LP "Cutouts"

Wrong. Records are a fully returnable commodity at wholesale, so a title needs to be 'deleted' in order to reduce a label's exposure to future potential returns from stores (and accompanying return credits, which may be applied against future purchases).

When a record is deleted, notice is given by registered mail, and then there is a period during which stores are allowed to return the titles in deletion - these days as long as 9 months. After that the record may no longer be returned for credit to the label.

Deleted titles suffer various fates - they may be discounted, they may be scrapped en masse, and they may be sold to 'cut-out' distributors. These distributors (Performance was a notorious one in the 1980s - read the superb book 'Stiffed' to find out how one cut-out distributor used by MCA was tied up with the Mob) specialize in buying excess stock of deleted (unsaleable) titles) from labels and offloading them at anywhere from a quarter to a buck a unit.

Deleted titles are often marked with a punch or a clip to show that they cannot be returned anymore for credit. Hence the term "cut-out."

"records being pressed today have no return priviliges" -- Sorry, but once again, this is wrong. I work at a record label and I know. We sell our vinyl with 100% returns. It's true that many distributors now sell vinyl "one-way", but not all of them. And all CDs, of course, are 100% returnable, just as records were in the old days.

As to whether artists see royalties from overstock or cut-out sales, either on LP or CD: this varies by contract.

If I were you, jaybo, I'd make fewer generalizations about the industry.

Patrick

Hi jaybo,

I work at Matador, and we've never stopped taking returns on vinyl. That's standard in the indie world... and frankly the only way you're going to get significant vinyl sales happening.

Cut-outs could certainly be ordered title-specific - I remember browsing through the Performane catalog in the '80s! I do have to admit that I'm not familiar with any current cut-out distribturos... are you jaybo? I remember that we talked to a couple in the late '90s to clear out some overstock, but decided it wasn't worth it - cheapens the brand (important to a label that actually has a brand that people identify in and trust...i.e. not the majors)

I've seen every kind of clause relating to cut-outs and royalties... on vinyl or CD.

btw are you an artist attorney? at a major label? or?

Patrick