XTREEMMAK
New member
Hey all,
Pretty soon I will be launching a store to sell some of my tracks when I ran into a bit of a snag regarding the agreements. Based on what I understand between the differences between Non-Exclusive and Exclusive agreements:
1. Non-Exclusive License
*Grants the Licensee the use of the track on one commercial release
*Can only be sold over 1000 - 3000 combined units (based on agreement)
*The Licensor retains his copyright
*The Licensor can resell the track to be used again by other clients.
2. Exclusive License
*Grants the Licensee the use of the track on unlimited commercial release
*Can sell unlimited combined units (based on agreement)
*The Licensor retains his copyright
*The Licensor CAN'T resell the track to be used again by other clients.
Of course this is the usual case but can be altered based on your agreement.
There are two questions that I'm currently having a problem with:
1. In either case (exclusive or non-exclusive), would I be receiving anything from PRO's (performance rights organizations) since I still own the copyright? Generally, I would not be making royalties in either unless there is a clause in my agreement that stipulates when (say like if the total sales of the leased track exceeds $1 million). Someone also mentioned that it might be a good idea to put a time limit on the agreement?
2. Do you think it would be better to try to find a buyer for these tracks first before I offer them up under a non-exclusive/exclusive agreement? Or should I just put them up for grabs? (I think in this situation it might be obvious as of course, if you have the work, why sell your opportunity to attain royalties if you don't have to? But I'm still throwing the question out there).
Finally as a bonus question which I've run into recently:
Can someone explain to me how buy outs work? I've been hearing that it's completely different from having an exclusive agreement on a track, but from what I understand thus far, it involves selling all rights to the track, Copyright included. Can someone explain more on this?
Pretty soon I will be launching a store to sell some of my tracks when I ran into a bit of a snag regarding the agreements. Based on what I understand between the differences between Non-Exclusive and Exclusive agreements:
1. Non-Exclusive License
*Grants the Licensee the use of the track on one commercial release
*Can only be sold over 1000 - 3000 combined units (based on agreement)
*The Licensor retains his copyright
*The Licensor can resell the track to be used again by other clients.
2. Exclusive License
*Grants the Licensee the use of the track on unlimited commercial release
*Can sell unlimited combined units (based on agreement)
*The Licensor retains his copyright
*The Licensor CAN'T resell the track to be used again by other clients.
Of course this is the usual case but can be altered based on your agreement.
There are two questions that I'm currently having a problem with:
1. In either case (exclusive or non-exclusive), would I be receiving anything from PRO's (performance rights organizations) since I still own the copyright? Generally, I would not be making royalties in either unless there is a clause in my agreement that stipulates when (say like if the total sales of the leased track exceeds $1 million). Someone also mentioned that it might be a good idea to put a time limit on the agreement?
2. Do you think it would be better to try to find a buyer for these tracks first before I offer them up under a non-exclusive/exclusive agreement? Or should I just put them up for grabs? (I think in this situation it might be obvious as of course, if you have the work, why sell your opportunity to attain royalties if you don't have to? But I'm still throwing the question out there).
Finally as a bonus question which I've run into recently:
Can someone explain to me how buy outs work? I've been hearing that it's completely different from having an exclusive agreement on a track, but from what I understand thus far, it involves selling all rights to the track, Copyright included. Can someone explain more on this?