Songwriter Agreements - Negotiable Terms

Question 1

Exclusions

Answer 1

Specifies certain works or rights that are excluded from the agreement.
(Songs written prior to agreement, personal projects).

Question 2

Duration

Answer 2

The length of time the contract will be in effect.
(Songwriters may prefer shorter terms to retain control over future works)

Question 3

Territory

Answer 3

Defines where the agreement applies.
(Ex. Canada, United States, Global Excluding Romania)

Question 4

Advances, Timing on Payments

Answer 4

Upfront payments given to the writer before the song generates income.
(The songwriter may negotiate larger advances or payment in installments)

Question 5

Cross-Collateralization

Answer 5

Allows the company to use income from multiple sources to cover the recoupment of an advance.
(Songwriters often avoid cross-collateralization, as it reduces the likelihood of receiving royalties until all advances are recouped)

Question 5

Recoupment

Answer 5

How the publisher / label recovers their advance and other expenses before the songwriter starts receiving royalties.
(Songwriters’ goal is to minimize the recouped expenses for a quick royalty turn around)

Question 6

Royalties

Answer 6

How royalties are calculated and paid to the songwriter.

Question 7

Royalties (At-Source Calculation)

Answer 7

Royalties calculated based on the income from the source country where the music is sold, before deductions.
(Songwriters should negotiate for “At-Source” royalty payments, especially in international deals)