Royalty Rates

What are Royalty Rates?

Royalty Rates (also known as "Share Rates") are contracted percentage grants by an Organization to a third party or a third party to an Organization.


Royalty Rate Types

In Reprtoir, there are two Royalty Rate types:

NameDefinition
Base RateThe Base Rate is applied in a Contract between the Organization and a third party.
Adjustable RateThe Adjustable Rate is applied in Tracks and Works for decreasing or increasing the third-party Base Rate.

Use Case for Royalty Rates

Imagine that an Organization named "Git Music" has contracted with two Rights-Holders, called "Max" And "Julia" each having different Royalty Rate terms. As you can see in the table below, "Git Music" will keep 80.00% on "Contract 1" and 85.00% on "Contract 2" Incomes.

ContractRights-HolderBase RateOrganization
Contract 1Max20.00%80.00%
Contract 2Julia15.00%85.00%

Now, imagine that "Contract 1" between "Git Music" and "Max" is added to an Asset. Reprtoir automatically applies the contracted Royalty Base Rate. So, "Git Music" will keep 80.00% on that Track Incomes.

ContractRights-HolderBase Rate
Contract 1Max20.00%
Git Music80.00%

Now, imagine that "Contract 2" between "Git Music" and "Julia" is added to the same Asset. Reprtoir automatically applies the contracted Royalty Base Rate on both Contracts, which reduces the Organization's share. So, "Git Music" will keep 65.00% on that Track Incomes.

ContractRights-HolderBase Rate
Contract 1Max20.00%
Contract 2Julia15.00%
Git Music65.00%

To end this demonstration, imagine that in "Contract 1" with "Max," there is a "featuring" clause to bring down the Base Rate of 50% if the Artist performs in a duet with another Artist. To do this, 50% must be applied to the Adjustable Rate on the "Contract 1". So now "Git Music" will keep 75.00% on that Track Incomes.

ContractRight-HolderBase RateAdjustable RateFinal Rate
Contract 1Max20.00%50.00%10.00%
Contract 2Julia15.00%100.00%15.00%
Git Music65.00%75.00%

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Good to know

Please note these demonstrations work with Net Amount calculation. For the Gross Amount calculation, estimating the final result is not possible.