Royalty Payment Policy

FINANCIAL PURPOSE:

This Policy governs the receipt, normalization, reconciliation, allocation, availability, reservation, and payment of revenue associated with master recordings distributed through UMW. Funds actually reported and received from a source are referred to as “Gross Revenue Received.”The amount attributable to the Client after expressly authorized deductions is referred to as the “Net Balance.” The amount satisfying all withdrawal requirements is referred to as the “Available Balance.”

DSP REPORT → IMPORT → RECONCILIATION → AVAILABLE BALANCE → REQUEST → PAYMENT

This Policy follows the distribution revenue lifecycle. It does not govern UMW Song Assets publishing, advances, or payments that a white-label Client must make to its own Users. This Policy explains how UMW converts Platform reports into statements and how it processes withdrawals for artists and labels.

It does not govern:

• UMW Song Assets publishing;
• advances;
• payments that a white-label Client must make to its own Users.

‍FIRST.— CYCLE POINT RY-01 · PERSONS AND ACCOUNTS COVERED.

This Policy applies to distribution Accounts belonging to artists, labels, or Rights Holders when UMW:

• receives reports;
• reconciles revenue;
• calculates the Account balance;
• pays the beneficiary.

A Plan Order may provide a more favorable:

• schedule;
• threshold;
• percentage.

A Plan Order may not authorize undisclosed deductions.

‍SECOND.— CYCLE POINT RY-02 · REVENUE COVERED.

This Policy covers funds associated with master recordings distributed or monetized through the contracted routes, including:

• streaming;
• downloads;
• UGC;
• video;
• Content ID, when contracted;
• social-media uses;
• included master-recording licenses;
• adjustments relating to previous periods.

It does not cover:

• the writer’s share;
• composition mechanical revenue;
• composition public performance revenue;
• publishing revenue;
• live performances;
• merchandising;
• synchronization not included in the applicable agreement;
• funds that UMW did not receive or is not authorized to collect.

‍THIRD.— CYCLE POINT RY-03 · SOURCE OF THE DATA.

Spotify, Apple Music, YouTube, Amazon Music, TikTok, and other sources:

• count uses;
• apply their respective policies;
• convert currencies;
• deduct taxes or adjustments;
• detect invalid activity;
• issue reports;
• make payments according to their own schedules.

UMW does not create the gross value of a stream.

‍FOURTH.— CYCLE POINT RY-04 · WHY THE INFORMATION IS NOT REAL-TIME.

Between a stream and the creation of an Account balance, the following stages occur:

1. the Platform closes its reporting period;
2. the Platform prepares the report;
3. the report is delivered through the applicable route;
4. UMW receives the report;
5. UPCs and ISRCs are identified;
6. data is converted and normalized;
7. adjustments are applied;
8. revenue is reconciled;
9. the information is published in UMW Core.

An Analytics figure may appear before the corresponding financial report.

An Analytics figure is not a payable balance.

‍FIFTH.— CYCLE POINT RY-05 · MONTHLY IMPORT.

UMW endeavors to process the monthly reports it has received around the 30th or 31st day of the month.

When a source delivers a report late:

• UMW does not estimate the revenue;
• the report is identified as pending when UMW is aware of the delay;
• the report is imported during the following cycle or through a supplementary statement;
• the original reporting period is identified.

The absence of a Platform from a monthly statement does not necessarily mean that no revenue was generated.

‍SIXTH.— CYCLE POINT RY-06 · RELATIONSHIP TO THE CATALOG.

When permitted by the source, UMW associates each statement line with:

• Account;
• label;
• artist;
• release;
• track;
• UPC;
• ISRC;
• DSP;
• country;
• type of use;
• reporting period.

An unidentified line may remain under reconciliation until the applicable identifier or Rights Holder is confirmed.

‍SEVENTH.— CYCLE POINT RY-07 · MINIMUM STATEMENT CONTENT.

The statement must display:

• consumption period;
• import date;
• source;
• Territory;
• title;
• UPC and ISRC;
• reported quantity or unit;
• original currency;
• reported revenue;
• currency conversion;
• adjustment;
• Commission;
• authorized deduction;
• reserve;
• Net Balance;
• status.

When a source does not provide a data field, UMW will not fabricate that information.

‍CYCLE POINT RY-07A · CURRENCY CONVERSION AND STATEMENT REPORTING

UMW may receive financial reports and statements in different currencies. When currency conversion is required for accounting, reconciliation, ledger presentation, or settlement, UMW preserves sufficient information to identify how the amount was calculated.

Where applicable, UMW Core records and displays:

• Original Currency: the currency in which the revenue was originally reported;
• Original Amount: the amount reported in that original currency;
• Statement FX Rate: the exchange rate used for the applicable conversion;
• FX Rate Date: the date or reporting period associated with the exchange rate;
• FX Source: the Platform, reporting provider, payment provider, financial data source, or other applicable source of the exchange rate;
• Ledger Currency: the currency in which the converted amount is recorded within the applicable UMW ledger;
• Converted Amount: the resulting amount after application of the recorded exchange rate;
• Fees: separately identified fees or authorized deductions, when applicable;
• Net Payable: the resulting amount attributable to the Account after the applicable conversion and expressly authorized deductions.

Original Currency
EUR 243.40

Statement FX Rate
1 EUR = 1.1734 USD

Ledger Currency
USD 285.57

Fees
USD 2.10

Net Payable
USD 283.47

‍EIGHTH.— CYCLE POINT RY-08 · COMMISSION.

UMW’s Commission is the Commission accepted in the Plan Order.

A plan advertising one hundred percent (100%) of standard distribution royalties means that UMW does not apply a percentage Commission to that ordinary revenue, except where an expressly accepted term applies to:

• a separate Add-On;
• Content ID;
• an advance;
• a third-party Service;
• taxes;
• a payment-method fee;
• another expressly accepted condition.

The phrase “one hundred percent (100%) of standard distribution royalties” does not mean that the DSP will not apply its own deductions.

‍NINTH.— CYCLE POINT RY-09 · PERMITTED DEDUCTIONS.

UMW may deduct only:

1. the contractual Commission;
2. a legally required tax or withholding;
3. an actual payment-method fee displayed before confirmation;
4. an external cost previously disclosed and accepted;
5. an adjustment or reversal from the same source;
6. recoupment of an advance in accordance with its agreement;
7. a liquidated, due, documented obligation authorized for setoff.

UMW will not deduct:

• payroll;
• general overhead;
• unsolicited marketing;
• future legal fees;
• estimated damages;
• costs belonging to another Account;
• general business risk;
• an amount that cannot be explained.

‍TENTH.— CYCLE POINT RY-10 · UMW CORE BALANCES.

UMW Core must distinguish between:

• Reported: reported but not yet reconciled;
• Pending: being processed or subject to a waiting period;
• Available: received, reconciled, and eligible;
• Reserved: segregated for an identified reason;
• Requested: included in a withdrawal request;
• Processing: approved payment being processed;
• Paid: payment instruction sent, with an available reference;
• Adjusted: corrected by a source or decision;
• Negative: related adjustments exceed the applicable balance.

An interface may use equivalent translations, but it must not present Reported funds as Available.

‍ELEVENTH.— CYCLE POINT RY-11 · AVAILABLE BALANCE.

The Available Balance is the amount that:

• belongs to the Account;
• was received or reconciled through the applicable route;
• reflects the applicable Commission and adjustments;
• is not subject to a valid reserve;
• satisfies the withdrawal requirements.

UMW is not required to advance funds that it has not yet received.

‍TWELFTH.— CYCLE POINT RY-12 · ORDINARY METHODS AND THRESHOLDS.

The methods communicated by UMW for distribution Accounts are:

• PayPal: ordinary threshold of one United States dollar (USD 1);
• Payoneer: ordinary threshold of one hundred United States dollars (USD 100);
• bank transfer: ordinary threshold of one hundred United States dollars (USD 100).
• Mobile Wallets: minimums, fees, currencies and availability vary by supported provider and destination.

Availability depends on:

• country;
• currency;
• Account;
• provider.

Before confirmation, UMW Core must display the current:

• threshold;
• fee.

Available payout methods may include PayPal, Payoneer, bank transfer, Mobile Wallets, and other payout methods expressly enabled by UMW or its approved payment providers. Availability depends on the recipient’s country, currency, account type, verification status, provider coverage, compliance requirements, and other applicable eligibility conditions.

‍THIRTEENTH.— CYCLE POINT RY-13 · WITHDRAWAL INFORMATION.

The User must keep the following information current:

• legal name;
• country;
• tax information;
• beneficiary;
• payment method;
• payment Account;
• currency;
• invoice, when applicable;
• authority or representation documentation.

The beneficiary must reasonably correspond to the Account holder, unless documented authorization exists.

‍FOURTEENTH.— CYCLE POINT RY-14 · HOW TO SUBMIT A WITHDRAWAL REQUEST.

The User:

1. opens the wallet;
2. reviews the Available Balance;
3. selects a payment method;
4. reviews the threshold, fee, Net Balance, and currency;
5. confirms the beneficiary;
6. submits the required invoice or information;
7. accepts and submits the request;
8. receives a request number and status.

When the dashboard is unavailable, UMW may provide a secure support procedure.

‍FIFTEENTH.— CYCLE POINT RY-15 · ORDINARY PAYMENT SCHEDULE.

UMW ordinarily processes a complete and eligible request around the 30th day of the following calendar month.

Example: A request that becomes complete and eligible during January ordinarily enters the February closing cycle.

Because February does not have a 30th day, processing will occur on the last available day of February or the next operational Business Day.

This is UMW’s processing date.

It does not guarantee the date on which the bank or payment processor will credit the funds.

‍SIXTEENTH.— CYCLE POINT RY-16 · MEANING OF ELIGIBLE.

A request is eligible when:

• it exceeds the applicable threshold;
• the balance is Available;
• the beneficiary has been verified;
• the required tax information is complete;
• the selected method can receive the transfer;
• the request is not a duplicate;
• no valid reserve applies to the amount;
• no applicable legal or External Instruction prevents payment.

UMW will identify any missing requirement.

‍SEVENTEENTH.— CYCLE POINT RY-17 · FEES AND PAYMENT PREVIEW.

Before confirmation, the screen must display:

• gross amount requested;
• Commission, when applicable;
• payment-method fee;
• tax;
• currency conversion;
• estimated Net Balance;
• currency;
• processing cycle.

UMW will not apply its own fee unless that fee was displayed before confirmation.

‍EIGHTEENTH.— CYCLE POINT RY-18 · PAYMENT STATUS.

UMW Core must distinguish between:

• Submitted: request received;
• Documents Needed: a requirement is missing;
• Under Review: request under review;
• Approved: request approved;
• Processing: request sent for processing;
• Paid: payment instruction sent;
• Failed: provider rejected the payment;
• Returned: the funds were returned;
• Cancelled: request canceled with an identified reason.

A Paid status must include:

• date;
• available payment reference.

Withdrawal history is available through:

Royalties → Withdrawal History

In that module, the User may open each request and review:

• amount requested;
• payment method;
• applicable fee;
• currency conversion;
• Net Balance;
• masked beneficiary information;
• dated statuses;
• payment reference;
• failure or return information;
• related communications.

Withdrawal History must not be confused with:

Billing → Payment History

Payment History records the Client’s:

• purchases;
• renewals;
• refunds.

‍NINETEENTH.— CYCLE POINT RY-19 · DELAYS.

A delay may result from:

• a late report;
• reconciliation;
• a missing invoice;
• KYC or KYB;
• a bank-name mismatch;
• a public holiday;
• a payment processor;
• a correspondent bank;
• currency requirements;
• sanctions screening;
• a dispute;
• invalid activity;
• an External Instruction.

UMW will communicate:

• the known reason;
• the next action.

‍TWENTIETH.— CYCLE POINT RY-20 · INTERNAL RESERVE.

An Internal Reserve requires:

• a case number;
• a reason;
• the affected track or release;
• the applicable period;
• the amount;
• information requested;
• responsible person;
• review date;
• appeal procedure.

Review periods are:

• standard review: up to fifteen (15) Business Days;
• extended review: up to thirty (30) Business Days;
• complex case: up to ninety (90) calendar days, with updates every fifteen (15) days.

An Internal Reserve lasting longer than ninety (90) days requires:

• enhanced approval;
• a new review date.

‍TWENTY-FIRST.— CYCLE POINT RY-21 · EXTERNAL HOLD.

When a DSP or provider imposes a hold, UMW:

• identifies the source;
• does not present the funds as Available;
• communicates the known affected content and period;
• requests the necessary information;
• reviews the status at least every thirty (30) days;
• reflects any release or reversal.

UMW will not invent a payment date that the source has not confirmed.

‍TWENTY-SECOND.— CYCLE POINT RY-22 · INVALID ACTIVITY.

A Platform may:

• exclude streams;
• adjust a report;
• withhold funds;
• impose a penalty;
• remove content.

UMW will reflect the related adjustment and apply the Anti-Fraud Policy.

An investigation involving one track does not automatically freeze funds associated with other tracks.

‍TWENTY-THIRD.— CYCLE POINT RY-23 · REVERSALS AND NEGATIVE BALANCES.

A source may correct a previous reporting period.

UMW must display:

• source;
• original reporting period;
• affected track;
• available reason;
• amount;
• effect on the balance.

A Negative Balance is first offset against future revenue belonging to the same Account in accordance with the applicable agreement.

UMW will not debit a payment method without valid authorization.

‍TWENTY-FOURTH.— CYCLE POINT RY-24 · SPLITS.

When UMW Core offers splits, the Rights Holder configures:

• the track;
• participants;
• percentages;
• effective date;
• email addresses;
• acceptance;
• treatment of previous periods.

The percentages must total one hundred percent (100%) of the distributed interest.

UMW does not resolve an ownership dispute solely through a dashboard configuration.

UMW may segregate the disputed interest.

‍TWENTY-FIFTH.— CYCLE POINT RY-25 · MIGRATION AND LATE REPORTS.

Reports may arrive several months after a migration or takedown.

UMW will maintain the Account, or another reasonable channel, for:

• late statements;
• balances;
• verification;
• final withdrawal;
• inquiries.

Termination does not extinguish legitimate royalties.

‍TWENTY-SIXTH.— CYCLE POINT RY-26 · INACTIVE ACCOUNT.

For an inactive Account, UMW:

• sends notices to the registered email address;
• retains appropriate records;
• does not convert the balance into its own revenue because of inactivity;
• permits verification;
• pays the legitimate balance in accordance with applicable law and actual costs.

When applicable law requires unclaimed funds to be handled in a particular manner, UMW will notify the Rights Holder.

‍TWENTY-SEVENTH.— CYCLE POINT RY-27 · DEATH, INCAPACITY, OR CHANGE OF RIGHTS HOLDER.

UMW may request:

• a certificate;
• an appointment document;
• power of attorney;
• succession documentation;
• a court or administrative order;
• corporate documents.

During verification, UMW protects the balance and prevents payment to an unauthorized person.

‍TWENTY-EIGHTH.— CYCLE POINT RY-28 · ERROR IN A STATEMENT.

The User must identify:

• the statement;
• reporting period;
• DSP;
• UPC;
• ISRC;
• statement line;
• alleged error;
• expected amount;
• supporting evidence.

Submit the request to:

finance

UMW will acknowledge receipt and endeavor to respond within ten (10) Business Days.

When the matter depends on the source, UMW will:

• explain that dependency;
• provide updates.

‍TWENTY-NINTH.— CYCLE POINT RY-29 · AUDIT AND EVIDENCE.

The User may request:

• a breakdown;
• an explanation of the Commission;
• a payment reference;
• the source of an adjustment;
• the scope of a reserve;
• the status of a claim.

UMW may protect:

• data belonging to other Clients;
• confidential agreements.

UMW will not conceal the basis of its own calculation.

The User may download:

• the financial statement in PDF;
• available statement lines in CSV;
• the catalog’s UPC and ISRC relationship;
• Withdrawal History;
• payment references;
• linked adjustments.

The export will preserve:

• reporting period;
• currency;
• time zone;
• calculation version;
• generation date.
• exchange rate used, when applicable;
• exchange-rate source or reference, when available.

A human-readable file does not replace a structured format when the right to data portability applies.

‍THIRTIETH.— CYCLE POINT RY-30 · TAXES.

Each User is responsible for their own tax filings.

UMW applies tax withholding when required and provides the corresponding record.

This Policy does not constitute tax advice.

‍THIRTY-FIRST.— CYCLE POINT RY-31 · WHITE-LABEL SERVICES.

An end User’s wallet within a white-label Platform may represent an obligation of the white-label Client rather than an obligation of UMW.

The B2B agreement must define:

• who receives the funds;
• who performs the calculation;
• who approves withdrawals;
• who makes payments;
• the applicable Commission;
• reserves;
• personal data and reporting information;
• support responsibilities.

UMW does not assume a direct payment obligation merely because it provides the technology.

‍THIRTY-SECOND.— CYCLE POINT RY-32 · UMW SONG ASSETS.

Publishing royalties:

• are reported through semiannual statements;
• are subject to a standard Commission of ten percent (10%);
• have a standard threshold of fifty United States dollars (USD 50);
• use separate collection routes.

They are governed by the UMW Song Assets Publishing Agreement.

Publishing royalties are never combined with the master-recording wallet governed by this Policy.

‍THIRTY-THIRD.— CYCLE POINT RY-33 · ADVANCES.

An advance modifies the balance only in accordance with its agreement, including:

• principal;
• Commission;
• recoupment;
• affected revenue;
• applicable period;
• reporting;
• termination.

UMW will not deduct an advance that has not been contractually agreed and executed.

‍THIRTY-FOURTH.— CYCLE POINT RY-34 · CHANGES.

Material changes to:

• the Commission;
• calculation method;
• threshold;
• schedule;
• reserves;
• setoff;

will be communicated at least thirty (30) days in advance and will not apply retroactively.

The accepted version and Plan Order are retained with a hash.

‍THIRTY-FIFTH.— CYCLE POINT RY-35 · PROTECTION OF FINANCIAL DATA.

UMW limits access to reports, balances, beneficiaries, and tax documents according to job function.

Account information displayed on-screen or in emails is masked.

A beneficiary change involving an existing balance or pending withdrawal requires:

• enhanced authentication;
• notice through the previous communication channel;
• traceability.

The User may request access, correction, download, or portability of personal financial data in accordance with the Privacy Policy.

These rights do not authorize the User to:

• modify a DSP-originated report without supporting evidence;
• delete records that UMW must retain under an applicable legal basis.

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