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#1 |
Regular Crew
Join Date: Jun 2004
Location: La Porte, IN
Posts: 43
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Understanding License Agreement - Help Please
I'm looking for some help in understanding a licence agreement from one of my Youtube videos that a production company wants to put in their library for future use. The video is something I captured on a family vacation 17 years ago. This company has used a few seconds of my video before in their show and I was compensated $150 for a "Right to Use" type contract. This new contract is a perpetual use and they can sublease the video from what I'm understanding. They are offering $150. I thought the company wanted the video again for a one time use in one episode.
Here's the first couple paragraphs of the contract. "PERMITTED USE OF LICENSED MATERIAL: The Licensed Material shall be added to Licensee’s library of audio visual clips (the “Library”) for use by Licensee for any and all purposes as determined by Licensee in its sole and absolute discretion. Further, Licensee shall have the express right to sublicense the Licensed Material to third parties (each a “Sublicensee”) for any and all purposes as determined by Licensee or Sublicensee in its sole and absolute discretion without further compensation. “LICENSE PERIOD”: In perpetuity. NUMBER OF EXHIBITIONS: Unlimited. “LICENSE FEE”: US$____________________________________________________________ “TERRITORY”: Throughout the universe. MEDIA: All media, whether now known or hereafter devised. For good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), including, without limitation, the License Fee, Licensor hereby grants to Licensee, an irrevocable, non-exclusive, royalty free license to use and sublicense the Licensed Material for any and all purposes as determined by Licensee in its sole and absolute discretion, in all media, whether now known or hereafter devised, throughout the universe, in perpetuity. Licensor expressly acknowledges that Licensee’s use of the Licensed Material may be commercial in nature and may be in connection with any products or brands. Licensor and Licensee agree as follows: |
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#2 |
Inner Circle
Join Date: Feb 2013
Location: LIncolnshire, UK
Posts: 2,213
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Re: Understanding License Agreement - Help Please
These types of clips are bread and butter for the home video clip shows that are shown all over the world. If you give them continuous rights to use it as they wish, then they will earn a lot of money by reselling it to TV channels all over the world for the next few years.
It's a common way to make cheap programmes without big production costs and generate big revenue streams from advertisers and sub licensing. The money offered sounds derisory to me and you would probably be better off to try to negotiate a fee for each showing including sub leases. In the commecial world, fees for copyrighted work tend to vary according to the number of showings, whether the showings are on local, national, streamed channelsl, prime time, off peak and various other factors. The fact that they have come back to you suggests that they know it is a saleable clip. So while the original payment was fair for a one off, the new offer sounds opportunist. Roger |
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#3 |
Inner Circle
Join Date: Nov 2005
Location: Lowestoft - UK
Posts: 4,039
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Re: Understanding License Agreement - Help Please
Inperpetuity in any territory and giving them absolute rights is simply a goodbye to the material. Take the money or not - your choice. It's standard now. Actors give the same rights away when they do spots on morning TV or chat shows. In fact, the famous bass player, Herbie Flowers did the same when he came up with the famous baseline to walk on the wild side. Took the money to pay the rent.
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#4 |
Major Player
Join Date: Jun 2008
Location: Milwaukee WI
Posts: 691
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Re: Understanding License Agreement - Help Please
Basically getting $25 per minute to give them all rights to the material forever....sounds like a fantastic deal for them!! Not so much for you. I'd get more money or let them walk.
Thanks Jeff Pulera |
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#5 |
Regular Crew
Join Date: Jun 2004
Location: La Porte, IN
Posts: 43
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Re: Understanding License Agreement - Help Please
Thanks for your input guys. I'm gonna ask for more money or for a one time use contract as I have gotten in the past.
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#6 |
Trustee
Join Date: Aug 2006
Location: San Diego, CA
Posts: 1,082
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Re: Understanding License Agreement - Help Please
I wouldn't allow sublicensing (especially for no cost).
I'd probably allow them unlimited use for their show or whatever, and I personally thing $150 isn't out of the realm of reason. You might try and get $300 or $450, but if you are thinking 10x that, I think you're way off. |
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#7 |
Regular Crew
Join Date: Jun 2004
Location: La Porte, IN
Posts: 43
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Re: Understanding License Agreement - Help Please
Yes I agree. No way I'm I letting them sublease with no compensation. I am fine with $150 to use for one episode, not perpetual. I have done pretty good with this video for not having any intentions of airing it anywhere but my home. But when YouTube came online, this was my first upload. Parts have been used several times on different shows, I even got to be interviewed about this video on the show Caught in the Act. I was getting $500 the first 3 "Right to Use" contracts but going lower as time goes on. My claim to fame. lol And still getting YouTube money occasionally.
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