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Negotiating Publishing and Royalty Deals: A Checklist Inspired by Kobalt’s Expansion

ccourageous

2026-02-06

10 min read

A practical negotiation and due-diligence checklist for creators evaluating publishing and royalty deals, inspired by Kobalt’s 2026 expansion.

Negotiating Publishing and Royalty Deals: A Practical Checklist for 2026

Feeling overwhelmed by publishing offers, royalties, and international claims? You’re not alone. Independent songwriters and creators face complex contracts, opaque statements, and global royalty flows that can feel impossible to verify. The Kobalt–Madverse partnership announced in January 2026 is a wake-up call: major publishers are expanding into new markets, and that creates opportunity — but also negotiation traps for creators who accept deals without due diligence.

Quick take: what this article gives you

This guide is an actionable negotiation and due-diligence checklist tailored to independent songwriters, composers, and creators evaluating partnerships with publishers or distributors in 2026. You’ll get a prioritized contract checklist, red flags, negotiation scripts, and step-by-step exercises tied to real-world context inspired by Kobalt’s expansion into South Asia.

Why the Kobalt–Madverse deal matters right now

In January 2026 Kobalt announced a global partnership with India’s Madverse Music Group to give Madverse’s community access to Kobalt’s publishing administration network. That deal highlights several 2026 trends you must consider when evaluating any publishing or distribution partnership:

Global reach matters more than ever: publishers promise worldwide collection, but the quality of local sub-publishing relationships determines real collections in markets like India, South Asia, and Southeast Asia.
Administration-first deals proliferate: many companies offer admin and data services rather than classic full publishing, and fees/terms vary widely.
Data and metadata are the currency of royalties: industry moves in late 2025 and early 2026 pushed DSPs and collection societies to standardize reporting, making metadata accuracy a negotiation lever.
New rights and technologies complicate contracts: AI-generated content policies, neighboring rights enforcement, and blockchain pilots for rights metadata are part of negotiation conversations in 2026.

Case snapshot: a regional partner gains access to a global admin network. For creators, the promise of broader collection can be real — if the agreement includes clear audit rights, reporting cadence, and tangible sub-publisher commitments.

The condensed must-have checklist (use first in every meeting)

Start every negotiation with these non-negotiable items. If a publisher or distributor won’t agree to them, pause.

Scope of rights — Be explicit: which rights are licensed (mechanical, performance, sync, neighboring, print, master use if applicable), and what media, territories, and platforms are included.
Territory and exclusivity — Global vs territory-limited; exclusive vs non-exclusive; carve-outs for DIY licensing or sync opportunities.
Term and reversion — Initial term length, extension triggers, and clear reversion clauses tied to performance thresholds or inactivity.
Royalty splits and fees — Exact percentages, administration fees, deductions, recoupable costs, and how splits are applied for sub-publishing.
Reporting cadence & detail — Frequency, line-item detail, DSP-level breakdowns, paid/unpaid claims, and method of delivery (CSV/API/portal).
Audit rights — Right to audit, frequency, cost allocation, and sample access to underlying documentation.
Metadata & ownership of data — Who controls ISWC/ISRC mapping, splits registry, and who may use your data for AI training or analytics.
Collections & sub-publishers — List of local sub-publishers and affiliates, proof of active collection relationships, and commission rates for sub-publishers.
Advance, recoupment, and payment terms — If there’s an advance, how it recoups; net payment timing; currency and exchange-rate handling; tax withholding liabilities.
Termination & change of control — Rights on M&A, assignment, and what happens if the publisher is sold or restructures.

Deep dive: what to verify during due diligence

Before you sign, run these verification steps. Allocate two weeks for a thorough check if you can; even a weekend can reveal deal-breaking issues.

1. Verify the publisher or distributor’s real-world collection performance

Ask for anonymized or redacted statements showing collections by territory for tracks similar to yours. Look for:

Consistency of payments across territories
Evidence of collections in target markets (for Kobalt–Madverse context, check South Asia collections)
Timing delays: average lag between DSP play and payment

Exercise: Request two sample statements: one for a fast-moving DSP hit and one for a long-tail catalog item. Compare line-item detail and timing.

2. Confirm local sub-publisher and collection society relationships

Global coverage is often built on local partnerships. Ask for a list of sub-publishers, active territories, and effective dates. For India and neighboring markets, confirm registrations with local performing rights organizations and neighboring rights societies.

Red flag: publisher can’t name who collects in a given country, or provides vague commitments like "we will register on your behalf" without timelines.

3. Test metadata hygiene

Metadata errors are a top source of missing royalties. Request a sample of how they store song splits, ISWCs, and ISRC links. Ask if they support standard split sheets and if they integrate with global split registries.

Exercise: Submit a mock metadata file and see how quickly and accurately they ingest it.

4. Audit legal terms that commonly hide costs

Watch for broad language that allows publishers to keep publishing income after termination, vague recoupment clauses, or expansive rights grants that include future technologies without compensation.

Look for explicit language on what costs are recoupable (e.g., collection fees, legal fees, promotion expenses).
Insist on a narrow definition for "administration costs."

5. Assess tech and reporting capability

Advanced publishers offer dashboards and API access. Ask whether you’ll get portal access, and examine the sample report formats. In 2026, expect at minimum CSV exports, and favorable deals offer API pulls and near-real-time dashboards.

Red flag: reporting is manual PDF-only statements once per year.

Negotiation levers: what to ask for and scripts to use

Negotiation is about clarity and priorities. Use these levers and scripts to secure better terms.

Levers you can push

Non-exclusive administration — Keep ownership and licensing flexibility while getting collection help.
Performance thresholds — Shorter initial terms with reversion if collection targets aren’t met.
Audit frequency — Push for annual third-party audits or more frequent financial transparency.
Metadata control — Retain final approval for splits and ISWC assignments.
Territory carve-outs — Keep rights you plan to self-exploit or monetize differently in priority markets.

Scripts for real negotiation

Use direct, measurable language. Below are short templates you can adapt.

On exclusivity: "We’re open to an administration partnership, but we cannot grant exclusive publishing for South Asia without a 12-month performance review tied to X collections per quarter."
On reporting: "We require monthly statements with track-level play and revenue detail in CSV format and API access for automated reconciliation."
On audits: "We need the right to a third-party audit every 12 months with the auditor selected by us and cost-shared if discrepancies exceed 5%."
On advances: "If you offer an advance, specify a fixed recoupment cap and exclude collection account set-up costs from recoupment."

Rights and royalty clauses to parse line-by-line

When you’re reading a contract, stop at these specific clauses and use the following checklist to annotate or request changes.

Grant clause — Who gets what and for how long? Add territory and platform examples.
Royalty definition — Are digital service revenues gross or net of platform fees? How are splits applied with sub-publishers?
Collection and distribution schedule — Net payment timing and minimum frequency.
Recoupment schedule — Clear funding sources and explicit exclusions.
Audit and inspection — Scope, sample size, and cost allocation.
Data ownership — Rights to aggregate, anonymize, or sell your metadata or use it to train models.
Sync and sample clearances — Who negotiates sync licenses and how revenue is shared?

International considerations — what changes in 2026

Because the Kobalt–Madverse partnership specifically highlights South Asia, here are international nuances to track in 2026.

Local registration timing — Registration with local PROs often dictates when you start being paid in-country. Ask for timelines and proof.
Currency and tax — Expect withholding taxes and conversion fees. Negotiate who bears foreign tax documentation and gross-up clauses if needed.
Neighboring rights enforcement — In many markets, neighboring rights are still developing. Confirm proactive enforcement strategies in markets where enforcement is emerging.
Cultural licensing and local-language markets — If your work will be exploited in regional languages or via local platforms, require the publisher to present a go-to-market plan for those audiences.

Red flags — walk away or renegotiate hard

Lack of sample statements or refusal to share historical collection data.
Unlimited recoupment that includes promotion and third-party marketing fees without caps.
Ambiguous definitions of "future technology" allowing the publisher to claim new exploitation methods without compensation.
No audit rights or audits payable solely by you.

Practical exercises: 3 hands-on checks you can run this week

Statement forensic test — Ask for a recent statement and reconcile five tracks against public DSP analytics (Spotify for Artists, Apple Music for Artists). Note discrepancies and ask follow-up questions.
Metadata ingestion test — Send the potential partner a small batch (3–5) of tracks with full split sheets and ISRCs, then request the internal mapping report. Time their response and check for accuracy.
Reference call — Ask for three current clients and schedule a 15-minute call. Focus on collections in a specific territory, reporting satisfaction, and how the publisher handled a dispute.

When to hire counsel or an experienced negotiator

Small admin deals might not warrant legal fees, but hire an entertainment attorney in these situations:

Any exclusive or long-term grant (more than 3 years) that affects your core catalog
Deals with recoupable advances greater than you can comfortably repay
Complex cross-border revenue-sharing models or reversion language that is vague

Tip: Use the checklist above to build a one-page summary for your lawyer to save time and fees. If you need help collecting signups for a workshop or building a compact sign-up funnel, see this case study for an approach that scales.

2026 trends to watch that should influence your negotiation

These industry shifts will shape deal structures through 2026 and beyond.

Greater reporting standardization — As DSPs and collection societies standardize outputs, insist on machine-readable reports and API access. Read more on data and visualization approaches that underpin modern reporting.
AI-related rights — Publishers will try to claim rights to AI uses. Require explicit opt-in for any AI training or derivative licensing with separate compensation. For perspective on edge AI governance and privacy, see this Edge AI observability primer.
Data monetization — Expect offers to monetize metadata or analytics. Clarify revenue shares and data privacy commitments; recent explainability and API launches highlight why auditability matters (describe.cloud: explainability APIs).
Local-market enforcement — Partnerships like Kobalt–Madverse show global admin networks plus local market execution. Ask how marketing and enforcement occur on-the-ground.

Final checklist you can download or copy

Use this compact checklist in meetings or to annotate contracts. Tick each before signing:

[ ] Clear rights list and territory
[ ] Explicit exclusivity or non-exclusivity
[ ] Term and reversion tied to performance
[ ] Royalty splits and admin fees documented
[ ] Reporting frequency and format agreed
[ ] Audit rights and schedule defined
[ ] Sub-publishers and local collection proof provided
[ ] Metadata control and split registry access
[ ] Advance/recoupment details and caps
[ ] Data use and AI clauses limited or opt-in
[ ] Change of control and termination consequences defined

Closing with confidence

Deals like Kobalt’s partnership with Madverse create real opportunities for independent creators to reach new markets and collect royalties more effectively. But the promise of global administration is only as good as the contract and the operational delivery behind it. In 2026, insist on transparency, modern reporting, and narrowly tailored rights for AI and future technologies. Use the checklist above in every conversation.

Actionable takeaway: Before your next meeting, run the three practical exercises, annotate the condensed checklist, and prepare two negotiation scripts that prioritize reporting and metadata control. Bring them to the call and lead with questions, not concessions.

Call to action

If you want a ready-to-use, printer-friendly checklist and a 15-minute contract review cheat sheet tailored to publishing and administration deals, join our next live workshop or book a one-on-one audit. Sign up for the workshop to practice negotiation scripts in a safe, guided live space and get feedback from experienced publishing negotiators and music-business attorneys. Need a quick guide to building an audience and newsletter for workshop invites? Check this how to launch a profitable niche newsletter.

courageous

Contributor

Senior editor and content strategist. Writing about technology, design, and the future of digital media. Follow along for deep dives into the industry's moving parts.