What is a performance rights agreement, and what are its legal requirements?
A performance rights agreement is a legal document that outlines the terms and conditions between a songwriter and a third-party who wishes to use the songwriter’s music. This type of agreement is commonly used in the entertainment industry when a song needs to be used in a film, television show, advertisement, or other type of audio-visual production. Under a performance rights agreement, the third-party must receive permission from the songwriter to use the copyrighted music. This includes obtaining a license from the songwriter for the right to reproduce and/or distribute the performing song. In exchange, the third-party pays a fee to the songwriter, typically in the form of a “royalty”. In California, the legal requirements for a performance rights agreement are outlined in the California Copyright Act. These requirements include the copyright holder registering their work with the U.S. Copyright Office, obtaining a mechanical license, and notifying the performing rights society. The agreement must also be in writing and include the title of the song, the name of the songwriter, the name of the third-party, and other details such as the scope of use, the payment amount, and the duration of the agreement. In addition to the legal requirements, performance rights agreements also typically include other language that outlines the rights and obligations of each party. This includes provisions regarding indemnification, warranties, and liability. It is also important that both the songwriter and the third-party seek legal counsel when entering into a performance rights agreement.
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