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Commercial Music License Template for United States

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Key Requirements PROMPT example:

Commercial Music License

"I need a Commercial Music License for my retail chain to use background music in our 50 U.S. stores, with rights to stream via our own digital platform and create seasonal playlists, starting January 2025."

Document background
The Commercial Music License serves as a crucial legal instrument in the U.S. music industry, enabling businesses to legally use copyrighted music while ensuring proper compensation for rights holders. This document becomes necessary when any business or individual needs to use music for commercial purposes, whether in public spaces, advertisements, or digital platforms. It addresses key aspects such as usage rights, territorial limitations, payment terms, and compliance with U.S. federal and state copyright laws, providing a clear framework for both parties to protect their interests and avoid potential copyright infringement.
Suggested Sections

1. Parties: Identifies the licensor (rights holder) and licensee, including full legal names and addresses

2. Background: States the ownership of the musical work and intention to license

3. Definitions: Defines key terms including 'Musical Work', 'Territory', 'Term', 'License Fee', and 'Permitted Use'

4. Grant of Rights: Specifies the exact rights being licensed and any restrictions

5. Term and Territory: Defines the duration and geographical scope of the license

6. Payment Terms: Details the license fees, royalties, and payment schedule

7. Warranties and Representations: Legal assurances about ownership and right to license

8. Termination: Conditions under which the license can be terminated

Optional Sections

1. Synchronization Rights: Additional terms and conditions for synchronizing music with visual media, required when music will be used in audio-visual productions

2. Sampling Rights: Terms governing the creation of derivative works through sampling, applicable when licensee requires rights to modify or sample the music

3. Sub-licensing Rights: Provisions allowing licensee to grant licenses to third parties, necessary when licensee needs to further license the music

4. Digital Distribution: Specific terms and conditions for distribution on digital platforms and streaming services

Suggested Schedules

1. Schedule A - Musical Works: Detailed list of licensed musical works including composers, publishers, and PRO affiliations

2. Schedule B - Territory List: Detailed breakdown of territories covered by the license

3. Schedule C - Fee Schedule: Detailed breakdown of fees and royalty calculations

4. Schedule D - Reporting Requirements: Templates and requirements for usage reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

U.S. Copyright Act: Primary federal legislation (17 U.S.C.) governing copyright law in the United States, establishing basic rights for creators and rules for copyright protection

Digital Millennium Copyright Act: Federal law addressing digital copyright issues, including online infringement and technological protection measures

Music Modernization Act 2018: Updates music licensing legislation for the digital age, including streaming services and mechanical licensing procedures

Rights of Reproduction: Legal right to make copies of the musical work, including physical and digital reproductions

Rights of Distribution: Legal right to distribute copies of the musical work to the public through sale, rental, lease, or lending

Public Performance Rights: Rights governing the public performance or broadcast of the musical work

Synchronization Rights: Rights required for using music in combination with visual media like films, TV shows, or advertisements

Mechanical Rights: Rights related to the reproduction of musical works in recorded form

Performance Rights Organizations Regulations: Rules and requirements set by BMI, ASCAP, and SESAC for music licensing and royalty collection

Digital Performance Right in Sound Recordings Act: Legislation governing digital transmission of sound recordings and related licensing requirements

State Contract Laws: State-specific legislation governing contract formation, enforcement, and interpretation

Uniform Commercial Code: Standardized set of laws governing commercial transactions, including contract principles

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Federal Trade Commission Regulations: Federal rules protecting consumers and regulating commercial practices

State Consumer Protection Laws: State-specific legislation designed to protect consumers in commercial transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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