Understanding License Agreement

Rich Woodrick · October 6th, 2016, 09:11 AM

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.

I'm looking for advise on if I should decline or ask for more money. Thanks in advance for your help.
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:

Roger Gunkel · October 6th, 2016, 10:26 AM

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

Paul R Johnson · October 6th, 2016, 12:00 PM

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.

Jeff Pulera · October 6th, 2016, 12:23 PM

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

Rich Woodrick · October 8th, 2016, 07:28 PM

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.

Mike Watson · October 8th, 2016, 11:42 PM

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.

Rich Woodrick · October 11th, 2016, 07:37 PM

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.

October 6th, 2016, 09:11 AM	#1
Rich Woodrick Regular Crew Join Date: Jun 2004 Location: La Porte, IN Posts: 43	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 $150. I thought the company wanted the video again for a one time use in one episode. YouTube (Short URL) I'm looking for advise on if I should decline or ask for more money. Thanks in advance for your help. Here's the first couple paragraphs of the contract. "PERMITTED USE OF LICENSED MATERIAL: The Licensed Material shall be added to Licensee’s library of audio visual clips (the “Library”) for use by Licensee for any and all purposes as determined by Licensee in its sole and absolute discretion. Further, Licensee shall have the express right to sublicense the Licensed Material to third parties (each a “Sublicensee”) for any and all purposes as determined by Licensee or Sublicensee in its sole and absolute discretion without further compensation. “LICENSE PERIOD”: In perpetuity. NUMBER OF EXHIBITIONS: Unlimited. “LICENSE FEE”: US$____________________________________________________________ “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:

October 6th, 2016, 10:26 AM	#2
Roger Gunkel Inner Circle Join Date: Feb 2013 Location: LIncolnshire, UK Posts: 2,213	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

October 6th, 2016, 12:00 PM	#3
Paul R Johnson Inner Circle Join Date: Nov 2005 Location: Lowestoft - UK Posts: 4,015	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.

October 6th, 2016, 12:23 PM	#4
Jeff Pulera Major Player Join Date: Jun 2008 Location: Milwaukee WI Posts: 691	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

October 8th, 2016, 07:28 PM	#5
Rich Woodrick Regular Crew Join Date: Jun 2004 Location: La Porte, IN Posts: 43	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.

October 8th, 2016, 11:42 PM	#6
Mike Watson Trustee Join Date: Aug 2006 Location: San Diego, CA Posts: 1,082	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.

October 11th, 2016, 07:37 PM	#7
Rich Woodrick Regular Crew Join Date: Jun 2004 Location: La Porte, IN Posts: 43	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.