Free Term

Whenever you license your music with a royalty free copies allowance, there is the question of how long the licensee will have to distribute those copies. Enter the "Royalty Free Term". This license condition regulates the amount of time that the buyer has to take advantage of the royalty free benefits. Generally, you'll want to allow your licensee's at least 12 months to distribute their music for free, but allowing an even more generous "royalty free term" can provide extra value to your licenses without a significant risk to your earning potential.

Breakdown

If you've allowed 2,000 royalty free copies on your license, and a royalty free term of 12 months, this means that your licensee is liable to begin paying royalties to you either immediately after they've distributed 2000 copies, or after 12 months have elapsed, whichever comes first.

How To Use It

The royalty free term on any given license should correlate to the amount of free copies allowed. The more royalty free copies that you grant your buyer, it stands to reason that they should have more time to take advantage of that allowance. It's up to you to decide what is reasonable for each given license, but 1 million free copies allowed is not much of a benefit if you only have 1 month to distribute them.