Hope you guys can clarify somethings for me

1 for example a new artist is given a 12 % deal and after all the
deductions (packaging, free stuff, discounts....) reduces
the value of the rate to equivalent of about $1 for every full price
$ 16.98 CD sold . If total amount need to recoup the label is $
150,000 that means that they have to sell 150,000 cd's to pay what
the "owe" the label. Lets say they were able to sell 150,000 albums
and thus were able to fully recoup the labell . More sales came with
another 100,000 cd (of the same album) sold . So now they are able to
start collecting royalteies for each cd sold . Do the artist/band now
get $ 2.03cents per album sold which is 12 % of $16.98 or do they
still get $ 1 per cd sold ?

2. In relation to question #1 when the artist starts to receive
artist royalty, he/she will not receive it in full right coz the label
witholds a certain % in case of returns.... . Is it true that the
rate these days 15 to 20% of royalties is withheld for about 1 1/2
yrs for NEW artists ? What about for established artist what is the
common % and length of time witheld ?

3. Lets say the album of this new artist gets the interest of a major
or independent foreign label ( ex Japan where a CD price is
equivalent to about $ 30 ) , Is it true that usually ( specially new
artist) that artist royalty rate would be only 75 % of what they get
in US for every album sold overseas (in this case for example japan )
? What about mechanical royalties will it also be 75 % of US rate ?
What about for more established artist can they still command their
full artist royalty and or mechanical royalties rate in the US for
albums sold overseas like in Japan ?

4 As far as foreign deals/distribution , If a independent label
from UK is interested being the dealer/distributor af a particular
artist's album from a independent label from the USA.. Is it right
that money that will be earned by American label from the UK label
is from royalties which is often a percentage based on " price paid
to dealer "PPD" usually a figure somewhere in between the retail and
wholesale price of a CD in UK (since it is to be sold in UK ) in its
equivalent value to US$ . On the average is the royalty rate today
for foreign distribution around 10 to 12 % of PPD ? If not then
what is the rate ?

5. In relation to my question # 4 , IF it was foreign
deal/distribution between 2 major labels ( ex Warner UK distributing
album for artist from the USA under Warner USA ). Can the licensor (
Warner USA ) usually expect a higher royalty rate from the
licensee(Warner UK) for such foreign distribution ?

6. Generally speaking for foreign deals/distribution ,can an
indepent label looking to sell overseas expect a better royalty rate
from a Major foreign label than a top notch independent foreign label
? What Im told is that you should be get a better rate from a Major
foreign lable but many foreign labels are not as much of a risk taker
compared to say a top notch independent foreign label even if the
music you are offering is mainstream popular music ? True ?


Thank you for taking time to ready and hopefully answer some if not
all my questions .