Most Favored Nations
most favored nations
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most favored nations -
Picture this. A sync agent reaches out and says they love your latest EDM tune. The agent wants to use your song in the next Fast & Furious movie alongside music by Skrillex, Diplo, and Rick Ross. You’re ecstatic! The agent sends over the contract and there’s a clause labeled Most Favored Nations. You’re confused so you ask the agent.
Confused?
MFN or most favored nations is a clause that guarantees an equal split of fees and terms for all parties involved. What does that mean? To keep it simple, if artist 1 was paid $500 for the use of their song, according to MFN, artist 2 would also need to be paid $500, regardless of their clout or popularity.
This ensures equal compensation for everyone involved.
Why does this matter?
MFN is a very important clause to include for sync contracts, tour contracts, and any other situation where multiple groups are negotiating.
If one party wins, all parties win.
