Common use of Residual Basic Increases Clause in Contracts

Residual Basic Increases. Audio-Visual Content Residual Basic Escalator 1st Broadcast % 1st Broadcast % 15 Royalties - General 15.1 The BBC can choose to make royalty payments for any and all Secondary Uses (except Repeat Broadcasts or for Commercial Audio Exploitation) as an alternative to Residual Buy-Out Fees. 15.2 Such royalties shall be: 15.2.1 calculated as the following percentage of the BBC’s (as per “Definitions” below) gross income received by the BBC, or in the case of co-productions with third-parties, deemed gross receipts. However, in the case of Home Video Exploitation where BBC Worldwide/2Entertain (or other distributor associated with the BBC) or the BBC (including its licensees and assigns) is the distributor certain reasonable deductions as may be agreed with the MU; and 15.2.2 shared between the relevant Musicians, pro-rata according to their Residual Basic. 15.3 Following a royalty payment for a particular Secondary Use, the BBC may not then pay a Residual Buy-Out Fee to terminate royalty payments for the same Secondary Use without the prior consent of the MU.