A music licensing agreement is the mutual agreement between two parties, which allows the use of someone else’s music for which they have the rights for.
The purpose of a music licensing agreement is to make sure the owners of copyrighted music are financially reimbursed for the use of their music. If people are making music, then they will want to protect and gain revenue from their music.
A music licence agreement protects both parties and allows a settlement to be decided in advance regarding payment. Payment royalties can be decided as a percentage of earnings or a set pre-paid number.