This Automated Royalty Splits & Collaboration Agreement (the "Splits Agreement") governs the use of the DistroVibe Royalty Splits feature, ensuring fair and automated disbursement for all contributors.
Binding Acceptance
By creating or accepting a split, you agree to this Agreement, which acts as a specialized addendum to our standard Terms of Service.
1. Nature of the Service
DistroVibe provides this feature strictly as an automated disbursement tool. We are not a publisher or legal representative; splits do not constitute formal copyright registration.
We act as a neutral third-party gateway to facilitate the division of Net Receipts based on the percentages provided by the Splits Creator.
2. Creating and Managing Splits
Non-Retroactive Effective Date
Splits become effective only for pay periods occurring after the split has been fully registered and accepted. We cannot process retroactive payouts for prior periods.
Recoupment Functionality
Creators may specify initial out-of-pocket expenses. Revenue is routed to the Creator until specified expenses are fully recovered, before splits trigger.
3. Collaborator Acceptance and Privacy
Account Requirement
Collaborators must create a free account and complete verification to claim their allocated share.
Financial Privacy
Collaborators can only view their own individual percentage and dashboard data.
4. Artificial Streaming and Financial Liability
Zero Tolerance for Fraud
DSP penalties (e.g. €10.00/track Spotify fees) are deducted from gross revenue before disbursements. Splits Creators bear full financial liability for negative balances.
Primary Liability
DistroVibe reserves the right to charge the Splits Creator's payment method on file to recover outstanding debt created by DSP fraud penalties.
5. Dispute Resolution and Freezing of Funds
Fund Escrow
DistroVibe will not mediate private disputes. However, if a formal dispute or DMCA notice is received, we reserve the right to freeze the entire revenue stream in escrow until a settlement or court order is provided.
6. Taxes and International Compliance
Tax Reporting & Documentation
DistroVibe will issue region-specific tax documentation to users who exceed the reporting thresholds established by their local tax authorities. Both Creators and Collaborators are responsible for their own tax liabilities.
International Compliance
Users must complete all required tax verification forms within their dashboard. DistroVibe is legally required to withhold a percentage of royalties based on applicable international tax treaties and local regulations.
7. Legal Indemnification
All parties utilizing the Royalty Splits feature agree to jointly and severally indemnify and hold harmless DistroVibe and its technical infrastructure partners from any claims, damages, or unpaid taxes arising out of the allocation of funds under this Agreement.
Financial Operations Unit DV-2026