Cross-collateralization in publishing deals refers to which practice?

Cross-collateralization in publishing deals refers to which practice?

• A. Separating revenues on a per-work basis to keep accounts distinct.
• B. Pooling the revenues from multiple works to satisfy debts across the catalog.
• C. Extending the term of copyright for all works.
• D. Granting exclusive rights to all territories.

Answer: (B)

Cross-collateralization means pooling revenues from multiple works to satisfy debts across the catalog. In a publishing deal, advances and recoupable costs are recouped from a single pool that includes earnings from all songs/compositions in the catalog, rather than keeping each work’s finances separate. This lets the publisher recoup money using the total performance and licensing receipts from all works, which can speed recoupment for the publisher but may delay payouts to the songwriter if the catalog as a whole hasn’t fully recouped yet. This isn’t about separating revenues per work (that would be the opposite approach), nor about extending copyright terms, nor about granting exclusive rights to all territories.

Cross-collateralization means pooling revenues from multiple works to satisfy debts across the catalog. In a publishing deal, advances and recoupable costs are recouped from a single pool that includes earnings from all songs/compositions in the catalog, rather than keeping each work’s finances separate. This lets the publisher recoup money using the total performance and licensing receipts from all works, which can speed recoupment for the publisher but may delay payouts to the songwriter if the catalog as a whole hasn’t fully recouped yet.

This isn’t about separating revenues per work (that would be the opposite approach), nor about extending copyright terms, nor about granting exclusive rights to all territories.