SIGN UP   |

Terms of Service - Hankad | Free Music Distribution to Spotify, Apple Music & More

Terms of Service

This agreement (“Agreement”) is between you and Hankad Limited (“Hankad,” “us,” “our,” or “we”) and governs anyone (“Client” or “you”) who uses, joins, signs up, visits, purchases from, subscribes to, secures licenses through, or otherwise interacts with the Hankad website located at hankad.io (“Site”) and any of its subdomains. This Agreement also covers your use of all applications, products, platform/technical integrations, subscriptions, application programming interfaces, graphics, audio, video, images, and any other content displayed on or accessed through Hankad, whether via the website or a third-party platform (each, a “Service,” and collectively, the “Services”).

 

Background

Hankad Limited (“Hankad”) is a music services company providing digital distribution and related services. Hankad delivers content from Clients (artists, record labels, distributors, etc.) to Digital Service Providers (“DSPs”) worldwide, which specialize in reselling or displaying recordings through streaming, recording, and mobile platforms.

Pursuant to this Agreement, Client has selected Hankad to exclusively distribute content consisting of Client-owned sound and/or video recordings to DSPs. The Parties have also entered into a Terms Summary, incorporated herein by reference and displayed on the last page of this Agreement. This Agreement, including the incorporated Terms Summary, constitutes the entire agreement between the Parties (collectively, the “Agreement”).

 

Distribution by Hankad

(a) Exclusivity Client agrees that, unless otherwise specified in the Terms Summary, this Agreement is exclusive during the Term and throughout the Territory for the distribution of Client content via all digital and electronic distribution means and media (whether now known or existing in the future).

 

Client grants Hankad the exclusive right to:

  • Create digital/electronic copies and compilations.
     
  • Distribute, sell, stream, publicly perform, sublicense, and exploit Client content via electronic, digital, and mobile platforms during the Term.

Client shall not, during the Term:

  • License or attempt to license Client content to DSPs without Hankad’s prior written approval.
     
  • Directly contact, solicit, or engage in business with DSPs related to the Client content distributed by Hankad.

All pre-existing relationships with DSPs related to Client content must be disclosed to Hankad upon entering this Agreement.

(b) DSPs Hankad agrees to distribute and license Client content to DSPs that sell, distribute, transmit, stream, perform, or otherwise exploit sound and/or audiovisual recordings. Hankad shall:

  • Solicit and service DSPs.
  • Secure encoding in required formats.
  • Process delivery to DSPs.
  • Collect income from DSPs for repayment to Client (subject to this Agreement).

Hankad does not guarantee placement on any specific DSP.

(c) Territory The Territory is worldwide (“Universe”).

(d) Publishing, Compositions, and Intellectual Property Client hereby grants Hankad an exclusive, worldwide license during the Term to reproduce, distribute, publicly perform, publicly display, and otherwise exploit the musical compositions and lyrical content embodied in the Client Content, solely for the purpose of administering publishing rights and collecting publishing royalties on Client’s behalf. Client acknowledges that music publishing royalties may be paid directly to songwriters by Performing Rights Organizations (“PROs”) (e.g., MCSK, KAMP, PRISK, ASCAP, BMI, SESAC), provided songwriters comply with PRO requirements. Hankad is not responsible for PRO non-compliance or royalty delays.

(e) Publishing Administration Hankad provides publishing administration services automatically unless Client notifies Hankad in writing of working with another publisher. This service is a distinct offering, and Client retains ownership of their underlying musical compositions and lyrics. Hankad’s role is solely to administer and collect publishing royalties pursuant to the license granted in Section 3(d).

(f) Synchronization Licensing If synchronization licensing is desired, Parties may enter a separate agreement.

(g) Neighboring Rights Collection If neighboring rights collection is desired, Parties may enter a separate agreement.

(h) Marketing Marketing Tools (e.g., DSP placements, promotions) are not guaranteed. Hankad will use reasonable efforts to promote Client content. Client must supply promotional materials, and Hankad may create additional marketing tools.

Client Content

(a) Definition All sound recordings, video recordings (short/long-form), artwork, and metadata delivered to Hankad during the Term.

(b) Delivery Client must deliver content via Hankad’s online Management System (“hankad.io”) upon Agreement execution. Content must meet Hankad’s specifications and include copyright notices. Hankad confirms delivery in writing.

(c) Modifications by DSPs DSPs may modify content metadata (e.g., genre, artist name, cover art display), or reformat audio/video files to meet their technical specifications, at their discretion. Hankad distributes content “as is” but cannot control all DSP-specific alterations.

(d) Storage Client is solely responsible for content backup. Hankad may store files for distribution but is not obligated to retain content post-Term.

(e) Updates Client must ensure content is final before submission. Change requests must be submitted via hankad.io. Hankad cannot guarantee DSP compliance with changes post-submission.

(f) Takedowns A takedown request for legitimate reasons (e.g., content removal due to updated versions or genuine error) may incur an administrative fee of €30 per product. However, Hankad reserves the right to waive this fee at its discretion for initial legitimate requests. Client must reimburse Hankad for legal fees/damages related to Claims or takedown requests arising from Client’s breach of this Agreement, content infringement, or fraudulent activity.

(g) DSP Specifications Hankad will assist in meeting DSP requirements but cannot guarantee approval.

Term Initial Term: Three (3) years from Effective Date, auto-renewing for successive one (1) year periods unless terminated with sixty (60) days’ notice prior to the end of the then-current term. Termination Notice must be sent via Hankad’s contact page or as per Section 17.

Fees, Royalties, and Accounting

(a) Royalty Details 80% of net royalties received by Hankad from DSPs paid to Client. “Net royalties” means gross royalties received by Hankad from DSPs, less any payment processing fees, bank charges, and applicable taxes. Threshold: €50 required for payment. Fees: €0.75 (ISRC), €1 (UPC). 

(b) Royalties Calculated by DSPs, subject to exchange rates. Mechanical royalties may be paid directly to publishers or via Hankad’s publishing administration service, if applicable. Real-time streaming data is an estimate, not a guarantee.

(c) Monthly Accounting Statements available electronically. Payment issued within 30 business days of invoice. 15.82% withholding tax applies.

Audit

Client may audit Hankad’s records within 6 months of Statement issuance, subject to conditions.

Third-Party Obligations

Client is solely responsible for payments to affiliated artists, producers, and third-party licenses related to their content.

Intellectual Property Ownership

Client warrants ownership/control of all delivered content (including master recordings, underlying musical compositions, and lyrics) and grants Hankad the licenses as specified in this Agreement for distribution and promotion. Client retains all ownership rights, title, and interest in and to the Client Content, subject to the licenses granted to Hankad herein.

Termination and Breach

Hankad may terminate for breach, misconduct, or exclusivity violations. Client has 20 days to cure exclusivity breaches. Illegal streaming manipulation (e.g., bots, artificial streams, or any fraudulent activity intended to inflate streaming numbers or royalty earnings) by Client or any third party acting on Client’s behalf, will result in immediate investigation, potential termination of services, and the withholding or forfeiture of all associated payments. Hankad reserves the right to recover any damages incurred as a result of such manipulation.

Indemnification

Client indemnifies Hankad against third-party claims related to content infringement, breach of warranties, or fraudulent activities.

Confidentiality

Client must protect Hankad’s Confidential Information unless disclosure is legally required. “Confidential Information” includes, but is not limited to, Hankad’s proprietary software, business models, financial data (other than Client’s own statements), technical specifications, and internal operational details.

Governing Law

This Agreement is governed by Kenyan law.

Terms Summary

  • Royalties: 80% of net royalties (after deductions).
  • Threshold: €50 required for payment.
  • Term: 3 years, auto-renewing for 1-year periods.
  • Tax: 15.82% withholding tax.
  • Exclusivity: Worldwide, for all Client content (distribution and publishing administration license).
  • Territory: Worldwide
  • Client IP Ownership: Client retains ownership of their IP (masters, compositions, lyrics); Hankad receives a license for distribution and publishing administration.