Music Royalty Contracts are essential documents in the American music industry, used to establish clear terms for compensation when musical works are used, performed, or distributed. These contracts, governed by U.S. copyright law and the Music Modernization Act, specify how royalties are calculated, collected, and distributed among rights holders. The agreement typically includes detailed provisions for various types of usage, from traditional performance rights to digital streaming, and ensures compliance with both federal and state regulations while protecting the interests of all parties involved.
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1. Parties: Identifies all parties to the agreement, including legal names and addresses
2. Background/Recitals: Explains the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Grant of Rights: Specifies the rights being licensed or transferred
5. Territory: Defines the geographic scope of the agreement
6. Term: Specifies duration of the agreement and renewal terms
7. Royalty Rates: Details the payment structure and rates for different types of usage
8. Payment Terms: Specifies payment frequency, method, and reporting requirements
9. Accounting and Audit Rights: Details record-keeping requirements and audit procedures
1. International Rights: Additional terms and conditions for multi-territory distribution and licensing
2. Digital Platform Rights: Specific terms and conditions for digital distribution and streaming platforms
3. Synchronization Rights: Terms governing use of music in film, television, advertising and other visual media
4. Sample Clearance: Terms and conditions regarding the use of samples from other musical works
1. Schedule A - Musical Works: Comprehensive list of all musical works covered by the agreement
2. Schedule B - Royalty Rates: Detailed breakdown of royalty rates for different types of usage and territories
3. Schedule C - Territory List: Detailed list of territories covered by the agreement
4. Schedule D - Accounting Procedures: Detailed procedures for royalty calculations and reporting requirements
5. Appendix 1 - Copyright Registrations: List of copyright registration numbers for all covered works
6. Appendix 2 - PRO Affiliations: Details of Performance Rights Organization affiliations and registrations
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