Definition:
Record one royalties are royalties that are paid starting with the first record sold. Many music contracts stipulate that royalties are not paid out until recording costs and other pre-negotiated costs are recouped, but if there is a record one clause, royalties are paid regardless of whether or not costs have been recouped.
Record one clauses are popular in music producer contracts. Note, however, record one clauses are not necessarily a standard contract feature and should be negotiable.
