What is a music licensing agreement?

A music license agreement is a legal contract between a copyright holder (musician) and another party to allow them to use their copyrighted material (music).

How it works
As a musician or producer, you must have recorded or mixed some amazing songs in your career. Now imagine, a brand or company wants to use your song in a promotional material, jingle or movie.
A licensing agreement is the legal document you sign with the brand or company wanting to use your work. In this relationship, the musician or producer is known as the Licensor, while the company or brand is known as the Licensee.

A music license agreement should specify the rights that will be granted:, what territory or countries it applies in, whether it’s exclusive or non-exclusive, and how royalties will be paid out. It may also specify things like when ownership reverts back to the copyright holder (in case of termination), who owns derivative works created under this agreement, and where all parties agree on jurisdiction should any disputes arise.

The benefit of licensing your work can be quite substantial including more financial income for the musician or producer.

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