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Structured data fields are by definition an abstraction of legal language. When in doubt, use citations, the AI chat, and the actual contract text to validate the structured data against your own interpretation.

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Overview

The Costs extraction identifies all cost provisions in the contract, including recoupment rates and approval requirements. When the contract defines cost bases, costs are automatically grouped under their respective base with a type label and definition.

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Main vs. Third-Party Costs

When a contract contains costs that are recouped from a third party (for example, a featured artist or side artist who is not the main assignor under the agreement), the costs section displays two tabs:
TabDescription
MainCosts recouped from the primary assignor(s) under the agreement
Third PartyCosts recouped from a third party (e.g. featured artist, side artist) who is not an assignor
If the contract contains only main costs, no tabs are shown and costs are displayed as a single list.
Third-party costs are identified automatically during extraction. If you believe a cost has been miscategorised, use the edit icon to correct it or raise a query via the AI chat.

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Cost Bases

A cost base defines the revenue pool from which a cost is deducted. When present in the contract, each cost base is shown as a section header above its related cost rules, with:
FieldDescription
TypeThe revenue pool (e.g., “Gross Revenue”, “Net Receipts”)
DefinitionThe contract’s own definition of that base
The following cost base types are recognised:
TypeDescription
Gross RevenueTotal income before any deductions
Net ReceiptsIncome after specified deductions
Third Party SharePortion attributable to third parties
Assignor SharePortion attributed to the assignor
If the contract does not define cost bases, costs are displayed as a flat list — the same as before.

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What Gets Extracted

Each cost rule is displayed as a card beneath its cost base (or in a flat list when no bases are present):
FieldDescription
TitleCost category name
DescriptionPlain-language summary of the cost rule as extracted from the contract.
Recoupment RatePercentage recoupable from royalties (e.g., “50%“)
Requires ApprovalWhether expenditure needs prior authorization
Approval ConditionsSpecific requirements for approval (expandable)

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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)

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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

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Editing Costs

Click the edit icon to:
  • Add new cost categories
  • Assign a cost base to a new cost — select an existing base from the contract or create a new one by choosing a type (Gross Revenue, Net Receipts, Third Party Share, or Assignor Share) and an optional definition
  • Mark a cost as a Third Party Cost — use this when the cost is recouped from a third party (e.g. a featured artist) rather than the primary assignor
  • Modify recoupment rates
  • Update approval conditions
  • Remove costs that don’t apply

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See Also

Categorized Costs

View recoupment percentages categorized by standard cost types (recording, marketing, video, etc.). Optimized for filtering, exports, and comparisons across contracts.