We collect and pay publishing royalties on both digital music sales and merch items that include digital downloads (such as, for example, tote bags, hats, and shirts that are bundled with a digital download). This doesn’t affect sales of CDs, vinyl, cassettes, or minidiscs.
For example, if you include a digital album or track with your t-shirt sales, we’ll only take a percentage of the value of the digital album or track, not of the merch price. So if you have a t-shirt for sale for $20 and it includes your newest digital album, which sells for $10, we’ll only collect a percentage of the cost of the digital album.
In another example, a $10 digital album bundled with a $3 patch, we will take a cut of the lesser price of the two (a % from the $3 patch).