The Music Royalty Contract serves as a crucial legal instrument in the Philippine music industry, establishing the framework for compensation and rights management between music creators, publishers, and various users of musical works. This document is essential when establishing or formalizing arrangements for the commercial exploitation of music, whether through traditional channels or digital platforms. It must comply with Philippine intellectual property laws, particularly the Intellectual Property Code (Republic Act No. 8293), while addressing modern music distribution methods and revenue streams. The contract typically covers various rights including mechanical, synchronization, and performance rights, and can be adapted for different scenarios from individual artist agreements to broad licensing deals. It's particularly important in the current digital age where music distribution spans multiple platforms and territories, requiring clear terms for revenue collection and distribution.
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1. Parties: Identification of the rights holder(s) and the licensee, including complete legal names and addresses
2. Background: Context of the agreement, identification of the musical work(s), and confirmation of ownership
3. Definitions: Detailed definitions of key terms including 'Musical Work', 'Recording', 'Territory', 'Gross Revenue', 'Net Revenue', and other relevant terms
4. Grant of Rights: Specific rights being licensed or assigned, including scope and territory
5. Term and Territory: Duration of the agreement and geographical scope of the license
6. Royalty Rates and Payments: Detailed breakdown of royalty percentages, payment calculations, and minimum guarantees
7. Payment Terms: Payment frequency, reporting requirements, audit rights, and currency specifications
8. Accounting and Records: Requirements for maintaining financial records, reporting formats, and audit procedures
9. Representations and Warranties: Confirmations regarding ownership, right to license, and non-infringement
10. Obligations of the Parties: Specific duties of both parties including promotion, collection, and administration
11. Termination: Circumstances under which the agreement can be terminated and the consequences
12. General Provisions: Standard clauses including notices, assignment, governing law, and dispute resolution
1. Sub-licensing Rights: Include when the licensee is permitted to sub-license the music to third parties
2. Digital Platform Provisions: Include for digital distribution rights and streaming platforms
3. International Revenue: Include when the agreement covers multiple territories with different revenue streams
4. Creative Control: Include when the rights holder maintains certain creative control over use of the music
5. Marketing and Promotion: Include when specific marketing obligations are required
6. Synchronization Rights: Include when the music can be used in film, TV, or other media
7. Performance Rights: Include when live performance rights are part of the agreement
8. Moral Rights: Include when addressing attribution and integrity rights under Philippine law
1. Schedule A - Musical Works: Detailed list of all musical works covered by the agreement, including composers and ownership splits
2. Schedule B - Royalty Rates: Detailed breakdown of royalty rates for different types of use and territories
3. Schedule C - Reporting Template: Standard format for regular royalty reporting
4. Schedule D - Approved Uses: List of pre-approved uses of the musical works
5. Appendix 1 - Copyright Registrations: Copies of copyright registrations for all covered works
6. Appendix 2 - Prior Licenses: List of any existing licenses that may affect the agreement
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