I have been asked to sign a mechanical license contract to sell a couple of my songs. I don't expect much in the way of royalities so I hoped to avoid hiring an attorney to review. I'm particularly confused about #2 as whether the purchase is limited to 1000 copies or if the buyer has the option to buy more under the same terms.
Thanks for looking!
MECHANICAL LICENSE AGREEMENT
This Mechanical License Agreement ("Agreement") is made this the _____ day of September, 2013, by and between XXXX (hereinafter referred to as "Licensee") and XXXX (hereinafter referred to as the "Owner").
The parties hereby mutually and expressly agree to the following terms and conditions:
1. Ownership. Owner warrants and represents that it is the sole and exclusive proprietor
of a valid copyright or license in the musical work now entitled:
Song 1
Song 2
(hereinafter referred to individually or collectively as the "Work" or "Musical Work"), and that Owner has the right to grant the license herein contained.
2. Grant of Rights. Owner hereby grants to Licensee the right for up to 1,000 copies to record, reproduce, market and sell the Musical Work. Further, Owner grants to Licensee the nonexclusive right, privilege and license, during the term of the copyright of said Work and all renewals and extensions thereof, to use the Work, and to make and/or use arrangements thereof, in the manufacture and sale of parts of instruments serving to reproduce the Work in the United States.
3. Compensation. Licensee shall pay to Owner royalties at the following rates on all copies
containing the above-named musical Works manufactured, sold and paid for in the United
States during the term of the Work's copyright and all renewals and extensions thereof:
(a) For each phonorecord manufactured, sold, and paid for, Licensee shall pay the Owner EIGHT AND ONE-HALF (8.5) CENTS.
(b) The term "phonorecord(s)" or "records", as used herein, means any
and all methods of mechanically reproducing the musical Work including, but not limited
to, phonograph records, cassette tapes, digital audio tape, compact disc, digital transmission, and any and all methods of reproducing the Work, now known or to later come into existence.
As to records manufactured in the United States and sold by Licensee for export to other countries, royalties shall be payable pursuant to this contract, except with respect to records exported to countries which require the payment of copyright royalties in connection with the import or sale of such records, in which event no royalties shall be payable hereunder. Notwithstanding the foregoing, as to all mechanical devices (such as masters) which are exported by Licensee to companies in other countries for use by such companies for the manufacture and sale of records, a royalty of ONE HALF the United States royalty rate shall be payable to the Owner.
Licensee agrees to render to Owner quarterly statements, and payments of all royalties payable hereunder, within 45 days after March 31st, June 30, September 30, and December 31, for each quarter for which any such royalties accrue pursuant to the terms hereof.
4. Indemnification. Owner shall release and hold harmless, Licensee from loss or damage (a) arising out of or connected with any claim by a third party or parties which is inconsistent with any of Owner's warranties set forth herein, or (b) by reason of any final non-appealable adjudication invalidating the copyright of the Work.
5. Assignment. The parties hereby agree that this Agreement is assignable by either party as long as the royalty rate herein stated is paid to Owner. Written notification of any assignment shall be promptly provided to the other party.
6. Binding Agreement. This Agreement is contractual in nature and is binding on each party hereto including each party's heirs, legal representatives, successors, assigns, owners, directors, shareholders, employees and agents of the parties hereto.
7. Applicable Law. This Agreement shall be governed by the laws of Ohio. All disputes hereunder shall be resolved in the applicable state or federal courts of Ohio. The parties consent to the jurisdiction of such courts, agree to accept service of process by mail, and waive any jurisdictional or venue defenses otherwise available. Any prevailing party shall recover its costs as well as reasonable attorney fees incurred.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have reviewed the terms and conditions of this agreement, and have each caused to be affixed hereto its or his/her hand and seal the day indicated.
Thanks for looking!
MECHANICAL LICENSE AGREEMENT
This Mechanical License Agreement ("Agreement") is made this the _____ day of September, 2013, by and between XXXX (hereinafter referred to as "Licensee") and XXXX (hereinafter referred to as the "Owner").
The parties hereby mutually and expressly agree to the following terms and conditions:
1. Ownership. Owner warrants and represents that it is the sole and exclusive proprietor
of a valid copyright or license in the musical work now entitled:
Song 1
Song 2
(hereinafter referred to individually or collectively as the "Work" or "Musical Work"), and that Owner has the right to grant the license herein contained.
2. Grant of Rights. Owner hereby grants to Licensee the right for up to 1,000 copies to record, reproduce, market and sell the Musical Work. Further, Owner grants to Licensee the nonexclusive right, privilege and license, during the term of the copyright of said Work and all renewals and extensions thereof, to use the Work, and to make and/or use arrangements thereof, in the manufacture and sale of parts of instruments serving to reproduce the Work in the United States.
3. Compensation. Licensee shall pay to Owner royalties at the following rates on all copies
containing the above-named musical Works manufactured, sold and paid for in the United
States during the term of the Work's copyright and all renewals and extensions thereof:
(a) For each phonorecord manufactured, sold, and paid for, Licensee shall pay the Owner EIGHT AND ONE-HALF (8.5) CENTS.
(b) The term "phonorecord(s)" or "records", as used herein, means any
and all methods of mechanically reproducing the musical Work including, but not limited
to, phonograph records, cassette tapes, digital audio tape, compact disc, digital transmission, and any and all methods of reproducing the Work, now known or to later come into existence.
As to records manufactured in the United States and sold by Licensee for export to other countries, royalties shall be payable pursuant to this contract, except with respect to records exported to countries which require the payment of copyright royalties in connection with the import or sale of such records, in which event no royalties shall be payable hereunder. Notwithstanding the foregoing, as to all mechanical devices (such as masters) which are exported by Licensee to companies in other countries for use by such companies for the manufacture and sale of records, a royalty of ONE HALF the United States royalty rate shall be payable to the Owner.
Licensee agrees to render to Owner quarterly statements, and payments of all royalties payable hereunder, within 45 days after March 31st, June 30, September 30, and December 31, for each quarter for which any such royalties accrue pursuant to the terms hereof.
4. Indemnification. Owner shall release and hold harmless, Licensee from loss or damage (a) arising out of or connected with any claim by a third party or parties which is inconsistent with any of Owner's warranties set forth herein, or (b) by reason of any final non-appealable adjudication invalidating the copyright of the Work.
5. Assignment. The parties hereby agree that this Agreement is assignable by either party as long as the royalty rate herein stated is paid to Owner. Written notification of any assignment shall be promptly provided to the other party.
6. Binding Agreement. This Agreement is contractual in nature and is binding on each party hereto including each party's heirs, legal representatives, successors, assigns, owners, directors, shareholders, employees and agents of the parties hereto.
7. Applicable Law. This Agreement shall be governed by the laws of Ohio. All disputes hereunder shall be resolved in the applicable state or federal courts of Ohio. The parties consent to the jurisdiction of such courts, agree to accept service of process by mail, and waive any jurisdictional or venue defenses otherwise available. Any prevailing party shall recover its costs as well as reasonable attorney fees incurred.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have reviewed the terms and conditions of this agreement, and have each caused to be affixed hereto its or his/her hand and seal the day indicated.
