Distribution & Publishing Terms

Last Updated: 23 May 2024

1. Overview

This agreement outlines the terms between Recognition Group (Pty) Ltd. (“Distributor/Publisher”) and artists/labels (“You”) for digital distribution and publishing administration services. By submitting music, you agree to these terms.

Key Notes:

  • Paid Subscriptions: 100% royalty rate (Artist & Label tiers).
  • Free Distribution: 80% royalty rate.
  • Subscription plans may modify terms (e.g., fee structures).

2. Rights Granted

Exclusive Distribution License

You grant Recognition Group the exclusive, worldwide right to:

  • Distribute your music to DSPs (Spotify, Apple Music, etc.).
  • Administer publishing rights (mechanical, performance royalties).
  • You retain 100% copyright ownership.

Publishing Administration

We administer:

  • Mechanical royalties (streams/downloads).
  • Performance royalties (SAMRO/CAPASSO).
  • Sync licensing (films/TV)*.
    *Sync fees split 80% (Artist) / 20% (Recognition Group).

3. Financial Terms

Royalties

Revenue StreamArtist ShareRecognition Group FeeMinimum Threshold
Distribution80%20%R500 (net) per quarter
Publishing80%20%R5,000 per quarter*
Sync Licensing80%20%

*Excludes sync fees.

Advances

  • Marketing Advance: Eligible if quarterly earnings ≥R15,000 (10% advance on future royalties).

4. Obligations

Artist Responsibilities

  • Submit complete metadata (DSP-compliant).
  • Provide split sheets (Appendix A) for all contributors.
  • Monitor for fraudulent activity (e.g., bot streams).

Prohibited Actions

  • Artificially inflating streams.
  • Transferring ISRCs/UPCs without consent (fee: 10/UPC,10/UPC,1/ISRC).
  • Infringing third-party copyrights.

Penalties: Breaches may result in withheld royalties or termination.


5. Term & Termination

  • Initial Term: 2 years (auto-renews yearly unless 30-day notice given).
  • New Release = Auto-Renewal: Submitting music within 30 days of term end extends agreement by 1 year.
  • Post-Termination: We collect royalties for up to 6 months.

6. Legal

  • Governing Law: South Africa.
  • Indemnification: You’re liable for copyright claims.
  • Force Majeure: Not liable for delays beyond our control (e.g., natural disasters).

7. Definitions

  • DSPs: Digital platforms (e.g., Spotify, Apple Music).
  • Net Income: Revenue after fees, taxes, and penalties.
  • Sync Licensing: Music placement in visual media.

Need Help?
Contact us at support@recognitiongroup.co.za or visit Our Website.

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