Royalty & Payout Policy

1. Revenue Share Model and Applicable Percentages

1.1 Shopolo Music distributes to each Uploader their applicable percentage share of Net DSP Revenue in accordance with the Revenue Share Table set out in Schedule 1 to this Policy. The Revenue Share Table specifies the applicable percentages for each User category and those percentages shall apply uniformly to all releases distributed through the platform in the absence of a separately negotiated written agreement providing for a different rate.

1.2 Net DSP Revenue means Gross DSP Revenue less: (a) fees charged by upstream digital licensing bodies, aggregators, or platform partners under the Company’s Commercial Agreements; (b) the commission or fee charged by the relevant DSP; (c) applicable payment gateway charges incurred by the Company; and (d) Tax Deducted at Source deducted by Shopolo Music in accordance with the Income Tax Act, 1961, and GST chargeable on the Company’s distribution services where applicable. Revenue sharing is calculated on a realisation basis — on the basis of amounts actually received by Shopolo Music from its upstream partners and DSPs — and not on the basis of accrued income that has not yet been remitted.

1.3 Where the commercial circumstances of a particular artist or label warrant individual negotiation, Shopolo Music reserves the right to negotiate and document an individually agreed revenue share rate. Any such rate shall be recorded in a separate written agreement signed by both parties and shall supersede the rates in Schedule 1 for that Uploader.

2. How Royalties Are Collected and Reported — The Complete Timeline

This clause explains the complete journey from a stream occurring on a DSP to the royalty reaching the Uploader’s bank account. This timeline is consistent with global music industry standards and applies to all distributors worldwide, regardless of size.

2.1 Stage 1 — DSP Reporting Lag: Digital Service Providers do not report streams in real time. Each DSP operates on its own reporting schedule, typically delivering monthly statements and corresponding remittances to their distribution and licensing partners between 60 and 120 days after the end of the month in which streams occurred. This is an industry-wide standard that applies across all global music distributors. Shopolo Music has no control over DSP reporting timelines. By way of illustration: streams occurring in January may not be reported and remitted to Shopolo Music until April or May of the same year. This lag is inherent to the global streaming ecosystem and does not represent any delay introduced by Shopolo Music.

2.2 Stage 2 — Revenue Processing by Shopolo Music: Once Shopolo Music receives DSP reports and corresponding remittances, the revenue is reconciled against delivery records, verified for fraudulent streaming activity, processed for applicable TDS deductions, and allocated to individual Uploader accounts within the Shopolo Music system. This processing typically takes between 15 and 30 business days from receipt of DSP remittance.

2.3 Stage 3 — Dashboard Reporting: Royalty reports reflecting processed DSP revenue are made available to Uploaders through the Ground1860 Dashboard within 30 days of Shopolo Music completing reconciliation. Reports are generated on a per-DSP, per-month basis and clearly identify the DSP, the reporting period, the territory, and the gross and net amounts attributed to each release. Due to the varied reporting schedules of different DSPs, reports for the same streaming period may appear on the Dashboard at different times for different platforms.

2.4 Stage 4 — Payout Processing: Following the posting of royalty reports to the Dashboard, eligible payouts — being those where the Uploader’s accrued balance meets or exceeds the minimum payout threshold of INR 1,000 — are processed in the monthly payout run. Payout processing typically takes 5 to 15 business days from the payout run date, depending on banking settlement timelines.

2.5 Realistic Total Timeline: As a result of the above stages, the time between a stream occurring on a DSP and the corresponding royalty reaching an Uploader’s bank account is typically between 90 and 180 days from the end of the month in which the stream occurred. This timeline is consistent with global industry standards. Shopolo Music commits to processing payouts promptly upon receipt of DSP remittances and will not introduce delays beyond those inherent in the stages described above.

2.6 Shopolo Music makes no representation that any specific DSP will report within any specific timeframe. The Company shall have no liability for delays in royalty reporting attributable to DSP reporting schedules, upstream Commercial Agreement reporting cycles, or banking settlement timelines outside the Company’s control.

3. Pro User Tier — Reserved for Future Activation

3.1 Shopolo Music intends to introduce a Pro User tier as a future commercial offering. At the date of this Policy, the Pro tier is not active, no Pro User accounts are being created, and no pricing has been finalised. When activated, Pro Users will be entitled to: an enhanced revenue share percentage above the standard rate; priority payout processing; a dedicated priority support channel; access to enhanced analytics; and such additional benefits as Shopolo Music may announce at launch. The introduction of the Pro tier shall not retroactively alter terms or revenue share rates applicable to existing standard-tier Uploaders.

4. Revenue Streams Within Scope

4.1 Shopolo Music’s royalty collection and disbursement functions cover: (a) audio streaming royalties received from DSPs; (b) YouTube Content ID monetisation revenue; (c) digital download revenue from platforms offering permanent downloads, where applicable; and (d) short-form video monetisation revenue where DSP partnerships generate identifiable revenue attributable to the Uploader’s Content.

5. Revenue Streams Outside Scope

5.1 The following revenue streams fall entirely outside Shopolo Music’s collection and disbursement functions at the date of this Policy: (a) performance royalties and neighbouring rights income collected by any Collective Management Organisation; (b) mechanical royalties arising from reproduction of compositions in physical format; (c) synchronisation licensing fees arising from placement of Content in film, television, advertising, video games, or other audio-visual works; (d) live performance fees, personal appearance income, and touring revenue; and (e) merchandise and endorsement income.

5.2 Clause 5.1 is subject to variation if and when Shopolo Music activates its music publishing administration services in accordance with Policy III, Clause 8.

6. Royalty Reporting and Dashboard Access

6.1 Royalty reports covering the Uploader’s Net DSP Revenue, territorial breakdowns, platform-specific earnings, usage statistics, and disbursement records are generated and made available to Uploaders through the Ground1860 Dashboard in accordance with the timeline described in Clause 2. These reports constitute Shopolo Music’s complete and binding account of revenues received and distributed in respect of each Uploader’s Content.

6.2 No Audit Rights: Uploaders have no right to review, examine, or audit the books, records, or underlying data of Shopolo Music or any upstream partner. In lieu of audit rights, Shopolo Music commits to providing Uploaders with detailed monthly royalty reports through the Dashboard, identifying platform-specific earnings, territorial breakdowns, and disbursement records. These reports are the sole and binding basis for royalty accounting between the parties.

6.3 Royalty reports are made available to the Uploader for a period of not less than 3 years from the date of generation through the Dashboard. Uploaders are advised to download and retain copies of their royalty reports for their own records.

7. Payout Conditions and Processing

7.1 Royalty payouts are processed to the Uploader’s verified Indian bank account in the monthly payout run, subject to the following conditions being met: (a) the Uploader has completed full KYC verification, including PAN card submission and bank account verification; (b) the Uploader’s accrued net royalty balance meets or exceeds the minimum payout threshold of INR 1,000 (Indian Rupees One Thousand); (c) no payout suspension is in effect; and (d) no outstanding obligation owed by the Uploader to Shopolo Music is being recovered by deduction.

7.2 Shopolo Music processes royalty payments only to verified Indian bank accounts held in the Uploader’s name as registered on the platform. Payments to foreign bank accounts, digital wallets, cryptocurrency addresses, or accounts in any name other than the registered Uploader are not processed.

7.3 Earnings that do not meet the INR 1,000 threshold in any payout cycle are carried forward to the next cycle and continue to accumulate until the threshold is reached. Accumulated earnings do not expire during an active account.

7.4 Unique Bank Account Requirement: Each verified Indian bank account may be registered on the Shopolo Music platform only once, across all account types. A bank account already registered and verified under an individual artist account may not be re-registered under a label account, a second artist account, or any other account type on the platform. Similarly, a bank account registered under a label account may not be simultaneously or subsequently used for any other account. This restriction applies irrespective of the account holder’s identity or the relationship between accounts. Any attempt to register a bank account already in use on the platform will be rejected during the KYC verification process. This restriction exists to prevent royalty misattribution, duplicate payout processing, and financial fraud.

8. Earnings Dormancy, Forfeiture, and Account Closure

8.1 Account Inactivity and Dormancy: After 24 consecutive months of complete account inactivity — defined as no login, no new release submission, no payout request, and no support communication — Shopolo Music will send a formal written dormancy notice to the Uploader’s registered email address and mobile number. This notice will advise the Uploader that the account will be classified as dormant in 60 days from the date of the notice if no response is received.

8.2 Dormant Account Payout: Upon classification of an account as dormant following the expiry of the 60-day notice period without response, Shopolo Music will attempt one final payout to the last verified bank account on file — regardless of the INR 1,000 threshold — for any accrued balance of INR 500 or above. Bank transfer failures resulting from account closure or KYC mismatch will result in the funds being held in a suspense account.

8.3 Suspense Account: Funds held in a suspense account following a failed dormant account payout will be retained for 12 months from the date of the failed transfer. During this period, Shopolo Music will make reasonable efforts to contact the Uploader using all registered contact details. If no successful contact is made and no valid bank details are provided within the 12-month suspense period, the balance will be forfeited to Shopolo Digital Private Limited.

8.4 Forfeiture Records: Shopolo Music maintains a record of all forfeited balances for a period of 7 years from the date of forfeiture. A forfeited balance may be reinstated at Shopolo Music’s sole discretion if the original Uploader successfully reactivates their account and provides verifiable proof of identity and ownership within 2 years of forfeiture.

8.5 Voluntary Account Closure by Uploader: When an Uploader voluntarily closes their account through the Dashboard or by written notice to support@shopolo.in, Shopolo Music will process a final payout in the next monthly payout run following confirmation of closure. Accrued balances of INR 500 or above will be paid to the verified bank account on file, regardless of the INR 1,000 threshold. Accrued balances below INR 500 at the time of closure will be forfeited to Shopolo Digital Private Limited. This forfeiture provision is clearly disclosed to the Uploader at the point of closure request, enabling them to choose to defer closure until their balance exceeds INR 500 if they prefer.

8.6 Account Closure by Shopolo Music for Breach: Where Shopolo Music terminates an account for breach of Policy I, legitimately accrued royalties from Content not subject to the breach, received by Shopolo Music up to the date of termination, will be paid in the next payout cycle following completion of any investigation. Royalties attributable to Content that is the subject of the breach, or to fraudulent streaming activity, are forfeited and irrecoverable.

9. TDS and GST

9.1 Tax Deducted at Source (TDS) is deducted from royalty payments in accordance with the applicable provisions of the Income Tax Act, 1961, based on the PAN card details on file for the User. Shopolo Music will issue TDS certificates (Form 16A) to Users on a quarterly basis in accordance with applicable income tax law.

9.2 Goods and Services Tax (GST) is applied to Shopolo Music’s distribution services charges where applicable under the prevailing CGST/IGST framework. Shopolo Music’s GSTIN: 18ABACS7285B1ZA. All TDS and GST amounts are clearly itemised in every royalty report generated on the Dashboard.

9.3 Users who are registered for GST and whose supplies may attract reverse charge or other GST obligations should consult their own tax advisers. Shopolo Music’s GSTIN will be published on the Dashboard and on all royalty invoices.

10. Withholding of Royalties

10.1 Shopolo Music may withhold royalty payments, in whole or in part, in any of the following circumstances: (a) KYC documentation is incomplete, expired, or unverified; (b) an active investigation into fraudulent streaming, rights violations, or metadata fraud is ongoing; (c) a copyright ownership dispute, legal hold, or court order affecting the User’s Content has been received; (d) the User’s account or Content is under review for suspected breach; or (e) a deduction for an obligation owed to Shopolo Music is being processed.

10.2 Where Shopolo Music withholds royalties, it will notify the User of the withholding and the reason within a reasonable period. Upon resolution of the relevant issue, legitimately accrued royalties that remain due shall be released in the next payout cycle.

11. DSP Revenue Reversals and Adjustments

11.1 If a DSP reverses, adjusts, or claws back revenue previously remitted to Shopolo Music in respect of a User’s Content, Shopolo Music shall be entitled to recover the reversed amount from the User by deducting it from future royalties in the next available payout cycle, or by seeking direct payment where accrued royalties are insufficient. Shopolo Music will notify the User of any such reversal in the relevant royalty report.

12. Royalty Splits — Current Status and Roadmap

Current status: The Royalty-Split Feature is NOT available in the current version of Ground1860 for any account type. All royalties are paid in full to the single registered Rightholder only. A royalty split tool is planned for a future version of the platform.

12.1 In the current version of the platform, 100% of an Uploader’s applicable revenue share is paid directly to the primary Uploader’s verified bank account. There is no mechanism for allocating any portion of royalty entitlement to any other individual, collaborator, co-writer, producer, or third party. Any such arrangement must be managed independently by the Uploader outside of the platform.

12.2 A royalty split tool is planned for a future version of Ground1860. When activated, all split configurations will be locked after distribution approval and cannot be modified thereafter, except by court order addressed to Shopolo Digital Private Limited.

13. Accounting Objection Period

13.1 Any objection to a royalty statement must be raised in writing to statements@shopolo.in within 12 months of the date the statement is posted to the Dashboard. Each statement becomes conclusively binding on the Uploader at the end of the 12-month objection period. Generalized objections without specific reference to particular statement entries do not constitute valid objections.

14. Governing Law

All matters relating to royalties, payouts, and the provisions of this Policy are governed by the laws of India. All disputes are subject to the multi-tiered dispute resolution framework in Policy V.

Schedule 1 — Revenue Share Table. All percentages apply to Net DSP Revenue after all upstream deductions, DSP commissions, gateway charges, TDS and GST. The minimum payout threshold is INR 1,000. GSTIN: 18ABACS7285B1ZA