recoupe

Recoupment, in the music industry, is when a record label pays for a musical artist's expenses, such as for recording and marketing, and later deducts an equal amount from the artist's royalties, which are between 15 and 20 percent of sales revenue.

Recoupment: The concept of recoupment allows the record label to apply artist royalties against the advance until the royalties equal or “recoup” the advance. Recoupment can also occur in publishing agreements in which a songwriter receives a recoupable advance.

Recoupable Costs means: (a) any and all advances which are paid to or on behalf of SPE by the distributor in connection with the Album and, if applicable, the Picture ("Album Advance"); and (b) any costs specifically incurred for music to be used on the Album and/or in the Picture which are paid by SPE or deducted by ...

The recoupment process is usually 100% of the songwriter's portion of the earned royalties being paid to the publisher until the balance is cleared. From that point on, all royalties earned from the works are split 50/50 with the publisher.

to reimburse or indemnify; pay back: to recoup a person for expenses. Law. to withhold (a portion of something due), having some rightful claim to do so.

: to make good or make up for something lost. also : recuperate.

See synonyms for recoupment on Thesaurus.com. noun. the act of regaining or getting something back, especially the equivalent of an amount invested, lost, etc.; recovery: We're relying on these key projects for recoupment of development costs and cash flow to fund further expansion.

Examples of recoup in a Sentence Movie studios can turn to video sales to recoup the costs of a movie that does poorly at the box office. She recouped only a portion of her investment.

: to make good or make up for something lost. also : recuperate. recoupable. ri-ˈkü-pə-bəl. adjective.

to get back money that has been spent or lost: It takes a while to recoup your initial costs when you begin a new business.

What that means is that whatever royalties you earn on records sold will not be paid until you recoup those advances. If you've earned more in royalities than you've taken in advances, then your account is recouped and everything is good.

Let's say one of the collaborators, Hayden, paid $2000 for the beat, or music video, etc. Hayden can now be paid back first - before the normal splits kick in for everyone else. Once the initial funds have been Recouped, the Splits will automatically go into effect for all other collaborators on the Split.