sink the rest. If a court strikes out one line, the other lines still hold.

In practiceSeverability protects the entire contract from collapsing if a single clause is struck down.

Watch outStandard protective clause, low risk

Damages set by law for copyright infringement.

In practiceAvailable only if work was registered before infringement.

Watch outRequires timely registration

Giving up a right. Letting something slide once does not mean you have given up the right for good.

A promise in the agreement that certain facts are true, for example that the work is original and yours to give.

In practiceYou'll warranty your work is original and doesn't infringe others.

Watch outEnsure you can stand behind warranties

The song itself, the melody and the lyrics, as opposed to any particular recording of it.

In practiceEvery track carries two copyrights: the composition and the master recording. Splits, publishing, sync, and sample clearance all turn on which of the two is in play.

Watch outAlways know whether a deal covers the composition, the master, or both

The legal ownership of a creative work. A track carries two: one in the recording, one in the song underneath it.

In practiceA track carries two copyrights: one in the recording (the master) and one in the song underneath it (the composition).

Right to terminate copyright transfers after 35 years under US law.

In practiceSection 203 allows creators to reclaim rights.

Watch outPowerful reversion tool

Something new built on something existing. A remix, an edit, or an arrangement of someone else's song is one.

In practiceRemixes, arrangements, and sampled works are derivatives.

Watch outRequires permission from original holder

Legal doctrine allowing limited use without permission for certain purposes.

In practiceMusic sampling rarely qualifies as fair use.

Watch outObtain licenses instead of relying on fair use

Work created by multiple authors intending their contributions be merged.

In practiceEach co-writer can license entire work subject to accounting.

Watch outUnderstand joint work doctrine implications

The actual sound recording of a track, as opposed to the composition (the song) written underneath it. The two are separate copyrights and can be owned by different people.

In practiceWho owns the master is fundamental. Artists often sign away master ownership to labels in exchange for advances and distribution.

Watch outMaster ownership is critical. Negotiate reversion or co-ownership if possible

Your name on your work, and a say in how it is changed. US law gives musicians very little of this.

In practiceIn the US, moral rights apply mainly to visual art. In music, they are mostly waived contractually. European artists have stronger protections.

Watch outLimited in the US, important in international deals

Work nobody owns any more. Copyright has run out, so anyone can use it without asking.

In practiceCan be used freely.

Watch outYour new version may have its own copyright

Your rights coming back to you. If the other side does not deliver, or enough time passes, what you granted returns.

In practiceCommon triggers are the publisher failing to release or earn anything within a set time. It is a term you negotiate, and separate from the 35-year termination right in US copyright law (see Copyright Termination).

Watch outPowerful protection. Negotiate reversion clauses

The complete ownership package: every right the owner has in the work. Transferring "all right, title, and interest" means keeping nothing back.

In practiceThis phrase appears in assignments and work-for-hire agreements. It is the strongest form of transfer there is.

Watch outThis is a total transfer. Be certain that is the deal you want

Whoever owns or controls the rights you need permission for. Often a label for recordings and a publisher for songs.

In practiceIn a sample clearance, the rights holder is the person or company whose permission you need, and the two rights are frequently held by different ones.

An arrangement where whoever pays becomes the full legal owner from the start, and the person who made it keeps nothing.

In practiceWork-for-hire is permanent and irrevocable. You cannot later reclaim rights under copyright termination.

Watch outHigh-risk: permanently surrenders all ownership and moral rights

One license covering a whole catalog. A radio station pays once and can play anything in it, instead of clearing song by song.

In practiceVenues and broadcasters obtain these from PROs.

Watch outStandard licensing model for PROs

Written permission to use something somebody else owns.

Permission to use a sample given for free, usually as a favor or in exchange for the credit.

Only they can use it. Non-exclusive means you stay free to license the same thing to other people as well.

Rights to perform dramatic works incorporating music.

In practiceDifferent from small rights licensed by PROs.

Watch outNegotiated individually for theatrical works

Re-recording part of an existing song instead of lifting the original audio. The recording is yours, but the song underneath still needs permission.

In practiceAvoids master rights issues but still requires composition permission.

Watch outRequires composition license only

Permission to use something the owner keeps owning. Unlike a sale, nothing changes hands permanently.

Duration for which a license is granted.

In practiceSync licenses typically specify term or perpetuity.

Watch outUnderstand duration and renewal terms

The side getting the permission to use it.

In practiceIn a sync license, the film or ad producer is the licensee.

The side giving the permission. They own what is being licensed.

In practiceIn a sync license, the artist or rights holder granting the use is the licensor.

Permission to use a specific sound recording in media. Required alongside a sync license for any visual media placement.

In practiceSeparate from sync license. Both needed for placement.

Watch outRequired alongside sync license

Permission to reproduce and distribute a musical composition. Required for releases of compositions you do not own.

In practiceRequired for releases of compositions you don't own.

Watch outUse Harry Fox or MLC for licensing

You stay free to license the same thing to other people as well. Exclusive would mean only they can use it.

In practiceSample clearances are almost always non-exclusive: the rights holder keeps the freedom to clear the same work for other artists. Exclusivity costs far more and is rarely on offer for a sample.

A license granted for each specific use of a musical work, as opposed to a blanket license. More common in advertising and production library contexts.

In practicePer-use licensing allows for precise fee negotiation but requires clearance for every use.

Watch outMore negotiating leverage per placement than blanket deals

Forever. It never expires.

In practiceAs a creator, prefer time-limited licenses with renewal options so you can renegotiate as the work's value changes.

Watch outPerpetual grants limit your future renegotiation leverage

Permission to print lyrics or sheet music.

In practiceLess common in streaming era.

Watch outTraditional licensing stream

A piece of an existing recording reused inside a new track. Using one normally requires clearing both the recording and the composition.

In practiceRequires clearance from both master and composition holders.

Watch outMust clear before release to avoid infringement

Written permission to use a piece of an existing recording. It usually takes two permissions: one for the recording, and one for the song underneath it.

In practiceRequires permission from both master owner and composition holder.

Watch outFailure to clear can result in injunctions and blocked release

Rights for non-dramatic public performance of music.

In practiceWhat PROs license: radio, streaming, live venues.

Watch outBasic performance rights collected by PROs

Short for synchronization: putting music into video, like film, TV, ads, or games. It needs permission for both the song and the recording.

One-time payment for synchronizing music with visual media. Can range from hundreds to hundreds of thousands depending on usage scope and prominence.

In practiceNegotiated based on usage scope. Can range from hundreds to hundreds of thousands.

Watch outCan be significant income. Negotiate carefully

Permission to put a song into video, like film, TV, ads, or games. The recording usually needs its own separate permission.

In practiceSync fees are negotiated individually and can range from hundreds to millions of dollars.

Watch outEnsure you have both master and sync rights or negotiate clearly

The right to synchronize music with visual media. Requires both master and publishing permissions.

Money paid up front, before the earnings exist. It is usually recoupable, meaning it comes back out of what you earn later.

In practiceIn recording and publishing agreements, advances are standard practice. Understanding recoupment is critical: you won't see additional royalties until the advance is fully recouped.

Watch outStandard practice, but ensure clear recoupment terms

Your right to check the books. You can inspect the other side's records to see the payments you were given are right.

In practiceEssential for ensuring you're paid correctly.

Watch outEssential protection. Always retain audit rights

One flat payment that covers everything, with no ongoing royalty afterwards.

In practiceExchanges ongoing royalties for larger upfront payment.

Watch outEvaluate if buyout is beneficial

The percentage of your earnings a manager takes as their pay.

In practiceUnderstand exactly what income streams are commissionable. Managers typically commission touring, recording advances, sync fees, and endorsements.

Watch outNegotiate exclusions for income earned before the management relationship

A cap on your own songs. The label pays you less than the standard rate for the songs on your record that you wrote.

In practiceLabels often cap rates at 75% of statutory for your own songs.

Watch outReduces your mechanical royalties. Negotiate for full rate

One project's debt eating another's earnings. Money your new record makes can go to pay off the last record's advance.

In practiceThis can lock you into debt across multiple albums or deals.

Watch outReduces your income across projects. Negotiate to limit

Royalty rate increase triggered by achieving sales thresholds.

In practiceRewards commercial success with higher rates.

Watch outNegotiate achievable thresholds

A share of everything that comes in, before any costs are taken off.

In practiceThe difference between gross and net can be dramatic once deductions are subtracted. Always clarify which basis applies.

Watch outGross basis is more favorable. Push for it over net

A bill you send for music work you did, requesting payment and creating a record of what is owed. Good invoices state clear payment terms and, for larger jobs, a deposit.

In practiceFor music work, "due on receipt" or net 15 terms get you paid faster than defaulting to net 30.

A payment made to a creator when a project is cancelled after work has begun. Compensates for time and effort even though the deliverable will not be used.

In practiceKill fees are typically 50 to 100% of the full project fee. Confirm the trigger conditions in your agreement.

Watch outEnsure kill fee is specified and adequate for your time investment

Manufacturer's suggested retail price for royalty calculations.

In practiceUnderstanding price basis is essential.

Watch outClarify your deal's price basis

Money a song earns when it is reproduced, which today mostly means streams and downloads.

In practiceIn the US, the statutory mechanical rate is set by law. Streaming services pay mechanicals through the MLC.

Watch outStandard royalty, ensure proper collection through PRO and MLC registration

Money a recording earns when it plays publicly, paid to the performers on it. Separate from what the songwriters earn.

In practiceSoundExchange collects these for satellite and internet radio.

Watch outImportant revenue for performers

Payment is due 30 days after the invoice date. Net 15 and Net 60 work the same way with different windows.

A share of what is left after the agreed costs have been taken off.

In practiceContracts should list every permitted deduction. Vague language like 'reasonable costs' can be exploited.

Watch outDefine permitted deductions precisely to protect your earnings

A rate that moves with the format. It sets what you are paid when your music turns up on something that did not exist when you signed.

In practiceAddresses future formats.

Watch outNegotiate fair treatment for new technologies

Reduction applied to royalty base for packaging costs.

In practiceTypically 15 to 25% for physical sales.

Watch outReduces physical royalties. Negotiate lower rate

Royalties paid to songwriters and publishers when their music is performed publicly, collected by PROs like ASCAP, BMI, and SESAC.

In practiceCollected by PROs (ASCAP, BMI, SESAC, Global Music Rights) and distributed to writers and publishers.

Watch outRegister with a PRO to collect performance royalties

The industry's word for a producer's share of what a recording earns. One point is 1%.

In practiceMost producer deals are 3 to 5 points, paid out of the artist's royalty rate.

Watch outPoints come out of your royalty rate. Negotiate total rate inclusive

Published Price to Dealers: wholesale price used for royalty calculations.

In practiceCommon basis for royalty calculations.

Watch outUnderstand your deal's price basis

A royalty structure where producers are paid from the very first sale or stream, rather than after the label's advance is recouped.

In practiceMost standard deals pay producers from record one. Artists often do not receive record-one treatment.

Watch outProducers usually get record one; artists often do not

Paid back out of future earnings. A recoupable payment comes off what you are owed later, before you see any of it.

Paying an advance back out of earnings. Until it is fully paid back, no further money is handed over.

In practiceRecoupment can be cross-collateralized across multiple albums or works, meaning earnings from one project can be applied to advances from another.

Watch outWatch for cross-collateralization clauses

Allowances for product returns held from royalty payments.

In practiceStandard practice. Should be released after specified period.

Watch outStandard. Limit percentage and ensure release schedule

Provision allowing label to recoup production costs from artist royalties.

In practiceLess common now but can significantly reduce earnings.

Watch outHigh-risk: reduces effective royalty rate

An ongoing share of what a work earns, paid out as the money comes in.

In practiceRoyalties only reach you if ownership is documented and your songs are registered with your PRO under the correct splits.

The percentage of revenue you receive from sales, streaming, or other exploitation.

In practiceRates vary widely. Negotiate for escalations based on thresholds.

Watch outUnderstand base rate and escalations

Suggested Retail List Price: alternative royalty basis.

In practiceSame percentage on SRLP equals higher effective rate than PPD.

Watch outCompare to PPD calculations

Unclaimed or unmatched royalties when ownership can't be determined.

In practiceProper registration prevents royalties going to black box.

Watch outEnsure works are properly registered

A collective management organization, the umbrella word for the organizations that collect royalties for you. Your PRO, your NRO, and the MLC are all CMOs.

In practiceYour CMO registrations are your PRO (performance, compositions), your NRO (neighboring rights, masters), and the MLC (mechanical, compositions).

Watch outRegister with all three types so no royalty slice goes uncollected

The list of every piece of music in a film or show, with who wrote it. Your PRO needs it to pay you for the broadcast.

In practiceEssential for performance royalty collection from broadcasts.

Watch outEnsure cue sheets are filed for broadcast uses

A songwriter's unique ID number, issued by their PRO. It is how royalties get routed to the right person.

In practiceIPI stands for Interested Parties Information. Ask your PRO for yours; it is on your membership record.

Watch outEssential for PRO registration

A code that identifies one specific recording.

In practiceISRCs are assigned by your distributor. Essential for tracking streams and sales across platforms.

Watch outEnsure all releases have ISRCs for proper credit and payment

A code that identifies one specific song, whoever records it.

In practiceHelps track compositions across recordings.

Watch outUseful for proper crediting

The Mechanical Licensing Collective. It collects the money songs earn from US streaming and pays the writers and publishers.

In practiceRegister with the MLC to receive streaming mechanical royalties. One of the three CMO types.

Watch outEssential for digital mechanical collection

A neighboring rights organization. It collects royalties on recordings for the performers on them. In the US that is SoundExchange.

In practiceSession players and featured performers on a master recording register with an NRO. One of the three CMO types.

Watch outPerformers leave master-side royalties uncollected without an NRO

A performing rights organization, like ASCAP or BMI. It collects performance royalties on songs and pays them to the writers.

In practiceASCAP, BMI, SESAC, and Global Music Rights are US PROs. One of the three CMO types.

Watch outCannot collect performance royalties without PRO membership

The US organization that collects digital performance royalties on recordings. It pays performers and recording owners, separately from any PRO.

In practiceEssential for performers to collect master-side digital performance royalties.

Watch outEssential registration for performers

Universal Product Code: a barcode assigned to a release (album, EP, or single) for retail and distribution identification.

In practiceYour distributor assigns a UPC to each release. It is used for SoundScan/Luminate chart tracking, physical retail, and digital storefront listings.

Watch outRequired for all commercial releases

A deal where a company collects your song money for a percentage while you keep full ownership.

In practiceTypically 10 to 25% administration fee. Maximum ownership retention.

Watch outMaximum ownership retention, ideal for experienced writers

What a publisher or administrator charges to collect your money for you. It is a cut of what they collect, not of what you own.

In practiceAdmin deals let you retain full ownership while paying someone to collect. Compare admin fee to what you'd give up in a co-publishing deal.

Watch outStandard range is 10 to 25%; above 25% is unfavorable

A company paid a percentage to collect and manage song money on the owner's behalf, without taking any ownership.

An arrangement where a songwriter retains part of their publishing (often 50%) and partners with a publisher for the other portion.

In practiceAllows writers to keep ownership of a portion (often 50%) while getting publisher services.

Watch outRetains partial ownership while getting publisher support

The business of managing and monetizing the composition (the song, as opposed to the recording): registering it, collecting what it earns, and working to earn more, in exchange for a share or a fee.

In practiceA full publishing deal trades a bigger share for an advance and active work; an admin deal keeps your ownership and charges a smaller fee just to collect.

A company that owns or manages songs and collects the money they earn. Plenty of writers publish themselves instead.

The half of a song's performance royalties that goes to the publisher. If you publish yourself, you collect this half too.

In practicePublishers collect the publisher's share through their PRO registration. In a full publishing deal you assign your publisher's share.

Watch outNegotiate to retain as much publisher's share as possible

The business side of the song itself rather than the recording. Publishing money flows to whoever wrote and owns the song.

In practiceSongwriters earn publishing royalties regardless of who owns the master.

Watch outUnderstand which rights you are granting and for how long

No outside publisher. The writer keeps ownership of the song and collects its money themselves.

In practiceOn split sheets and songwriter agreements, writing 'Self-published' in the publisher field is the normal answer for an independent writer.

A publisher in another country that your own publisher works with to collect your song money there.

Publisher licensing works to local publisher in foreign territory.

In practiceEssential for international royalty collection.

Watch outEssential for international collection

The half of a song's performance royalties that goes to the songwriter. Your PRO pays it to you directly, even if you have a publisher.

In practicePROs typically split performance royalties 50/50 between writer and publisher. In a publishing deal, you negotiate how much of the publisher's share you retain.

Watch outEnsure you are registered to collect your own writer's share

The instrumental a producer makes, before anyone writes over it.

Everything you have made, your tracks and songs as one body of work.

Actually putting the record out, through the shops and streaming services people use.

In practiceLabels obligated to provide commercial release.

Watch outDefine what constitutes commercial release

A credit line naming another artist's label, like "appears courtesy of XYZ Records". Labels often require it when their artist features on someone else's track.

What you actually hand over, and when. For a producer that is usually the final mix plus stems.

Getting your music onto the shops and streaming services. The distributor takes a cut of what comes in.

In practicePercentage typically 15 to 30% for digital distributors.

Watch outUnderstand exclusive vs non-exclusive terms

Percentage retained by distributor from earnings.

In practiceTypically 15 to 30% for digital.

Watch outCompare fees across distributors

A guest artist appearing on another artist's track, usually with a "feat." credit.

In practiceA featured artist agreement covers the guest's fee, any royalty share, how the credit reads, and promo rights.

The finished version of the recording, with every part balanced and ready to release.

A track with no vocals on it. A topline writer writes the melody and words over one.

The printed credits that come with a physical record. Who played, who wrote, who produced.

Specific promises by label to market your work.

In practiceGet specific budget amounts in writing.

Watch outNegotiate measurable commitments

The credits and details attached to your release on the streaming services. It is where a digital credit actually lives.

Person or company that pitches songs to artists and supervisors.

In practiceCommon in UK and some territories.

Watch outUnderstand fee/commission structure

Whose track it is. The artist the release goes out under, as opposed to a guest featured on it.

Efforts to get music played on radio stations.

In practiceLabels may spend $50,000 to $300,000 or more on campaigns.

Watch outEssential for certain genres

Budget for recording costs managed by artist.

In practiceUnspent funds may revert to label.

Watch outFlexible but understand reversion

A musician hired to play on a recording for a fee, without owning any of it.

In practiceSession work is normally a flat fee under a work-for-hire arrangement, sometimes with neighboring rights royalties collected through SoundExchange.

How ownership is divided between the people who made something, in percentages that add up to 100.

In practiceComposition splits and master splits are separate: who wrote the song and who owns the recording are two different questions.

Watch outAgree splits in writing early, while everyone still agrees

A short agreement putting in writing who owns what percentage of a song. Filling one out early, while everyone still agrees, prevents the classic dispute later.

In practiceSplit sheets should be completed immediately after writing a song to prevent disputes.

Watch outAlways complete split sheets before releasing a song

The separate layers of a recording, like the vocal, drums, and instruments, delivered as individual audio files.

In practiceProducer and work-for-hire deals often require delivery of stems alongside the final mix so the client can remix or edit later.

Budget for studio time, producers, engineers.

In practiceExceeding allowance may be your responsibility.

Watch outUnderstand limit and overage handling

Limited copies made to check quality before full production.

In practicePrecedes full manufacturing.

Watch outQuality control step

The melody and lyrics written over an existing beat or instrumental.

In practiceA topline writer contributes to the composition even though they didn't make the beat, which is why split sheets list topline as a contribution.

Financial support from label for touring expenses.

In practiceMay be recoupable from recording royalties.

Watch outHelpful but clarify if recoupable

Funds allocated for music video production.

In practiceCan range from minimal to hundreds of thousands.

Watch outUnderstand if recoupable