Legal Term
Analyze Music Streaming Service Contract for Artist Royalties
Legal Definition
The process of carefully reviewing the agreement between an artist/label and a platform like Spotify or Apple Music to verify how royalty payments are calculated, when they are paid, what deductions are allowed, and ensuring the artist's share aligns with industry standards and the actual streams their music generates.
In Plain English
Making sure the contract you sign with Spotify actually pays you correctly for every time someone plays your song. It's about finding the fine print that could steal your cash.
Example in a Contract
Royalty Calculation. Licensor shall receive a royalty equal to [•]% of Net Revenue, where 'Net Revenue' means all gross revenue received by Licensee from the Streaming Service, minus (a) costs for bandwidth, storage, and content delivery; (b) refunds and credits; (c) taxes; and (d) any uncollected amounts. Royalty statements will be provided quarterly, within 90 days of period end.
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