Royalty Splits & Participant Allocation Terms
Rules for creating, accepting, versioning and paying contractual royalty allocations among participants.
1. Core Principle
A Royalty Split records how eligible revenue is allocated between participants. A Royalty Split does not by itself transfer copyright, master ownership, publishing ownership or any other intellectual-property right.
2. Rights Ownership and Revenue Allocation Are Different
A person may receive a contractual percentage of revenue without owning the same percentage of a master or composition. Ownership and payment entitlement must be recorded separately.
3. Split Types
X2 may support master-revenue splits, composition or publishing allocations, Label revenue allocations and other contractual participant allocations. Each type must be linked to the appropriate revenue source and rights context.
4. Participants and Roles
A split may identify participants such as artists, producers, featured performers, master owners, songwriters, publishers, administrators or other contractually entitled persons or entities.
5. Percentage Validation
An active final split should account for the complete applicable allocation pool. Draft workflows may identify an unallocated portion, but unallocated amounts are not automatically payable to another participant.
6. Invitations and Acceptance
Participants may receive an invitation identifying the relevant asset or work, participant role, percentage, effective date and allocation basis. Participants may accept or dispute the proposed allocation.
7. Verification
Before payment, each participant must complete the beneficiary, tax and payment verification required for the applicable payout. Professional-role verification is required only where the participant uses a service or asserts a role that requires it.
8. Statuses
A split may use statuses such as DRAFT, PENDING ACCEPTANCE, PARTIALLY ACCEPTED, ACTIVE, DISPUTED, SUSPENDED, SUPERSEDED and TERMINATED.
9. Effective Dates and Versioning
Each split should have an effective date and, where relevant, an end date. Changes to an accepted split should create a new version rather than silently overwriting historical percentages.
10. Calculation Order
Unless the applicable agreement expressly provides otherwise, participant splits apply to the eligible rightsholder or participant pool after the applicable X2 contractual revenue share. Individual tax withholding, payout charges or currency conversion may then apply to each participant separately.
11. Late Revenue
Late or corrected revenue should use the split applicable to the relevant entitlement period or contractual basis rather than automatically using the current split.
12. Disputes
Where a participant disputes an allocation, X2 may hold only the affected portion where technically and legally possible while undisputed amounts continue through normal accounting.
13. Retroactive Changes
Split changes apply prospectively from their effective date by default. Retroactive adjustment may require participant agreement, contractual evidence, correction of an established error, court or legal decision, or another sufficient basis.
14. Participants Without Full X2 Access
A participant may be invited by email and may receive limited access sufficient to accept the split, provide required beneficiary information and receive that participant's own allocation without receiving broader professional permissions.
15. Unclaimed Allocations
A participant's unclaimed or pending share does not automatically become X2 revenue or another participant's share unless the governing agreement or applicable law expressly provides otherwise.
16. Fees
X2 may include ordinary split administration in the relevant service while applying disclosed Service Fees or Usage Fees to complex historical reconciliation, enterprise automation, bulk imports or other specialist operations.
17. API Access
Royalty-split APIs may use separate read, create, update, invite, accept and dispute scopes. Highly sensitive forced changes should not be available through ordinary developer permissions.