The term gross proceeds refers to all fees and payments received from any source that are related to the use of copyrighted sound recordings. This includes payments made in kind and applies to transactions occurring before, during, or after the license term. Gross proceeds are specifically tied to facilitating public transmissions of sound recordings under certain legal limitations.
Gross proceeds are commonly used in copyright law, particularly in contexts involving music and sound recordings. This term is relevant in civil law, especially in cases concerning copyright infringement and licensing agreements. Users may encounter situations where understanding gross proceeds is essential for negotiating licenses or assessing royalties. Tools like US Legal Forms provide templates and resources to help users navigate these processes effectively.
Here are a couple of examples of abatement:
Example 1: A streaming service pays an artist a fee for the right to broadcast their music. The total amount paid, including any additional promotional fees, constitutes the gross proceeds from that transaction.
Example 2: A radio station receives sponsorship payments in exchange for playing certain songs. These payments, along with any merchandise sales linked to the songs, are considered gross proceeds. (hypothetical example)
Gross proceeds are defined under 37 CFR 261.2, which outlines the terms for copyright arbitration and the use of sound recordings. This regulation is part of the broader framework established by the Copyright Act of 1976 and subsequent amendments.
| Term | Definition | Difference |
|---|---|---|
| Net proceeds | The amount remaining after all expenses and fees are deducted. | Gross proceeds include all payments, while net proceeds are what remains after costs. |
| Royalties | Payments made to copyright holders based on the use of their works. | Gross proceeds encompass all fees, while royalties are a specific type of payment based on usage. |
If you are involved in licensing or using copyrighted sound recordings, it's important to understand how gross proceeds affect your agreements. Consider using legal form templates from US Legal Forms to draft or review contracts related to these transactions. If your situation is complex, consulting a legal professional may be beneficial.
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Gross proceeds are all fees and payments received from any source related to the use of copyrighted sound recordings.