AV Best Practice Clause # 2| Producer/Distributor Contract

CONTEXT

Many cases exist in which the producer and the distributor of an audiovisual production shift responsibility to one another regarding the payment of the mechanical reproduction royalties for the reproduction of a musical work in an audiovisual production. Often the distributor believes that these copyrights are already settled between the producer and the relevant collecting society or even previously settled between the publisher and the producer. However, the mechanical reproduction rights often have not yet been settled.

For the collecting societies it doesn’t matter if it is the producer or the distributor who will pay the mechanical reproduction royalties, as long as it is contractually clear who eventually will be responsible for their payment. Practice shows however that in most cases the distributor will be responsible for the payment of the mechanical reproduction royalties. Therefore, the example of a clause below holds the distributor responsible. Nevertheless, a clause holding the producer responsible for the payment of the mechanical reproduction royalties is also a perfectly plausible option.

EXAMPLE of a CLAUSE regarding the RESPONSIBILITY for the PAYMENT of the MECHANICAL REPRODUCTION ROYALTIES

“The Producer and Distributor agree that the Distributor will be solely responsible for obtaining the necessary mechanical reproduction rights authorisation needed to manufacture respectively distribute in the Territory (reference needs to be made) the Audiovisual Production (reference needs to be made) containing the Musical Work (reference needs to be made). Consequently, the Distributor will be solely responsible for the accounting and the payment of the mechanical reproduction royalties owed to the relevant copyright society.”