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Mechanical Licence Agreement
"I need a Mechanical Licence Agreement for my indie record label to license three songs from a major publisher, with worldwide digital distribution rights and a term of 5 years starting January 2025."
1. Parties: Details of the licensor and licensee
2. Background: Context of the agreement and ownership of rights
3. Definitions: Key terms used throughout the agreement
4. Grant of License: Scope and nature of the mechanical rights being licensed
5. Territory: Geographical scope of the license
6. Term: Duration of the license agreement
7. Royalties and Payments: Financial terms including rates and payment schedule
8. Warranties and Representations: Legal assurances from both parties
1. Minimum Guarantee: Used when requiring minimum payment guarantees, typically for high-value licenses or uncertain market conditions
2. Sub-licensing Rights: Permission to grant rights to third parties, used when licensee needs to work with other parties
3. Marketing and Promotion: Terms regarding promotion of the licensed works, used for commercial releases requiring marketing commitment
1. Schedule of Works: List of musical compositions covered by the license
2. Royalty Calculations: Detailed breakdown of royalty rates and calculation methods
3. Reporting Template: Format for regular royalty reporting
4. Territory Restrictions: Specific territorial limitations or requirements
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