Common use of Profitable Distribution Clause in Contracts

Profitable Distribution. The Licensee is allowed to distribute the Master Recording for two (2) profitable/commercial uses (e.g. album, EP, single or mixtape) on any physical or digital medium such as CDs, DVDs, Blu-ray Discs, VHS videos, USB-Sticks and all other forms of media or digital sales (e.g. iTunes, Google Play, Amazon, Spotify, etc.) with a circulation of up to five thousand (5,000) sales units, all 100% royalty-free. Besides these allowed sales units (physical or digital song sales) which count as 1 profitable project, the customer/Licensee is allowed to use the beat(s) for 1 further profitable project, either for public performances such as profitable live shows, or for monetized (profitable) videos (e.g. YouTube). Licensee is allowed to earn up to $2000 in total trough either live shows or monetized videos. Once Licensee has reached the limit of his allowed sales units and/or allowed earnings, and/or further sales are desired, further rights with a new sales cap need to be obtained with a new license or license upgrade (if the beat has not yet been sold with exclusive rights and is still available). If the beat is no longer available and offered for any form of licensing and/or marked as sold, license owners of any type of non-exclusive rights may upgrade their current license to the highest available non-exclusive license such as an unlimited license. If exclusive rights are no longer available, this does not affect license owners from being allowed to upgrade their non-exclusive license(s) to the highest form of non-exclusive license(s). Once Licensee has reached the allowed number of sales and any other limits concerning his license agreement, no more sales can be made after the sales cap is reached. Licensee expressly agrees to remove his songs from any marketplaces, stores, etc. to avoid the song from being sold or monetized continuously. The Licensee is not allowed to get radio-, video- or television-airplay (profit or non-profit) with a premium leasing rights license. For this purpose, Licensee must own Exclusive rights, premium trackouts or unlimited license. Licensee may also use the beat(s) or song for non-profit promotional use or demos (mixtapes).

Profitable Distribution. The Licensee is allowed to distribute the Master Recording for two three (23) profitable/commercial uses (e.g. album, EP, single or mixtape) on any physical or digital medium such as CDs, DVDs, Blu-ray Discs, VHS videos, USB-Sticks and all other forms of media or digital sales (e.g. iTunes, Google Play, Amazon, Spotify, etc.) with a circulation of up to five ten thousand (5,00010,000) sales units, all 100% royalty-free. Besides these allowed sales units (physical or digital song sales) which count as 1 profitable project, the customer/Licensee is allowed to use the beat(s) for 1 2 further profitable project, either for public performances such as profitable live shows, or for monetized (profitable) videos (e.g. YouTube). Licensee is allowed to earn up to $2000 5000 in total trough either live shows or monetized videos. Licensee may split earnings for both types of public performances and decides himself how he wants to use his total earnings limit for the 2 types of public performances that are allowed. If Licensee decides not to sell his song under use of the allowed sales units as 1 profitable project, Licensee may instead double his allowed total earnings limit for public performances that is defined in his license (this results in $10,000 total earnings for Premium Trackouts Rights trough public performances). In this case, Licensee waives his rights to sell his music as physical or digital copies. Once Licensee has reached the limit of his allowed sales units and/or allowed earnings, and/or further sales are desired, further rights with a new sales cap need to be obtained with a new license or license upgrade (if the beat has not yet been sold with exclusive rights and is still available). If the beat is no longer available and offered for any form of licensing and/or marked as sold, license owners of any type of non-exclusive rights may upgrade their current license to the highest available non-exclusive license such as an unlimited license. If exclusive rights are no longer available, this does not affect license owners from being allowed to upgrade their non-exclusive license(s) to the highest form of non-exclusive license(s). Once Licensee has reached the allowed number of sales and any other limits concerning his license agreement, no more sales can be made after the sales cap is reached. Licensee expressly agrees to remove his songs from any marketplaces, stores, etc. to avoid the song from being sold or monetized continuously. The Licensee is not allowed to get radio-, video- or television-airplay (profit or non-profit) with a premium leasing rights license. For this purpose, Licensee must own Exclusive rights, premium trackouts or unlimited license. Licensee may also use the beat(s) or song for non-profit promotional use or demos (mixtapes).