Recoupment

Recoupment, in the music industry, is when a record label pays for a musical artist's expenses, such as for recording and marketing, and later deducts an equal amount from the artist's royalties,^[1] which are between 15 and 20 percent of sales revenue.^[2] The practice is common, and most new artists have little choice but to accept it since they lack the negotiating power to obtain a better contract.

^ Millman, Ethan. "Kanye West's Record Deal Is Standard. That Doesn't Mean the Record Industry Is Fair". Rolling Stone. Penske Media Corporation. Retrieved January 31, 2022.
^ Leight, Elias. "Sony Music Is Wiping Out the Old Debts of Catalog Artists". Rolling Stone. Penske Media Corporation. Retrieved January 31, 2022.

[1] Millman, Ethan. "Kanye West's Record Deal Is Standard. That Doesn't Mean the Record Industry Is Fair". Rolling Stone. Penske Media Corporation. Retrieved January 31, 2022.

[2] Leight, Elias. "Sony Music Is Wiping Out the Old Debts of Catalog Artists". Rolling Stone. Penske Media Corporation. Retrieved January 31, 2022.

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