What does Buyout (Usage) mean?
Buyout Usage refers to a contract term where a performer, model, or creator agrees to a one-time, lump-sum payment for the use of their work or likeness, rather than receiving residuals or ongoing royalties. This term is often used in commercial, print, or voiceover work, where the client prefers to own the rights outright without paying additional fees based on future use. A buyout agreement gives the client full usage rights, typically for a set term or even in perpetuity, without future compensation to the performer.
Example:A voice actor agreed to a buyout usage contract for a commercial, receiving a single payment instead of residuals for each airing.
Example: A model signed a buyout agreement for a print ad campaign, giving up future royalties for a one-time lump sum payment.
Did You Know?
Buyout usage can be beneficial for performers who prefer upfront payment, but it limits their potential to earn from the project in the future!
