Legal Agreement

arLabs Music Digital Distribution
Agreement

This is a valid and binding legal contract between you (the "Client", "Artist", "Label", or "User") and arLabs Music. Please read every section carefully before using our services.


1 — Exclusive Grant of Rights

1.1 – Exclusive Distribution Rights

By uploading sound recordings ("Tracks"), metadata, lyrics, artwork, and other related assets (collectively referred to as "Content"), the Client grants arLabs Music the exclusive, irrevocable right during the Term of the Agreement to manage, distribute, publish, reproduce, and monetize the Content to our entire network of Digital Service Providers (DSPs) worldwide.

1.2 – Revenue Collection

arLabs Music possesses the full and exclusive right to collect all revenue generated from the exploitation of the Client's Content on digital platforms.

1.3 – Music Secure Protection

The Client grants the Company the right to utilize the Music Secure system (including Content ID) to protect the Client's Content. arLabs Music reserves the unilateral right to take preventive legal or administrative actions against third parties misusing the Content.

2 — Term and Asset Lock-In Period

2.1 – Exclusive Term

For Artist Exclusive and Label Exclusive services, this Agreement remains in full force for a period of 3 (three) years from the date the Content is successfully uploaded and distributed.

2.2 – Catalog Transfer Prohibition

During the Term, the Client is strictly prohibited from transferring, taking down, or redistributing the identical Content through any other third-party distributor or aggregator. Violation may result in immediate withholding of royalty revenue.

2.3 – Term Exceptions

The exclusive term may exceed 3 years for certain binding Agreements (such as funding programs or special services), subject to the written consent of the involved parties.

3 — Royalties, Revenue, and Payments

3.1 – Royalty Splits

arLabs Music will pay royalties to the Client in the amount of 70% (seventy percent) of the Net Revenue actually received. arLabs Music will retain a commission of 30% (thirty percent) as compensation for technology infrastructure, dashboard ecosystem maintenance, and zero-upfront-fee distribution services.

70% Client
30% arLabs
3.2 – Definition of Net Revenue

"Net Revenue" is defined as the total actual funds received from DSPs, after deducting absolute compliance and operational costs. These costs include mandatory cross-jurisdictional taxes (Withholding Tax), foreign exchange conversion adjustments, global transaction banking administration fees, and processing fees from aggregation partners.

3.3 – Minimum Payout Threshold

The minimum payout threshold is set at €5 (Five Euros). Upon submitting a withdrawal request via the dashboard, this amount will be converted into Indonesian Rupiah (IDR) at the banking exchange rate applicable on the day the transaction is processed.

3.4 – Right to Withhold Funds

arLabs Music reserves the right to delay, cancel, or withhold the Client's royalty payments if copyright disputes, fraud reports, or breaches of this Agreement are discovered, without any obligation to pay interest on the withheld funds.

4 — arLabs Music Affiliate Integration

4.1 – Affiliate Ecosystem

The Client's Content may be connected to integrated services provided by arLabs Music Affiliates, including but not limited to Aura Music Publishing, Hypeglow Agency, and Music Secure.

4.2 – Affiliate Privilege

The utilization of arLabs Music Affiliate services is a privilege governed by separate additional terms. arLabs Music fully reserves the right to refuse integration if Content does not meet the Company's quality or commercial standards.

5 — Representations, Warranties, and Indemnification

5.1 – Representations & Warranties

The Client fully represents and warrants that they possess the legal authority and exclusive rights to all uploaded Content, and that the Content is 100% free from any third-party copyright claims — including but not limited to uncleared samples, instrumentals/beats, and lyrics.

5.2 – Indemnification

Should arLabs Music receive any claims, warnings, fines, or legal lawsuits from DSPs or third parties as a result of copyright infringement by the Client, the Client shall fully indemnify, defend, and hold arLabs Music harmless. arLabs Music reserves the absolute right to deduct costs of such damages directly from the Client's royalty balance. In the event the Client's balance is insufficient, the Client is legally obligated to pay the remaining shortfall in cash.

6 — Anti-Fraud Policy Zero-Tolerance

arLabs Music and its DSP partners implement strict system audits. Any form of data manipulation — artificial streaming, use of music bots, third-party play-boosting services, or other analytical engineering — constitutes a severe violation.

6.1 – Balance Confiscation

Permanently freeze and confiscate the entire royalty balance within the Client's account.

6.2 – Catalog Removal

Remove the Client's entire Content catalog from all DSPs without prior notice.

6.3 – Financial Penalties

Impose financial penalty fines commensurate with the losses borne by arLabs Music as a result of sanctions imposed by the DSPs.

7 — Termination and Takedown

7.1 – Client-Initiated Termination

After the 3 (three) year exclusive period has expired, the Client has the right to submit a request for the termination of distribution and the takedown of Content via the dashboard with prior written notice. (Except for certain agreements binding for more than 3 years, upon the agreement of the involved parties.)

7.2 – arLabs-Initiated Termination

arLabs Music reserves the right, at its sole discretion, to unilaterally terminate this Agreement and remove the Client's Content at any time if the Client is proven to have violated one or more clauses within this Agreement, or if the Client's Content is deemed to potentially damage arLabs Music's business reputation.

8 — Jurisdiction and Dispute Resolution

8.1 – Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Republic of Indonesia.

8.2 – Dispute Resolution

Disputes shall initially be resolved amicably through mutual consultation. If unresolved within 30 (thirty) calendar days, both parties agree to submit to the competent district court within the legal jurisdiction of arLabs Music's domicile.

This Agreement is designed to maintain an absolute balance: empowering artists and labels with professional digital distribution tools while ensuring full compliance with global copyright and platform regulations.
arLabs Music Digital Distribution Agreement — Powered by Music Secure