What is a Buyout License?

A buyout license is a licensing agreement where a creator receives a one-time payment in exchange for granting broad usage rights to a piece of music or other creative work. After the buyout fee is paid, the buyer is typically allowed to use the work without paying additional royalties for each use.

In the music industry, buyout licenses are often used for production music, advertising, film, television, and online media. The buyer may receive permission to use the music in multiple projects, platforms, or territories depending on the terms of the agreement. Unlike traditional licensing models, the creator does not usually receive ongoing royalty payments from the licensed uses.

A buyout license does not always mean that ownership of the copyright is transferred. In many cases, the creator still owns the copyright but grants the buyer extensive usage rights. This licensing model is popular because it simplifies the payment structure and provides predictable costs for companies using the music.