Common use of Foreign Use Clause in Contracts

Foreign Use. The provisions for use by a licensee domiciled outside of the United States and Canada make the same distinction between traditional uses and non-traditional uses above; however, commercials are included among traditional use licenses in this category. For a traditional use license, payment of 4% of the license fee is due, with a minimum of $150 and a maximum of $4,500. However, in the event that a foreign produced Commercial is actually exploited within the United States and Canada, then the relevant “New Use” under that Agreement would still be required, as covered on the previous page. For non-traditional uses, the 3% is applied the same as in the Non-Traditional Uses section above, except with a maximum of $3,500. Again, each of these payments is due to different funds at different times and in different manners, all of which would be too cumbersome to list in this toolkit. For more information, please consult the full terms of the SRLA’s Article 21.