Royalty Splits

What are Royalty Splits?

Royalty Splits (also known as "Royalty Shares") are percentages used to share money between an Organization and a third party, such as Customers, Suppliers, Rights-Holders, or Partners.


Calculation Base (Net v. Gross)

Calculation Base refers if the Royalty calculated on the Net or the Gross amounts.

NameDefinition
Net AmountNet Amount is the Amount remaining after deductions (such as third-party profit margin, commissions, middleman fees, etc.). Usually, it is the Amount received in the Organization's bank account.
Gross AmountGross Amount is the Amount remaining before any deductions (such as third-party profit margin, commissions, middleman fees, etc.)

Default Royalty Split Types

Splits Types (also known as "Sales Types") are different types of music exploitation type. for Label Contracts and Publisher Contracts:

Label Contract Royalty Split Types are:

  • Digital Sales
  • License Rights
  • Synchronization Rights
  • Neighboring Rights
  • Physical Sales
  • Direct Incomes
  • Expenses

Publisher Contract Royalty Split Types are:

  • Mechanical Rights
  • Performance Rights
  • Synchronization Rights
  • Print Rights
  • Direct Incomes
  • Expenses

Custom Royalty Split Types

Custom Split Types allows a User to create customs Royalty Splits Type. This is reserved for advanced Users.

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How to display Royalty Splits?

To display Royalty Splits:

  • open a Track pane and click on the Details > Royalties tabs or go to the Tracks List and add Royalty Splits Custom Columns.
  • Dans les listes

Use Case for Royalty Splits

The Royalty Splits stipulated in the contract between the Organization and Max indicated that the latter would receive a Royalty rate of 15% on the Net sales. So there remains 85% for the Organization. On a $100.00 sale, Max earns $15.00, and the Organization $85.00.