Controlled Composition Clause
A Controlled composition is a song written or co-written
by the recording artist (and occasionally the producer) under a recording agreement. Basixally the recording label
has an agreement saying that they will pay only 75% of the minimum statutory rate on only 10 songs per CD or album release.
From Wallace Collins, Esq. For a simplified example of how it works, lets assume a typical clause, which might
say that the songwriter/artist will receive 3/4 of the minimum statutory mechanical rate payable on a maximum of 10 songs
per LP. The mechanical royalty on the artist's
entire LP has a cap of 60 cents (3/4 rate x 10 songs) so that, even if the songwriter/artist writes 12 songs for its own album,
the artist's publishing, which should be worth about 96 cents an album at the full rate, is only allocated 60 cents under
this clause.
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