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An Advance is the payment given to an artist, songwriter,
or producer in advance of royalties to be earned in the future, and recouped by offsetting that future earned royalties
against the money advanced. Advances are usually non-refundable.
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Recoupment
Recoupment is the repayment of advances, recording costs,
and other expenses by an artist to a record company from the artist's royalties. Example - if the artist is given a $50,000
advance and has recording & video costs totaling $200,000, then $250,000 can be recouped (taken from) the artist's royalties.
The artist in general will not accumulate any royalties from the sale of his or her CD until the record company has recouped
all of its expenses.
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