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 Stream | Artist Share | Recognition Group Fee | Minimum Threshold |
---|---|---|---|
Distribution | 80% | 20% | R500 (net) per quarter |
Publishing | 80% | 20% | R5,000 per quarter* |
Sync Licensing | 80% | 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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