The Music Royalty Split Agreement is a crucial document in the South African music industry that formalizes the revenue sharing arrangement between various stakeholders involved in the creation, production, and exploitation of musical works. This agreement becomes necessary whenever multiple parties contribute to a musical work and need to establish clear terms for sharing the resulting revenue streams. It is particularly important in the modern digital age where music can generate income from numerous sources including streaming, downloads, physical sales, synchronization, and performance rights. The agreement must comply with South African legislation, particularly the Copyright Act 98 of 1978 and related regulations, while providing clear mechanisms for revenue collection, distribution, and reporting. It should be drafted with consideration of both current and potential future revenue streams, making it a forward-looking document that can accommodate changes in the music industry.
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1. Parties: Identification of all parties to the agreement, including legal names, addresses, and roles (e.g., composer, producer, performer)
2. Background: Context of the agreement, including the creation of the musical work and the parties' contributions
3. Definitions: Detailed definitions of key terms including 'Musical Work', 'Sound Recording', 'Royalties', 'Net Revenue', etc.
4. Ownership Declaration: Clear statement of copyright ownership percentages for the musical work and/or sound recording
5. Royalty Split Percentages: Detailed breakdown of how revenue will be split between parties across different revenue streams
6. Revenue Sources: Specification of all revenue sources covered by the agreement (streaming, downloads, sync licensing, performance royalties, etc.)
7. Payment Terms: Details of payment frequency, method, currency, and minimum payment thresholds
8. Accounting and Statements: Requirements for financial reporting, audit rights, and statement frequency
9. Collection and Distribution: Process for collecting and distributing royalties, including role of collection societies
10. Representations and Warranties: Parties' assertions regarding ownership, originality, and right to enter agreement
11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
12. Governing Law and Jurisdiction: Specification of South African law as governing law and jurisdiction for disputes
13. General Provisions: Standard clauses including entire agreement, amendments, notices, and severability
1. Publishing Rights: Specific terms related to publishing rights if applicable - include when the agreement covers songwriting/composition rights
2. Sampling Clearance: Terms regarding use of samples - include when the musical work contains samples from other works
3. International Rights: Specific provisions for international exploitation - include for works likely to be used internationally
4. Digital Platform Rights: Specific terms for digital platforms - include when the work will be distributed digitally
5. Producer Rights: Specific terms for producer royalties - include when a producer is party to the agreement
6. Live Performance Rights: Terms regarding live performance revenue - include when live performance rights are part of the split
7. Sync Licensing: Provisions for synchronization licensing - include when sync licensing is anticipated
8. Credit and Attribution: Requirements for crediting parties - include when specific crediting requirements exist
1. Schedule A - Musical Work Details: Detailed information about the musical work(s) including title, duration, ISRC codes, and registration details
2. Schedule B - Revenue Split Percentages: Detailed breakdown of split percentages for different revenue types and territories
3. Schedule C - Collection Society Registrations: List of relevant collection society registrations and splits
4. Schedule D - Payment Details: Banking and payment information for all parties
5. Appendix 1 - Sample Statement Format: Template for royalty statements and reporting
6. Appendix 2 - Recording Details: Technical details of the recording including studio, engineers, musicians
Authors
Relevant legal definitions
Clauses
Relevant Industries
Music Industry
Entertainment
Media & Broadcasting
Digital Media
Performing Arts
Copyright & Intellectual Property
Legal Services
Recording Industry
Publishing Industry
Live Entertainment
Relevant Teams
Legal
Rights Management
Business Affairs
Finance
Royalty Administration
Copyright Administration
Artist & Repertoire
Music Publishing
Licensing
Contract Administration
Relevant Roles
Music Rights Manager
Legal Counsel
Copyright Administrator
Royalty Manager
Contract Administrator
Music Publisher
A&R Manager
Business Affairs Manager
Finance Manager
Music Licensing Manager
Artist Manager
Record Label Executive
Music Producer
Recording Artist
Songwriter
Entertainment Lawyer
Intellectual Property Lawyer
Royalty Accountant
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