Lingo - Royalties

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The payment in advance of royalties to be earned in the future, and recouped by offsetting those future earned royalties against the money advanced. Advances are usually non-refundable.

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Favored Nations Clause

A term commonly used in the entertainment/music industry to protect one’s established salary or royalty rate. A favored nations clause may provide, for example, that no one can be paid more than the contracting party for talent or material similarly used, and if someone is, the contracting party will receive the same treatment.

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Synchronization Royalties

Money earned by a publisher (and, consequently, divided with the songwriter) for the use of a song for which a synchronization license has been issued.

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