The Commercial Music License serves as a crucial legal instrument in the U.S. music industry, enabling businesses to legally use copyrighted music while ensuring proper compensation for rights holders. This document becomes necessary when any business or individual needs to use music for commercial purposes, whether in public spaces, advertisements, or digital platforms. It addresses key aspects such as usage rights, territorial limitations, payment terms, and compliance with U.S. federal and state copyright laws, providing a clear framework for both parties to protect their interests and avoid potential copyright infringement.
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1. Parties: Identifies the licensor (rights holder) and licensee, including full legal names and addresses
2. Background: States the ownership of the musical work and intention to license
3. Definitions: Defines key terms including 'Musical Work', 'Territory', 'Term', 'License Fee', and 'Permitted Use'
4. Grant of Rights: Specifies the exact rights being licensed and any restrictions
5. Term and Territory: Defines the duration and geographical scope of the license
6. Payment Terms: Details the license fees, royalties, and payment schedule
7. Warranties and Representations: Legal assurances about ownership and right to license
8. Termination: Conditions under which the license can be terminated
1. Synchronization Rights: Additional terms and conditions for synchronizing music with visual media, required when music will be used in audio-visual productions
2. Sampling Rights: Terms governing the creation of derivative works through sampling, applicable when licensee requires rights to modify or sample the music
3. Sub-licensing Rights: Provisions allowing licensee to grant licenses to third parties, necessary when licensee needs to further license the music
4. Digital Distribution: Specific terms and conditions for distribution on digital platforms and streaming services
1. Schedule A - Musical Works: Detailed list of licensed musical works including composers, publishers, and PRO affiliations
2. Schedule B - Territory List: Detailed breakdown of territories covered by the license
3. Schedule C - Fee Schedule: Detailed breakdown of fees and royalty calculations
4. Schedule D - Reporting Requirements: Templates and requirements for usage reporting
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