<aside> 🚧 This feature is in beta and free to try!

Only Stem Direct users may create, edit or close a Recoup Rule, but any user can view a Recoup Rule if they are impacted by it.

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Similar to splits, Recoup Rules give you control of when and how royalties are paid to shareholders. With a Recoup Rule, you can divert sound recording earnings from content to recoup expenses. After all expenses have recouped, you can close the rule, and Stem will pay shareholders according to splits.

• Keep all shareholders up to date with recoupment progress
• Control when recoupment starts and ends
• Set up as many rules as you need

Creating a rule

1. Select New Rule

2. Enter the Total Recoupable Amount. This is the total dollar amount that you need to recoup.

   <aside> 💡 Note: The Total Recoupable Amount can be increased later! We encourage you to only enter what you know you spent.

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3. Select the content that you will recoup from. You can select as many as you want, but an asset (release or track) can only be added to 1 rule at a time.

   <aside> 💡 Note: You may only create a rule using releases (UPC) or tracks (ISRC), but not both. When you create a rule using tracks, Stem will apply all earnings from that track (including every release that track is on) to recoupment.

   If you add a track to a rule, you cannot later create a separate rule for a UPC that contains that track.

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4. You will see a preview of the rule on the right hand side of the page. Verify that it looks correct before clicking Start rule.

When a rule is started, all impacted shareholders will receive an email notification.

Using a rule

Once you create a rule, Stem will do the rest! When Stem processes royalties every month, eligible earnings will pass through the rule and Stem will update recoupment progress. You can see a summary of the earnings that went towards recoupment by viewing the rule details.

• You may delete a rule if no earnings have gone through it.
• You may edit the Total Recoupable Amount any time as long as it is not set below the amount that has already recouped.
• You may close the rule any time and Stem will switch to splits for future pay outs. Stem will also pay out any earnings over the Total Recoupable Amount according to splits.