License Types

Non-exclusive: Pertaining to a license where the licensor gains rights to use the works for a specific project while the artist/publisher retains ALL rights to license said works for any and all future projects.

Product Exclusive: A licensing agreement whereas the artist/publisher agrees to license the works exclusively for one specific type of product. For example, a video about Africa or a stuffed animal toy. The agreement is very narrow and specific to the exact type of product. Not just videos or toys in general BUT a specific subject or type of product.

Industry Exclusive: A broader agreement than the previous with wider exclusivity for products. For example, all toys, all computer games or all TV commercials. License may also involve other restrictions. (See next entry)

Time Limited: Refers to a time limited license which can be used in conjunction with any of the above licenses. For example, an agreement for exclusive rights for all videos for a term of 3 years.


Local: A small market usually restricted to one or two small to medium size cities.

Regional: A larger city containing several major suburbs or markets area such as Chicago or New York City. Also a larger broadcast area such a one or two states.

National (USA): Markets within the United States of America.

National (USA + Canada): Markets within the United States of America and Canada.

Multinational: Market covering several countries outside the USA. For example, several European markets.

Worldwide: Covering all markets, domestic and foreign, worldwide.

Broadcast Television

Free Television
Basic Cable
Pay or Subscription
PSA (Public Service Announcement)

Broadcast Period

The frequency for which a show is broadcast. Either on a daily, weekly, monthly, yearly (such as holiday specials) or a one time special event (such as the Olympics)

Usage Type

Feature: Song is uses prominently in it’s usage. Advancing the story line with little or no dialogue or prominently featured on a toy or game. Example, a boy looking up at the sky at the stars while “Twinkle Twinkle Little Star” plays or a doll that sings “Rock-A-Bye Baby.”

Theme: Used as a opening or closing theme or during opening or closing credits. Also as a recurring theme for a character or situation. Example, “Rocky” type music plays when the movie opens or when the fighter enters the ring.

Background: Mixed with sound effects and/or dialogue as part of an overall scene or situation. Example, music playing on a jukebox when a character enters a restaurant.

Payment Preference

Royalty: A per unit sold or per broadcast payment. Example, 10¢ for each video sold which can be paid quarterly or biannually or when the dollar amount reaches a certain plateau such a $100 in royalties due.

One Time Flat Fee: A one time payment based either as a complete buyout for life-of-copyright or restricted by unit amounts or restricted by a time limit of 1, 3, of 5 years.

Quarterly Payments: Based either on an amount plateau or simply a per unit sold amount to be paid regularly every 3 months. It’s standard that an accounting sheet of what titled or products were sold or when a show was aired should accompany each payment.

Flat Fee Increments “Rollover”
: Based on a per unit sold fee or a flat fee based on a bulk amount to be paid on a regular basis. Example, a fee when the first 5,000 units are sold with another payment due when the next 5,000 are sold. Or the payment can be an upfront fee to cover the first 5,000 with another payment due if the licensor wishes to extent the license for the next 5,000. The units sold does not have to be the same for each increment however. For example, an upfront payment for the first 10,000 sold with payments after that for additional 2,000 unit increments. Almost certainly some kind of upfront “advance” will be required.

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