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Gibber -
Actually, mechanical royalties are payable straight to the artist unless the artist had a horrible lawyer and signed a contract where mech. royalties are cross-collateralized with royalties from the sales of CD's. (and I've never heard of any lawyer that bad working long in the biz) The $1-2 that the artist gets per CD sale is what is used to recoup the cost of recording/manufacturing/promoting the CD.
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mmmm.... pudding
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