Overview
The Costs extraction identifies all cost provisions in the contract, including recoupment rates and approval requirements.What Gets Extracted
Each cost is displayed as a card with:| Field | Description |
|---|---|
| Title | Cost category name |
| Recoupment Rate | Percentage recoupable from royalties (e.g., “50%“) |
| Requires Approval | Whether expenditure needs prior authorization |
| Approval Conditions | Specific requirements for approval (expandable) |
Common Cost Categories
Typical costs extracted include:- Recording Costs: Studio time, engineering, production
- Marketing & Promotion: Advertising, PR, radio promotion
- Video Production: Music video creation and editing
- Tour Support: Live performance subsidies
- Mechanical Licenses: Costs for cover songs
- Independent Promotion: Third-party promotional services
Recoupment Rates
The recoupment rate indicates what percentage of the cost can be recovered from the artist’s royalties:- 100%: Fully recoupable
- 50%: Half recoupable, half absorbed by label
- 0%: Non-recoupable (label expense)
Approval Conditions
When “Requires Approval” is Yes, expand the section to see:- Who must approve (artist, manager, label)
- Threshold amounts requiring approval
- Notice requirements
- Documentation needed
Editing Costs
Click the edit icon to:- Add new cost categories
- Modify recoupment rates
- Update approval conditions
- Remove costs that don’t apply