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Old 1st September 2012
  #3
Gear Nut
 
HUFO_2000's Avatar
 

Unhappy

Ok so Buy out is something different than obtaining an exclusive license.

*sigh* ok so from how I originally understood it:
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.

3. Buy Out
*All that the Exclusive license provides, but Licensor surrenders the copyright to the Licensee.

That was my original understanding of each. My question is regarding the differences in 2 and 3 and where the advantage of retaining your copyright as part of the Exclusive license poses as a benefit. I can't resell it and I dont think I can make any royalties from it (right?). I think the only advantage I see so far is that you can probably still claim the credit as "the person who created the track" and is considered less of a financial advantage.

Maybe I have the order wrong? But wait....how can you sell a track for buy out multiple times if you no longer own it after the first transaction?

EDIT:
Just found something interesting in an exclusive license agreement I was researching:

CONDITIONAL ROYALTY: In the event a master recording containing the licensed Instrumental is contained on an album where the gross receipts received by the label by virtue of the albums distribute exceeds one million dollars ($1,000,000), Licensor shall be entitled to a producer royalty of five percent (5%) of Net Profits, retroactive to album one.