TheBarber
09-15-2009, 03:09 PM
Hi,
I have a written contract for selling an instrumental as a non-exclusive license, meaning the artist will be allowed to record his vocals over the instrumental and distribute the song up to 1,000 copies. I will still hold all the rights to the instrumental and will be allowed to further lease or sell the instrumental exclusively.
One thing that makes me curious is the part in the contract where it says that the Licensee has to pay 25% royalties to the producer in the event additional records are distributed, meaning more than 1,000 copies. Which is basically a good thing, this ensures that I still get my cut IF the artist should make some numbers with the song.
Here are the important parts quoted of the contract:
4. COMPENSATION: Licensee shall pay Producer the amount of _________ ___________Dollars ($____________) for the rights granted in this Agreement. This amount shall cover the manufacturing, distribution and sale of one thousand (1,000) Records. In the event additional Records are manufactured, distributed or sold, Licensee shall pay to Producer the royalty set forth in the paragraph titled Royalties.
9. ROYALTIES: After sale of one thousand (1,000) Records, the license under this Agreement shall continue so long as Licensee pays to Producer royalties as follows:
a. Record Royalties (for use of Master): In addition to the fee set forth in this Agreement, Producer shall also receive an amount equal to twenty five percent (25%) of the net receipts (“Net Receipts”) received by Licensee for the sale of any Record, including Digital Transmissions, in which the Master(s) is/are embodied on divided by a fraction, the numerator of which shall be the number of Masters produced by Producer appearing on any Record embodying the Masters and the denominator of which shall be the total the number of all royalty bearing masters appearing on the Record.
b. Mechanical Licensing and Royalties (for use of Music): All musical compositions or material recorded pursuant to this Agreement, which are written or composed, in whole or in part, or owned or controlled directly or indirectly by Producer (herein "Controlled Compositions"), shall be and are hereby perpetually licensed to Licensee for the United States and Canada at a royalty per selection equal to Producer's share of the Song multiplied by one hundred percent (100%) of the mechanical statutory per selection rate (with regard to playing time) effective on the date of initial U.S. commercial release of the masters concerned hereinafter sometimes to be referred to as the "Per Selection Rate". Notwithstanding the foregoing, with respect (2100%) of the minimum statutory mechanical royalty rate as established by the mechanical rights society having jurisdiction over the territory in which records are manufactured.
c. Accounting: Licensee shall account to Producer for royalties, on a semi-annual basis and pay royalties to Producer, if any, within forty (40) days of the end of each semi-annual period beginning December 31 and June 30. Licensee shall send such accounting with payment, if any, to Producer at Producer's address listed below. In the event Producer's address changes, Licensee shall have no obligation to send the accounting and royalty payment to any other address until Producer shall give to Licensee in writing such new address. Licensee shall maintain books of account concerning the sale of Records hereunder. Producer, or a certified public accountant, on Producer’s behalf, may, at Producer's sole expense, examine Licensee's books relating to the sale of Records hereunder solely for the purpose of verifying the accuracy thereof, only during our normal business hours and upon seven (7) business days written notice. Licensee's books relating to any particular royalty statement may be examined as aforesaid within three (3) years after the date
rendered.
My Questions:
1. Isn't it a huge effort to make this royalty thing work between me as the producer and the artist? Remember since this is a non-exclusive license there might be other artists that have the same instrumental. Or is it easier than it looks like?
2. How can the artist keep track of how many copies he has distributed and how he's going to pay me the royalties in the correct form?
3. I'm assuming I have no way of keeping track what numbers the artist is actually making, except when I hear the song on the radio, right?
4. I'm not understanding the passage "b" under the paragraph "royalties". I'd appreciate if you could help me understanding it.
5. On on the passage "c" under the paragraph "royalties", does that mean that the licensee has to send me the accounting himself to my address and that semi-annually? I thought royalty collecting companies take care of that, or am I wrong here?
6. Lastly I'd like to know if someone has a better idea than this royalty mehtod how I could get my cut if the artist blows up with the song.
Maybe let the artist come back and buy an exclusive license, if it gets distributed widely or gets picked up by a major label?
p.s. Please don't tell me to seek a lawyer, I know it would be much better and wiser to go to one, but right now I don't have the money to give out 200 EUR/hour for a lawyer, I'm broke, so I'm trying to make it work on my own until I get enough money then I'll get the advice of a professional entertainment lawyer.
p.s.s. In case you're wondering, this contract that I have is not just "some" contract that is floating around on the internet, I bought it off a business website, although this contract is not tailor made it's better than nothing and a good starting point.
See ya.
I have a written contract for selling an instrumental as a non-exclusive license, meaning the artist will be allowed to record his vocals over the instrumental and distribute the song up to 1,000 copies. I will still hold all the rights to the instrumental and will be allowed to further lease or sell the instrumental exclusively.
One thing that makes me curious is the part in the contract where it says that the Licensee has to pay 25% royalties to the producer in the event additional records are distributed, meaning more than 1,000 copies. Which is basically a good thing, this ensures that I still get my cut IF the artist should make some numbers with the song.
Here are the important parts quoted of the contract:
4. COMPENSATION: Licensee shall pay Producer the amount of _________ ___________Dollars ($____________) for the rights granted in this Agreement. This amount shall cover the manufacturing, distribution and sale of one thousand (1,000) Records. In the event additional Records are manufactured, distributed or sold, Licensee shall pay to Producer the royalty set forth in the paragraph titled Royalties.
9. ROYALTIES: After sale of one thousand (1,000) Records, the license under this Agreement shall continue so long as Licensee pays to Producer royalties as follows:
a. Record Royalties (for use of Master): In addition to the fee set forth in this Agreement, Producer shall also receive an amount equal to twenty five percent (25%) of the net receipts (“Net Receipts”) received by Licensee for the sale of any Record, including Digital Transmissions, in which the Master(s) is/are embodied on divided by a fraction, the numerator of which shall be the number of Masters produced by Producer appearing on any Record embodying the Masters and the denominator of which shall be the total the number of all royalty bearing masters appearing on the Record.
b. Mechanical Licensing and Royalties (for use of Music): All musical compositions or material recorded pursuant to this Agreement, which are written or composed, in whole or in part, or owned or controlled directly or indirectly by Producer (herein "Controlled Compositions"), shall be and are hereby perpetually licensed to Licensee for the United States and Canada at a royalty per selection equal to Producer's share of the Song multiplied by one hundred percent (100%) of the mechanical statutory per selection rate (with regard to playing time) effective on the date of initial U.S. commercial release of the masters concerned hereinafter sometimes to be referred to as the "Per Selection Rate". Notwithstanding the foregoing, with respect (2100%) of the minimum statutory mechanical royalty rate as established by the mechanical rights society having jurisdiction over the territory in which records are manufactured.
c. Accounting: Licensee shall account to Producer for royalties, on a semi-annual basis and pay royalties to Producer, if any, within forty (40) days of the end of each semi-annual period beginning December 31 and June 30. Licensee shall send such accounting with payment, if any, to Producer at Producer's address listed below. In the event Producer's address changes, Licensee shall have no obligation to send the accounting and royalty payment to any other address until Producer shall give to Licensee in writing such new address. Licensee shall maintain books of account concerning the sale of Records hereunder. Producer, or a certified public accountant, on Producer’s behalf, may, at Producer's sole expense, examine Licensee's books relating to the sale of Records hereunder solely for the purpose of verifying the accuracy thereof, only during our normal business hours and upon seven (7) business days written notice. Licensee's books relating to any particular royalty statement may be examined as aforesaid within three (3) years after the date
rendered.
My Questions:
1. Isn't it a huge effort to make this royalty thing work between me as the producer and the artist? Remember since this is a non-exclusive license there might be other artists that have the same instrumental. Or is it easier than it looks like?
2. How can the artist keep track of how many copies he has distributed and how he's going to pay me the royalties in the correct form?
3. I'm assuming I have no way of keeping track what numbers the artist is actually making, except when I hear the song on the radio, right?
4. I'm not understanding the passage "b" under the paragraph "royalties". I'd appreciate if you could help me understanding it.
5. On on the passage "c" under the paragraph "royalties", does that mean that the licensee has to send me the accounting himself to my address and that semi-annually? I thought royalty collecting companies take care of that, or am I wrong here?
6. Lastly I'd like to know if someone has a better idea than this royalty mehtod how I could get my cut if the artist blows up with the song.
Maybe let the artist come back and buy an exclusive license, if it gets distributed widely or gets picked up by a major label?
p.s. Please don't tell me to seek a lawyer, I know it would be much better and wiser to go to one, but right now I don't have the money to give out 200 EUR/hour for a lawyer, I'm broke, so I'm trying to make it work on my own until I get enough money then I'll get the advice of a professional entertainment lawyer.
p.s.s. In case you're wondering, this contract that I have is not just "some" contract that is floating around on the internet, I bought it off a business website, although this contract is not tailor made it's better than nothing and a good starting point.
See ya.