Record Royalty & Music Publishing Audits

The Nigro Karlin Segal & Feldstein, LLP team has extensive experience auditing the major labels’ compliance with royalty payment terms for new releases, catalog products and special market licenses. And it is imperative that every successful artist’s royalty statements be inspected regularly.

When the complexity of royalty contracts is coupled with errors due to outmoded accounting systems, questions and interpretations of – and specific errors in – contract terms frequently arise. But while problems occur frequently, the only way to find them is to have industry experts regularly audit the royalty accountings. Only these professionals identify and extract the relevant information from the “noise” generated by high volume sales. In fact, when volumes are in the millions, even seemingly insignificant errors of less than one cent can become highly relevant.

Our audits will provide you with an accurate record of your client’s earnings and underpayments. Our goals for your client to get paid what he or she is entitled to. Our audit findings include:

  • Incorrect royalty rates
  • Excess free goods
  • Returns improperly allocated to free goods
  • Understated foreign retail price or uplift
  • Unreported music video license fees
  • Incorrect tax computations
  • Unreported excess free goods for record clubs
  • Invalid producer-based advance deductions
  • Overstated video production and recording costs
  • Overstated promotional expenses
  • Improper expense allocations
  • Incorrect royalty calculations for club sales
  • Underreported and unreported units
  • Unlicensed songs
  • Excess reserve calculations

 

Call Jill Goldstein at (310) 229 5112 or Kyle Uemura at (310) 229 5172 to learn more about the NKSF record royalty audit practice.

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