Monday, March 22, 2010

Music Business/Law Tips - Accounting/Royalties (Part 1)

An artist signed to a label and who has commercially released a record will look forward to the day when he or she can be paid royalties. The process by which an artist is paid royalties is called an "accounting". Incidentally, the accounting process discussed herein is also applicable to a songwriter with a publishing deal.

Accountings are generally made twice a year, within sixty to ninety days after the close of each calendar six-month period. The cut-off for the six-month periods are usually - but not always - June 30th and December 31st. Sometimes, labels make quarterly accountings, which is better for the artist because the waiting time for monies is less. However, on the flip side, some labels account only once per year. When an artist is accounted to, in addition to receiving a check (if any records were sold), he or she will normally receive a statement showing record sales and how the royalties were calculated. Because the artist will only receive royalties on records actually sold, as opposed to records shipped, in some instances an artist has to wait a long time to be paid.

The record contract usually will contain language which allows the artist to "object" to the accounting. An objection occurs when the artist questions the accuracy of the accounting. In other words, the artist believes he or she has been ripped-off. It is important for the artist to understand that the contract will specify a specific time limit to object; otherwise, the accounting becomes final ("binding") and the artist waives the right to audit or sue the label for breach of contract. The objection period is generally stated as being one year after the statement is sent to the artist. The artist should attempt to increase the period to two or three years.

[part 2 next week]

Ben Mclane Esq
benmclane.com

21 comments:

  1. Useful post! I am too surprised to see this blog; I want to get more information can you please add more things? Accountant Amsterdam best online accounting software for small business Amsterdam, Zuid-Holland. Easy way to learn accounting.

    ReplyDelete
  2. This comment has been removed by the author.

    ReplyDelete
  3. I find this article is very informative and helpful. Thank you for sharing!


    Tax Profesional

    ReplyDelete
  4. Home improvement loans can suck the life out your house hunting experience. Find out why home improvement loans suck and what you can do to stop the suck. Buy Ansys Electronics 2020 R1

    ReplyDelete
  5. You can add value to your property by undertaking extensive home improvement projects which include getting your house re-painted, renovating bathrooms, revising design of your kitchen and construction of terraces and balconies. Even after completion of these projects, you would require a number of home improvement tools to maintain your house. Catia Composer R2020

    ReplyDelete
  6. We provide you with a table of all the emoticons that can be used on this application, and the meaning of each symbol. Though it might take some initial effort on your part, the skills garnered from regular and strategic use of social media will create a strong foundation to grow your business on ALL levels. solidworks 2018 upgrade

    ReplyDelete
  7. Are you looking information on how to fund a home based business? Here is what you need to know. From risky business to power couple partnership, discover why couples everywhere are learning the secrets to running a successful business together while deepening their relationship. Find out why couple entrepreneurs are building the lifestyle of their dreams and protecting their assets and how you can too, by starting a business, growing your relationship and learning to achieve success together. software sales

    ReplyDelete
  8. Social media for small businesses is a great way for emerging businesses to generate lead and build a reputation. If regularly updated, social media can deliver more results as compared to traditional mediums. Social media for small businesses gives brands an edge of control over the content that they want to post.Also, since social media is a two-way dialogue process, it helps businesses to instantly identify what is benefitting them. Social media for small businesses also helps generate Word of Mouth, which is one of the best tools for emerging businesses. Autocad at ProSoftStore

    ReplyDelete
  9. Fueling the growth of SEO is the nonstop improvement of technology-driven businesses like mobile phones, social media sites, and other Web-related industries, for they play a big role on SEO's earlier methods. Having mentioned this, it clearly shows how SEO acts as an Internet and Web-centered business, that whatever positively happens on the Internet will benefit the industry. Moreover, as industries become reliant and dependent on the Web, competition swells up as companies vie for rankings, mainly, on search engines. This solidifies the idea that as long as industries depend on the Web, and as long as they put their faith on search engines as an alternative to costly traditional advertising, the SEO industry will never fail to improve. buy seo backlinks

    ReplyDelete
  10. Fueling the growth of SEO is the nonstop improvement of technology-driven businesses like mobile phones, social media sites, and other Web-related industries, for they play a big role on SEO's earlier methods. Having mentioned this, it clearly shows how SEO acts as an Internet and Web-centered business, that whatever positively happens on the Internet will benefit the industry. Moreover, as industries become reliant and dependent on the Web, competition swells up as companies vie for rankings, mainly, on search engines. This solidifies the idea that as long as industries depend on the Web, and as long as they put their faith on search engines as an alternative to costly traditional advertising, the SEO industry will never fail to improve. link building network

    ReplyDelete
  11. Fueling the growth of SEO is the nonstop improvement of technology-driven businesses like mobile phones, social media sites, and other Web-related industries, for they play a big role on SEO's earlier methods. Having mentioned this, it clearly shows how SEO acts as an Internet and Web-centered business, that whatever positively happens on the Internet will benefit the industry. Moreover, as industries become reliant and dependent on the Web, competition swells up as companies vie for rankings, mainly, on search engines. This solidifies the idea that as long as industries depend on the Web, and as long as they put their faith on search engines as an alternative to costly traditional advertising, the SEO industry will never fail to improve. relevant backlinks

    ReplyDelete
  12. I like your writing style really loving this web site . 먹튀검증

    ReplyDelete
  13. Hi there are using Wordpress for your site platform? I’m new to the blog world but I’m trying to get started and set up my own. Do you require any html coding expertise to make your own blog? Any help would be greatly appreciated! 먹튀해방

    ReplyDelete
  14. I can understand that this is life during wartime, but many other films of this genre manage to squeeze in some hot babe scenes. 먹튀인포

    ReplyDelete
  15. Recently, I didnt give plenty of consideration to making comments on site page articles and have placed comments even much less. Reading via your enjoyable post, will help me to do so sometimes. 먹튀해방

    ReplyDelete
  16. Couldn?t be created any better. Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this report to him. Pretty certain he will possess a good read. Thanks for sharing! 먹튀폴리스먹튀

    ReplyDelete
  17. i wish to have some diamond necklace but they are quite expensive,, 먹튀

    ReplyDelete
  18. I was roaming Google for some cool music and videos of my favorite artists and I ran across your cool blog site, most on the time when I check out blogs I’m looking for anything particular and I leave right away after. But as part of your situation the info you’re giving in this write-up produced me wish to reply and show my appreciated, so We have bookmarked you blog as properly. Retain posting and thank you! =) 토토사이트

    ReplyDelete
  19. I visited a lot of website but I conceive this one holds something special in it in it 먹튀DISC

    ReplyDelete
  20. A business plan does more than describe your idea for a business venture. It is also a sales tool that portrays both you and your concept as viable and trustworthy. Your business plan is the road map to entrepreneurial success. In it you will provide details about your proposed products and services, the business model, plans for marketing and operations and the financial projections. Your plan will be tailored to the specifics of your nascent business and the audience that must be convinced of its viability, in particular lenders or investors. quitmasturbating

    ReplyDelete
  21. I discovered your blog post site on google and check a few of your early posts. Always keep in the great operate. I simply extra the RSS feed to my MSN News Reader. Looking for toward reading much more on your part at a later date!… 바카라사이트

    ReplyDelete