Legal Question in Entertainment Law in New York
AFM union payment for a Sample Use agreement
This question relates to an agreement where we are ''sampling'' a Broadway song for use in a hip-hop song.
As one of the terms, the agreement says under the heading ''American Federation of Musicians Payment'' that we will need to pay the record company (1) a one-time payment of $400 and (2) an additional two percent (2%) of all gross receipts in excess of $25,000.
Is this typical? I am not familiar with AFM Payments for these types of agreements.
2 Answers from Attorneys
Re: AFM union payment for a Sample Use agreement
You're lucky they're only charging $400 but you should ensure that the publishing is cleared too. As for the AFM, this looks like their typical residual deal for reuse of a song.
Re: AFM union payment for a Sample Use agreement
The fees are negotiable, and it looks like the $400 is a pretty good license fee deal. The 2% above $25K seems in line with typical AFM reuse royalties. Check directly with AFM, they work from a published rate-card. Still, in the right circumstances, you might be able to negotiate this.
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