Why is recoupment controversial?
Recoupment has become a controversial practice because artists and some observers have charged that the music industry is abusing the system. Artists groups like the Recording Artists Coalition argue that labels can manipulate royalty statements by inflating recoupable costs and reducing the royalties they would pay artists. Labels respond that the industry does not manipulate its accounting in order to cheat artists out of their royalties. The industry also argues that labels take an enormous risk in financing new albums and that recoupment allows them to bring more new music to the market.
