MECHANICAL LICENSING COLLECTIVE (MLC) ADDENDUM
Last Updated: 5 August, 2023
If you are registering for CD Baby or otherwise signing up for the MLC Services on behalf of one or more other writers, a group, or a company or other entity, then you represent and warrant to us that you are duly authorized to do so on their behalf and to bind them to this agreement. The term “you” and “your” and “Writer” includes all such people and entities.
1. GRANT OF RIGHTS
You hereby grant to CD Baby, its successors, licensees, and assigns, the sole and exclusive rights
- (a) To submit and register the musical compositions you submit to CD Baby via the CD Baby Website and mark for MLC collection (the “Compositions”), at your request and on your behalf, with the MLC, and
- (b) To administer and collect all audio-only digital mechanical royalties on the Compositions from interactive streaming and downloads in the United States that flow through the MLC.
2. MLC SERVICES
The specific MLC Services to be provided will be as specified on the Website in accordance with the options you select in your account and is contingent upon the payment of all applicable fees.
- (a) In consideration of the MLC Services rendered hereunder, you shall pay to CD Baby the registration fees described in the relevant account registration (the “Registration Fees”) and the administration fee as set forth below (the “Administration Fee”). Registration Fees are nonrefundable once paid and will not be prorated upon termination.
- (b) CD Baby shall retain an Administration Fee of fifteen percent (15%) of the “Gross Receipts.” As used herein, Gross Receipts shall mean the total amounts actually collected on your behalf from the MLC by CD Baby.
4. PAYMENT OF NET INCOME; ACCOUNTING
CD Baby shall remit to you all Net Income (as defined below) collected from the MLC on your behalf. “Net Income” shall mean the Gross Receipts actually received by CD Baby on your behalf, less the Administration Fee applicable to such Gross Receipts, and less all actual and reasonable non-overhead costs or expenses paid or incurred by or on behalf of CD Baby in connection with the administration and exploitation of the Compositions, the performance of this agreement, and the collection of income, including, without limitation, audit fees, collection expenses, and any taxes required to be deducted. CD Baby will make payment to you in accordance with the policies and procedures set forth in the Artist Agreement.
5. TERM; TERMINATION
The Term of this agreement will commence when you register for the MLC Services and will continue until terminated by you or us. In order to terminate CD Baby’s collection of MLC royalties on your behalf, you must register directly with the MLC by following the instructions at https://support.cdbaby.com/hc/en-us/articles/17834947108877. If you do not take this action, CD Baby will continue to receive revenue from the MLC, which will be paid out to you through your CD Baby account, subject to payment terms.
CD Baby is not responsible for, and has no liability for, any delays at the MLC regarding initial Composition registration, nor for any delays at the MLC regarding any direct registration and subsequent removal of CD Baby from MLC Collection. For direct registry, you shall remain solely responsible for enforcing the registry updates. CD Baby may, in its sole and absolute discretion, continue to assist you to effectuate the removal of CD Baby from MLC collection in lieu of your direct registry.
6. WARRANTIES AND INDEMNIFICATION
Writer hereby warrants and represents as follows:
- (a) Writer is at least eighteen (18) years of age.
- (b) Compositions have not been opted in with any other collecting entity or agent to collect indicated shares from the MLC, or with the MLC directly.
- (c) All registration information and other information you submit to CD Baby is and will remain truthful and accurate. You will notify us promptly if any information changes or needs to be updated. In the event we are put on notice with respect to a discrepancy or any inaccuracy with respect to information provided in the registration, we shall have the right to suspend payments generated in connection with the Compositions in question until the discrepancy or inaccuracy is resolved to our reasonable satisfaction, without limitation of our indemnity rights as set forth below.
- (d) Writer has and shall continue to have the full right, power, and authority to enter into and fully perform this agreement and grant the rights granted herein. Without limiting the foregoing, no consent or other permission of any third party is required, nor shall it be required, in order to effectuate the grant of rights made to CD Baby under this agreement, or CD Baby’s enjoyment of such rights and the proceeds thereof as contemplated hereunder.
- (e) All Compositions are wholly original to Writer, and neither the Composition nor any portion thereof (including any music, title, lyrics, or other material) infringes or shall infringe upon any copyright, trademark, publicity rights or other statutory, common law or other rights of any third party; violates or shall violate any applicable law, rule or regulation or will otherwise cause any harm to or liability for CD Baby. Without limiting the foregoing, no Composition embodies a “sample” or “beat” or other portion of a musical composition owned or controlled by a third party.
- (f) The Compositions are and shall be free from any adverse claims, liens, or encumbrances of any kind by any person or entity.
- (g) CD Baby shall not be required to make any payments of any nature for, or in connection with, the exploitation of the Compositions except as specifically set forth herein.
- (h) You shall at all times defend, indemnify and hold harmless CD Baby and its affiliates and their respective members, employees, affiliates, representatives, agents, licensees and distributors (collectively, the “Other Indemnitees”) from and against any and all claims, liabilities, damages, judgments, losses, costs, and expenses, including actual out-of-pocket legal expenses and reasonable attorneys’ fees, arising out of
- (i) any exercise of the rights granted under this agreement,
- (ii) any breach or alleged breach by Writer of any warranty, representation, or agreement made herein,
- (iii) any act, error, or omission committed by Writer or any person or entity acting on Writer’s behalf or under Writer’s direction or control, and
- (iv) the Compositions and any use or exploitation thereof as contemplated under this Addendum. You will reimburse CD Baby and the Other Indemnitees, on demand, for any payment made at any time after the date hereof in respect of any liability or claim for which CD Baby or the Other Indemnitees are entitled to be indemnified, or CD Baby may elect to deduct any such payments from all sums otherwise due you hereunder.
7. LIMITATION OF LIABILITY; DISCLAIMER OF WARRANTY
IN NO EVENT WILL CD BABY BE LIABLE TO YOU OR ANY THIRD PERSON FOR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING DAMAGES FOR ANY LOST PROFITS OR LOST DATA ARISING FROM YOUR USE OF THE WEBSITE OR THE MLC SERVICES, EVEN IF CD BABY IS AWARE OR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, CD BABY’S LIABILITY TO YOU FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION, WILL AT ALL TIMES BE LIMITED TO THE AMOUNT PAID, IF ANY, BY YOU TO CD BABY FOR THE MLC SERVICES.
THE WEBSITE AND THE MLC SERVICES ARE PROVIDED ON AN “AS-IS,” “AS AVAILABLE” BASIS AND CD BABY DISCLAIMS ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, OF ANY KIND REGARDING THE WEBSITE AND THE MLC SERVICES, INCLUDING WITHOUT LIMITATION IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. CD BABY CANNOT GUARANTEE AND DOES NOT PROMISE ANY REVENUE OR OTHER SPECIFIC RESULTS FROM USE OF THE WEBSITE AND/OR THE MLC SERVICES. TO THE EXTENT THESE DISCLAIMERS AND LIMITATIONS ARE LIMITED BY APPLICABLE LAW, THEY SHALL OTHERWISE APPLY TO THE FULLEST EXTENT OF SUCH LAW.
- (b) No waiver of any provision or default under this agreement shall affect either party’s rights thereafter and no waiver by either party shall be deemed a continuing waiver. Except as expressly set forth herein, neither party has made or makes any representations or warranties, express or implied, with respect to any matter contained in this agreement or with respect to the making of this agreement, all of which are expressly disclaimed. If any clause, sentence, paragraph, or part of this agreement or the application thereof to any person, shall for any reason be adjudged by a court of competent jurisdiction to be invalid, such judgment shall be limited and confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy and shall not affect the remainder of the agreement.
- (c) You acknowledge that CD Baby cannot guarantee that any Net Income will be generated or earned hereunder. You waive all claims and warrant, represent, and agree that you will not make any claim, nor will any liability be imposed upon CD Baby based upon a claim, that more Net Income could have been generated or better business achieved than that which was actually generated or achieved by CD Baby and/or its licensees.
- (d) CD Baby does not guarantee, represent, or warrant that your use of the Website or MLC Services will be uninterrupted or error-free, and you agree that from time to time CD Baby may suspend the Website and MLC Services for indefinite periods of time for technical maintenance or upgrade or otherwise, or may cancel the MLC Services at any time, without notice to you. The functions and features of the Website and MLC Services are subject to change without notice. Similarly, the MLC may take action outside of our control, including, but not limited to, adjusting or halting their collection and payout practices.
- (e) CD Baby may terminate this agreement at any time upon written notice, for any reason or for no reason. Termination of your account or of the CD Baby service as a whole will also constitute termination of this agreement.
- (f) Your use of the Website and the MLC Services includes the ability to enter into agreements and/or to make transactions electronically. YOU ACKNOWLEDGE THAT YOUR REGISTRATION AND ELECTRONIC SUBMISSIONS CONSTITUTE YOUR AGREEMENT AND INTENT TO BE BOUND BY AND TO PAY FOR THE MLC SERVICES. YOUR AGREEMENT AND INTENT TO BE BOUND BY ELECTRONIC SUBMISSIONS APPLIES TO ALL RECORDS RELATING TO ALL TRANSACTIONS YOU ENTER INTO ON THIS SITE, INCLUDING NOTICES OF CANCELLATION, POLICIES, CONTRACTS, AND APPLICATIONS.
- (g) Writer may not assign or transfer Writer’s account, rights, obligations, or interest under this agreement to anyone else unless otherwise agreed in writing by CD Baby. Any assignment, encumbrance, or other ownership transfer of any Composition(s) will remain subject to this agreement.
- (h) The following Sections will survive any termination of this agreement: Sections 4, 5, 6, 7, and 8. After the Term, we shall continue to have the right, but not the obligation, to collect all income payable in respect of exploitations of the Compositions that was earned during or before the Term. We will continue to account to you for all such income pursuant to payment terms in the Artist Agreement
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