How Payfor Helped Recover Over $400,000 in Unpaid Royalties for a New York Record Label
Jun 24, 2025
Unpaid royalties and licensing fees are an all-too-common issue in the music and entertainment industry. For many record companies, especially those with deep catalogues or historic licensing deals, significant sums can go uncollected for years.
When international distributors or third-party licensees fail to honour their contractual obligations, the financial and legal implications can be considerable.
Problem in Legacy Music Rights
A prominent New York-based record company approached Payfor after years of struggling to recover royalties from an overseas distributor. The licensing agreements in question dated back over a decade and involved several releases that had since generated substantial income. Despite repeated contact attempts, the distributor had failed to provide proper reporting or payments for more than five years.
The debt totalled $437,000 in unpaid royalties, spanning multiple licensing agreements. These were not new claims. They were legacy rights with clear contractual terms and audit trails to support the case, yet the record company’s attempts to resolve the matter internally or through legal letters had yielded no response.
In the music industry, especially where older contracts are involved, debtors often rely on the passage of time and jurisdictional distance to avoid payment. This is precisely where Payfor comes in.
Applying Pressure Where It Counts
Once engaged, Payfor conducted a detailed analysis of the agreements, tracing each claim to its contractual basis and identifying which elements were enforceable across borders. This included reviewing the reporting obligations, royalty calculations, and default clauses outlined in the original documents.
We launched our 30‑Day Chase Campaign, reaching out daily through formal email and phone contact. Our communication strategy was firm but professional, citing both the legal position and the reputational risk of continued silence.
Payfor positioned itself as an intermediary. This allowed us to open a line of discussion with senior stakeholders within the distributor’s finance and legal departments, encouraging them to treat the matter with the seriousness it deserved.
Within two weeks, we had secured a dialogue. By the third week, a repayment offer was under negotiation.
Strategic Leverage and Results
With strong documentation and our knowledge of how international royalties can be enforced, we signalled readiness to escalate the matter legally if settlement discussions failed. However, by that point, the distributor understood that this was no longer a situation they could ignore.
We negotiated a structured settlement totalling $437,000, paid in two tranches over a six-month period. The client was kept informed at every stage, and we ensured the agreement was documented with enforceability in both jurisdictions.
This recovery was not just about the money. It was about setting a precedent. Record companies must know that aged claims tied to music rights are still enforceable and that there is a clear, professional path to collect them.
Reclaiming What You’re Owed in the Music Industry
In an industry where rights are routinely bought, sold, licensed, and transferred, it is easy for royalty claims to fall through the cracks. But the age of the debt does not reduce its validity. Many record companies, rights holders, and publishers have valuable legacy claims that are simply awaiting structured, assertive follow-up.
Partner with Payfor for Royalty and Licensing Debt Recovery
Payfor represents record companies, music publishers, and entertainment rights holders across North America, the UK, and beyond. We specialise in legacy claims, cross-border licensing disputes, and unpaid royalties. Our structured recovery campaigns are followed by legal appraisal and escalation when necessary are always managed with discretion and commercial awareness.
If you are facing unpaid royalties, licensing disputes, or historical claims left unresolved, Payfor is ready to assist. Let us help you recover what you are owed, with the professionalism and experience the entertainment industry demands.
Contact us today to learn more.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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