What is a royalty agreement?

A royalty agreement is an agreement between an artist and a company regarding the payment of royalties for the use of the artist’s work. In California, royalty agreements are legal contracts that define the terms and conditions for the use of artwork in a variety of ways, including music, film, television, and live performance. When an artist creates their work, they reserve the right to receive payment for its use, or “royalties”. The amount of royalties due depends on the type of agreement, although there are generally two types: exclusive and non-exclusive. Under an exclusive royalty agreement, the artist agrees to grant one company exclusive rights to their work, while allowing them to negotiate the terms of payment. On the other hand, under a non-exclusive agreement, the artist agrees to grant multiple companies rights to the same work, while negotiating the amount they will receive in return. In California, royalty agreements are subject to state and federal laws, including the Copyright Act, the California Uniform Trade Secrets Act, the Lanham Act, and the Talent Agencies Act. It is important for both the artist and the company to seek legal advice in order to understand their rights and obligations under the agreement, in order to ensure that all parties are protected.

Related FAQs

What is a co-publishing agreement?
What are the legal requirements of a record contract?
What is the process for obtaining a trademark?
Who typically needs an entertainment lawyer?
What is a service agreement, and what are its legal requirements?
What is a nondisclosure agreement, and what are its legal requirements?
What are the best ways to protect my intellectual property rights?
What is a royalty agreement?
What is a talent management agreement, and what are its legal requirements?
What is a licensing agreement?

What is a royalty agreement?

Related FAQs

Related Blog Posts