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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 Royalties extraction captures the complete royalty structure from the contract, including calculation bases, base rates, modifiers, and exceptions.

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What Gets Extracted

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Calculation Bases

The foundation for royalty calculations:
TypeDescription
At SourceRevenue at the point of collection
Gross ReceiptsTotal revenue before deductions
Net ReceiptsRevenue after specified deductions
PPDPublished Price to Dealer
Retail PriceConsumer purchase price
Unit RateFixed amount per unit
Writer/Publisher/Artist SharePercentage of specific share
Label ShareThe label’s defined allocation from a collecting society distribution (e.g., neighbouring rights via SoundExchange, PPL, VPL, SENA, GVL). Used when the contract references the “label share” directly as the base, without a further revenue pool underneath. Contracts that say “Label’s Net Receipts” or “income received by the Label” use Net Receipts instead.
List PricePublished list price as defined in the contract
Net ProfitsRevenue remaining after all agreed deductions
Each calculation base includes:
  • Type: Category of calculation base
  • Definition: How the contract defines this base

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Base Rates

Primary royalty percentages:
FieldDescription
RatePercentage (e.g., “15%“)
DescriptionWhat the rate applies to
SelectionConditions when this rate applies
Calculation BaseWhich base this rate uses

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Modifiers

Adjustments to base rates under specific conditions:
FieldDescription
RateAdjustment value (e.g., “+5%”, “-2%“)
DescriptionWhat triggers this modifier
Applies ToWhich base rates are affected
Effective RateCalculated result (base + modifier)
Modifiers can be nested infinitely.

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Exceptions

Scenarios when no royalties are due:
FieldDescription
TitleException name
DescriptionWhen and why royalties don’t apply

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How They Relate

Royalties are displayed as a tree structure. Each level narrows the scope and adjusts the rate: 
Calculation Base: Net Receipts
│   "All revenue received, less distribution fees and taxes"
│
├── Base Rate: 18%
│   "All digital exploitation"
│   Effective rate: 18% of Net Receipts
│   │
│   ├── Modifier: 75%
│   │   "Streaming revenue"
│   │   Effective rate: 13.5% of Net Receipts  (18% × 75%)
│   │   │
│   │   └── Modifier: 50%
│   │       "Streaming in territories outside North America"
│   │       Effective rate: 6.75% of Net Receipts  (13.5% × 50%)
│   │
│   └── Modifier: -3%
│       "Download sales"
│       Effective rate: 15% of Net Receipts  (18% - 3%)
│
├── Base Rate: 14%
│   "Physical exploitation"
│   Effective rate: 14% of Net Receipts
│
└── Exception: "No royalties on promotional copies"
    "Free goods and promotional units up to 15% of shipment"

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Effective Rates

At every level of the tree, Royaltyport calculates and displays the effective rate — the actual royalty percentage that applies after all parent modifiers have been taken into account. This matters because contracts often express royalty structures as a base rate with a chain of conditional modifiers. The effective rate resolves that chain into a single number so you can immediately see what the real rate is for a given scenario, without having to manually calculate through the levels.
LevelRateEffective RateHow It’s Calculated
Base Rate18%18%The starting rate
Modifier (proportional)75%13.5%18% × 75% = 13.5%
Modifier (nested)50%6.75%13.5% × 50% = 6.75%
Modifier (additive)-3%15%18% - 3% = 15%
Modifiers can be either proportional (a percentage of the parent rate) or additive (added to or subtracted from the parent rate), and they can nest multiple levels deep. The effective rate at each level always reflects the cumulative result.
These effective rates represent the entire assignor side of the agreement. If the assignor’s share is further divided between multiple parties (e.g., between co-writers or co-artists), that breakdown is handled in the Splits section. If this agreement is part of a larger group of agreements that collectively determine the final effective rate, that consolidation is calculated at the IP Group level.

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Main and Third Party Rates

Royalty rates are split into two tabs:
  • Main — rates that apply to the primary assignor (e.g. the artist or writer signing the agreement)
  • Third Party — rates that apply to a third party under this contract (e.g. a featured artist’s rate paid by the primary assignor)
When a contract contains only third-party rates and no main rates, the Third Party tab is shown by default.

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Editing Royalties

Click the edit icon to:
  • Add or modify rates
  • Create new calculation bases
  • Add modifiers and exceptions
  • Correct rate values or descriptions
  • Mark a rate as a Third Party Rate — use this when the rate defines another party’s compensation as a reference point for calculating the assignor’s effective royalty. For example, in a producer agreement the main artist’s rate (“Artist receives 18% of Net Receipts”) is a third-party rate because it exists in the contract so the producer’s royalty can be derived from it. The producer’s own rate (“Producer receives 25% of Artist’s royalties”) is not a third-party rate, even though it references the artist.
  • Note: you never edit effective rates, these are calculated values

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See Also

Categorized Royalties

View simplified royalty rates categorized by rights type (master/publishing) and revenue category. Optimized for filtering, exports, and comparisons across contracts.