Grace Period

Whenever you license your music with a royalty free copies allowance which is limited by a royalty free term, there is the issue of when the royalty free term begins. Technically, the royalty free term begins as soon as the license is issued, which is at the moment the artists buys the beat. This poses a problem for the artist because they still need to record the music, master the music, and release the music which takes time.

Breakdown

The grace period is a licensing option which allows the artist, well... a "grace period" to perform the previously mentioned tasks. It sets up the license so that the royalty free term doesn't begin immediately, but rather after the music is officially released, or after the grace period expires, whichever comes first. This allows the artist to take advantage of the full royalty free term that is allowed by the license.

How To Use It

If you're including royalty free copies with a royalty free term in your license, it's a good idea to allow the artist at least a few months "grace period" to release the music. Unlike the royalty free term (which should typically increase proportionately with the royalty free copies limit), the grace period is a timeframe which doesn't need to vary widely across your licensing scheme.

Tip: You don't need to get too generous with your grace period, as it's a courtesy to your buyer and asking them to release the music sooner than later is a reasonable request.