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Navigating the Potential Traps in Licensing Content for Online Uses
Copyright owners who are considering licensing their content for online exploitations must understand that they are venturing into still largely uncharted waters with few reliable partners. It's better than it was in 2000 ' or even 2003 ' but it's still not an entirely stable environment with dangerous shoals along the route. Don't assume that words you have seen in contracts for decades have the same meaning to your online licensee as they would to a court.
Licensing content to many online distributors or retailers is much the same decision as licensing to unscrupulous distributors in small third-world countries. Experienced licensors will likely try to get the biggest advance they can, on the assumption that they will be robbed blind on actual sales by licensees. Many such licensees go into their deals with the intent to deceive ' like so many other aspects of the Internet culture the business question is often not what's right, but what you can get away with. There are some bright spots in the market, such as iTunes Music Store, MusicNet and others, but they are few and far between.
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