Recoupment is a contractual right granted to which entity?

• A. The artist
• B. The distributor
• C. The venue
• D. The producer

Answer: (B)

Recoupment is the contractual right to recover money invested in a project from its future revenues. In a typical distribution deal, the distributor funds activities like rights acquisitions, prints, marketing, and distribution. Those costs are recoupable from the title’s receipts, meaning the distributor gets reimbursed first from the earnings before any other profits are shared. This arrangement protects the distributor’s investment and sets a payment waterfall.

That’s why the distributor is the best answer. The artist usually receives royalties only after recoupment, not the right to recoup; the venue isn’t involved in recoupment; and producers typically handle recoupment in their own financing structures, but the standard distribution contract grants recoupment to the distributor.