Recoupment is the process by which a publisher (or label) recovers a paid advance from a songwriter's (or artist's) future royalties before the writer receives any further payouts beyond the original advance. Until recoupment is complete, the writer receives the advance only; after recoupment, normal royalty payouts resume.
Recoupment math matters: a $50k advance recouped against 50% of total royalties (writer's share kept by publisher) means the publisher has to collect ~$100k in songwriter-share royalties before the advance is repaid. At a $20k/year royalty rate, that's 5 years before any additional payouts.
Cross-collateralization is a common (and often unfavorable) recoupment provision where multiple advances/albums are pooled — meaning a hit album cannot pay out until ALL pooled advances are recouped. Avoid if possible.
The advantage of an admin deal (no advance, just a commission) is no recoupment — every royalty payout starts immediately, minus commission.
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