Distribution Policy

Effective Date: 8 December 2025

1. Definitions

For the purposes of this agreement, the following definitions apply:

• Content: Audio recordings, artwork, metadata, and associated materials.
• Digital Masters: The digital audio files submitted for distribution.
• DSPs (Digital Service Providers): Streaming services and stores (e.g., Spotify, Apple Music).
• Net Revenue: Actual receipts received by Distributor from DSPs after deducting taxes and third-party fees.
• Territory: Worldwide.
• CID: Content ID systems (e.g., YouTube Content ID).

2. Grant of Rights

• The Client grants the Distributor a non-exclusive, worldwide license to distribute, reproduce, and digitally perform the Content.
• The Distributor is authorized to deliver content to DSPs, monetize usage, and collect royalties on behalf of the Client.
• The Distributor may enforce copyright protection and issue takedown notices for unauthorized usage.
• Ownership: The Client retains 100% ownership of the sound recordings and underlying composition. There is no transfer of copyright or publishing rights under this agreement.

3. Rights & Responsibilities

Distributor Responsibilities

• Deliver content to agreed DSPs.
• Maintain secure file storage for Digital Masters.
• Collect and process royalties.
• Provide analytics and financial reporting.
• Manage Content ID (CID) systems where applicable.
• Protect Client personal data in accordance with privacy laws.

Client Responsibilities

• Upload only legal, original content.
• Ensure all metadata is accurate and formatted correctly.
• Provide valid licenses for any samples used.
• Keep account information updated.
• Ensure all collaborators (featured artists, producers) have given permission.
• Avoid Multi-Distribution: Do not distribute the same release via other distributors simultaneously.
• Pay applicable taxes on royalties received.

Distributor Limitations

The Distributor is NOT responsible for:

• Promotion, playlisting, or algorithm reach.
• Resolving conflicts between collaborators.
• Legal representation in court.
• Forecasting revenue or guaranteeing specific income.
• Errors made by DSPs or penalties issued by DSPs due to Client actions.

4. Revenue Sharing

• Royalties are calculated based on the Client's specific Membership Plan.
• Calculations apply to Net Revenue only.
• Custom deals must be agreed upon in writing.
• Payouts: Minimum payout threshold is $50. Reports depend on DSP schedules (monthly/quarterly).
• DSPs may hold payments depending on their internal policies.
• Negative balances (e.g., from returns) will offset future earnings.
• Fees paid to Distributor are non-refundable.

5. Delivery & Metadata Requirements

• Audio: High-quality WAV format required.
• Artwork: 3000×3000 pixels, JPG/JPEG.
• Metadata: Must be accurate. Errors may result in content takedowns.
• AI Disclosure: Use of AI in creation must be disclosed.
• Codes: Valid ISRC/UPC required (provided by Distributor or Client).

6. Client Warranties

The Client warrants that:

• Content is original or properly licensed.
• Client has full legal authority to enter this agreement.
• All collaborators have been credited and compensated.
• Content does not infringe on third-party rights.
• Proof of ownership can be provided if requested.

7. Multi-Distribution Policy

The same sound recording (ISRC) cannot be delivered to the same DSPs via multiple distributors simultaneously. Violations may result in content removal or account limitations.

8. Content ID Policy

Content must be original or properly licensed. The following are generally not allowed:

• Non-exclusive beats or unlicensed samples.
• Public domain re-uploads without significant original content.
• Audio ripped from social media platforms.
• Unauthorized covers or remixes.

Content with proper licenses, exclusive rights, or verified original creation is allowed. Proof of ownership or licensing may be required.

9. Fraud Prevention

Distrofy maintains a zero-tolerance policy for fraudulent activity, including artificial streaming, metadata manipulation, and unauthorized uploads. Accounts found engaging in fraudulent behavior may face content takedown, royalty holds, and account termination. Royalty payments may be delayed if fraud review is active. DSP decisions regarding fraud are final.

10. Royalty Processing

Royalties may be temporarily held during investigations, disputes, or audits to ensure accurate distribution. Once resolved, royalties will be processed according to your membership plan.

11. Geo-Blocking & Restrictions

DSPs may restrict content visibility in certain territories due to local laws, cultural sensitivities, or government orders. The Distributor has no control over these blocks.

12. No Promotion Guarantee

Distribution does not guarantee streams, playlisting, visibility, or viral reach. Success depends on the quality of content and Client marketing efforts.

13. Dispute Resolution

Royalty disputes must be raised within 90 days of the report. We will review disputes and work with DSPs to resolve issues. Decisions made by DSPs are considered binding.

14. Rights Transfer & Collaborators

Rights Transfer: Client must notify the Distributor of any changes in rights ownership.

Collaborator Disputes: The Distributor is not responsible for resolving conflicts between collaborators, producers, featured artists, or other parties involved in content creation.

15. Support Limitations

Our support team assists with distribution-related inquiries but does not provide legal consultation, guarantee Content ID approval, or provide royalty projections.

16. Data & Privacy

Client data is never sold to third parties. Data may be shared with DSPs for delivery, payment processors for payouts, and legal authorities if required by law.

17. Indemnification & Liability

The Client agrees to indemnify and hold the Distributor harmless from losses resulting from copyright claims, fraud penalties, metadata errors, or illegal content. The Distributor is not liable for indirect, incidental, or consequential damages.

18. No Refund Policy

All fees paid for services, memberships, or promotions are strictly non-refundable.

19. Force Majeure

The Distributor is not liable for delays or failures caused by events beyond reasonable control, including DSP outages, natural disasters, or government actions.

20. Policy Updates

Updates to this policy are effective immediately upon publication on this page.