This Exclusive ONLINE Digital Media
MUSIC DISTRIBUTION AGREEMENT is entered into by and between Corey Wright dba,
Corey Wright Digital Music Distribution Services (hereafter "CWDMD"),and ______________________________________(hereafter referred to as “Artist” and/or label) effective as of This _____, day
of ____________, 20____.
PURPOSE
1. CWDMD is an Internet Distribution Company that Distributes music by encouraging MP3 file trading and Internet radio. CWDMD Causes Artists and/or labels product (i.e.
Digital Sound recordings) to be distributed to consumers that download and listen to music. When consumers pay for access
and or to purchase CD-quality online music, or Download said product, via any internet or intranet connection CWDMD will pay
Artist (60%) of all net profit collected.
2. Artist, who has not signed an exclusive agreement with any record label, wishes
to enter into a exclusive agreement with CWDMD to reproduce, publish, market, distribute and sell the Artist’s Work
to consumers under the terms and conditions of this Agreement.
NOW
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:
Section 1.
DEFINITIONS
For purposes of this Agreement, the following capitalized terms are defined as
follows:
1.1 “Creative Commons License” means the “Attribution-Non Commercial
– Share Alike” license
created by Creative Commons, a nonprofit dedicated to promoting the creative reuse
of musical and other works, and available free of charge at www.creativecommons.org/licenses/by-nc-sa/1.0. This is the license
that allows copyright holders to easily inform others that their works are free for copying under the conditions that i. credit
for their works is provided; ii. their works can not be used for commercial purposes
without permission; and iii. Derivative Works can be distributed only under an
identical license. The Creative Commons License is hereby incorporated by reference into this Agreement.
1.2 "Derivative Works" means a work based upon the Work or upon the Work and other
pre-existing works, such as a translation, musical arrangement, sound recording, reproduction, abridgment, condensation, or
any other form in which the Work may be recast, transformed, or adapted.
1.4 "Digital Audio Transmission" means a transmission that embodies a sound recording
including
the performance thereof.
1.5 "Digital Phonorecord Delivery" means each individual delivery of a phonorecord
by digital
transmission of a sound recording, or part thereof, which results in a specifically
identifiable reproduction by or for any transmission recipient of a phonorecord of that sound recording.
1.6 “Formats” means all electronic
media formats including, but not limited to, the following: MP3, MP2,
CD-ROM, Windows Media WMA, RealAudio, OGG Vorbis, Samples, AIFF, WAV, Flash, MIDI, Cubase,
Sequencer file, and SampleCell.
1.7 “Merchandise” means certain items with Artist's likeness, including
but not limited to, music t-shirts,
mugs, posters, CDs, (both one-off and bulk-created) and other items that the parties
may designate.
1.8 “Platforms” means all electronic media platforms including, but
not limited to, “Windows Media Player”, “RealPlayer”, Internet radio, and MP3 player (Winamp, MusicMatch),
1.9 “Peer-to-Peer Technology”: means all peer-to-peer software clients,
technologies and networks including but not limited to Kazaa, Napster, Gnutella, Aimster, Rockster, LimeWire, Alluvium, PeerCast,
AllCast, and Streamer.
1.10 “Sale”
means where money is paid and received by CWDMD for the occurrence of any of the following: i. a consumer requests to download
a CD-quality copy of Artist’s Work; ii. sublicensing of the Artist’s Work, in whole or part, for commercial purposes;
and iii. Nondigital sale of Artist’s Work and Merchandise. “Sale”shall not include
promotional activities by CWDMD (where no cash sale has occurred), including distribution of high-quality copies of the Work
(such as to DJs, A&R, barters, low-budget films), and any subscription service that allows listeners access to entire
genres or a mix of music.
1.12 "Work” means all forms of sound, music, rhythm and lyrics that Artist
intends to provide to CWDMD including, but not limited to: sound recordings, compositions, song lyrics, written prose, musical
recordings, vocal recordings, vocal solos, samples, field recordings and ambiences. All Work submitted by Artist, which shall
include one or more songs or music scores, shall be set forth in Attachment “A”, which shall be incorporated into
this Agreement. Each subsequent submission of Artist’s Work shall be set forth by Attachment and will be incorporated
into this Agreement.
REQUIRE
THE PERMISSION OF ANY OTHER PARTY TO ENTER INTO THIS AGREEMENT
Artist shall provide CWDMD immediate notice if it enters into an exclusive agreement
with any
record label or for the distribution of Merchandise. d. If Artist has entered into
an agreement with
any record label (“Prior Agreement”), Artist has had an attorney review
the Prior Agreement who has determined that Artist has the legal right to enter into this Agreement and assume the duties
hereunder and that CWDMD has the right to use the Work as provided herein. Artist shall provide CWDMD with a copy of any Prior
Agreement.
e. Artist is at least 18 years old and has the right and authority to enter into
this Agreement on his/her
behalf or, if Artist is more than one person, Artist has the right and authority
to enter into this Agreement on behalf of such group.
f. Artist has reviewed the Creative Commons License and hereby confirms that Artist’s
Work may be
licensed by and through the Creative Commons License.
Section 3.
NON-EXCLUSIVE LICENSE GRANT TO
CWDMD
3.1. Exclusive License Grant.
a. Subject to the terms and conditions of this Agreement, Artist hereby grants
CWDMD a exclusive
right and license throughout the universe to freely and without restriction use
and exercise the rights
in the Work identified in Attachment A, in whole or in part, as stated below:
i. to use reproduce, publish, duplicate, publicly or privately perform and display,
distribute and transfer the
Work, or cause to do the same, including Digital Audio Transmissions and Digital
Phonorecord Deliveries of the Work, and the right to couple any of the Work with recordings other than Artist’s licensed
Work (“Electronic Distribution”);
ii. to use, market, license, sublicense, distribute and sell the Work, including
individual tracks, MIDI, lyrics, samples music score and other constituent parts from the Works;
iii. to create and reproduce Derivative Works, or cause to do the same;
iv. to use, reproduce, distribute, display, deliver and transmit, publicly and
privately, by any means now
known or hereafter devised, the lyrics of the musical compositions embodied in
the Work, for the purpose of promoting the Work or facilitating the exercise of the rights of Electronic Distribution of the
Work; and
v. to use the Work to promote Artist, the Work and CWDMD (and its products and
services) and to use the name and likeness biographical material, logos, trademarks photographs, symbols, emblems, designs,
and any other visual representations of the Artist, and any other individuals performing or otherwise represented in the Work.
The above rights may be exercised in all Formats, Platforms and Peer-to-Peer Technology,
both presently
known or to be developed, without any payment or royalty obligation to Artist,
except for as specifically
provided under Section 4.
b. Artist agrees that its Work shall be released or distributed under the terms
of the Creative Commons License. And may also be used under any other type of
license legally recognized by the legal community.
c. Artist also grants CWDMD the right to sell, or cause to sell, or sublicense
Merchandise subject to
Section 4.4.
3.2. Term and Termination.
a. This Agreement will commence on the Effective Date and continue for a period
of five (5) years
from the Effective Date (the “Initial Term”). This Agreement will automatically
renew for successive one year terms in perpetuity, if not terminated in writing thirty (30) days or more prior to the expiration
of the
term (the Initial Term and any period thereafter, if any, collectively are referred
to as the “Term”).
b. This Agreement may be terminated if either Party breaches any of the provisions
of this Agreement,
which breach has not been remedied within Sixty (60) days of written notice of
the breach, and without
prejudice to any remedies available to the non-breaching Party.
3.3. Abridge and Adapt. Artist grants CWDMD the right, in its sole discretion,
to abridge and/or adapt the Work in order to conform to the requirements of the Formats, Platforms and Peer-to-Peer Technology
utilized by CWDMD.
3.5. Artist’s Reservation of Rights. CWDMD shall not grant rights that are
greater than the rights granted under this Agreement. All other rights are reserved to Artist. Other than the Work identified
by Attachment hereto, Artist shall have no obligation to license any other work or music. Subject to the exclusive license
grant conferred to CWDMD herein, Artist shall retain all rights to the copyright interests in the Work.
Section 4.
PAYMENT AND ROYALTY FEE
4.1. Royalty Fee. In full consideration of all Royalty Fees due to Artist, CWDMD
shall pay Artist Sixty
percent (60%) of all net profits actually received by CWDMD from a Sale,
in whole or in part, (“Royalty Fee”).
4.2. Net Revenues. For purposes of computing royalties, the term "Net Profits"
means net profit actually received by CWDMD from all Sales of the Work, adjusted for returns,
allowances, refunds, bad debt, overhead, shipping and handling, taxes of any kind and union guild or other third party
fees that may be required by contract or the Copyright Act, if any. (collection of mechanical royalties will be the responsibility
of the artist/label.)
4.3 Waiver of Additional Royalties: The Royalty Fee payable to Artist shall include
all compensation,
including performance royalties
for underlying musical works due Artist/label, individual
producers, the performers, engineers, and any other persons engaged in connection
with the Work. Artist
hereby waives any right to any compensation, other than the Royalty Fee, including
without limitation,
mechanical and/or performance royalties in connection with Electronic Distributions
hereunder. Artist will be solely responsible for payment of all above stated royalties and will indemnify CWDMD and hold
CWDMD harmless against any and all losses, damages, costs or claims made by any
parties resulting from Electronic Distributions hereunder.
4.4 Merchandise: CWDMD shall pay Artist Sixty percent (60%) of all Net Profits
of Merchandise. “Net
Profits” means net profit actually received by CWDMD from all Merchandise
sold, adjusted for all
costs to create and purchase the Merchandise, returns, allowances, refunds, bad
debt, overhead, shipping and handling, and taxes of any kind.
4.5 Limitations and Taxes. There shall be no Royalty Fee for digital performances
for Internet or satellite radio stations or other digital transmissions. Artist shall be solely responsible for any and all
taxes, fees and
assessments that may be imposed against the Royalty Fee by any governmental entity,
which shall not be a part of, or an offset against, such fees. All objections concerning a Royalty Fee shall be submitted
by Artist
within one (1) year after the date of payment of Royalty Fee and/or Royalty Fee,
after which time all objections shall be waived.
4.6 Payment Terms. CWDMD shall provide payment of the Royalty Fee in U.S. dollars
to Artist at least two (2) times per year, on or before June 30 and December 31st. Unless other payment arrangements are made between CWDMD
and Artist, and if Pay pal offers receipt of payments to the Artist's primary country of residence, artist shall create a
Pay pal account and maintain it in good standing. All payments from CWDMD will be made to Artist’s Pay pal account.
CWDMD reserves the right, in its sole discretion, to select an alternative payment service other than Pay pal. Payment shall
be made to Artist after the Royalty Fees amount to at least $1000; CWDMD shall hold the Royalty Fees until such time.
Section 5.
OPERATIONAL DUTIES
5.1. Selection of Music. CWDMD shall, at its sole discretion, select whether the
Work, in whole or in part, is acceptable for use under this Agreement.
5.2 Marketing of the Work. Work that has been accepted by CWDMD shall be posted
and available for
CWDMD listeners and categorized by Artist’s name and genre. CWDMD shall have
no further duties
concerning the marketing or promotion of the Work or Artist. Notwithstanding the
foregoing, CWDMD, in its sole discretion, shall be permitted to promote, market, and advertise the Work and Artist without
limitation.
5.3 Pricing. CWDMD shall decide, in its sole discretion, the price plan of all
Sales of the Work and
Merchandise.
.
5.4 Limitations.
a. Notwithstanding any of the foregoing, CWDMD shall have no obligation whatsoever
to
provide services, payment or resources toward marketing, promotion or advertising
for Artist or the
Work.
b. Other than the Royalty Fees stated herein, CWDMD shall have no obligation to
provide to Artist
any kind of payment, including an advance, license fees, residuals, Internet radio
fees or any other form of
compensation.
c. CWDMD shall be permitted, in its sole discretion, to remove or edit the Work,
or any portion
thereof, from any website at anytime and without notice to Artist. CWDMD shall
have no duty to post the Work or Artist on any website.
d. As further provided below under Section 6.1, Artist shall be solely liable for
any claim for any royalty
fees or charges that might be brought against CWDMD by a performing rights licensing
organization including, without limitation, ASCAP, BMI, or SESAC, arising from all uses and sublicensing of the Work contemplated
under this Agreement.
5.5 Artist’s Promotion Information and Merchandise.
Upon request, Artist shall provide to CWDMD its biographical material including
the following: i. Four
substantially different group photographs (high quality suitable for posters and
press kits); ii. Bio’s for each
band member; iii. Close up photographs of each band member; and iv. High quality
digital copies of album
artwork. Items ii. and iii. shall not be required for bands composed of more than
6 people.
Section 6.
INDEMNITY, DISCLAIMER AND LIMITATION OF LIABILITY
6.1 Artist’s Indemnity. Artist shall indemnify and defend CWDMD and hold
CWDMD harmless from
and against any and all costs, liabilities, losses, damages and expenses arising
out of any claims, actions, suits, or proceedings of any kind from any third party claim relating to (i) a breach of Artist’s
warranties and/or duties under this Agreement, (ii) any claim for royalties and/or infringement of copyright, trademark, patent
or other intellectual property rights or (iii) any third party
claims arising out of Artist’s conduct or representations under this Agreement.
Further, in the event that a third party infringement claim is brought, CWDMD shall have no obligation hereunder to defend
on protect Artist’s copyright interests.
6.2 Disclaimer. CWDMD MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AND
SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.
6.3 Limitations on Liability. CWDMD makes no warranty with respect to the accuracy
or effectiveness of any website, including content contained therein, nor any errors or problems of any kind that may arise
from any website.CWDMD shall not be responsible for losses, damages, costs, or expenses of
any kind resulting from the use or distribution of the Work by CWDMD or use by
any consumer or end user. This includes, without limitation, any liability for business expenses or damages experienced by
Artist or any third persons as a result of any deficiency, defect, error, or malfunction with any Website or the transfer
or distribution of the Work. CWDMD shall not be liable for any indirect, special, incidental, or consequential damages relating
to or arising out of the subject matter of this Agreement.
Section 7.
General.
7.1 Notices. All notices permitted or required under this Agreement shall be in
writing and shall be delivered as follows (i) by email, (ii) by U.S. Mail (iii) by facsimile transmission, or (iv) by certified
or registered mail, return receipt requested, five days after deposit in the mail.
7.2 Waiver and Severability. The failure of either party to require performance
by the other party of any
provision hereof shall not affect the full right to require such performance at
any time thereafter; nor shall the waiver by either party of a breach of any provision hereof be taken or held to be a waiver
of the provision itself. In the event that any provision of this Agreement shall be unenforceable or invalid under any applicable
law or be so held by applicable court decision, such unenforceability or invalidity shall not render this Agreement unenforceable
or invalid as a whole, and, in such event, such provision shall be changed and interpreted so as to best accomplish the objectives
of such provisions within the limits of applicable law or applicable court decisions.
7.3. Arbitration and Controlling Law. Any and all disputes that may arise between
the Parties under or in
connection with this Agreement shall be submitted (together with any counterclaims
and disputes under or
in connection with other agreements between the parties) to final and binding arbitration
heard by a single
arbitrator in accordance with the then-current Commercial Arbitration Rules of the
American Arbitration Association (the “AAA”). The arbitration shall be conducted in San Francisco, California.
All
questions concerning the validity, operation, interpretation, and construction
of this Agreement will be
governed by and determined in accordance with the laws of the State of California.
7.4. No Agency. The relationship between CWDMD and Artist is that of independent
contractors. Nothing contained herein shall be construed as creating any agency, partnership, or other form of joint enterprise
between the parties or to allow either party to bind the other or incur any obligation on its behalf.
7.5. Counterparts. This Agreement may be executed in two or more counterparts,
each of which will be
considered an original, but all of which together will constitute one and the same
instrument.
7.6 Assignment. CWDMD may assign this Agreement to any entity to which it transfers
all or substantially all of its ownership interest, whether through merger, acquisition or sale of assets. Otherwise, neither
party may assign, voluntarily, by operation of law, or otherwise, this Agreement without the other party’s prior written
consent, and any attempt to do so without that consent will be void. This Agreement will bind and inure to the benefit of
the parties and their respective successors and permitted assigns.
.
7.7 Entire Agreement. This Agreement is the entire agreement between Artist/label
and CWDMD which
supersedes any prior or contemporaneous agreement or understanding, whether written
or oral, and any other communications between Artist/label and CWDMD relating to the subject matter of this Agreement. This
Agreement may not be changed orally, but only by a writing signed by both parties which specifically references this Agreement.
7.8 Survival: The provisions of Sections 1, 4, 5.4, 6, and 7 shall survive termination
of this Agreement.
7.9 Headings. The headings herein are for convenience only and are not intended
by the parties of or to affect the meaning or interpretation of this Agreement.
The undersigned agree to the terms and conditions stated herein , and also agree that
these terms and conditions will be governed by the laws of the State of California and the in accordance
with United States Law.
______________________________________
Corey Wright
Dated
CWDMD
______________________________________
Artist/Group Representative
______________________________________
Dated