The Music Royalty Agreement is essential for managing the commercial exploitation of musical works in the modern entertainment industry. This document, governed by English and Welsh law, provides a comprehensive framework for royalty payments, covering various revenue streams including digital platforms, physical sales, and broadcasting. It typically includes detailed provisions for payment calculations, reporting requirements, and audit rights. The agreement is particularly crucial in today's digital age where music consumption patterns and revenue models are constantly evolving.
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1. Parties: Details of the rights holder(s) and licensee(s)
2. Background: Context of the agreement and ownership of rights
3. Definitions: Key terms used throughout the agreement including musical works, recordings, territory, and revenue types
4. Grant of Rights: Specific rights being licensed or assigned, including reproduction, distribution, and performance rights
5. Royalty Rates: Detailed breakdown of royalty percentages for different uses (streaming, downloads, physical sales, sync)
6. Payment Terms: Timing and method of royalty payments, including payment frequency and currency
7. Accounting and Audit Rights: Requirements for financial reporting and audit provisions
8. Term and Termination: Duration of agreement and circumstances for termination
9. Warranties and Representations: Legal guarantees from both parties regarding rights ownership and authority
10. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction
1. Territory Restrictions: Geographic limitations of rights, used when rights are territory-specific
2. Sub-licensing Rights: Rights to grant licenses to third parties, included when licensee may need to sub-license
3. Moral Rights: Treatment of moral rights, particularly relevant when dealing with original creators
4. Minimum Guarantee: Minimum payment guarantees, included when requiring minimum income guarantee
5. Promotional Use: Terms for promotional use of the musical works, included when specific promotional rights are needed
1. Schedule 1: Musical Works: Comprehensive list of covered musical works and recordings
2. Schedule 2: Royalty Rates: Detailed breakdown of rates by usage type including streaming, downloads, physical sales, and sync
3. Schedule 3: Territories: List of territories covered by the agreement
4. Schedule 4: Reporting Template: Standard format for royalty reporting and accounting statements
5. Schedule 5: Collection Society Arrangements: Details of collection society memberships and payment arrangements
Relevant legal definitions
Clauses
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