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Music Distribution License Template for United States

A Music Distribution License is a legal agreement governed by U.S. federal and state laws, particularly the Copyright Act and Music Modernization Act, that establishes the terms under which a distributor may reproduce, distribute, and commercialize musical works. The agreement covers rights granted, territorial limitations, revenue sharing, reporting requirements, and quality control standards while ensuring compliance with digital music distribution regulations.

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What is a Music Distribution License?

The Music Distribution License serves as a crucial document in the modern music industry, establishing the legal framework for digital and physical distribution of musical content. This agreement, governed by U.S. copyright law and state-specific regulations, is essential when rights holders want to authorize third parties to distribute their music catalog. It addresses key aspects such as distribution channels, territory restrictions, revenue sharing, and reporting obligations while ensuring compliance with both federal and state requirements. The document has become increasingly important with the rise of digital distribution platforms and streaming services.

What sections should be included in a Music Distribution License?

1. Parties: Identifies the licensor and licensee with full legal details

2. Background: Establishes context and ownership of musical works

3. Definitions: Defines key terms used throughout the agreement including 'Licensed Works', 'Territory', 'Net Revenue', etc.

4. Grant of Rights: Specifies the rights being licensed, territory, and scope of distribution rights

5. Term and Termination: Duration of agreement and conditions for termination or renewal

6. Royalties and Payments: Payment terms, rates, calculation methods, and reporting requirements

7. Representations and Warranties: Parties' assurances regarding rights ownership and authority to enter agreement

8. Distribution Obligations: Distributor's obligations regarding the distribution and exploitation of works

9. Quality Control: Standards for digital distribution and maintenance of work quality

10. Accounting and Auditing: Rights to audit and accounting obligations

What sections are optional to include in a Music Distribution License?

1. Minimum Guarantee: Minimum payment guarantees and advance provisions

2. Marketing Commitments: Promotional obligations and marketing requirements

3. Sub-licensing Rights: Rights and conditions for granting licenses to third parties

4. Technical Requirements: Specific technical standards for digital distribution

5. Exclusivity Provisions: Terms regarding exclusive distribution rights

What schedules should be included in a Music Distribution License?

1. Schedule A - Licensed Works: Comprehensive list of musical works covered by the agreement

2. Schedule B - Territory: Detailed breakdown of licensed territories and jurisdictions

3. Schedule C - Royalty Rates: Detailed royalty structure and rates for different distribution channels

4. Schedule D - Reporting Format: Template and requirements for royalty reporting and accounting

5. Schedule E - Technical Specifications: Technical requirements for digital distribution including format specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Ƶ

Document Type

Music Agreement

Sector

IP

Cost

Free to use

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