> 5. EVERY SINGLE PENNY that the record company has spent "on behalf of
> the artist" (which includes all of their advance, all of the marketing,
> and all of the associated "corporate hospitality" - such as lunches for
> the executives in swanky restaurants) is deducted from their royalties.

That's very interesting and sounds very strange. It's certainly not the
way book publishng works which i have exxperience of. I did a search on
Google and came across this which said something silmilar:

http://entertainment.howstuffworks.com/music-royalties6.htm

but it sounded so strange i looked into more professional web sites
desinged for real artists needing adice. They mentioed confusion arounf
the iddue and then i found quite a good one:

http://www.musicforlondon.co.uk/MusicContractsSite/recording_agreements.htm

> ROYALTIES
> 
> The rate is usually comprised between 10% and 14% of the retail price
> of the records sold or between 13% and 18%of the published price to the
> dealer. Indies usually redistribute 50%. 
> They are received after the recoupment of the advance and the recording
> and video costs. 
> 
> PROMOTION
> 
> Promotion costs should not be recoupable. 
> Out-of-pocket expenses for promotional purposes, incurred by the artist
> should be reimbursed by the record company. 
> The record company may provide promotional "tour support" 
> Video costs are usually recoupable by 50%. The remaining 50% is
> recovered from commercial exploitation of the video. 
> 

You are clearly mistaken on EVERY SINGLE PENNY part but the deal is not
as sweet as I originally thought.


-- 
willyhoops
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