To account for the revenue of a featured artist, producer, remixer or any contributor that is owed royalty points, we've developed the Cross-Contract Deductions feature.

In a nutshell, this feature allows you to deduct a royalty percentage from what we would consider a main artist contract, and allocate that percentage to a secondary contract (i.e. featured artist/producer/remixer contract), effectively splitting the revenue for a specific track or release.

How to Configure Cross-Contract Deductions

To better illustrate this setup, we'll use the following example:

• There is a 50/50 deal on the album.

• On one track of the album, there is a featured artist.

• The royalty split on this track is as follows: label 50%, main artist 25%, featured artist 25%.

• Costs need to be recouped prior to both main and featured artists being paid.

Step 1: Create Target Contract (Main Artist)

First, configure the main artist contract as normal.

Content

Link the full release (and the artist's other releases, if applicable).

Sales Channels

Set the artist's share in the royalty rate field. Following our example, we'll set the main artist's royalty rate to 50%.

Right Holder - Payees

Here, only the main artist should be added as a payee. The featured artist will have their own separate contract.

Cross-Contract Deductions

The Cross-Contract Deductions section should only be configured in the featured artist (recipient) contract. You must therefore skip this section in the main artist contract.

Publish Contract

The recipient contract can only be linked to the target contract once it has been published. Make sure to publish it prior to moving to the next section.

Step 2: Create Recipient Contract (Featuring/Producer)

Now that we've configured our main artist contract, we can move on to the second phase of the setup: configuring the recipient contract, i.e. the featured artist contract.

Content

Only select the track for which the featured artist is owed royalties. This applies to both the digital and physical releases.

Sales Channels

Here is where you specify the featured artist's royalty percentage to be deducted from the main artist's share.
Following our example, we'll set the royalty rate to 25%, as that is the featured artist's split that should be deducted from the main artist's 50%.

Right Holder - Payees

Only the featured artist should be added as the payee.

Cross-Contract Deductions

This is where the magic happens!

1. Link to Target Contract

Click the Link Target contracts button, then select and add the main artist contract configured in the previous section.

Once linked, you will see that by default, 100% of the featured artist's royalty share (in our example, 25%) will be deducted from the main artist contract's share (in our example, 50%). If the featured artist's share needs to be deducted from the label share, you'll need to adjust the percentage accordingly.

2. Set the Deduction Policy

The deduction policy dictates whether the featured artist's revenue share should be considered for cost recoupment, or if they should be paid no matter what (i.e. even if the release is unrecouped).

• Recipient contract deduction priority

Select this option from the dropdown menu if you don't wish for the featured artist to take part in shared cost recoupment. This means that, even if the target contract is still unrecouped, the recipient contract will be allocated their revenue share regardless.

• Shared cost recoupment prority

On the other hand, select this option if you wish for both target and recipient contracts to be considered for shared cost recoupment.

Publish Recipient Contract

You're all set!