Common questions about Contracts in RoyaltyWorx.

What Is a Contract Out?

When you sub-license a track from your catalogue to another third-party label for release as a single or to be included as part of a compilation you will sign an Agreement.

Different labels have different terminologies for what they get you to sign and agree but that is what we call a Contract Out. You have licensed a track (or tracks) "Out" from your label to another.

When you do License a track "Out" you should create a Contract Out in RoyaltyWorx so that you can keep track of your licenses. It also makes it easier to enter the royalties for these when you eventually get paid.

This article explains how to set these up - How do I create a Contract Out?

Why Should I Use Contract In Categories?

Categorising your contracts can be a great way to stay organised and could make life easier later down the line. Benefits include:

• Filter contracts by category when viewing
• Generate your statements by category
• Send your statements by category

How Do I Add Contract Categories?

To add your own contract categories, simply go to:

Royalty > Maintenance > Contract Categories

You can then click New (Icon, top-right) and enter the name you require for your categories.

Why Is My Contract In Locked?

A Contract In will lock as soon as you issue your first statement to your Licensor(s).

This happens to prevent you from changing aspects of the Contract that would invalidate the previously generated statement(s).

NOTE - If you delete all of the statements generated for a "Contract In" it will automatically unlock

How Do I Modify a Licensor Share on a Contract In?

RoyaltyWorx gives you the unique ability to add multiple Licensors to a single Contract In and specify different percentage rates that the royalties should be shared out at.

This is all handled by the Modify Licensor Shares option.

If all Licensors are to receive an equal share of the royalties due then click the Calculate Equal Share check box and even percentages will appear.

You can manually adjust the shares typing values next to each Licensor. The total of all of these must equal 100%

NOTE - If you have generated statements for this "Contract In" already the Licensors section will be locked preventing you from editing their shares.

How Do I Set Up a Contract With a PPD Deal?

PPD stands for Published Price to Dealer and means that you are paying a set amount per unit sold. You can set a PPD deal up in the Advanced Contract In setting.

Follow these steps to set your PPD price:

• Go to Royalty > Contract Ins
• Select the Contract In or create a new one as appropriate.
• Switch the Contract Into Advanced mode if you haven't already.
• Select the Physical tab
• Select the relevant format
• Select Fixed Price and enter your agreed rates.
• Save

How Do I Add an Advance to a Contract In?

If you have paid an artist a recoupable advance on royalties for a release, then you will need to add this within RoyaltyWorx. An advance does not cross-recoup between multiple releases unless those multiple releases are added to the same contract, advances are specific to the royalties earned on the contract to which they are added.

To add an Advance to a contract follow these steps:

• Go to Royalty > Contract Ins
• Select the Contract In or create a new one as appropriate.
• Click on the Advance button from the Icon Menu

• Enter the Value of the Advance
• Enter the Date for the Advance
• Select the Licensor who received the advance
• If the Advance has been paid, check the Advance Paid button and enter the date that it was paid.

IMPORTANT - If you do not mark an advance as paid, the licensor can invoice you for the advance amount. 

How Do I Stop Bundled Tracks From Automatically Appearing in My Contract Ins?

If you create a release using the Bundle Builder and the track is already assigned to a Contract In, the system will then automatically add that track to the relevant Contract In to save you time.

You can prevent a track from being automatically added to the Contract In by going to Settings > Royalty Settings > Change Auto Add Bundled Tracks to No

You can also set this on an individual Contract In level, by setting the Auto Add Bundled Tracks option to No on the relevant Contract In.

NOTE - Clicking Update All Contracts will update the Contracts In going forward, but will not remove any already added.