206 !!Chapter 11
shares but also the shares of each record company that owns the master
sound recording rights to the samples. The entire process can become a
legal nightmare. When determining the value of samples, the number of
minutes a sample is heard and the popularity of the sample usually deter-
mine its value.
Game publishers will either offer a fee for a ‘‘buyout,’’ which requires
no further payments unless the composition(s) is used in a format other
than the game format (e.g., the song is used on a CD or in a motion picture).
Standard Agreement
The following is a synopsis of a standard agreement (not a legal docu-
ment) between composers and game companies for the use of a song(s)
(instrumental[s]) within a video game and also for ‘‘third-party’’ usage of
the song(s) (e.g., theatrical trailers, CDs, commercials, and so on).
The first paragraph states the name of the parties entering into the
agreement, the date and term (length) of the agreement, and the name(s)
of the composition(s). Whereas (company name) desires to use the Com-
position(s) in the interactive software game entitled (name of game [the
‘‘Product’’]) and to make copies of the Compositions and Product (‘‘Cop-
ies’’) for distribution to the public, the parties mutually agree as follows:
License.The Company pays a fee for the usage and in return receives
the following in the licensed territory (territories) on a nonexclusive or
exclusive basis:
- The Company has the right to use the Composition and Arrange-
ment in various formats. For instance, they may use the vocals with
various background arrangements, use only the instrumental por-
tion of the track, use portions of the song, and so on. They basically
have the right to use the music in any format as long as the integrity
of the Composition(s) is not compromised. For instance, the music
cannot be used in a pornographic context. - The Company has the right to use the Composition(s) as introduc-
tions to portions of the game, ending pieces (‘‘outros’’), ‘‘cinematics’’
(a movie within a game), and game trailers (promotions). - The Company has the right to promote the game at trade shows,
additional promotional venues, magazine promotions, platform
demonstrations, Internet promotions, and additional forms of pro-
motions. - The Composition(s) (within the game) can be used in various game
platforms (e.g., Xbox, PlayStation, and Nintendo). - The Company has the right to manufacture, market, distribute, and
sell the game to the public. - The Company also has the right to sublicense the rights for the pur-
poses of manufacturing, distributing, and marketing the game.