Merchandise Licensing Contract — Editable License Agreement for Music Product Manufacturing & Distribution

License your music products for commercial manufacturing and distribution — with this comprehensive Merchandise Licensing Contract.

This fully editable Merchandise Licensing Contract provides a professional legal framework for licensing manufacturing, marketing, and distribution rights for music products — including CDs, cassettes, videos, and sheet music. It defines licensing scope, royalty terms, credit obligations, and legal protections — making it essential for independent Labels, Publishers, Artists, and Licensing Agents managing merchandising partnerships.

✅ Editable .DOCX file included — fully customizable for your merchandise licensing deals.

What’s Covered:

🎵 License scope:
• Exclusive, non-assignable license to manufacture, sell, and distribute music products (defined in Exhibit A)
• License limited to the U.S. territory, for a defined term of years
• All other rights reserved by Owner

💵 Royalty structure:
• Licensee pays Owner 22.5% of gross funds received
• Monthly royalty payments with detailed statements required
• Licensee responsible for paying all required royalties to copyright holders of any included material

📜 Termination & cancellation:
• Owner may terminate for Licensee’s failure to pay or perform, or in case of Licensee bankruptcy
• Licensee must cease manufacturing and selling upon termination, with specific inventory and delivery terms defined

📦 Manufacturing & delivery:
• Licensee must begin manufacturing and sales within 3 months or license terminates
• Products must bear proper credit: “[Artist Name], Used by Permission”
• Owner delivers Master Recordings and promotional materials at cost

🎙️ Rights & restrictions:
• License includes rights to use artist name, likeness, and biography for advertising and promotion
• Licensee may not supply recordings to record clubs, mass giveaways, or promotional free distributions without Owner consent
• Coupling of products only allowed per Owner’s terms

📄 Books & records:
• Owner retains inspection rights over Licensee’s books and records
• Licensee must report inventory upon termination

⚖️ Legal protections:
• Licensee agrees to defend, indemnify, and hold Owner harmless from legal claims
• Masters, copyrights, and recordings remain property of Owner
• Agreement governed by California law

🖋️ Exhibit A included:
• Product title, description, and ID Number space for licensing details

Why Use This Contract:

• Clearly define merchandising licensing rights and restrictions
• Structure royalty payments and reporting obligations
• Legally protect both Owner’s copyrights and Licensee’s distribution rights
• Establish required crediting, manufacturing, and promotional terms
• Customize easily for Labels, Publishers, Independent Artists, Music Licensing Agents

Perfect for:
Record Labels, Publishers, Licensing Agents, Independent Artists, Music Merchandisers, Music Attorneys.

File format included:
✅ Fully editable .DOCX (Word) file — ready to customize

Disclaimer: This template is provided for general informational and educational purposes. It is not legal advice. Please consult an attorney if you have questions about adapting it for your specific use case.