The Label Licence agreement is a fundamental document in the music industry, used when a record label wishes to acquire rights to commercialize an artist's recordings without taking full ownership. Under English and Welsh law, this agreement typically covers recording commitments, release obligations, territory rights, and revenue sharing arrangements. The Label Licence is particularly relevant in modern digital distribution scenarios where artists seek to maintain greater control over their intellectual property while benefiting from a label's distribution and marketing capabilities.
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1. Parties: Identification of the record label and artist/band
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Grant of Rights: Scope of rights being licensed to the label
5. Term: Duration of the agreement including any option periods
6. Recording Obligations: Artist's obligations regarding recordings
7. Royalties: Payment terms and royalty calculations
8. Accounting: Requirements for financial reporting and payments
1. Marketing and Promotion: Details of promotional activities and responsibilities when specific marketing commitments are agreed
2. Touring Obligations: Requirements for live performances when live performance is part of the deal
3. Territory Restrictions: Geographical limitations on rights when rights are territory-specific
4. Merchandising Rights: Terms for merchandise production and sales when merchandising is included in the deal
1. Recording Schedule: Detailed timeline for delivery of recordings
2. Royalty Calculations: Detailed breakdown of royalty rates and calculations
3. Minimum Recording Requirements: Technical specifications for recordings
4. Approved Recording Budget: Agreed budget for recording process
5. Territory List: List of territories covered by the agreement
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