Controlled Composition Clause

A clause in some recording contracts that limits how much record labels will pay in mechanical royalties for songs written, co-written, or owned (and therefore "controlled") by the performing artist on whose album it appears. The record company and publisher often agree on a reduced rate (generally 75 of the statutory rate) for the songs/shares of the songs written by the recording artist, and/or a cap on the total mechanical royalties payable per album sale (generally equivalent to 10 tracks).

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