← Back to Directory Indexconcept
Licensing & Copyrights
Indie Label Net Profit Split Deal
A partnership contract where net receipts are split 50/50 between artist and indie label after actual, documented recording, manufacturing, and marketing expenses are recouped.
An indie net profit split deal is a collaborative agreement common among independent record labels. Instead of paying a low 15% royalty rate, the label and artist share net profits equally.
Key Terms & Legal Architecture: 1. 50/50 Net Profit Split: Gross earnings are first used to recoup actual out-of-pocket expenses (mastering, physical pressing, digital marketing). Remaining net profits are split 50% to artist, 50% to label. 2. Master Ownership & Reversion: Masters are often owned jointly or licensed to the label for a defined term (e.g. 5 to 10 years), after which full master rights revert to the artist. 3. Transparent Expense Audits: Marketing and recording budgets are pre-approved by both parties with strict caps to prevent artificial expense bloat.
Legal Citations & Known Aliases
net receipts split agreementprofit split dealindie record deal50 50 profit splitNPS
Full Educational Module
Study this topic in the full syllabus context with quizzes.