Many amateur songwriters fall victim to a poorly worded license agreement that totally tramples on their claim to their royalties and a potential million-dollar career. This scenario affects not only composers, but also musical composers for movies and television. They write songs and produce music. The record company or film and television company simply buys the composer’s rights to the song or music and has the composer sign a copyright waiver.
Struggling young musical artists, for example, are often forced to sign recording contracts that are not favorable to their future career. Understandably, they feel obligated to sign such contracts. Their careers at that early stage are in their infancy. The problem only arises if and when they are successful. These early-stage contracts often claim future, post-success and celebrity records. Musicians often do not understand or simply ignore these provisions. The consequence, however, can result in millions in lost revenue for artists years after these contracts are signed.
Therefore, it is important for amateur songwriters and songwriters to draft a licensing agreement to protect their future million dollar career. For the agreement to be valid and good, the following stipulations must be inserted:
1. There must be a copyright protection on derivative works.
Some music, film, and television companies give royalties to the music owner, but they are limited to private projects only. For example, if it is a music album, the composer will only receive his royalty depending on the sale of the music album. However, music, film and television companies have the right to sell the music for other derivative works, for example by using the song as a musical score.
If the composer does not have any rights to the derivative use of his creation, the music or film company can earn millions even when the sales of the music album have already declined. Take, for example, the song “Feels like home” or “Somewhere over the rainbow”, it has been used in countless movies and soap operas around the world. Every time these songs are used, the production company pays royalties to the record label. Therefore, if the composer has a right to the derivative use of his creation, he will have additional potential earnings. Also, the songwriter or songwriter will be protected from abusive record companies.
2. There must be a protection against unauthorized use.
Many songwriters lose a lot of potential revenue due to music piracy and unauthorized music download internet sites because most of the royalties are based on album sales. Therefore, composers must include provisions in their contract that protect them from unauthorized use of their music. The stipulation should require the licensee or record company to compensate you an additional amount for failing to protect your creation from unauthorized use.