What are Royalty Recoupments?

"Royalty Recoupments" are the reimbursement of Expenses, such as production, marketing, tour support, advance, etc., that the Organization has made for a Rights-Holder, by deducting these Expenses from the Rights-Holder's Royalties to the profit of the Organization.

In other words, Royalty Recoupment is the Expenses owed to the Organization by a Rights-Holder are subtracted from their Income to establish the Balance.

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Good to know

In Reprtoir, the Royalty Recoupment mechanism is fully automated by maintaining a live Balance between Expenses and Incomes per Rights-Holder Contract.

Use Case for Recoupments

The Organization spent $10,000 to record Max's new single. On the first Royalty Statement, Max earned $15,000. The Organization then keeps $10,000 to recoup its Expenses and pays Max $5,000 in Royalties.