Today, Sidemen represents the majority of musicians working in the music industry. From recording sessions to live events to TV shows, independent musicians are used in almost every musical situation imaginable. That`s what makes the work so interesting to me: I can work for different artists while still having a wider range of musical experiences than musicians related to a particular band or genre. In addition, I do exactly what I have always wanted to do and I can say with conviction that I love my job. Why spend time doing something I don`t like? “Cross-collateralization” (sometimes called “offsets”) is the process by which financial commitments accumulated throughout the term of the contract, including earnings that you have not repaid, are reimbursed from earnings from future albums or publications. (e.30) Suppose, for example, that you get a $100,000 advance for your first album and a $100,000 advance for your second album. You owe $200,000 to the label. They earned $10,000 in royalties from the first album and $120,000 in royalties from the second album. (e.31) Although this is so, as if you had made money with the second album ($120,000 in royalties, that`s $20,000 more than the $100,000 advance), if your two albums are guaranteed by crosses (which they probably will be), the royalties of both albums will be put in the same bag for a total of 130,000 $US. Advances of $200,000 will be repaid from this amount. So, you still owe $70,000 to the label, which will be transferred to your next album and added to your next advance.
(e.32) In other words, this obligation will never be due until it has borne fruit. Cross-collateralization can be particularly detrimental if you sign both a recording contract and a publishing contract with the same company and both contracts stipulate that advances from both royalty agreements can be repaid between the two. This is a situation you want to avoid as much as possible. (e.33) As explained in the “Mechanical Royalties” section, publishing is a significant potential revenue stream for you when you write your own songs, and you must do everything in your power to isolate those revenues from cross-protection. . . .