Royalty Terms of Service
Document Code: EMG-ROS-0924 Effective Date: 5 September 2024 Last Updated: 5 September 2024 Approved by: EMG Executive Board
These Royalty Terms of Service (“Terms”) govern how Extrinsic Music Group (“EMG”, “we”, “our”, “us”) collects, administers, and pays royalties to artists. They are binding on all artists, whether signed directly with EMG or unsigned artists distributed under the NCP program (Non-Contracted Participants, EU/UK). By using EMG’s distribution and royalty services, you agree to the following Terms.
I. Introduction & Scope
1.1 These Terms set out the rules for how EMG manages and pays royalties to artists who distribute music through EMG. They apply to:
- Signed artists under a direct agreement with EMG.
- Unsigned artists (NCP-EU/UK) who distribute music through EMG without a signed contract.
1.2 The purpose of these Terms is to ensure clarity, transparency, and fairness in royalty payments, while also protecting EMG from fraudulent or abusive activities.
II. Ownership & Distribution Rights
2.1 You, the artist, retain full ownership of your masters at all times. EMG does not own or acquire ownership of your tracks.
2.2 By distributing your music through EMG, you grant EMG the exclusive right to distribute your masters on digital streaming platforms (DSPs) for as long as they remain live.
2.3 Exclusivity here refers only to distribution; it does not extend to master ownership or publishing rights, which remain yours.
2.4 If you decide to remove your catalog or transfer it to another distributor or label, EMG’s rights immediately end once DSPs confirm the removal.
III. Scope of Royalty Collection
3.1 EMG collects royalties only from DSPs and platforms where your music is live. These include (but are not limited to): Spotify, Apple Music, YouTube Music, Amazon Music, TikTok, Deezer, Meta platforms (Facebook, Instagram), and similar outlets.
3.2 Royalties include revenue generated from:
- Streams
- Downloads
- Ad-supported plays
- UGC (User Generated Content) monetized by DSPs (e.g., YouTube Content ID).
3.3 EMG does not collect royalties from Performing Rights Organizations (PROs) or Collective Management Organizations (CMOs) such as ASCAP, BMI, SESAC, PRS, SACEM, SIAE, GEMA, SOCAN, APRA AMCOS, etc.
3.4 Artists are responsible for registering with PROs and CMOs on their own if they wish to collect publishing or performance royalties.
3.5 EMG collects only what DSPs pay to us, and our responsibility is limited to distributing those reported royalties to you.
IV. Royalty Structure & Deductions
4.1 EMG deducts 10% of gross receipts from all royalties reported by DSPs as a distribution and administrative fee.
4.2 The remaining 90% is paid to you, the artist.
4.3 If you have requested promotional services (playlist pitching, advertising, or marketing support), an additional 10% promotional deduction may apply — but only if you explicitly opt into such services.
4.4 EMG does not take any additional fees beyond the percentages specified here.
4.5 All deductions are listed transparently in your royalty statement.
V. Payment Thresholds
5.1 EMG sets a minimum withdrawal threshold to ensure payment processing remains cost-effective:
- For signed artists: €1.00
- For unsigned artists (NCP-EU/UK): €20.00
5.2 EMG does not proactively contact artists who are below the withdrawal threshold.
5.3 If you reach the threshold but do not receive a payout notification, you must contact EMG via the official royalties email.
5.4 Balances that remain below the threshold will roll over to the next payment cycle until the threshold is met.
VI. Payment Method (PayPal) & Non-Refund Policy
6.1 All Payments
All royalty payments are made exclusively via PayPal or another mutually agreed digital payment method.
6.2 Accuracy of Payment Details
It is the artist’s responsibility to ensure that the payment details provided (e.g., PayPal ID) are accurate, valid, and active.
6.3 Finality of Payments
Once a payment has been successfully processed to the account provided, EMG considers the transaction final.
6.4 Incorrect Payment Claims
If an artist later claims that their payment details were incorrect, EMG will not issue refunds or reprocess payments, as PayPal or other payment systems do not allow reversals after completion.
6.5 Future Payment Authorizations
If the artist previously authorized EMG to use a specific account for future payments and later claims that the account is no longer active after a payment has been delivered, EMG will not issue a refund. If a payment fails or is returned, EMG will reprocess the payment to the updated account provided by the artist.
6.6 Information Required from the Artist
- Artist Name – both stage name and legal name, to accurately identify the royalty owner.
- Royalty Recipient Name – may be the artist or another designated person/entity.
- Payment Details – PayPal ID or other agreed-upon digital payment account.
- Future Payment Instructions – confirmation of whether payments should always be sent to the same account, and consent to automatic payments to the provided account.
- Payment Notifications – confirmation that the artist agrees to receive notifications for all payments processed.
6.7 Currency and Fees
Payments will be made in EUR (or other agreed currency). Any fees or conversion charges are the responsibility of the artist.
6.8 Payment Schedule and Delays
Payments are issued quarterly, subject to DSP reporting and processing timelines. EMG will not be liable for delays outside its control.
6.9 Taxes and Withholding
Artists are solely responsible for any taxes or fees applicable to the royalties received.
6.10 Account Security
Artists must maintain the security of their payment accounts and notify EMG immediately of any changes or potential unauthorized access.
6.11 Record-Keeping
EMG may retain records of all payments and related communications for verification, auditing, and legal purposes.
6.12 Privacy
All personal and payment information provided will be handled in accordance with EMG’s Privacy Policy.
6.13 Agreement to Terms
By providing payment details, artists agree that EMG may process payments according to these terms, and that once a payment is successfully delivered, no refunds will be issued.
VII. Payout Schedule & Process
7.1 EMG processes royalty payments between the 14th and the last business day of each month, Monday to Friday only.
7.2 If you are eligible for payout but do not receive notification within this timeframe, you must email royalties@extrinsicmusicgroup.com with:
- Your artist name
- At least one platform link to your music
- Your artist UID
7.3 Only emails sent from the linked EMG account will be processed; if you write from another email, EMG may request additional verification.
7.4 Once verified, EMG will issue payment as soon as possible.
VIII. Royalty Statements & Reporting
8.1 Artists may request monthly CSV royalty statements by emailing royalties@extrinsicmusicgroup.com.
8.2 Statements include:
- Track-level revenue
- Gross receipts per DSP
- Deductions (distribution fee, optional promo fees)
- Net royalties owed
- Payment status
8.3 EMG retains royalty statements and transaction history for 1 year from the release date of each track. After this period, data may not be available.
IX. Royalty Splits
9.1 EMG does not automatically process royalty splits between multiple artists.
9.2 If you wish to split royalties, you must request this at least 15 days before the payout date, providing:
- The full legal name of the recipient
- Their verified email address
- Artist name as shown on DSPs
- Platform link(s) to the track
- Recipient’s PayPal ID
- The exact percentage to be split
9.3 Split requests submitted late or with missing details will not be processed.
X. Retroactive Adjustments & DSP Corrections
10.1 DSPs may retroactively adjust reported royalties (e.g., due to refunds, fraudulent streams, takedowns).
10.2 If a DSP reclaims funds, EMG will adjust your next payout accordingly.
10.3 Such adjustments are a normal part of the royalty process and are not subject to dispute.
XI. Fraud Prevention, KYC & Frozen Royalties
11.1 EMG conducts random checks and may require Know Your Customer (KYC) verification to confirm identity.
11.2 If suspicious or fraudulent activity is detected, EMG may freeze royalties until the issue is resolved.
11.3 If your account is inactive or unresponsive for 5 months, EMG may freeze your balance.
11.4 If funds remain unclaimed for 10 months total, EMG may transfer or reclaim the royalties.
11.5 In cases of proven fraud, EMG reserves the right to permanently withhold royalties.
XII. Platform Removal & Distribution Issues
12.1 If a DSP removes or suspends your track, EMG will continue collecting royalties until confirmation of removal.
12.2 EMG is not responsible for lost revenue caused by DSP action, outages, or errors in reporting.
XIII. Account Responsibility & Accuracy
13.1 Artists must ensure all account information (PayPal ID, email, legal name) is accurate and kept up to date.
13.2 Incorrect or outdated information may delay or prevent payments.
13.3 EMG is not liable for lost or delayed payments caused by inaccurate artist information.
XIV. Continuation of Royalties After Leaving EMG
14.1 If you leave EMG, you will continue receiving royalties for your tracks until they are removed, transferred, or claimed by another distributor.
14.2 EMG will not withhold royalties simply because you are no longer signed.
XV. Stream Payout Variability
15.1 There is no fixed per-stream rate.
15.2 Royalties depend on factors such as:
- Listener’s region
- Account type (free, premium, ad-supported)
- Currency exchange rates
- Revenue pool allocation per platform
- Type of use (download, stream, video sync, etc.)
15.3 EMG cannot equalize payouts between artists with the same stream counts, as DSPs calculate values differently.
XVI. Transparency & Non-Comparable Claims
16.1 You may notice that your track and another artist’s track have the same number of streams but earn different payouts.
16.2 This does not mean EMG has miscalculated. Differences arise from the DSP’s algorithms and payout models.
16.3 EMG may provide transparency by showing statements, but this is purely for clarity and does not entitle you to additional payments.
XVII. Reporting Delays & Verification
17.1 DSPs may delay reporting for weeks or months.
17.2 EMG distributes royalties based only on what has been reported and received from DSPs.
17.3 Delayed reports are reflected in subsequent payout cycles.
XVIII. Historical Data Retention
18.1 EMG retains detailed royalty data for 1 year from the release date of each track.
18.2 After this period, royalty breakdowns may no longer be available.
18.3 Artists are advised to request and save their monthly CSV statements for long-term record keeping.
XIX. Late Claims & Unclaimed Royalties
19.1 If royalties remain unclaimed for over 5 months due to artist inactivity, they may be frozen.
19.2 If unclaimed for 10 months total, royalties may be considered forfeited and non-refundable.
XX. Negative Balances & Reversals
20.1 If a DSP reclaims funds after EMG has already paid out, your account may enter a negative balance.
20.2 Negative balances will be offset against your future earnings.
XXI. Optional Promotional Royalties
21.1 If you opt into promotional services offered by EMG, an additional 10% promotional fee applies.
21.2 Promotional services do not guarantee increased royalties or exposure.
XXII. Audit Requests
22.1 Artists may request verification of royalty calculations.
22.2 Audits are limited to data EMG receives from DSPs.
22.3 EMG cannot provide information beyond what DSPs report.
XXIII. Currency Conversion
23.1 All royalties are paid in euros (€).
23.2 DSPs report in various currencies, and EMG converts these at the exchange rate used on the payout date.
23.3 Currency fluctuations may affect your final payout.
XXIV. Force Majeure Events
24.1 EMG is not responsible for delays or failures caused by circumstances beyond its control, including DSP outages, PayPal failures, strikes, cyberattacks, or natural disasters.
XXV. Entire Agreement & Priority
25.1 Modification of Royalty Terms: The Royalty Terms may be amended, updated, or modified at any time, with such changes taking effect immediately upon posting. You will be notified of any material changes by email. Continued use of the Services after such notice constitutes your acceptance of the revised terms.
25.2 Incorporation by Reference: By using the Services, you acknowledge and agree to be bound by the Terms of Service (“TOS”), including the Royalty Terms, which are incorporated herein by reference.
25.3 Governing Terms: The Royalty Terms are subject to and governed by the TOS and the NCP Terms.
25.4 Effective Date: The Royalty Terms are effective as of the date you first access or use the Services and continue to apply until modified.
25.5 Severability: If any provision of these Royalty Terms is held to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
25.6 Notification Method: Material changes to the Royalty Terms will be communicated via the email address associated with your account. It is your responsibility to maintain an up-to-date email address.
25.7 Acceptance of Terms: Your continued use of the Services constitutes your agreement to abide by the Royalty Terms as amended from time to time.