What is Cross Collateralization?

Be aware of terms of recoupment

Cross Collateralization is a clause in recording and publishing contracts that allows a record label or publishing company to recoup outstanding advances from one album with other revenue sources and the next release(s). In the case of multiple rights, or  360 deals, these sources may include music publishing royalties, concert fees, and merchandise sales. 

Record labels with a publishing arm, and publishers with ties to a label, will also cross collateralize sometimes. 

If you are ever offered an advance, make sure you know the terms of recoupment being set by your label or publisher. You can learn more about cross collateralization here.


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