Music Distribution Contract Template for New Zealand

A Music Distribution Contract is a legal agreement that establishes the terms under which your music will be distributed across various platforms, territories, and formats. This contract defines the relationship between you as a rights holder and your chosen distributor, outlining everything from revenue splits to marketing responsibilities. In New Zealand's evolving music industry, having a comprehensive distribution agreement protects your interests while ensuring your music reaches the widest possible audience.

When do you need this document?

You need a Music Distribution Contract when signing with a digital aggregator to get your music on Spotify, Apple Music, and other streaming platforms. Independent artists require this agreement when partnering with distribution companies that handle both digital and physical sales channels. Record labels use these contracts when engaging third-party distributors to expand their market reach beyond their direct capabilities. Music publishers need distribution agreements when licensing their catalog to specialized distributors who focus on sync licensing or international markets. You'll also require this document when establishing exclusive distribution partnerships that involve significant marketing commitments or territorial restrictions.

Key legal considerations

Revenue sharing arrangements form the foundation of your distribution agreement, typically ranging from 15% to 50% distributor commission depending on services provided. Territory clauses define where your music can be distributed and whether the arrangement is exclusive or non-exclusive in specific regions. Quality control provisions ensure your distributor maintains professional standards in how your music is presented and marketed. Termination clauses protect your ability to end the relationship while addressing what happens to existing revenue and ongoing sales. Copyright ownership must remain clearly defined, ensuring you retain all rights to your master recordings and compositions. Marketing and promotional obligations should specify what promotional activities the distributor will undertake and any minimum spending commitments.

Legal requirements in New Zealand

Under the Copyright Act 1994, your distribution contract must clearly establish that you own or have proper licensing for all distributed content, including master recordings and underlying compositions. The Fair Trading Act 1986 requires that all marketing representations made by your distributor are accurate and not misleading to consumers. Revenue reporting must comply with the Income Tax Act 2007, particularly regarding international royalty payments and withholding tax obligations. Your agreement should address Goods and Services Tax implications under the GST Act 1985, especially for digital music sales. The Contract and Commercial Law Act 2017 governs dispute resolution procedures and remedies for breach of contract. Anti-competitive provisions must comply with the Commerce Act 1986, particularly regarding exclusive dealing arrangements and territorial restrictions that might limit market competition.