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What are Points in a licensing deal?
Posted: Fri Mar 28, 2008 7:38 am
by martinfern
A recording artist I know just signed a licensing deal for a SINGLE, where he recieved £15,000 advance, and 19 points.Q) What is 19 Points? does anyone know what the Points thing means? is it 19% of sales?
Re: What are Points in a licensing deal?
Posted: Fri Mar 28, 2008 8:49 am
by ddusty
not necessarily, Points is short for percentage points, but 19% of what is specific to the contract.19% of sales is not the same as 19% of net profit.The Devil is in the details. The best way for him to know what he is signing is to ask an entertainment lawyer.
Re: What are Points in a licensing deal?
Posted: Sat Mar 29, 2008 7:31 am
by martinfern
Thanks Dusty.Anyone else know?
Re: What are Points in a licensing deal?
Posted: Sat Mar 29, 2008 9:51 am
by sgs4u
No one else can know, unless you tell us what the fine print reads, on whatever contract/document you signed. Specifically, what is the clause/paragraph where the 19% figure is written? And of course, is the 19% calculated from net sales, PRO figures, or advance money? Is it recoupable? (another interesting contract term...)19% could be worth a lot of money, or absolutely nothing. You're the person that signed the contract. Why don't you know?