Buyout Fee
Type: noun
Pronunciation: /by-owt-fee/
Also spelled or known as: Buyout Payment
Plural: Buyout Fees
Related: Flat Fee, Work for Hire, Usage Rights
What does Buyout Fee mean? A payment made in exchange for acquiring, settling, or eliminating some or all of another party’s continuing rights, compensation, or contractual interests.
In music and entertainment agreements, a buyout fee may replace future royalties, residuals, reuse fees, ownership claims, or service obligations. The exact rights transferred or waived depend on the language of the agreement.
Buyout Fee synonyms: Buyout Payment, Rights Buyout Fee, Lump-Sum Buyout
Example sentence: “The vocalist accepted a buyout fee instead of receiving royalties from the advertisement.”
PRE-ORDER RECORDING BUSINESS DICTIONARY