When a company wants to own the rights of a music album, video, song or lyrics or when a distributor wants to acquire the rights or distributing and reproducing the copies of the music with the permission and authentication of the original owner, an agreement is signed between the owner and the company that will act like the new or temporary owner of the music. This agreement is known as the music license agreement. Unlike many other types of agreements, this is a very important and delicate agreement so lawyers and legal attorneys are included in this process to draft the content of the agreement with the mutual consideration and permission of both parties.
Brief Description of Music License Agreement:
As someone related to the music industry and business, you can understand the important and value of the music license agreement but if you don’t know this industry too well, it can be difficult for you to understand why the owner of music content needs to have an agreement or some legal proof of his ownership on the content. You should know that when some kind of music content is produced, the legal owner gets benefits and profit on his music content with the royalty that he earns with the selling of the music content. The royalty is a percentage in the profit that the distributor earns with the selling of the music content in the market and when there is no agreement or legal ownership of the rights, anyone can copy, download, sell, distribute and reproduce the music content without the knowledge of the owner.
This is why it is really important for the owners of music contents to have ownership of the music that they produced so that no one distributes the content without their permission and giving them royalty in the selling profit of the content. Typically, this kind of music license agreement includes the name of the owner, type of music that he or she owns, the legal partners in the ownership of the music content, legal distributors and their rights to distribute and sell the music content around the world along with the loyalty or percentage of profit that the owner(s) will get with the selling of the content in the market.
Here is preview of a Free Sample Music License Agreement Template created using MS Word,
Key Elements to add in the Music License Agreement:
- Name of the original owner/company of the music
- Name of the new owner/buyer/company of the music
- Type of music
- Details and specification of the music
- Reasons for selling the music rights
- Detail and explanation of the rights and ownership for the new owner
- Obligations and jurisdiction and limitations of the ownership for the new owner
- Copyright ownership of the music
- Terms and conditions of the agreement
- Mutually agreed clauses of the agreement
- Termination of the agreement
- Validation of the agreement
- Results of violation of the agreement
- Specific details for renew of the agreement (if applicable)
- Signature of seller and buyer of the music