“Each Work shall fall under the scope of this Agreement for a minimum term of two years commencing on the date such Work is delivered to ****** (the Initial Term). If any individual Work has not been purchased at least three times by Customers during the Initial Term then that Work shall automatically fall outside the Agreement with effect from the end of the Initial Term and Schedule 1 shall be updated accordingly. Thereafter, every two years on the anniversary of the end of the Initial Term, any Work that has not been purchased at least three times by Customers during the preceding two year period shall automatically fall outside the Agreement and Schedule 1 shall be updated accordingly.”
MY reading of the above is that if, in the two year period following the acceptance of a track, it does not rack up 3 sales then the track automatically falls outside of the Agreement/contract with the library. If it does sell 3 times then the deal roles over for a further 2 years and the same test is applied again. The key term for me is AUTOMATICALLY, I have no action to perform in order to release my track from the agreement. Would you agree?
If the track is still listed on their site then does this change the fact that it is no longer subject to the initial contract?
What I want to do is claim back tracks which are not selling well with that particular library. Do I have the right to do so given the terms of our agreement as listed above if I can show they made less than 3 sales in any one of their two-year accounting periods and (more importantly) regardless of the fact that they are still available on their site at this time.
Thanks.