Music Licence Agreement (Hong Kong)

A Music Licence Agreement in Hong Kong grants defined rights to use the licensed subject matter on the terms it specifies.

The Copyright Ordinance (Cap. 528) grants copyright owners in Hong Kong six categories of exclusive rights over their works: reproduction, distribution, rental, performance in public, broadcasting, and making an adaptation. Any exercise of these rights by a party other than the copyright owner — without a licence — constitutes infringement under Section 22 of Cap. 528 and can attract civil liability for damages or an account of profits under Section 104 of Cap. 528, as well as criminal liability under Section 118 of Cap. 528 for commercial-scale infringement carrying up to four years' imprisonment. The Court of First Instance has jurisdiction over copyright infringement actions, and the District Court has concurrent jurisdiction for lower-value claims. The Customs and Excise Department also enforces criminal provisions of Cap. 528 through seizure of infringing copies and prosecution of commercial pirates.

Hong Kong's music licensing market is served by two principal collective management organisations (CMOs). The Composers and Authors Society of Hong Kong (CASH) — established in 1977 and affiliated with international societies including ASCAP, BMI, PRS for Music, SOCAN, and APRA AMCOS — administers performing rights and mechanical rights in musical compositions on behalf of its composer and lyricist members. Phonographic Performance (South East Asia) Limited (PPSEAL) administers public performance and broadcasting rights in sound recordings on behalf of record labels operating in Hong Kong. Businesses seeking blanket licences for background music in retail premises, restaurants, hotels, or public venues in Hong Kong typically obtain licences from both CASH and PPSEAL rather than negotiating individual direct agreements with rights holders. CASH publishes standard tariff schedules for different categories of premises including food and beverage establishments, retail shops, hotels, and broadcasting licensees.

For direct licensing — where a specific piece of music is required for a defined purpose such as a television commercial for TVB or ViuTV, a film, a corporate video, or a digital streaming platform — a bespoke Music Licence Agreement negotiated directly between the rights holder and the licensee provides greater control over territory, exclusivity, permitted uses, and royalty rates than a blanket CMO licence. The Intellectual Property Department of Hong Kong promotes established procedures in music licensing and provides guidance on copyright law under Cap. 528.

Copyright duration under Cap. 528 differs from many other jurisdictions: musical compositions attract a copyright term of 50 years from the end of the calendar year of the author's death, and sound recordings attract 50 years from the year of making or first publication — shorter than the 70-year terms applicable in the United Kingdom and European Union. Forms-legal.com provides a Music Licence Agreement template for Hong Kong tailored to Cap. 528 requirements, covering all standard licence types used in the Hong Kong music and entertainment industries.

A Music Licence Agreement in Hong Kong is needed whenever a business, broadcaster, content creator, or venue operator wishes to use music owned by another party in a way that falls within the exclusive rights granted by the Copyright Ordinance (Cap. 528). Any use of copyrighted music without a licence risks infringement proceedings under Section 22 of Cap. 528 before the Court of First Instance or the District Court.

Film and television productions — whether produced by TVB, ViuTV, independent production companies, or streaming platforms such as Netflix, Viu, or iQIYI distributing in Hong Kong — require synchronisation licences from music publishers and master licences from record labels for every piece of music incorporated into the final cut. Without written licence agreements, the production cannot be cleared for broadcast or distribution, and the rights holders can apply to the Court of First Instance for injunctions restraining release under Section 64 of Cap. 528.

Advertising agencies and brands producing television commercials, radio spots, or digital video advertisements for Hong Kong distribution need music licences covering each territory and medium in which the advertisement will appear. A synchronisation licence for a 30-second television commercial does not automatically cover online distribution on YouTube, Facebook, or Instagram — separate digital platform licences are typically required. The Intellectual Property Department in Hong Kong provides guidance on the scope of licences required for different media.

Hong Kong restaurants, bars, hotels, retail shops, and shopping malls that play recorded music — whether through streaming services, radio broadcasts, or their own playlists — need public performance licences from CASH and PPSEAL. Playing music publicly without a CASH or PPSEAL licence exposes a business to enforcement action and potential proceedings before the District Court under Section 22 of Cap. 528. The Composers and Authors Society of Hong Kong (CASH) publishes a tariff schedule for food and beverage premises, retail establishments, and hotels that is regularly updated.

Game developers, app publishers, and software companies that incorporate music into games or applications distributed in Hong Kong require mechanical licences and synchronisation licences covering all relevant territories and platforms. Music in mobile games released on the App Store and Google Play for Hong Kong users must be properly licensed under Cap. 528. The Hong Kong Intellectual Property Department and the courts apply Cap. 528 to digital distribution of music-containing apps just as strictly as to physical media.

Independent musicians, bands, and music producers operating in Hong Kong's vibrant music scene — including artists performing in Clockenflap, Le French May, and other Hong Kong music events — who grant licences to their own compositions or recordings for use in content created by influencers, brands, or media companies, need a written Music Licence Agreement recording the agreed terms, royalty rates, territory, and permitted uses to prevent future disputes over scope or payment. The agreement should reference Cap. 528 to confirm the legal basis of the rights being licensed.

A Music Licence Agreement in Hong Kong must include specific elements to clearly define the rights being licensed, protect both parties, and comply with the Copyright Ordinance (Cap. 528).

Licensor and licensee identification must state the full legal names, addresses, and — for companies — Business Registration Numbers of both parties. Where the licensor is a music publisher, record label, or CMO acting on behalf of members, their representative capacity and authority to grant the licence should be confirmed. CASH and PPSEAL are the principal CMOs in Hong Kong and their licence agreements contain CMO-specific terms.

Description of licensed works must identify the specific musical compositions or sound recordings covered by the licence with sufficient precision to avoid disputes. For a synchronisation licence, the specific version, timing, and arrangement must be described. For a blanket CASH or PPSEAL licence, the repertoire of works covered by the CMO's portfolio is typically incorporated by reference to the CMO's published repertoire list.

Scope of permitted uses defines exactly what the licensee may do with the music. The agreement must specify: whether the licence covers synchronisation, mechanical reproduction, public performance, broadcast, digital streaming, or some combination; whether the licence is exclusive or non-exclusive; whether the licensee may sublicence the rights to third parties (e.g., distributors or broadcasters); and any restrictions on the type of content with which the music may be associated.

Territory and platform clause defines the geographic territories in which the licence operates and the media or platforms covered. A Hong Kong-only licence does not cover distribution on global streaming platforms — the territory definition must match the actual distribution channels used. For digital content, territory restrictions are increasingly difficult to enforce technically, but remain legally operative.

Royalties and payment terms must specify the royalty rate structure — flat fee, percentage of revenue, per-use fee, or annual licence fee payable in HKD — the payment schedule, the accounting obligations (quarterly or semi-annual statements), and the licensee's right to audit the licensor's records. Under the Inland Revenue Ordinance (Cap. 112), royalties paid to non-Hong Kong resident rights holders are subject to Hong Kong withholding tax at a rate applied to the deemed profits portion of the royalty.

Term and termination provisions set the start and end dates of the licence, any renewal rights, and the circumstances under which either party may terminate early — including termination for breach, insolvency, or expiry of the underlying copyright. Upon termination, the licensee must typically cease all use of the licensed music and destroy or return any materials incorporating it.

Warranties and indemnities from the licensor confirming ownership of the licensed rights and the absence of third-party claims are essential. An invalid licence granted by a party without full rights exposes the licensee to infringement claims from the true rights holder. The indemnity confirms the licensor bears the cost of defending any such claims. The District Court and Court of First Instance both have jurisdiction to award damages and injunctions in music copyright disputes. Forms-legal.com offers a Music Licence Agreement template for Hong Kong covering all these elements in Cap. 528-compliant form.