This Automated Royalty Splits & Collaboration Agreement (the "Splits Agreement") constitutes a legally binding contract between DistroVibe, an entity governed under the laws of England and Wales, the Splits Creator, and all participating Collaborators. It governs the automated accounting, revenue division, and disbursement of streaming royalties.
Binding Acceptance
By configuring, publishing, or accepting an automated split share on the DistroVibe dashboard, you agree to this Agreement, which acts as an operational addendum to our standard Digital Music Distribution Agreement and Terms of Service.
1. Nature of the Service
DistroVibe provides this feature strictly as an automated technical disbursement mechanism. We do not act as a music publisher, legal fiduciary, or copyright registry; split setups do not constitute statutory copyright registration.
DistroVibe acts as a neutral payment conduit to divide Net Receipts based entirely on the specific percentages designated by the primary Splits Creator.
2. Creating and Managing Splits
Non-Retroactive Effective Date
Splits become effective solely for accounting periods processed after the split configuration has been registered and verified. DistroVibe cannot and will not re-calculate, re-route, or claw back past payouts for prior periods.
Transparent Recoupment Functionality
The Splits Creator may specify upfront out-of-pocket production expenses. 100% of generated track revenue is routed directly to the Creator until the specified recoupment threshold is reached, after which automated splits trigger automatically.
3. Collaborator Acceptance and Privacy
Independent Account Requirement
Collaborators must create a free DistroVibe account and complete identity (KYC) verification to claim and withdraw their allocated share.
Financial Data Isolation
Collaborators can view only their own percentage allocation, payout history, and wallet balance. Total release streams or other collaborators' earnings remain strictly confidential.
4. Artificial Streaming, DSP Fines & Primary Liability
Zero Tolerance for Streaming Manipulation
DSP penalties (such as Spotify's €10.00 artificial streaming fine per track) and upstream royalty clawbacks are deducted from gross track revenue prior to split disbursement.
Primary Financial Liability of Splits Creator
The primary Splits Creator warrants that the release is free of artificial streams. DistroVibe reserves the contractual right to charge the Splits Creator's payment method on file (via Polar.sh) or cross-collateralize other releases to recover outstanding debt created by DSP fraud penalties.
5. Dispute Resolution and Escrow Freezing
Dispute Escrow Protocol
DistroVibe will not mediate internal ownership or creative disputes between collaborators. If a formal ownership dispute, legal notice, or DMCA claim is received, DistroVibe reserves the right to immediately freeze all split disbursements for the release and place revenues in an escrow account until a joint written settlement or competent court order is provided.
6. Mandatory Tax Forms and Withholding
Individual Tax Responsibility
DistroVibe issues region-specific tax documentation (including UK HMRC reporting and international statements) to users based on individual earnings. Both Creators and Collaborators are independently responsible for calculating and remitting their own tax liabilities.
Mandatory Tax Documentation & Withholding
DistroVibe reserves the express right to withhold payouts until mandatory tax documentation (such as Form W-8BEN, W-9, or equivalent UK/local tax residency forms) is fully completed, submitted, and verified by the relevant parties. Royalty withholding applies in accordance with applicable double taxation treaties.
7. Proportionate Indemnification & Governing Law
Primary Indemnification Structure
The Splits Creator agrees to fully indemnify, defend, and hold harmless DistroVibe from any claims, DSP penalties, chargeback losses, or unpaid tax liabilities arising from the release. Collaborators' liability is strictly limited to the forfeiture and clawback of their allocated share of any disputed or fraudulent royalties.