What is an “Audit Clause”?

It’s a crucial part of publishing contracts.

Much like many other major business agreements, music publishing contracts often include an “audit clause” as part of their negotiations. It gives a songwriter limited access to the financial records of its publisher — typically once a year — to determine the accuracy of its accounting practices.

Whether or not an audit clause is part of your publishing contract, you should fully understand its fundamentals before signing it. If anything is unclear, be sure to seek legal counsel as soon as possible.