Royalty Rates and Contract Review
What is the true percentage of the contract? You agreed on a percentage, but is that what your contract really says? Is your contract in accordance with industry standards? We look at contracts strictly from a financial perspective taking into account industry standards. We are not attorneys and cannot provide legal advice, but we can interpret the financial terms of your contract. When we identify issues, we can talk with your attorney or have an entertainment legal professional we are familiar with review the contract for you.

Royalty Statements Analysis
Our entertainers who receive royalty statements are offered a review of their account. The statements themselves can be complicated and we review the actual calculations on the statement to determine if the math is logical and the numbers are being properly recorded. Our analysis does not validate sales or recoupment. That function would be performed in a royalty audit as described below. 

Royalty Audits
A royalty audit is needed when there appears to be a discrepancy or an identified dispute. The Music CPA will verify total sales by using independent sources that track industry sales (i.e. Soundscan). The audit compares sales reported in the royalty statements with these outside sources to verify you are receiving all the income you are entitled to. The discrepancy is then reviewed to determine if there is a need to further pursue action, sometimes in conjunction with an attorney. In addition, a royalty audit looks at the “recoupables”. These are the expenses charged by the label to your royalty account. Expense recoupment is a specialized area that artists need to carefully review.

As an example, one artist we represented had a successful recording and video. The royalty statement accurately reflected sales but also included expenses for several other video shoots for other recordings that were not successful. In this case the artist was being charged back for previous efforts that should not have been included against the successful recording. This is an example of how contract review and royalty statement analysis are vital.