Copyright Licensing Agreement

What is a copyright licensing agreement?

A copyright licensing agreement is a legally binding contract between the owner of a copyrighted work and another party willing to use that copyrighted work in a specific way in their business activity. Under this type of an agreement, the owner (licensor) can license the permission to use an artwork, song, recording, design, programming code, book or any other type of copyright.

Under the Copyright Act 1968, these rights may include the right to broadcast, to reproduce, to record, to adapt, to publish, to translate, etc.

A solid copyright licensing agreement template outlines the key elements of licensing relations, including:

• description of the copyrighted work;
• duration of a licence, and its territorial scope;
• the type of transferred rights;
• identification details of the parties involved;
• amount and frequency of royalty payments; and
• each party’s legal warranties and representations.

Who should use this copyright licence agreement Australia?

Having a solid, professionally drafted copyright license agreement for artwork, a novel, a recording, a song or another type of copyright is always a good solution. First, it ensures that the transfer of the right to use a copyright is made in a legally compliant way. Second, it creates consistency for using a copyrighted work in general. This template can be useful for:

• professional content creators on platforms such as Instagram, TikTok, Facebook, etc.;
• freelancers and independent contractors creating copyrighted work (such as developers, designers or writers);
• authors looking to monetise commercial their work;
• small business owners seeking to scale commercially their copyrighted work, etc.

This document cannot be used to license a registered trademark in Australia. In this case a separate trademark licensing agreement shall be used instead.

What are the key features of this template?

By customising this sample copyright license agreement with FasterDraft, you get access to the following benefits:

• a document that is tailored to your specific needs;
• a document written in plain, clear English;
• a document that is fully compliant with the Australian Copyright Act 1968;
• a document available for instant download in editable PDF and Word formats;
• a document that aligns with the best practice of IP licensing in Australia; and
• a template that includes key clauses for balanced protection of the copyright owner and the licensee.

What should be included in this copyright licensing agreement?

A solid copyright licensee agreement example must include key important elements listed below:

Details of Party

The parties involved in a copyright licensing agreement are:

Licensor. This is a person who owns a copyrighted work and wants to grant the rights of its usage to another party for a defined period of time.

Licensee. This is a person who is being granted the temporary right to use a copyrighted work in a specific way.

The text of a copyright licence agreement shall outline the full name and contact mailing address of the parties involved, as well as ACN and ABN numbers if either party is a business or a company.

Type of Licence

Defining a type of licence is a core element of every copyright license agreement template. The licences could be of several types:

• Exclusive vs non-exclusive. Under an exclusive licence, the right to use a copyrighted work in a specific way is limited to a licensee only. It means that the legal owner of a copyrighted work cannot use the copyright for their own purpose or to grant the same right to use to any other third party. In the case of a non-exclusive licence, the right to use can be given not only to a licensee but also to any other third party, including an owner of a copyright.
• Sub-licensing vs no sub-licensing. A copyright’s owner may further allow a licensee to sublicense some or all rights to use a copyright to other third parties. This is not common for Australian copyright licensing agreements in general, however, this option still exists.

Defining the exact type of licence in the contract is vital, as it prevents the occurrence of many disputes along the road, as well as prevents ambiguity regarding which exact type of licence should be.

Rights to Use

The text of every copyright license agreement template shall define the exact list of rights that are being temporarily given to a licensee. The rights which are not directly listed in the document are automatically considered as those that are not transferred under the licensing agreement.

Description of Copyright

The text of every copyright licensing agreement template must include a detailed description of the copyright work that is being licensed, including:

• title;
• size;
• type (such as a book, recording, sound, or book);
• date of first publication or release;
• short description.

Duration & Territory Scope

It is common for all licensing agreements to define the period of time and territory limits within which the copyrighted work can be used.

Australian laws do not limit the maximum duration of licensing agreements, which can be months, years or even decades. The territorial scope of usage of a copyrighted work should be precise, including the name of a city, state or country where the copyright can be used.

Payment and royalties

Under a copyright licensing agreement, a licensee usually pays regular payments for the right to use a copyrighted work. These regular payments are also known as royalties, which could be paid in either of the following ways:

• a one-time fixed fee;
• recurring monthly, weekly or annual fees;
• a fixed fee per one sold copy;
• any other arrangement.

It is important to ensure that a licensor has the right to check periodically the financial reporting and accounting of a licensee to ensure that royalties are being paid correctly and not underpaid.

How to customise a template of a copyright license agreement with FasterDraft?

To get a fully customisable document template, follow the simple instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – copyright license agreement PDF or Word.
4. Make a payment.

The document is ready for instant download immediately after the purchase.