Deals & Your Rights
Controlled Composition Clause
A controlled composition clause is a major-label contract term that pays you below the statutory mechanical rate on songs you wrote — often 75%, capped per album.
A controlled composition clause is a record-contract term that caps the mechanical royalties a label pays on songs the artist wrote — commonly at 75% of the statutory rate, and limited to a set number of songs per album. It's a quiet way songwriter income gets reduced on major-label deals.
It exists only by contract (US major-label practice). Independent artists distributing through Notes aren't subject to one — your mechanicals are collected at the full statutory rate via The MLC, with no percentage taken. See where it fits across deal types.
Good to know
Controlled Composition Clause: common questions
- Does a controlled composition clause affect indie artists?
- Only if you sign a label contract that includes one. Distributing independently, your mechanicals are collected at the full statutory rate.