App Contract

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  • #31031 Reply

    Hi Everyone,

    I’ve got a tricky but interesting situation with a WebApp. Any help would be greatly appreciated! Here’s the overview:

    The web app is sold to school districts and is a video creation app for the students. My library of music (only 12 tracks provided so far) is added to the background of each video the students create on the app.

    They now want a contract in place, does anyone have advice on how to price a sync license fee for this app? Also should I have a separate contract for a mechanical license since they are re-distributing my music for permanent download on the app?

    Thank you for your time, I’d really appreciate any help with this!


    #31059 Reply
    Michael Nickolas

    A question is, why are they already distributing this app without a contract in place and compensation to you? Aside from that, I think the fact that they are selling the app is important and makes the license fee more valuable than a “non-broadcast not for sale” license. Also, this is not a one song deal. Twelve tracks is decent amount of content. You also need to consider if these are existing tracks or were they custom created for the app. Custom writing is also more valuable.

    One way to approach this is basing it on what it would cost them if they used a company like pond5. I’ve had “Premium License” sales of $140 (before the split). So $1,680 wouldn’t be out of the question. Of course you saved them hours of work, they didn’t have to search through thousands of tracks to find what they need.

    It’s tricky to price now, with music so devalued, subscription sites and etc. Good luck!

    #31064 Reply

    Hey Michael,

    Wow, this was super helpful. Thank you so much! I really appreciate you taking the time to offer advice.



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