For recoupment in terms of U.S. tax law, see equitable recoupment.
Recoupment, in the music industry, is when a record label pays for a musical artist's expenses, such as for recording and marketing, and later deducts an equal amount from the artist's royalties,[1] which are between 15 and 20 percent of sales revenue.[2] The practice is common, and most new artists have little choice but to accept it since they lack the negotiating power to obtain a better contract.