The Role of Contracts and Agreements in Rightsholder Management
Contracts and agreements play a pivotal role in rightsholder management in the music industry. Rightsholder management involves protecting and managing the intellectual property rights and musical work information of songwriters, composers, performers, and other stakeholders. Below are several key aspects of the role of contracts and agreements in this context:
1) Documenting ownership and rights: Contracts and agreements establish who owns the rights to a musical work or a recording. They specify the rights granted to each party, whether it's the songwriter, performer, or entity that owns the master recording.
2) Licensing: Contracts are used to grant licenses for the use of music in various ways, including public performance, synchronization in visual media (TV, films, ads), streaming, and physical distribution. These agreements specify the terms, territories, and compensation for such uses.
3) Royalty distribution: Agreements define the terms for royalty distribution. They determine how revenues generated from music consumption are split amongst right holders, including songwriters, performers, and copyright owners. This ensures that all parties receive their fair share of earnings.
4) Exclusive vs. non-exclusive in rights: Contracts can establish whether the rights granted are exclusive (only one party can exploit the rights) or non-exclusive (multiple parties can exploit the rights simultaneously).
5) Term and conditions: Contracts specify the duration of the agreement and the conditions under which it can be terminated or renewed. It is important for all parties to know how long they are committed to the partnership.
Did you know that several agreements can exist between a music rightsholder and an organization?
Artists or songwriters can collaborate with multiple organizations to get royalties from different sources or locations with different terms and conditions. Here are 7 agreements that can help your artist gain the maximum out of royalty.
1) Music rights organizations (such as Performance Rights Organizations (PROs)): Contracts between songwriters/composers and PROs (e.g., ASCAP, BMI) establish the collection and distribution of performance royalties when music is played in public venues or broadcast.
2) Publishing Agreements: Songwriters may enter into publishing agreements with music publishers who help promote their works and secure licensing deals. These agreements specify how royalties are collected and distributed.
3) Distribution agreements: Contracts with distributors (e.g., digital music platforms, record labels) outline the terms of music distribution, including revenue sharing, territory rights, and marketing commitments.
4)Mechanical license agreements: For the reproduction and distribution of sound recordings, mechanical licenses are granted through agreements with record labels or entities that own the master recordings.
5) Sub-publishing agreements: When dealing with international rights, sub-publishing agreements can be established to allow local publishers to manage rights in specific territories.
Noctil offers an all-in-one metadata management platform with great customer support for publishers, publishing admins, record labels, music rights societies, and distributors.
To learn more about our tool, visit www.noctil.com or contact us at info@noctil.com.
