omg! wOW john, only about an hour into this forum and you have answered my questions so well. Let me ask you though, why should I stipulate and make sure it's only recoupable from royalties? what other sources of revenue should I be weary of them recouping from and why?
sorry, may sound silly to you but it's the most complicated contract I've ever been through.
So the perpetual ownership is not perpetual ownership of the tracks themselves but the perpetual ownership of the actual sound recording? I don't understand that. Can I still release any of those individual tracks on another label, just not all those tracks together on another label? Kinda confused on that one.
And this is Royalties section of the contract, is this fine? Am I being shortchanged out of royalties from anything sold internationally? See "c."
4. ROYALTIES:
a. In consideration of the rights granted hereunder, pursuant to which Company causes
Records, LPs and/or EPs to be manufactured, Company agrees to credit to Artist’s
account a Royalty ("all-in", inclusive of Artist producers and any other royalty
participants) in an amount equal to fifty percent (50%) of the Net Profits, as defined
hereinbelow, derived from the exploitation of the rights granted to, and exercised by,
Company hereunder.
b. Company shall have the right to maintain reasonable reserves against anticipated
returns of Records sold under this agreement, and to distribute a reasonable number of
Records as promotional copies.
c. The term Net Profits as used herein shall mean one hundred percent (100%) of all nonrefundable
monies actually earned and received by Company in the United States
directly from the distribution of the Masters, remaining after the deduction, off-the-top,
of all costs associated with such distribution, including, but not limited to the following:
i. all copyright payments and other per unit payments associated with the distribution
of Records;
ii. all manufacturing costs, including preparation of all artwork and packaging and
promotional materials;
iii. the Advance;
iv. all amounts expended by Company pursuant to Company’s recording, producing,
publicizing, promoting, marketing, selling, licensing, leasing, distributing or other
exploitation of the Record, and;
v. all costs associated with the collection of sums due Company.
d. Net Sales shall mean gross sales less returns, credits and reserves against anticipated
returns.
Thanks a heap John! I know I should be paying you for this info.