Are Music Recording Contracts Equitable? An Economic Analysis of the Practice of Recoupment 

Theo Papadopoulos

Victoria University

Abstract

Proposes a remuneration model that addresses perceived inequities surrounding contractual arrangements that enable record companies to recoup a range of expenditure items from artist royalties. The remuneration model proposes full-recoupment on sales prior to the break-even point and partial recoupment thereafter. The model utilizes conventional microeconomic tools to illustrate a number of sales, profit, and recoupment scenarios. While the preferred model is argued to be more equitable than current standard industry practice, its implementation requires a level of cooperation and transparency not hitherto commonplace in the music recording industry.

Keywords: record contract, music industry, recoupment, music industry economics

Papadopoulos, Theo. “Are Music Recording Contracts Equitable? An Economic Analysis of the Practice of Recoupment." Journal of the Music and Entertainment Industry Educators Association 4, no. 1 (2004): 83-104. https://doi.org/10.25101/4.5

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