DIRTY RED PRODUCTIONS INC. BEAT LEASE (NON-EXCLUSIVE LICENSE AGREEMENT)
YOU MUST READ AND UNDERSTAND THE TERMS OF THIS CONTRACT BEFORE YOU ENTER INTO THIS AGREEMENT. PLEASE READ IT CAREFULLY!!!
The following serves as a legally binding agreement between DIRTY RED PRODUCTIONS INC. (“Licensor” and “Producer“) and You (“Licensee” or “Artist“). This agreement grants the Licensee certain non exclusive rights to the song being licensed.
1. Payment: In return for a non-refundable fee of $30.00 or $50 (dependent on license type), the Producer grants a non-exclusive license to the Artist to use the PRODUCERS COMPOSITION to create one (1) new recording (“the Track”).
2. Distribution Rights: The Artist shall have the right to commercially release the Track by any and all means, throughout the world, subject to these terms:
3. Terms of Use: This license is for a term of one (1) year from the date of this agreement (“Term”). After the Term the license will automatically end and the Artist will be required to extend the term by paying an additional fee or taking such other steps as required by the Producer.
Further during the Term the Artist’s usage of the Beat shall be limited to the following limits (“Thresholds”)
a) two thousand / seven thousand five hundred / fifteen thousand (2000 / 7500 / 15000) – dependent on license type) for-profit downloads or physical sales of the Track. For the purpose of of calculating and the Threshold two hundred (200) streams of the Track via so-called subscription services shall count as one sale, and
b) one thousand / two thousand / five thousand (1000 / 2000 / 5000) – dependent on license type) free internet downloads for non-profit and non-commercial use.
c) one hundred / one hundred and fifty / two hundred (100 / 150 / 200) – dependent on license type) for-profit public performances of the Track with a maximum profit of one thousand ($1,000) US Dollars in compensation or ticket sales using the Track in the performances
d) one thousand / three thousand / five thousand (1000 / 3000 / 5000) – dependent on license type) non-profit public performances of the Track
e) one (1) music video for the Track
Once any of the limits have been reached then the Artist will be required to extend the license by paying an additional fee or taking such other steps as required by the Producer.
4. Royalties and Publishing: The Artist is not required to pay the Producer a royalty or any income from the Track.
However, despite this, the Artist agrees that;-
a) the Producer shall have a 100 (100%) share of the Publishing in the Track and shall receive publishing income directly from the applicable Collection Society.
b) The Artist agrees that he/she will register the Producer’s interest, on the Producer’s behalf, at the collection society in the Artist’s home territory to ensure that mechanical and performance royalties are collected throughout the world. https://en.wikipedia.org/wiki/List_of_copyright_collection_societies
c) The Artist shall use the Producer’s membership number and follow the directions contained in the email that shall be sent to the Artist by the Producer. [to be drafted separately]
d) The Producer and the Artist shall each administer their respective shares of the publishing in the Track. Any sync licenses for the Track must be pre-approved by the Producer
e) the Producer shall have the right to receive neighboring rights income as a performer on the Track directly from the applicable Collection Society.
f) The Artist agrees that he/she will register the Producer’s interest on the Producer’s behalf with the collection society in the Artist’s home country or territory that administers neighboring rights income throughout the world. https://en.wikipedia.org/wiki/List_of_copyright_collection_societies
g) The Artist shall use the Producer’s membership number and follow the directions contained in the email that shall be sent to the Artist.
5. Producer Obligations: The Producer warrants and represents the following:-
a) that they are the owner of the copyright in the Beat;
b) that he/she has the right to enter into this Agreement and to grant all the rights which he grant herein;
c) subject to the provisions of Para 9 below that the Beat does not infringe the rights of any third party;
d) that all necessary consents under law are granted to the Artist
e) that he/she waives any and all so called moral rights.
f) all necessary publishing licenses will be made available to the Artist in respect of the Track free of charge for use by the Artist in connection with non-monetised advertising and/or promotion of the Track
6. Artist Obligations: The Artist warrants that and represents the following;-
a) that they have the right to enter this agreement
b) that the Track shall not infringe the rights of any third party
c) that they shall comply with all the obligations and limitations set out in this agreement
7. Credits: The Artist agrees to ensure that the Producer is credited on the metadata and packaging or promotion of the Track as follows [Producer – DIRTY RED PRODUCTIONS INC.]
8. Indemnity: The Artist agrees to indemnify the Producer and hold him/her harmless from all claims, losses and expenses including reasonable legal fees arising out of or resulting from a claimed breach of the Artist’s warranties, representations and obligations in this agreement
9. Sample Clearances: If in the description the Beat is stated to contain an uncleared sample then the Artist agrees that they will take steps to obtain all clearances of the sample prior to release of the Track. The Artist shall also take steps to clear the publishing sample. The Producer shall not be liable for the use of any sampled material by the Artist in the Track. The Artist shall indemnify the Producer from all losses and costs arising from any claims from third parties concerning the Artist’s failure to take the required steps.
10: Ownership Rights: The Artist acknowledges that the Producer shall retain ownership of the copyright in master and the underlying composition of the Beat and shall have the right to grant separate licenses thereof to other artists. The Artist shall not sell or license the rights to the Beat whether in whole or part to any other party. In the event that the Producer sells exclusive rights to the Beat, the Artist shall retain the non-exclusive rights subject to the terms and limitations of this agreement until expiration of the agreement.
11. Unauthorized use and Copyright Infringement: Any and all unauthorized use or duplication of the Producer’s products (beats, instrumentals, songs, demos, samples and track outs) is a violation of the terms of this agreement and applicable laws of the United Kingdom and other countries. Copyright infringement will be pursued to the fullest extent of the law.
12: Other Terms and Conditions: The Artist acknowledges that the payment for this license is non refundable. If the Artist fails to comply with any obligation hereunder the Producer shall have the right on notice to the Artist to terminate this license and all rights shall revert to the Producer. Such termination shall render any further exploitation by the Artist as an actionable infringement of copyright.
The Artist further acknowledges that:
a) purchasing and downloading of any of the Producer’s products (beats, instrumentals, songs, demos, samples and track outs) in any way binds the Artist to the Terms and Conditions of this agreement.
b) the Producer reserves the right to change and/or amend its Terms and Conditions at any time.
c) The rights granted to the Artist under this agreement are not assignable or otherwise transferable
d) This license constitutes the entire agreement between the parties
e) This Agreement shall be construed in accordance with the laws of United States of America