Music and Publishing
Music & Publishing Business:
Richard Ellis & Associates, Inc. (REA) will partner with artists, producers, writers, publishers and performing rights organizations in the recovery of unpaid or underpaid royalties on license agreements.
Potential audit findings include:
- Understated royalty rates.
- Unreported sales units/dollars.
- Overstated expenses deductible from royalties.
- Excessive free goods, reducing royalties paid.
- Unpaid royalty rate “bumps” for gold and platinum sales.
- Accounting system errors resulting in underpaid/unpaid royalties.
Because of the complexity of license agreements and the calculation of royalties due on those agreements many of the best-managed firms can still make mistakes costing the licensor a substantial dollar amount in royalty income.