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FOREIGN ROYALTIES

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1) Royalties paid by foreign licensees for the use of copyrighted material.

2) Royalties paid by agent representatives, e.g., record companies and music publishers, to artists and songwriters for the use of their material outside the U.S. and Canada.

The percentage rate of royalty payment to artists is usually 50 to 100 per cent of the record rate (regular rate) defined in the recording contract.

The rate paid to songwriters is normally 50% of all foreign gross receipts received by the music publisher. The music publisher usually receives 10% of the retail gross of the foreign publisher.

See Cross-links: MUSIC PUBLISHER under "Foreign Publisher," CONTRACT-RECORDING CONTRACT clause #31, CONTRACT-SONGWRITER/PUBLISHER CONTRACT clauses #22, #23, LICENSE under "Foreign License," TAX LAW under "Royalty Income."


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