5. Exploitation Rights
5.1.
Label has the full and unlimited exploitation rights to the Master for the Term. Label has the right to perform among others the following activities:
a) The exclusive right during the Term to manufacture, produce, reproduce, publish, release, distribute, sell, lease, promote, advertise, synchronize, sample, publicly perform and broadcast, sublicense and otherwise exploit the Master in any other way in the Territory and all audio formats of phonographic records such as vinyl, tape, digital carriers and any other format used for storing digital, optical, electronic, binary, comprised, analogue or numeric content or any sound and image-carrying media format known and used in the entertainment industry on date of signature, containing the Master made available hereunder. Sales are allowed through regular commerce, downloads, streaming, satellite, wire, cable, ringtones, realtones, games, podcasts, social media and all techniques of digital exploitation and distribution via the internet;
b) The right to engage and to delegate to third parties during the Term tasks of Label in connection with the exploitation, distribution, marketing and promotion of the Master;
c) The exclusive right to use and/or sublicense the Master during the Term after a prior written approval from the Artist in the Territory for synchronisation in connection with/for motion pictures, television programs, radio programs, internet programs, commercials, video games, films, image carrying media, audio-visual soundtracks, background music and any other purposes (including but not limited to advertising purposes with respect to products other than records by way of licences on a flat-fee basis. The Artist hereby explicitly grants to Label the right to conclude synchronization and/or sample use license agreements with third parties for a term that exceeds the Term of this Agreement. Artist and Label acknowledge that for example a perpetual license is a standard term in synchronization and sample use agreements. Artist hereby grants prior approval to any such license granted by Label to a third party and agrees not to challenge the validity of such license; and
d) The exclusive right to exercise this Agreement during the Term in the Territory through any and all channels of trade and in any and all price categories, including without limitation regular trade channels, club channels, mail-order, direct mail and any other type of distribution, whether or not similar.
5.2.
Insofar as allowed by law, Artist waives its moral rights as defined in Article 25 Dutch Copyright Act and Article 5 of the Neighbouring Rights Act. In any event, Artist shall not invoke his moral rights against Label.
5.3.
Artist grants Label the worldwide non-exclusive sublicenseable worldwide royalty free irrevocable right during the Term and Extended Term to use and publish all Artwork, the approved (professional) name of Artist, trademarks, logo’s, portraits of the Artist and the approved pictures, images, likeness and biography of the Artist in connection with the exploitation, advertising, promotion, publicizing, sale and other use of the Master and all materials derived from the Master or any materials, content or products in connection with the promotion of the Master;
5.4.
During the Term, Artist is expressly prohibited to re-use, remaster, re-record, re-distribute, adapt and or remix the Composition and/or Master without explicit prior written approval of Label, regardless of any approval of any membership of a collective rights management organization.
5.5.
Artist is expressly prohibited to release an acapella version of the Composition and/or Master without prior written permission of the Label.
5.6.
Artist agrees and acknowledges that the phonogram producer’s share revenue generated with the exploitation of the Master, will be allocated to Label and that Label shall register the phonogram producer’s share of neighbouring rights with collective rights organizations in the Netherlands and in foreign territories (such as Sena and Norma, Soundexchange etc.) in connection with each Master of Artist under this Agreement and shall collect the royalties from the performance rights organizations that are due to the phonogram producer as stipulated in the Dutch Neighbouring Rights Act and that Label shall retain these phonogram producer’s royalties without payment obligations to Artist. Notwithstanding the stipulations in the first sentence, Label shall be entitled to authorize a third party to register and collect royalties in connection with the Master(s) with the performance rights organizations. In the event any neighbouring rights organization requires additional documentation in order for Label to collect the phonogram producer’s share as stipulated herein, Artist shall provide such documentation upon first request by Label and will fully cooperate with Label to execute the required documentation.
5.7.
In addition to the agreed sales royalty in this Agreement, Artist remains entitled to receive an artist royalty share of the relevant neighbouring rights collective society (such as Sena/Norma, PPL , Playright, Soundexchange).