Controlled Composition Clause

A clause in some artist contracts that limits how much record labels will pay for songs written, co-written, or owned (and therefore "controlled") by the artist on whose album it appears. The record company will generally pay the publisher of the controlled composition a reduced rate, which tends to vary from 50 - 75 percent of the statutory rate. For example, if Lady Gaga writes a song that is recorded and released on her next album, her record label will typically pay her publisher only 50 - 75 percent of the statutory rate she would normally be owed as a songwriter. However, this is usually limited to physical sales. Almost all digital downloads are paid at the full mechanical rate, irrespective of whether a writer is controlled or not.

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