Illinois Form - Audiovisual Streaming - Downloading License Agreement
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Key Takeaways. A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.
A music licensing agreement is a legal contract between the owner of the musical composition and a party which wishes to use it. The agreement typically includes provisions specifying what rights are granted, how much money will be paid for these rights, and when the payments will occur.
A music license is a right held by someone to distribute and/or use a piece of copyrighted music. Often seen in movies, a music license is also used for commercials, television shows, internet videos, and any other visual medium that wants to use a song with permission.
The U.S. copyright law requires those that publicly perform copyrighted music -- including websites and other digital services that transmit music to the public -- to first obtain a license from the copyright owners of the songs performed.
In short, the business owner is responsible for paying music licensing fees. Since the business ultimately controls what performances occur on its premises, the business is typically responsible for obtaining public performance authorization.