Recoupment is the recovery of charges made to an account. If, for example, there was a streaming royalty equal to 1 cent per stream credited to an artist’s account and the artist had 1 million streams in a given accounting period, then $10,000 (1mm x $.01) would be credited to the artist’s account for that accounting period. If the account was unrecouped, then the account would have recouped $10,000 in that accounting period. Contingent compensation that is earned (net earnings or royalties) is being used to recover the previously paid advances and other charges to an account.